Agenda packet — Finance Committee, September 14, 2026

City Council Chambers
29844 Haun Road
Menifee, CA 92586
Ricky Estrada, Mayor
Dean Deines, District 4
AGENDA
Finance Committee
Regular Meeting Agenda
Monday, September 14, 2026
5:30 PM Regular Meeting
Travis Hickey, Chief Financial
Officer
Rachel Valencia, Meeting Clerk
REGULAR MEETING (5:30 PM)

1. CALL TO ORDER

2. ROLL CALL

3. PRESENTATIONS NONE

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

5. APPROVAL OF MINUTES

5.1 July 14, 2026 Finance Committee Meeting Minutes

6. DISCUSSION ITEMS

6.1 CalFIT Stable Value Local Government Investment Pool RECOMMENDED ACTION

1. Receive and file presentation on a participant account with the California Fixed Income Trust (CalFIT), a joint powers authority (JPA) local government investment pool (LGIP), in order to invest in shares of the CalFIT Stable Value Pool.

6.2 City of Menifee Annual Cash & Investment Overview
RECOMMENDED ACTION

1. Receive and file presentation on City of Menifee’s Annual Cash & Investment Overview for the July 1, 2025 to June 30, 2026 period.

6.3 Formation of Community Facilities District (CFD) 20263, Cypress Sands, and formation of Public Safety CFD, 2026S
RECOMMENDED ACTION

1. Review the proposed Community Facilities District (“CFD”) 20263 to finance certain costs of public improvements for the development of 132 townhomes located at the southwest corner of Chambers Avenue and Antelope Road and recommend submittal to the City Council for consideration.

2. Review the proposal for Cypress Sands to be the cornerstone project for the City’s formation of Public Safety CFD, 2026S, and recommend submittal to the City Council for consideration.

7. STAFF COMMENTS

8. COMMITTEE MEMBER UPDATES AND COMMENTS

9. FUTURE AGENDA ITEMS

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

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

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

Affidavit of the Posting
I, Rachel Valencia, do hereby certify, under penalty of perjury, that the Monday, September 14, 2026 Finance Committee meeting agenda was posted at least 72 hours prior to the meeting in the following locations per Cal. Gov.

Code, § 54954.2, subd. (a)(1): Menifee City Hall, 29844 Haun Road, Kay Ceniceros Community Center, 29995 Evans Road, and the City of Menifee website.

Menifee Finance Committee
September 14, 2026

Page 1 of 155 ends

1. CALL TO ORDER

2. ROLL CALL

3. PRESENTATIONS NONE

5. APPROVAL OF MINUTES

5.1 July 14, 2026 Finance Committee Meeting Minutes

6. DISCUSSION ITEMS

6.1 CalFIT Stable Value Local Government Investment Pool RECOMMENDED ACTION

6.2 City of Menifee Annual Cash & Investment Overview
RECOMMENDED ACTION

1. Receive and file presentation on City of Menifee’s Annual Cash & Investment Overview for the July 1, 2025 to June 30, 2026 period.

6.3 Formation of Community Facilities District (CFD) 20263, Cypress Sands, and formation of Public Safety CFD, 2026S
RECOMMENDED ACTION

2. Review the proposal for Cypress Sands to be the cornerstone project for the City’s formation of Public Safety CFD, 2026S, and recommend submittal to the City Council for consideration.

7. STAFF COMMENTS

8. COMMITTEE MEMBER UPDATES AND COMMENTS

9. FUTURE AGENDA ITEMS

Code, § 54954.2, subd. (a)(1): Menifee City Hall, 29844 Haun Road, Kay Ceniceros Community Center, 29995 Evans Road, and the City of Menifee website.

Menifee Finance Committee
September 14, 2026

Page 2 of 155 ends

City Council Chambers
29844 Haun Road
Menifee, CA 92586
Ricky Estrada, Mayor
Dean Deines, District 4

MINUTES
Finance Committee
Regular Meeting Minutes
Tuesday July 13, 2026
2:00 PM Regular Meeting
Travis Hickey, Chief Financial
Officer
Charles Benjamin, Meeting Clerk
REGULAR MEETING (2:00 PM)

1. CALL TO ORDER
Mayor Estrada called the meeting to order at 2:00 PM.

2. ROLL CALL

Present: Ricky Estrada, Dean Deines

Absent: None

3. PRESENTATIONS - NONE
There were no presentations.

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

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

5.1 May 12, 2026 Finance Committee Meeting Minutes

6. DISCUSSION ITEMS

6.1 Proposed Bond Issuance for Community Facilities District No. 2025-2, Quartz Trail.

Chief Financial Officer Hickey provided a presentation. The Committee asked questions of staff. The item was approved unanimously (2-0).

ACTION

1. Received staff report for Community Facilities District ("CFD") No. 2025-2, Quartz Trail to finance the costs of certain public improvements in connection with the development of 80 homes located southeast of Holland Road and Evans Road within the City of Menifee.

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

Item: 5.1
Item Page Number: 1
Menifee Finance Committee September 14, 2026 Page 3 of 155

7. STAFF COMMENTS
Mayor Estrada requested that the November 10, 2026 Finance Committee meeting be rescheduled to November 17, 2026, at 4:00 PM. The request was approved unanimously (2-0).

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

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

9. ADJOURNMENT
The meeting was adjourned at 2:18 PM.
____________________________________
Charles Benjamin, Records Technician
Item: 5.1
Item Page Number: 2
Menifee Finance Committee September 14, 2026 Page 4 of 155

CITY OF MENIFEE
SUBJECT: CalFIT Stable Value Local Government Investment Pool MEETING DATE: September 14, 2026
TO: Finance Committee
PREPARED BY: Amir Zaki, Finance Manager
REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

DISCUSSION
CalFIT is a JPA created in 2025 with the objective of meeting the investment needs of local governments seeking to invest its most liquid funds such as operating cash. CalFIT is governed by a board of trustees comprising California local government finance officials from Alameda, Lake, and San Diego Counties, and San Diego County Water Authority. As a result, the Trust is accountable solely to its public agency Shareholders.

The Trust’s Stable Value Portfolio (Pool) is a short-term portfolio which, in order of priority, seeks to preserve principal, provide daily liquidity and earn a high level of income. The Pool is a short- term investment alternative for California public agencies permitted under California Government Code §53601(p).
Seeks to maintain a stable net asset value of Pool shares Is rated AAAm by S&P Global
Maintains a short weighted average maturity
Offers same-day liquidity if notified by noon
Meets GASB 79 criteria designed to protect liquidity for Participants Accrues income daily, pays monthly
Requires no minimum or maximum investment, and no limit on the number of accounts Offers complimentary arbitrage rebate reporting services for invested bond proceeds for eligible Participants
Item: 6.1
Item Page Number: 1
Menifee Finance Committee September 14, 2026 Page 5 of 155

City of Menifee Staff Report
CalFIT Stable Value Local Government Investment Pool
September 14, 2026

Page 2 of 2 ends

3 5
4 7
CalFIT is also the only JPA LGIP currently based and managed in the State of California. City staff envisions utilizing CalFIT for its operating cash in order to diversify its liquidity options and enhance its return potential.

As with all other LGIPs, all expenses of the Pool are deducted from the Pool’s yield. There are no out-of-pocket expenses for money invested in CalFIT.

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

ATTACHMENTS

1. CalFIT Stable Value Pool Fact Sheet as of July 31, 2026 Item: 6.1
Item Page Number: 2
Menifee Finance Committee September 14, 2026 Page 6 of 155

Portfolio Statistics
7-Day Yield: 3.80%
30-Day Yield: 3.79%
WAM: 48 days
WAL: 76 days
Fund Assets: $893 million
Portfolio Composition
Portfolio Credit Quality
Portfolio Maturity Distribution
7-Day Yields
Stable Value Pool
Fact Sheet
S&P rating: AAAm As of July 31, 2026
©2026 Chandler Asset Management, Inc. An independent, SEC-Registered investment adviser. This report is provided for informational purposes only and should not be construed as specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as an indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation, or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment. Fixed income investments are subject to interest rate, credit, and market risk. Interest rate risk: The value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low-rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market, in general, could decline due to economic conditions, especially during periods of rising interest rates. Portfolio Credit Quality ratings are derived from S&P Global Ratings. Portfolio Maturity Distribution reflects GASB 79 rules for direct and non-direct U.S. government securities.

Managed by a Firm with a Public Sector Focus
• Chandler Asset Management, Inc. (Chandler) is the investment adviser and operational manager for CalFIT. Founded in 1988, Chandler managed $48.8 billion in assets, including more than $38.3 billion for local governments in California, as of 7/31/26.

Conservative Investment Approach
• The portfolio seeks to maintain $1.00 net asset value with a maximum weighted average maturity of 60 days and a maximum weighted average life of 90 days.
• CalFIT invests in various types of debt obligations including obligations guaranteed by the full faith and credit of the United States, U.S.-government agency obligations, corporate
obligations, asset-backed securities, bank obligations and other obligations permitted by applicable California government code. • The portfolio is also managed to the requirements of GASB 79, which requires 10% daily and 30% weekly liquidity.

For more information, please contact us:
• Phone: 844-915-5700
• Website: www.calfitfund.com
• Email: [email protected]
U.S.

Treasuries,
14%
Government
Agencies, 0.8%
Asset Backed
Commercial
Paper, 13.7%
Commercial
Paper, 25.6%
Certificates
of Deposit,

29.1%
Repurchase
Agreements,

16.9%
Money
Market
Funds, 0.04%
1 to 7 days,

23.9%
8 to 30 days,

12.5%
31 to 90 days,

30.9%
91 to 180
days, 21.9%
181+ days,

10.9%
AAAm, 0.04%
A-1+, 35.5%
A-1, 64.4%

3.60%

3.65%

3.70%

3.75%

3.80%

3.85%

3.90%

3.95%

4.00%
12/30/25 1/30/26 2/28/26 3/31/26 4/30/26 5/31/26 6/30/26 7/31/26 Item: 6.1
Item Page Number: 3
Menifee Finance Committee September 14, 2026 Page 7 of 155

CITY OF MENIFEE
SUBJECT: City of Menifee Annual Cash & Investment Overview MEETING DATE: September 14, 2026
TO: Finance Committee
PREPARED BY: Amir Zaki, Finance Manager
REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Receive and file presentation on City of Menifee’s Annual Cash & Investment Overview for the July 1, 2025 to June 30, 2026 period.

DISCUSSION
The City of Menifee’s Investment Policy, CC-11, was created in 2008 and is reviewed/updated annually with the purpose to establish guidelines for investment operations of the City. Pursuant to the policy, the City of Menifee will foster a prudent and systematic investment program designed to seek the City of Menifee’s objectives of safety, liquidity, and return through a diversified investment portfolio. The treasury responsibilities of the City are managed by the Finance Department, under direction and oversight of the Chief Financial Officer (CFO)/City Treasurer, and within the Accounting and Treasury unit. In its treasury operations, the City maintains its cash assets within three main categories:

1.General Checking/Savings Accounts: (Most Liquid/Accessible, no investment returns). The General Checking is not an interest-bearing account, however, the bank calculates an “earnings credit” based on average daily balances. The earning credit is applied to charges for banking services. At the end of Fiscal year (FY) 2026, the balance was $9,804,240,54 and deposits averaged $14.2 million/month while withdrawals averaged $14.4 million/month. The City’s savings account received an annual percentage yield of 0.09% monthly and at June 30, 2026 had a balance of $47,934.87. The City also maintains a separate asset forfeiture account to deposit and manage any funds taken into custody under asset forfeiture by the Police Department.

The balance in this account at June 30, 2026, was $76,202.23. The final bank account is used for the Flexible Spending Account, the funding of which is by employees through an annual election during open enrollment. As eligible medical purchases are Item: 6.2
Item Page Number: 1
Menifee Finance Committee September 14, 2026 Page 8 of 155

City of Menifee Staff Report
City of Menifee Annual Cash & Investment Overview
September 14, 2026

Page 2 of 3 ends

3 5
4 6
made, these funds are utilized to reimburse employees. The balance in this account at June 30, 2026 was $324,379.33.

2.Short-Term Investment Pools (LAIF/CAMP) (Second most liquid, accessible within 24-hour turnaround. Provide opportunity for investment returns and more accessibility to funds than longer term investments, but interest rates can quickly change with economic changes). Over FY2025/26 the monthly average balance of short-term investments represented approximately $127.3 million, with investment returns of just over $5.1 million for the FY2025/26 period.

3.Longer-Term Investment Portfolio (Managed by Chandler Asset Management) (Least Liquid/Accessible, generally covering investment periods of 2-5 years, but provide the opportunity to lock in favorable interest rates/earnings). Over FY2025/26 the monthly average market value of long-term investments represented approximately $137 million with investment returns of just under $5.4 million for the FY2025/26 period.

Additionally, the City has other funds and associated investments held by Wilmington Trust and Public Agency Retirement Services (PARS), as designated trustees. The Wilmington Trust accounts are related to the various bonded CFDs, as well as debt service payments of the TRIP and Streetlight Retrofit projects. The bonded CFDs which hold larger balances, particularly at the initial bond issuance(s), have designated investment option selected at the establishment of the various accounts held by Wilmington Trust. The PARS funds relate to the Section 115 Trust accounts set up for pension and other post-employment benefits (OPEB) costs. The balance of these others funds at June 30, 2026 were $24,549,475.52.

Overall, the City’s cash management and investment strategy is to ensure that it has immediate access to the necessary cash it needs to support its on-going operational and capital program costs throughout the year, but that it also is able to safely and proactively invest some its cash holdings, providing interest earnings that can ultimately be redirected into providing city services and capital projects.

FY2025/26 Investment Portfolio Performance Summary:

Monthly reporting in the form of a Treasurer’s Report is presented at the City Council meetings throughout the year. Additionally, every three months a more comprehensive Quarterly Report with detailed transactions is included as a regular City Council agenda item.

The purpose of this report is to provide a year long (12-month) lookback at the City’s investment portfolio for FY2025/26. In summary, the City’s investment portfolio maintained compliance with the requirements of the Investment Policy, and investment earnings performed strongly through the past 12 months. This is attributable to important factors such as the consolidation of the City’s Longer-Term Investment Portfolio under one investment advisor beginning with the spring of 2024, additional contributions to increase both short-term and longer-term investment balances throughout the year, and an overall favorable interest rate environment in both short-term and long-term investments over this period. Of note is that in this time period the short-term investment return rates were strong, but the agency recognizes these rates are more susceptible to quicker changes resulting from economic uncertainties and changes. We did see a weakening of rates during FY2025/26 as compared to FY2024/25, but rates have continued to hold steady as compared to the past 15 years or more.

Item: 6.2
Item Page Number: 2
Menifee Finance Committee September 14, 2026 Page 9 of 155

City of Menifee Staff Report
City of Menifee Annual Cash & Investment Overview
September 14, 2026

Page 3 of 3 ends

3 5
4 6
Table 1: FY 2026 Overall Investment Portfolio Performance Summary: Short-Term Investment
Portfolio
Investment
Type/
Investment
Category
Beginning
Market Value
07/01/2025
Ending Market
Value
06/30/2026
Investment
Returns
(Cash
Dividends/
Interest)
Monthly Interest
Earnings Rate (%)
Range
CAMP
Pool/
Short-Term $87,788,589.54 $109,874,986.62 $3,586,397 3.76 – 4.41% LAIF
Pool/
Short-Term 35,871,155.71 37,411,279,74 1,540,123 3.81 – 4.258% Total Short-Term
Investments $123,659,745.25 $147,286,266.36 $5,126,520
Table 2: FY 2025 Overall Investment Portfolio Performance Summary: Longer-Term Investment
Portfolio
Investment
Type/
Investment
Category
Beginning
Market Value
07/01/2025
Ending Market
Value
06/30/2026
Investment
Returns
Average Market
Yields
Chandler
Asset
Management Longer-Term $134,245,629.99 $138,231,391.11 $5,387,702 3.61% - 4.00% The City’s long-term investment portfolio is managed with the support of Chandler Asset Management as the day-to-day investment advisor. Chandler supports the long-term investment goals of the City while effectively ensuring the portfolio remains in compliance with the City’s Investment Policy, CA Government Code and any other applicable investment rules/laws.

A presentation on the City’s long-term investment performance for FY 2026 has been prepared by Chandler Asset Management and is presented to the Finance Committee for receipt and file.

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

ATTACHMENTS

1. Chandler Asset Management Investment Report as of June 30, 2026

2. Chandler Asset Management Cash Flow Analysis
Item: 6.2
Item Page Number: 3
Menifee Finance Committee September 14, 2026 Page 10 of 155

INVESTMENT REPORT
City of Menifee | As of June 30, 2026
CHANDLER ASSET MANAGEMENT | chandlerasset.com
Chandler Team:

For questions about your account, please call (800) 317-4747, or contact [email protected]
Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement.

Item: 6.2
Item Page Number: 4
Menifee Finance Committee September 14, 2026 Page 11 of 155

TABLE OF CONTENTS

ECONOMIC UPDATE

ACCOUNT PROFILE

PORTFOLIO HOLDINGS

TRANSACTIONS
1 Item: 6.2
Item Page Number: 5
Menifee Finance Committee September 14, 2026 Page 12 of 155

ECONOMIC UPDATE
2 Item: 6.2
Item Page Number: 6
Menifee Finance Committee September 14, 2026 Page 13 of 155

▪
▪
▪
Energy prices and inflation remained the primary drivers of the macro backdrop as the U.S.-Israel-Iran conflict entered its third month, disrupting global oil supply. Headline CPI accelerated at the fastest pace in more than three years, reflecting volatility in the energy component. Crude oil, however, retraced roughly 20% from its May–early June peak as diplomatic progress between the United States and Iran pointed to a potential framework for de-escalation. The labor market remained resilient, with continued payroll growth and subdued jobless claims. Risk assets held firm, as equities hovered near record highs and credit spreads remained historically tight amid broadly better-than-expected corporate earnings. Taken together, the current market environment has further constrained the case for near-term monetary policy easing, leading the Chandler team to push out its expected timing for rate cuts beyond the six-month investment horizon.

The Federal Reserve’s June FOMC meeting ended with policymakers unanimously holding the target range at 3.50%–3.75%, a notable shift from the8–4 split at April’s meeting, which marked JeromePowell’s final session as Chair. Under new Chair Kevin Warsh, sworn in on May 22, the Committee released an unusually concise statement that referenced Middle East tensions and energy supply disruptions while removing prior forward guidance that had suggested a bias toward rate cuts. Updated projections leaned more hawkish, with 9 of 18 officials expecting at least one rate hike this year and 6 anticipating multiple increases. The shift signals that restoring price stability has reemerged as the central focus of monetary policy deliberations.

The Treasury yield curve flattened modestly in June as short-term yields responded to a more hawkish shift in Federal Reserve guidance.

The 2-year yield rose to 4.15% from 3.98% the prior month, while the 10-year yield edged down slightly to 4.44% from 4.45%. As a result, the 2s/10s spread narrowed to 29 basis points, down from roughly 47 basis points a month earlier and significantly below the 69 basis point spread at the start of the year. Meanwhile, the 3-month/10-year spread remained positive at 64 basis points. Front-end rates absorbed the bulk of the Fed’s updated rate outlook, while longer maturities were partly anchored by a late-month decline in oil prices.

ECONOMIC UPDATE
3 Item: 6.2
Item Page Number: 7
Menifee Finance Committee September 14, 2026 Page 14 of 155

-400
-200
0 200
400
600
800
1,000MOM Change In Thousands (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3-month average (000's)

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
Nonfarm payrolls increased by just 57,000 in June, well below the 113,000 consensus and marking a sharp slowdown from May’s pace. The unemployment rate edged down to 4.2%, though the decline was driven by a drop in labor force participation to 61.5%, its lowest level since March 2021. Revisions further weakened the report’s signal. April payrolls were revised down by 31,000 to 148,000, while May was lowered by 43,000 to 129,000, resulting in a combined two-month downward revision of 74,000.

Source: US Department of Labor Source: US Department of Labor

EMPLOYMENT
4 Item: 6.2
Item Page Number: 8
Menifee Finance Committee September 14, 2026 Page 15 of 155

0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
Job Openings
Recession
Historical Average
In Thousands (000's)
Job openings were essentially unchanged at 7.6 million in May, remaining elevated by historical standards even as hiring momentum moderates. Gains in wholesale trade and accommodation and food services were offsetby declines in health care and social assistance, as well as finance and insurance. April openings were revised down by 33,000 to 7.6 million, while hires were revised up by 99,000, highlighting ongoing churn but a broadly stable labor market backdrop.

Source: US Department of Labor

JOB OPENINGS & LABOR TURNOVER SURVEY
5 Item: 6.2
Item Page Number: 9
Menifee Finance Committee September 14, 2026 Page 16 of 155

Source: Bloomberg Indices Source: Bloomberg Indices

ENERGY MARKETS
Crude oil prices declined sharply in June as supply disruptions tied to the Middle East conflict began to ease. Tanker traffic through the Strait of Hormuz normalized, and signs of progress in U.S.–Iran negotiations helped unwind the geopolitical risk premium that had driven prices higher earlier in the year. West Texas Intermediate settled near $69.37 per barrel on June 30, while Brent crude closed around $72.96, both well below their recent peaks. Brent’s 21% monthly decline marked its steepest drop since March 2020, while WTI fell more than 20%, its largest monthly loss since late 2021. Beyond crude, broader energy markets also softened. Refined product cracks narrowed as gasoline and diesel demand showed signs of seasonal moderation, while U.S. natural gas prices remained range-bound amid ample storage and steady production. Taken together, the retracement in oil and broader energy prices reflects a rapid compression in geopolitical risk premia and improved near-term supply visibility, even as underlying structural risks in the region remain unresolved.

2.00 2.50

3.00 3.50

4.00 4.50

5.00 5.50

6.00 6.50
US Fuel Prices
Average Retail Price US Diesel
Average Retail Price US Gas
($) Per Gallon
40 60
80 100
120
140
160
Oil Prices
West Texas Intermediate (WTI Spot
Cushing)
Dated Brent (Global Spot)
Price Per Barrel (WTI Spot)
6 Item: 6.2
Item Page Number: 10
Menifee Finance Committee September 14, 2026 Page 17 of 155

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY %
Change
PCE Core Deflator YOY %
Change
Fed Target
YOY (%) Change

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY %
Change
YOY (%) Change
Inflation decelerated sharply in June, with the Consumer Price Index falling 0.4% on the month—its largest decline since the onset of the pandemic in 2020—and bringing the annual rate down to 3.5% from 4.2% in May. Core CPI (excluding food and energy) was flat on the month and rose 2.6% year over year, both coming in softer than expected after energy-driven pressures pushed inflation to a three-year high earlier in the quarter. The CPI report suggests at least a near-term reprieve in inflation. However, the latest available Personal Consumption Expenditures (PCE) price index tells a firmer story: headline PCE rose 0.4% in May and 4.1% year over year, up from 3.8% in April and marking the highest annual rate of the current cycle. Core PCE increased 0.3% on the month and 3.4% over the year. Energy prices remained the primary driver of recent headline acceleration, reflecting supply disruptions tied to the Iranian conflict, although price volatility remains elevated.

Source: US Department of Labor Source: US Department of Commerce

INFLATION
7 Item: 6.2
Item Page Number: 11
Menifee Finance Committee September 14, 2026 Page 18 of 155

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%
Retail Sales YOY % Change
YOY (%) Change
Retail sales presented a firmer picture of consumer spending in June, rising 0.2% on the month and 6.7% year over year, while May’s gain was revised up to 1.0%. The control group, which feeds directly into GDP, increased a solid 0.5%, suggesting demand remains more resilient than sentiment alone would indicate. Consumer confidence improved modestly, with the Conference Board’s index edging up 0.6 points to 91.2 in June. However, the headline gain obscures continued weakness in labor market perceptions,as the share of respondents reporting jobs as “hard to get” climbed to a five-and-a-half-year high. Overall, spending has remained notably more resilient than sentiment in recent months.
0 20
40 60
80 100
120
140
160
Index Level
Consumer Confidence
Recession
Source: US Department of Commerce Source: The Conference Board All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09)

CONSUMER
8 Item: 6.2
Item Page Number: 12
Menifee Finance Committee September 14, 2026 Page 19 of 155

-25.0%
-20.0%
-15.0%
-10.0%
-5.0%

0.0%

5.0%

10.0%

15.0%
Leading Economic Indicators (LEI)
Recession
YOY (%) Change
-1.00
-0.75
-0.50
-0.25

0.00 0.25

0.50 0.75

1.00 Chicago Fed National Activity Index (CFNAI)
Recession
3 Month Average
The Conference Board’s Leading Economic Index (LEI) edged up 0.1% in May to 99.3, following a revised 0.2% increase in April. Despite the monthly gains, the LEI’s six- and twelve-month growth rates remained negative at -0.6% and -1.5%, respectively. The advance was driven primarily by financial components, including equity prices and the interest rate spread, while consumer expectations continuedto weigh on the index. The Chicago Fed National Activity Index fell to -0.10 in May from an upwardly revised 0.19 in April. Production-related and employment-related indicators each subtracted from the index, while the sales, orders, and inventories category made a small positive contribution.

Source: The Conference Board Source: Federal Reserve Bank of Chicago

LEADING INDICATORS OF ECONOMIC ACTIVITY
9 Item: 6.2
Item Page Number: 13
Menifee Finance Committee September 14, 2026 Page 20 of 155

0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400In Thousands of Units
Annualized Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
Housing starts rebounded in June, rising to a seasonally adjusted annual rate of 1.427 million—a 19% increase from an upwardly revised

1.199 million in May. The gain was driven primarily by multifamily construction, with starts surging more than 76% month over month to 532,000 units, while single-family starts edged down slightly to 895,000. Home price growth showed tentative signs of firming, as the S&P CoreLogic Case-Shiller 20-City Composite rose 1.1% year over year in April, marking its first acceleration since November 2025 and following an upwardly revised 0.9% increase in March. Meanwhile, borrowing costs remained elevated, with FreddieMac’s average 30-year fixed mortgage rate ticking up to 6.49% in June from 6.44% in May, continuing to weigh on affordability for prospective buyers.

Source: US Department of Commerce Source: S&P
-20.0%
-16.0%
-12.0%
-8.0%
-4.0%

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

24.0%
S&P/Case-Shiller 20 City Composite Home Price Index
Recession
YOY (%) Change

HOUSING
10 Item: 6.2
Item Page Number: 14
Menifee Finance Committee September 14, 2026 Page 21 of 155

40 45
50 55
60 65
70 Institute of Supply Management (ISM) Surveys
ISM Manufacturing ISM Services

EXPANDING

CONTRACTING
Manufacturing activity cooled slightly in June, with the Institute for Supply Management's Manufacturing Index easing to 53.3%, down 0.7 percentage point from May but still marking a sixth consecutive month of expansion. Services activity also moderated, as the ISM Services Index eased to 54.0% from 54.5%, a twenty-fourth consecutive monthin expansion territory. Business activity and new orders both slowed, though the employment component jumpedto 51.2% from 47.9%, its strongest reading since late 2021 and the first expansion in services hiring in four months.

Source: Institute for Supply Management

PURCHASING MANAGERS INDEX (PMI)
11 Item: 6.2
Item Page Number: 15
Menifee Finance Committee September 14, 2026 Page 22 of 155

Components of GDP 6/25 9/25 12/25 3/26

1.7% 2.3% 1.3% 0.4%
-2.7% 0.0% 0.4% 1.4%

4.8% 1.6% -0.2% -0.4%
-0.4% 0.2% -1.2% 0.6%

0.3% 0.2% 0.2% 0.2%

3.8% 4.4% 0.5% 2.1%
State and Local (Consumption and Gross
Investment)
Personal Consumption Expenditures
Gross Private Domestic Investment
Net Exports and Imports
Federal Government Expenditures
Total
-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Source: US Department of Commerce Source: US Department of Commerce Real gross domestic product increased at an annualized rate of 2.1% in the first quarter of 2026, according to the Bureau of Economic Analysis’ third estimate, up from 1.6%in the prior estimate andan acceleration from 0.5% in the fourth quarterof 2025. The 0.5 percentage point upward revision was driven primarily by a downward revision to imports—which subtract from GDP—partly offset by a downward revision to consumer spending.

GROSS DOMESTIC PRODUCT (GDP)
12 Item: 6.2
Item Page Number: 16
Menifee Finance Committee September 14, 2026 Page 23 of 155

Source: Federal Reserve Source: Bloomberg
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
Recession
In $ millions
The Federal Open Market Committee (FOMC) held the target range for the federal funds rate at 3.50% to 3.75% at its June 16–17 meeting, with a unanimous 12–0 vote. This marked a notable shift from the Aprilmeeting—Jerome Powell’slast as chair—which saw four dissents in an 8–4 decision. The return to consensus under Chair Kevin Warsh signals a clear change in tone. Minutes from the June meeting are scheduled for release in early July. The June Summaryof Economic Projections reflected a more hawkish outlook. The median projection for the federal funds rate at year-end 2026 rose to 3.8%, up from 3.4%in March, before easing to 3.6% in 2027 and 3.4% in 2028. Officials also revised their inflation forecasts, with headline PCE projected at 3.6% in 2026 (from 2.7%) and core PCE at 3.3%. By contrast, median projections for real GDP growth and the unemployment rate—2.2% and 4.3%, respectively—were little changed.

FEDERAL RESERVE

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%
Effective Federal Funds Rate
Recession
Yield (%)
13 Item: 6.2
Item Page Number: 17
Menifee Finance Committee September 14, 2026 Page 24 of 155

Source: Bloomberg Source: Bloomberg

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%
US Treasury Yield Curve
Jun-26
Mar-26
Jun-25
Yield (%)
Treasury yields ended June mixed, with a modest flattening across the curve as markets digested a more hawkish Federal Reserve signal.

The 2-year yield rose to 4.15% from 3.98% at the end of May, while the 10-year yield edged down to 4.44% from 4.45%. The 2s/10s spread narrowedto 29 basis points, down from 47 basis points a month earlier. The 3-month/10-year spread remained positive at roughly 64 basis points at month-end. Relativeto the 69 basis point spread at the start of 2026, the curve has flattened materially year to date, reflecting a repricing higher in front-end rates as expectations shift toward the possibility of further Fed tightening rather than easing.

BOND YIELDS
14 Item: 6.2
Item Page Number: 18
Menifee Finance Committee September 14, 2026 Page 25 of 155

ACCOUNT PROFILE
15 Item: 6.2
Item Page Number: 19
Menifee Finance Committee September 14, 2026 Page 26 of 155

OBJECTIVES
Investment Objectives
The City of Menifee's investment objectives, in order of priority, are to provide safety to ensure the preservation of capital in the overall portfolio, provide sufficient liquidity for cash needs and a market rate of return consistent with the investment program.

Chandler Asset Management Performance Objective
The performance objective for the portfolio is to earn a total rate of return through a market cycle that is equal to or above the return on the benchmark index.

Strategy
In order to achieve these objectives, the portfolio invests in high quality fixed income securities consistent with the investment policy and California Government Code. 16 Item: 6.2
Item Page Number: 20
Menifee Finance Committee September 14, 2026 Page 27 of 155

STATEMENT OF COMPLIANCE
City of Menifee | Account #10112 | As of June 30, 2026
Rules Name Limit Actual Compliance
Status Notes

AGENCY MORTGAGE SECURITIES
Max % (MV) 100.0 9.1 Compliant
Max % Issuer (MV; Agencies & Agency CMOs) 25.0 9.1 Compliant Max Maturity (Years) 5.0 4.6 Compliant

ASSET-BACKED SECURITIES (ABS)
Max % (MV; Non Agency ABS & MBS) 20.0 7.4 Compliant
Max % Issuer (MV) 5.0 1.3 Compliant
Max Maturity (Years) 5 4 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant

BANKERS' ACCEPTANCES
Max % (MV) 40.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 180 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Compliant

CERTIFICATE OF DEPOSIT PLACEMENT SERVICE
(CDARS)
Max % (MV) 30.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant

COLLATERALIZED BANK DEPOSITS
Max % (MV) 20.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant

COLLATERALIZED TIME DEPOSITS (NON-

NEGOTIABLE CD/TD)
Max % (MV) 20.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant

COMMERCIAL PAPER
Max % (MV) 25.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 270 0.0 Compliant
17 Item: 6.2
Item Page Number: 21
Menifee Finance Committee September 14, 2026 Page 28 of 155

STATEMENT OF COMPLIANCE
City of Menifee | Account #10112 | As of June 30, 2026
Rules Name Limit Actual Compliance
Status Notes
Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Compliant

CORPORATE MEDIUM TERM NOTES
Max % (MV) 30.0 27.0 Compliant
Max % Issuer (MV) 5.0 1.3 Compliant
Max Maturity (Years) 5 4 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant

FDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE
CD/TD)
Max % (MV) 20.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant

FEDERAL AGENCIES
Max % (MV) 100.0 2.4 Compliant
Max % Issuer (MV; Agencies & Agency CMOs) 25.0 9.1 Compliant Max Callables (MV) 20.0 0.0 Compliant
Max Maturity (Years) 5 2 Compliant

LOCAL AGENCY INVESTMENT FUND (LAIF)
Max Concentration (MV) 75.0 0.0 Compliant

MONEY MARKET MUTUAL FUNDS
Max % (MV) 20.0 0.8 Compliant
Max % Issuer (MV) 20.0 0.8 Compliant
Min Rating (AAA by 2) 0.0 0.0 Compliant

MORTGAGE -BACKED SECURITIES (NON-AGENCY)
Max % (MV) 20.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (AA by 1) 0.0 0.0 Compliant

MUNICIPAL SECURITIES (CA, LOCAL AGENCY)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
18 Item: 6.2
Item Page Number: 22
Menifee Finance Committee September 14, 2026 Page 29 of 155

STATEMENT OF COMPLIANCE
City of Menifee | Account #10112 | As of June 30, 2026
Rules Name Limit Actual Compliance
Status Notes
Min Rating (A- by 1) 0.0 0.0 Compliant

MUNICIPAL SECURITIES (CA, OTHER STATES)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant

MUTUAL FUNDS
Max % (MV) 20.0 0.0 Compliant
Max % Issuer (MV) 10.0 0.0 Compliant
Min Rating (AAA by 2) 0.0 0.0 Compliant

NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1 if > FDIC Limit) 0.0 0.0 Compliant

REPURCHASE AGREEMENTS
Max Maturity (Years) 1.0 0.0 Compliant

SUPRANATIONAL OBLIGATIONS
Max % (MV) 30.0 4.7 Compliant
Max % Issuer (MV) 10.0 3.6 Compliant
Max Maturity (Years) 5 3 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant
U.S. TREASURIES
Max % (MV) 100.0 48.6 Compliant
Max Maturity (Years) 5 4 Compliant
19 Item: 6.2
Item Page Number: 23
Menifee Finance Committee September 14, 2026 Page 30 of 155

PORTFOLIO CHARACTERISTICS
City of Menifee | Account #10112 | As of June 30, 2026
Benchmark* 6/30/2026
Portfolio
3/31/2026
Portfolio
Average Maturity (yrs) 2.64 3.26 2.95
Average Modified Duration 2.46 2.79 2.55
Average Purchase Yield 4.36% 4.00%
Average Market Yield 4.16% 4.33% 4.01%
Average Quality** AA+ AA AA
Total Market Value 139,459,070 138,997,176
*Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 20 Item: 6.2
Item Page Number: 24
Menifee Finance Committee September 14, 2026 Page 31 of 155

SECTOR DISTRIBUTION
City of Menifee | Account #10112 | As of June 30, 2026
Sector as a Percentage of Market Value
Sector 06/30/2026 03/31/2026
US Treasury 48.63% 42.84%
Corporate 26.87% 23.89%
Agency CMBS 9.13% 8.51%
ABS 7.44% 5.34%
Supras 4.73% 4.83%
Agency 2.41% 13.95%
Money Mkt Fd 0.79% 0.65%
21 Item: 6.2
Item Page Number: 25
Menifee Finance Committee September 14, 2026 Page 32 of 155

ISSUERS
City of Menifee | Account #10112 | As of June 30, 2026
Issuer Investment Type % Portfolio
United States US Treasury 48.63%
Federal Home Loan Mortgage Corp Agency CMBS 9.13%
International Bank for Recon and Dev Supras 3.57%
Farm Credit System Agency 1.45%
JPMorgan Chase & Co. Corporate 1.31%
Honda Auto Receivables Owner Trust ABS 1.28%
Bank of America Corporation Corporate 1.24%
Abbott Laboratories Corporate 1.23%
Caterpillar Inc. Corporate 1.20%
Prologis, Inc. Corporate 1.17%
Merck & Co., Inc. Corporate 1.17%
U.S. Bancorp Corporate 1.16%
Nat Rural Util Coop Fin Corp Corporate 1.13%
Blackrock, Inc. Corporate 1.13%
Deere & Company Corporate 1.12%
Wells Fargo & Company Corporate 1.10%
Abbvie Inc. Corporate 1.10%
State Street Corporation Corporate 1.10%
PACCAR Inc Corporate 1.09%
Inter-American Development Bank Supras 1.09%
Marsh & McLennan Companies, Inc. Corporate 1.08%
Amazon.com, Inc. Corporate 1.07%
Toyota Motor Corporation Corporate 1.07%
Realty Income Corporation Corporate 1.05%
Ford Credit Auto Owner Trust ABS 1.03%
Federal Home Loan Banks Agency 0.96%
Toyota Auto Receivables Owner Trust ABS 0.89%
Mastercard Incorporated Corporate 0.85%
Duke Energy Corporation Corporate 0.84%
John Deere Owner Trust ABS 0.79%
22 Item: 6.2
Item Page Number: 26
Menifee Finance Committee September 14, 2026 Page 33 of 155

ISSUERS
City of Menifee | Account #10112 | As of June 30, 2026
Issuer Investment Type % Portfolio
Federated Hermes, Inc. Money Mkt Fd 0.79%
Mercedes-Benz Auto Receivables Trust ABS 0.72%
BNY Mellon Corp Corporate 0.65%
American Honda Finance Corporation Corporate 0.62%
Simon Property Group, Inc. Corporate 0.61%
Morgan Stanley Corporate 0.58%
Hyundai Auto Receivables Trust ABS 0.58%
Public Service Enterprise Group Corporate 0.57%
Hyundai Motor Company ABS 0.57%
The Home Depot, Inc. Corporate 0.55%
UnitedHealth Group Incorporated Corporate 0.51%
NVIDIA Corporation Corporate 0.51%
BMW Vehicle Lease Trust ABS 0.50%
Mercedes-Benz Auto Lease Trust ABS 0.49%
GM Financial Auto Leasing Trust ABS 0.33%
BMW Vehicle Owner Trust ABS 0.26%
International Finance Corporation Supras 0.07%
The Charles Schwab Corporation Corporate 0.06%
Cash Cash 0.00%
TOTAL 100.00%
23 Item: 6.2
Item Page Number: 27
Menifee Finance Committee September 14, 2026 Page 34 of 155

QUALITY DISTRIBUTION
City of Menifee | Account #10112 | As of June 30, 2026
S&P Rating Moody’s Rating Fitch Rating
Rating 06/30/2026 03/31/2026
AAA 11.77% 9.54%
AA 62.79% 66.45%
A 21.45% 19.80%
BBB 1.73% 1.82%
NA 2.26% 2.39%
Rating 06/30/2026 03/31/2026
Aaa 9.49% 8.95%
Aa 67.14% 69.59%
A 19.50% 19.16%
NA 3.86% 2.30%
Rating 06/30/2026 03/31/2026
AAA 14.41% 12.23%
AA 57.97% 63.39%
A 10.26% 9.62%
NA 17.35% 14.76%
24 Item: 6.2
Item Page Number: 28
Menifee Finance Committee September 14, 2026 Page 35 of 155

DURATION DISTRIBUTION
City of Menifee | Account #10112 | As of June 30, 2026
Portfolio Compared to the Benchmark
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+
Portfolio 0.9% 0.1% 2.8% 16.5% 35.7% 27.7% 16.2% 0.0% 0.0% ICE BofA 1-5 Year Unsubordinated US Treasury &
Agency Index 0.0% 0.0% 2.5% 36.2% 28.4% 20.6% 12.3% 0.0% 0.0% 25 Item: 6.2
Item Page Number: 29
Menifee Finance Committee September 14, 2026 Page 36 of 155

INVESTMENT PERFORMANCE
City of Menifee | Account #10112 | As of June 30, 2026
Total Rate of Return: Inception | 02/01/2010
TOTAL RATE OF RETURN* 3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception City of Menifee 0.35% 3.10% 4.66% 4.72% 1.83% 1.92% 1.91% Benchmark 0.24% 2.71% 4.37% 4.30% 1.52% 1.64% 1.67%
*Periods over 1 year are annualized.

Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending market value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.

Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index 26 Item: 6.2
Item Page Number: 30
Menifee Finance Committee September 14, 2026 Page 37 of 155

PORTFOLIO HOLDINGS
27 Item: 6.2
Item Page Number: 31
Menifee Finance Committee September 14, 2026 Page 38 of 155

HOLDINGS REPORT
City of Menifee | Account #10112 | As of June 30, 2026
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
ABS
47800CAC0 JDOT 2023 A3 5.01 11/15/2027 3,048.02 02/22/2023

3.39%
3,047.46
3,047.86
100.16

4.26%
3,053.01

6.79 0.00%

5.15 Aaa/NA
AAA

1.38 0.19
58770AAC7 MBART 2023-1 A3 4.51
11/15/2027 2,180.13 01/18/2023

4.56%
2,179.87
2,180.05
100.06

4.00%
2,181.41

4.37 0.00%

1.36 NA/AAA
AAA

1.38 0.11
05594HAD5 BMWLT 2025-2 A3 3.97
09/25/2028 700,000.00 10/08/2025

4.32%
699,998.04
699,998.51

99.67 4.34%
697,723.60
463.17

0.50%
(2,274.91)
NA/AAA
AAA

2.24 0.97
437930AC4 HAROT 2024-2 A3 5.27
11/20/2028 130,334.76 05/14/2024

5.27%
130,318.92
130,326.35
100.54

4.37%
131,041.56
248.03

0.09%
715.22
NA/AAA
AAA

2.39 0.56
096919AD7 BMWOT 2024-A A3 5.18
02/26/2029 353,887.97 06/04/2024

5.18%
353,834.22
353,857.64
100.51

4.33%
355,679.35
305.52

0.26%
1,821.71
Aaa/AAA
NA

2.66 0.56
36275AAD1 GMALT 2026-2 A3 4.3 03/20/2029 450,000.00 05/05/2026

4.40%
449,951.31
449,953.56

99.86 4.43%
449,350.20
483.75

0.33%
(603.36)
NA/AAA
AAA

2.72 1.57
43813YAC6 HAROT 2024-3 A3 4.57
03/21/2029 621,240.65 08/09/2024

4.66%
621,143.05
621,182.66
100.20

4.31%
622,471.95
788.63

0.45%
1,289.29
Aaa/NA
AAA

2.72 0.64
58768YAD7 MBALT 2025-A A3 4.61
04/16/2029 670,000.00 05/14/2025

4.66%
669,918.33
669,941.58
100.31

4.42%
672,097.10
1,372.76

0.49%
2,155.52
NA/AAA
AAA

2.79 1.34
89239TAD4 TAOT 2024-D A3 4.4 06/15/2029 385,609.67 10/10/2024

4.51%
385,588.15
385,596.02
100.05

4.37%
385,817.52
754.08

0.28%
221.50
Aaa/AAA
NA

2.96 0.72
34535VAD6 FORDO 2024-D A3 4.61
08/15/2029 775,000.00 11/19/2024

4.66%
774,975.12
774,983.56
100.30

4.32%
777,334.30
1,587.89

0.56%
2,350.74
Aaa/NA
AAA

3.13 0.90
47800DAD6 JDOT 2025 A3 4.23 09/17/2029 635,000.00 03/04/2025

5.09%
634,960.06
634,971.60

99.88 4.35%
634,213.24
1,193.80

0.46%
(758.36)
Aaa/NA
AAA

3.22 1.47
44935CAD3 HART 2025-A A3 4.32 10/15/2029 805,000.00 03/04/2025

4.84%
804,881.26
804,914.94
100.05

4.31%
805,370.30
1,545.60

0.58%
455.36
NA/AAA
AAA

3.29 0.95
34532BAG6 FORDO 2025-B A3 3.91
04/15/2030 655,000.00 09/23/2025

4.27%
654,929.33
654,941.15

99.24 4.42%
650,021.35
1,138.24

0.47%
(4,919.81)
Aaa/NA
AAA

3.79 1.60
89231GAD0 TAOT 2025-D A3 3.84 06/17/2030 845,000.00 10/15/2025

4.27%
844,902.83
844,917.19

99.25 4.37%
838,658.28
1,442.13

0.61%
(6,258.92)
NA/AAA
AAA

3.96 1.52
47787DAD3 JDOT 2026 A3 3.87 08/15/2030 465,000.00 03/10/2026

4.49%
464,917.60
464,922.97

98.68 4.46%
458,841.54
799.80

0.33%
(6,081.43)
Aaa/NA
AAA

4.13 2.38
58769MAD2 MBART 261 A3 4.36 10/15/2030 1,000,000.00 05/12/2026

4.60%
999,782.20
999,787.89

99.81 4.49%
998,121.00
1,937.78

0.72%
(1,666.89)
NA/AAA
AAA

4.29 2.07
28 Item: 6.2
Item Page Number: 32
Menifee Finance Committee September 14, 2026 Page 39 of 155

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
43814YAD3 HAROT 2026-2 A3 4.3 11/15/2030 1,025,000.00 05/05/2026

3.02%
1,024,970.38
1,024,971.26

99.74 4.46%
1,022,379.08
1,958.89

0.74%
(2,592.19)
Aaa/AAA
NA

4.38 2.14
44935KAD5 HART 26B A3 4.81 02/18/2031 780,000.00 06/09/2026

4.86%
779,905.85
779,906.62
100.24

4.44%
781,875.12
1,459.03

0.57%
1,968.50
NA/AAA
AAA

4.64 2.20
10,300,203.98 99.86 10,286,229.88 7.44% 3.50
Total ABS 10,301,301.19 4.47% 10,300,401.42 4.39% 17,490.26 (14,171.53) 1.46 AGENCY
3130ATUS4 FEDERAL HOME LOAN BANKS 4.25
12/10/2027 200,000.00 01/30/2023

3.76%
204,274.00
201,269.67
100.08

4.19%
200,150.00
495.83

0.14%
(1,119.67)
Aa1/AA+
AA+

1.45 1.38
3130ATS57 FEDERAL HOME LOAN BANKS 4.5
03/10/2028 190,000.00 03/23/2023

3.78%
196,165.50
192,101.64
100.53

4.17%
191,008.71
2,636.25

0.14%
(1,092.93)
Aa1/AA+
AA+

1.70 1.59
3133EPGW9 FEDERAL FARM CREDIT BANKS
FUNDING CORP 3.875 04/25/2028 150,000.00 04/24/2023

3.76%
150,753.00
150,273.67

99.50 4.16%
149,256.60
1,065.63

0.11%
(1,017.07)
Aa1/AA+
AA+

1.82 1.72
3133EPSK2 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.25 08/07/2028 75,000.00 08/17/2023

4.52%
74,100.00
74,619.38
100.13

4.18%
75,094.58
1,275.00

0.05%
475.19
Aa1/AA+
AA+

2.10 1.96
3130AWTR1 FEDERAL HOME LOAN BANKS

4.375 09/08/2028 225,000.00 09/12/2023

4.49%
223,860.00
224,499.18
100.40

4.18%
225,890.78
3,089.84

0.16%
1,391.60
Aa1/AA+
AA+

2.19 2.04
3133EPWK7 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.5 09/22/2028 95,000.00 09/27/2023

4.76%
93,915.10
94,515.04
100.66

4.18%
95,629.76
1,175.63

0.07%
1,114.71
Aa1/AA+
AA+

2.23 2.07
3133EPN50 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.25 12/15/2028 270,000.00 12/18/2023

4.00%
272,999.70
271,477.64
100.18

4.17%
270,484.65
510.00

0.20%
(992.99)
Aa1/AA+
AA+

2.46 2.31
3130AVBD3 FEDERAL HOME LOAN BANKS 4.5
03/09/2029 700,000.00 04/29/2024

4.71%
693,525.00
696,415.76
100.70

4.22%
704,897.90
9,800.00

0.51%
8,482.14
Aa1/AA+
AA+

2.69 2.48
3133ERAK7 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.375 04/10/2029 700,000.00 04/22/2024

4.73%
689,017.00
693,857.27
100.50

4.18%
703,507.70
6,890.63

0.51%
9,650.43
Aa1/AA+
AA+

2.78 2.57
3133ERDH1 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.75 04/30/2029 700,000.00 05/08/2024

4.55%
706,132.00
703,489.54
101.52

4.17%
710,674.30
5,634.03

0.51%
7,184.76
Aa1/AA+
AA+

2.83 2.61
3,304,741.30 100.66 3,326,594.97 2.41% 2.49
Total Agency 3,305,000.00 4.45% 3,302,518.79 4.19% 32,572.83 24,076.18 2.31

AGENCY CMBS
29 Item: 6.2
Item Page Number: 33
Menifee Finance Committee September 14, 2026 Page 40 of 155

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
3137BSP72 FHMS K-058 A2 2.653 08/25/2026 103,423.24 01/31/2023

4.11%
98,421.75
103,301.63

99.68 3.63%
103,093.42
228.65

0.07%
(208.21)
Aa1/AA+
AAA

0.15 0.15
3137FQXJ7 FHMS K-737 A2 2.525 10/25/2026 102,791.03 02/08/2023

4.29%
96,784.18
102,374.26

99.48 4.07%
102,258.06
216.29

0.07%
(116.21)
Aa1/AA+
AAA

0.32 0.23
3137BUX60CMO FHMS K-062 A2 3.413 12/25/2026 68,715.00 12/12/2022

4.28%
66,473.72
68,478.02

99.46 4.18%
68,341.47
195.44

0.05%
(136.55)
Aa1/AA+
AAA

0.49 0.43
3137BVZ82 FHMS K-063 A2 3.43 01/25/2027 68,860.70 12/12/2022

4.30%
66,609.28
68,580.17

99.47 4.18%
68,498.70
196.83

0.05%
(81.47)
Aa1/AA+
AAA

0.57 0.41
3137FBU79 FHMS K-069 A2 3.187 09/25/2027 96,059.28 12/15/2023

4.37%
92,160.63
94,827.07

98.59 4.25%
94,706.39
255.12

0.07%
(120.68)
Aa1/AAA
AA+

1.24 1.16
3137FCJK1 FHMS K-070 A2 3.303 11/25/2027 30,000.00 11/21/2022

4.38%
28,566.80
29,611.59

98.61 4.28%
29,582.52

82.58 0.02%
(29.07)
Aaa/AA+
AA+

1.41 1.23
3137FJEH8 FHMS K-081 A2 3.9 08/25/2028 1,500,000.00 05/28/2024

5.00%
1,436,718.75
1,468,338.60

98.79 4.41%
1,481,808.00
4,875.00

1.07%
13,469.40
Aa1/AA+
AAA

2.15 1.99
3137H4BY5 FHMS K-746 A2 2.031 09/25/2028 135,000.00 10/26/2023

5.31%
116,263.48
126,591.36

94.97 4.43%
128,209.64
228.49

0.09%
1,618.27
Aa1/AA+
AAA

2.24 2.09
3137FLMV3 FHMS K-090 A2 3.422 02/25/2029 1,500,000.00 05/30/2024

4.94%
1,405,195.31
1,447,336.91

97.42 4.43%
1,461,268.50
4,277.50

1.06%
13,931.59
Aa1/AAA
AA+

2.66 2.43
3137FMCR1 FHMS K-093 A2 2.982 05/25/2029 978,908.47 09/19/2024

3.82%
944,417.24
957,659.41

96.24 4.43%
942,090.74
2,432.59

0.68%
(15,568.66)
Aa1/AA+
AAA

2.90 2.54
3137HA4B9 FHMS K-751 A2 4.412 03/25/2030 589,000.00 03/27/2025

4.40%
588,424.80
588,571.16

99.75 4.44%
587,554.59
2,165.56

0.43%
(1,016.57)
Aaa/AA+
AA+

3.73 3.08
3137FTFY8 FHMS K-109 A2 1.558 04/25/2030 1,500,000.00 12/16/2025

3.89%
1,363,710.94
1,380,616.36

90.17 4.45%
1,352,620.50
1,947.50

0.98%
(27,995.86)
Aa1/AA+
AAA

3.82 3.52
3137F83Q4 FHMS K-121 A2 1.547 10/25/2030 1,500,000.00 01/07/2026

3.97%
1,342,910.16
1,358,409.45

88.68 4.46%
1,330,209.00
1,933.75

0.96%
(28,200.45)
Aa1/AA+
AAA

4.32 4.06
3137F8ZV8 FHMS K-123 A2 1.621 12/25/2030 1,200,000.00 04/22/2026

4.13%
1,075,453.12
1,080,274.77

88.77 4.46%
1,065,207.60
1,621.00

0.77%
(15,067.17)
Aa1/AA+
AAA

4.49 4.13
3137FXZ35 FHMS K-127 A2 2.108 01/25/2031 1,250,000.00 02/03/2026

4.11%
1,138,671.88
1,147,690.08

90.37 4.46%
1,129,660.00
2,195.83

0.82%
(18,030.08)
Aa1/AA+
AAA

4.57 4.22
3137F9Z79 FHMS K-125 A2 1.846 01/25/2031 3,000,000.00 --

4.04%
2,708,320.31
2,732,216.29

89.37 4.46%
2,681,103.00
4,615.00

1.94%
(51,113.29)
Aa1/AA+
AAA

4.57 4.22
Total Agency CMBS 13,622,757.72 4.27%
12,569,102.34
12,754,877.14

92.88 4.43%
12,626,212.12
27,467.11

9.13%
(128,665.02)

3.62 3.32
30 Item: 6.2
Item Page Number: 34
Menifee Finance Committee September 14, 2026 Page 41 of 155

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
CASH
CCYUSD Receivable 3,330.39 -- 3,330.39
3,330.39

1.00 3,330.39

0.00 0.00%

0.00 Aaa/AAA
AAA

0.00 0.00
Total Cash 3,330.39
3,330.39
3,330.39

1.00 3,330.39

0.00 0.00%

0.00 0.00

0.00 CORPORATE
808513AU9 CHARLES SCHWAB CORP 3.2
01/25/2028 85,000.00 01/30/2023

4.32%
80,783.15
83,672.39

98.21 4.39%
83,480.03
1,178.67

0.06%
(192.36)
A2/A-
A

1.57 1.49
46625HRY8 JPMORGAN CHASE & CO 3.782
02/01/2028 70,000.00 01/30/2023

5.34%
67,053.70
69,064.15

99.59 5.04%
69,715.59
1,103.08

0.05%
651.44
A1/A
AA-

1.59 0.56
91324PEP3 UNITEDHEALTH GROUP INC 5.25
02/15/2028 700,000.00 04/18/2024

5.14%
702,464.00
701,017.78
101.34

4.38%
709,350.60
13,883.33

0.51%
8,332.82
A2/A+
A

1.63 1.44
58933YBH7 MERCK & CO INC 4.05 05/17/2028 130,000.00 --

3.98%
130,394.70
130,143.83

99.71 4.21%
129,621.44
643.50

0.09%
(522.39)
Aa3/A+
NA

1.88 1.78
74340XCG4 PROLOGIS LP 4.875 06/15/2028 1,600,000.00 --

5.26%
1,577,232.00
1,589,153.11
100.87

4.41%
1,613,857.60
3,466.67

1.17%
24,704.49
A2/A
NA

1.96 1.77
74456QBX3 PUBLIC SERVICE ELECTRIC AND
GAS CO 3.65 09/01/2028 800,000.00 04/25/2024

5.20%
752,432.00
776,216.00

98.36 4.45%
786,887.20
9,733.33

0.57%
10,671.20
A1/A
NA

2.17 2.03
89236TLB9 TOYOTA MOTOR CREDIT CORP

5.25 09/11/2028 1,450,000.00 --

5.15%
1,455,605.50
1,452,882.63
101.67

4.44%
1,474,165.70
23,260.42

1.07%
21,283.07
A1/A+
A+

2.20 2.03
24422EXH7 JOHN DEERE CAPITAL CORP 4.5
01/16/2029 1,550,000.00 --

5.13%
1,509,761.00
1,528,114.13
100.26

4.39%
1,553,995.90
31,968.75

1.12%
25,881.77
A1/A
A+

2.55 2.33
46647PAM8 JPMORGAN CHASE & CO 3.509
01/23/2029 1,250,000.00 --

5.47%
1,169,226.50
1,215,750.79

98.34 4.75%
1,229,311.25
19,250.76

0.89%
13,560.46
A1/A
AA-

2.57 1.48
69371RS80 PACCAR FINANCIAL CORP 4.6
01/31/2029 1,500,000.00 --

5.10%
1,468,515.00
1,482,766.20
100.64

4.33%
1,509,579.00
28,941.67

1.09%
26,812.80
A1/A+
NA

2.59 2.37
91159HJK7 US BANCORP 4.653 02/01/2029 1,600,000.00 --

5.58%
1,550,764.50
1,579,035.20
100.07

4.71%
1,601,120.00
31,020.00

1.16%
22,084.80
A3/A
A+

2.59 1.48
06406RBN6 BANK OF NEW YORK MELLON
CORP 4.543 02/01/2029 900,000.00 06/07/2024

5.16%
881,811.00
892,073.91
100.09

4.61%
900,810.90
17,036.25

0.65%
8,736.99
Aa3/A
AA-

2.59 1.48
31 Item: 6.2
Item Page Number: 35
Menifee Finance Committee September 14, 2026 Page 42 of 155

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
756109CF9 REALTY INCOME CORP 4.75
02/15/2029 1,450,000.00 --

5.40%
1,410,895.00
1,428,450.09
100.43

4.57%
1,456,220.50
26,019.44

1.05%
27,770.41
A3/A-
NA

2.63 2.33
14913UAJ9 CATERPILLAR FINANCIAL SERVICES
CORP 4.85 02/27/2029 1,300,000.00 --

5.02%
1,290,499.00
1,294,777.60
101.21

4.36%
1,315,782.00
21,717.22

0.95%
21,004.40
A1/A
A+

2.66 2.43
06051GHG7 BANK OF AMERICA CORP 3.97
03/05/2029 1,050,000.00 --

5.58%
992,729.50
1,024,736.82

98.93 4.80%
1,038,725.10
13,431.83

0.75%
13,988.28
A1/A-
AA-

2.68 1.58
02665WFE6 AMERICAN HONDA FINANCE
CORP 4.9 03/13/2029 850,000.00 05/31/2024

5.08%
843,616.50
846,397.18
100.60

4.66%
855,066.00
12,495.00

0.62%
8,668.82
A3/BBB+
A-

2.70 2.47
637432NS0

NATIONAL RURAL UTILITIES
COOPERATIVE FINANCE CORP 3.7
03/15/2029
1,600,000.00 06/07/2024

5.08%
1,507,712.00
1,547,567.25

97.81 4.57%
1,564,899.20
17,431.11

1.13%
17,331.95
A1/A-
A+

2.71 2.51
437076CW0 HOME DEPOT INC 4.9 04/15/2029 750,000.00 04/19/2024

5.12%
742,725.00
745,922.32
101.32

4.39%
759,903.00
7,758.33

0.55%
13,980.68
A2/A
A

2.79 2.49
61747YFD2 MORGAN STANLEY 5.164
04/20/2029 800,000.00 05/31/2024

5.36%
794,520.00
797,456.82
100.79

4.88%
806,305.60
8,147.64

0.58%
8,848.78
A1/A-
A+

2.80 1.69
857449AE2 STATE STREET BANK AND TRUST
CO 4.782 11/23/2029 1,500,000.00 02/10/2025

4.74%
1,502,820.00
1,502,004.36
101.01

4.46%
1,515,130.50
7,571.50

1.10%
13,126.14
Aa2/AA-
AA+

3.40 3.09
95000U3J0 WELLS FARGO & CO 5.198
01/23/2030 1,500,000.00 05/28/2025

4.78%
1,520,880.00
1,514,655.10
101.12

4.84%
1,516,860.00
34,220.17

1.10%
2,204.90
A1/BBB+
A+

3.57 2.32
571748CA8 MARSH & MCLENNAN
COMPANIES INC 4.65 03/15/2030 1,500,000.00 04/24/2025

4.62%
1,502,070.00
1,501,561.04

99.90 4.68%
1,498,483.50
20,537.50

1.08%
(3,077.54)
A3/A-
A-

3.71 3.32
00287YDZ9 ABBVIE INC 4.875 03/15/2030 1,500,000.00 06/10/2025

4.55%
1,520,099.99
1,515,574.55
101.10

4.55%
1,516,509.00
21,531.25

1.10%
934.45
A2/A-
NA

3.71 3.25
06051GHV4 BANK OF AMERICA CORP 3.194
07/23/2030 700,000.00 01/22/2026

4.47%
675,115.00
677,524.69

95.58 4.87%
669,025.00
9,812.68

0.48%
(8,499.69)
A1/A-
AA-

4.06 2.83
58933YBQ7 MERCK & CO INC 4.15 09/15/2030 1,500,000.00 09/26/2025

4.14%
1,500,360.00
1,500,304.41

98.82 4.46%
1,482,240.00
18,329.17

1.07%
(18,064.41)
Aa3/A+
NA

4.21 3.77
828807DZ7 SIMON PROPERTY GROUP LP

4.375 10/01/2030 850,000.00 12/08/2025

4.27%
853,706.00
853,268.23

99.03 4.63%
841,762.65
9,296.88

0.61%
(11,505.58)
A3/A
NA

4.25 3.79
46647PEV4 JPMORGAN CHASE & CO 5.14
01/24/2031 500,000.00 03/24/2026

4.63%
508,860.00
508,240.24
101.12

4.76%
505,622.50
11,208.06

0.37%
(2,617.74)
A1/A
AA-

4.57 3.16
09247XAR2 BLACKROCK FINANCE INC 1.9
01/28/2031 1,750,000.00 03/24/2026

4.47%
1,555,872.50
1,566,620.80

89.20 4.54%
1,561,050.75
14,131.25

1.13%
(5,570.05)
Aa3/AA-
NA

4.58 4.26
32 Item: 6.2
Item Page Number: 36
Menifee Finance Committee September 14, 2026 Page 43 of 155

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
023135DD5 AMAZON.COM INC 4.25
03/13/2031 1,500,000.00 04/29/2026

4.48%
1,484,730.00
1,485,262.47

98.47 4.62%
1,476,982.50
19,125.00

1.07%
(8,279.97)
A1/AA
AA-

4.70 4.16
002824BS8 ABBOTT LABORATORIES 4.0
03/15/2031 1,750,000.00 05/06/2026

4.38%
1,721,317.50
1,722,207.26

97.46 4.61%
1,705,466.00
21,777.78

1.23%
(16,741.26)
Aa3/A+
NA

4.71 4.18
14913V2D9 CATERPILLAR FINANCIAL SERVICES
CORP 4.5 05/15/2031 350,000.00 05/11/2026

4.53%
349,520.50
349,532.84

99.53 4.61%
348,344.15
2,012.50

0.25%
(1,188.69)
A1/A
A+

4.87 4.30
57636QBL7 MASTERCARD INC 4.6 06/08/2031 1,180,000.00 06/04/2026

4.62%
1,179,056.00
1,179,067.89

99.85 4.63%
1,178,186.34
3,467.89

0.85%
(881.55)
Aa3/A+
NA

4.94 4.36
26442CBR4 DUKE ENERGY CAROLINAS LLC

4.65 06/15/2031 1,165,000.00 06/16/2026

4.59%
1,167,842.60
1,167,820.40

99.96 4.66%
1,164,584.10
3,912.46

0.84%
(3,236.31)
Aa3/A
NA

4.96 4.37
67066GAR5 NVIDIA CORP 4.5 06/15/2031 710,000.00 06/15/2026

4.54%
708,651.00
708,660.62

99.65 4.58%
707,486.60
1,153.75

0.51%
(1,174.02)
Aa1/AA
NA

4.96 4.39
Total Corporate 37,390,000.00 4.89%
36,679,641.14
36,937,503.13

99.42 4.57%
37,146,530.20
486,574.84

26.87%
209,027.06

3.33 2.81

MONEY MARKET
FUND
60934N104 FEDERATED HRMS GV O INST 1,086,420.79 --

3.51%
1,086,420.79
1,086,420.79

1.00 5.17%
1,086,420.79

0.00 0.79%

0.00 Aaa/AAAm
AAA

0.00 0.00
Total Money Market
Fund 1,086,420.79 3.51%
1,086,420.79
1,086,420.79

1.00 5.17%
1,086,420.79

0.00 0.79%

0.00 0.00

0.00 SUPRANATIONAL
459058KT9

INTERNATIONAL BANK FOR

RECONSTRUCTION AND
DEVELOPM 3.5 07/12/2028
1,300,000.00 06/07/2024

4.56%
1,248,988.00
1,274,647.75

98.71 4.17%
1,283,206.60
21,359.72

0.93%
8,558.85
Aaa/AAA
NA

2.03 1.91
45950KDD9 INTERNATIONAL FINANCE CORP

4.5 07/13/2028 100,000.00 07/06/2023

4.53%
99,889.00
99,954.86
100.63

4.17%
100,629.00
2,100.00

0.07%
674.14
Aaa/AAA
NA

2.04 1.89
4581X0DC9 INTER-AMERICAN DEVELOPMENT
BANK 3.125 09/18/2028 120,000.00 11/27/2023

4.55%
112,706.40
116,633.72

97.81 4.17%
117,375.84
1,072.92

0.08%
742.12
Aaa/AAA
NA

2.22 2.09
4581X0EN4 INTER-AMERICAN DEVELOPMENT
BANK 4.125 02/15/2029 1,385,000.00 --

4.19%
1,381,426.20
1,382,995.69

99.86 4.18%
1,383,037.46
21,582.92

1.00%

41.76 Aaa/AAA
NA

2.63 2.42
33 Item: 6.2
Item Page Number: 37
Menifee Finance Committee September 14, 2026 Page 44 of 155

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
459058KL6

INTERNATIONAL BANK FOR

RECONSTRUCTION AND
DEVELOPM 3.625 09/21/2029
1,350,000.00 09/26/2024

3.61%
1,350,850.50
1,350,550.49

98.27 4.20%
1,326,682.80
13,593.75

0.96%
(23,867.69)
Aaa/AAA
NA

3.23 2.98
459058LN1

INTERNATIONAL BANK FOR

RECONSTRUCTION AND
DEVELOPM 3.875 10/16/2029
2,345,000.00 10/08/2024

3.93%
2,338,879.55
2,340,967.74

99.00 4.20%
2,321,627.39
18,924.15

1.68%
(19,340.36)
Aaa/AAA
NA

3.30 3.03
Total Supranational 6,600,000.00 4.06%
6,532,739.65
6,565,750.26

98.98 4.19%
6,532,559.08
78,633.46

4.73%
(33,191.18)

2.85 2.64

US TREASURY
91282CFU0 UNITED STATES TREASURY 4.125
10/31/2027 1,650,000.00 --

4.51%
1,630,343.75
1,642,176.54

99.94 4.17%
1,649,033.10
11,467.05

1.19%
6,856.56
Aa1/AA+
AA+

1.34 1.27
91282CGC9 UNITED STATES TREASURY 3.875
12/31/2027 850,000.00 04/17/2024

4.75%
824,931.64
839,839.16

99.58 4.17%
846,413.85

89.50 0.61%
6,574.69
Aa1/AA+
AA+

1.50 1.44
91282CMN8 UNITED STATES TREASURY 4.25
02/15/2028 1,500,000.00 02/25/2025

4.08%
1,506,855.47
1,503,756.60
100.11

4.17%
1,501,699.50
23,950.28

1.09%
(2,057.10)
Aa1/AA+
AA+

1.63 1.53
91282CHA2 UNITED STATES TREASURY 3.5
04/30/2028 815,000.00 --

4.50%
784,646.88
801,521.81

98.82 4.17%
805,417.23
4,805.84

0.58%
3,895.42
Aa1/AA+
AA+

1.84 1.74
91282CHE4 UNITED STATES TREASURY 3.625
05/31/2028 815,000.00 --

4.52%
787,623.25
802,447.70

99.02 4.16%
806,977.14
2,502.34

0.58%
4,529.44
Aa1/AA+
AA+

1.92 1.82
91282CHK0 UNITED STATES TREASURY 4.0
06/30/2028 1,500,000.00 02/10/2025

4.28%
1,486,933.59
1,492,276.54

99.69 4.16%
1,495,371.00
163.04

1.08%
3,094.47
Aa1/AA+
AA+

2.00 1.90
91282CHQ7 UNITED STATES TREASURY 4.125
07/31/2028 790,000.00 --

4.65%
773,639.07
782,177.22

99.93 4.16%
789,444.63
13,593.13

0.57%
7,267.41
Aa1/AA+
AA+

2.08 1.94
91282CHX2 UNITED STATES TREASURY 4.375
08/31/2028 1,450,000.00 --

4.41%
1,446,986.34
1,449,197.69
100.42

4.17%
1,456,117.55
21,203.29

1.05%
6,919.86
Aa1/AA+
AA+

2.17 2.02
91282CNY3 UNITED STATES TREASURY 3.375
09/15/2028 2,000,000.00 06/30/2026

4.14%
1,967,812.50
1,967,852.34

98.34 4.17%
1,966,718.00
19,809.78

1.42%
(1,134.34)
Aa1/AA+
AA+

2.21 2.08
9128285M8 UNITED STATES TREASURY 3.125
11/15/2028 150,000.00 01/17/2024

4.05%
143,970.70
147,031.52

97.66 4.17%
146,496.15
598.68

0.11%
(535.37)
Aa1/AA+
AA+

2.38 2.25
91282CJN2 UNITED STATES TREASURY 4.375
11/30/2028 1,850,000.00 --

4.40%
1,844,308.59
1,849,398.31
100.46

4.17%
1,858,526.65
6,855.36

1.34%
9,128.34
Aa1/AA+
AA+

2.42 2.26
91282CJR3 UNITED STATES TREASURY 3.75
12/31/2028 1,890,000.00 --

4.36%
1,849,191.41
1,863,960.36

99.01 4.17%
1,871,247.42
192.60

1.35%
7,287.06
Aa1/AA+
AA+

2.50 2.36
34 Item: 6.2
Item Page Number: 38
Menifee Finance Committee September 14, 2026 Page 45 of 155

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CJW2 UNITED STATES TREASURY 4.0
01/31/2029 1,825,000.00 --

4.37%
1,798,704.10
1,809,112.87

99.57 4.18%
1,817,157.98
30,450.28

1.31%
8,045.10
Aa1/AA+
AA+

2.59 2.39
912810FG8 UNITED STATES TREASURY 5.25
02/15/2029 1,550,000.00 --

4.42%
1,603,873.05
1,580,024.07
102.95

4.05%
1,595,652.15
30,571.82

1.15%
15,628.08
Aa1/AA+
AA+

2.63 2.39
91282CKD2 UNITED STATES TREASURY 4.25
02/28/2029 1,850,000.00 --

4.34%
1,840,806.65
1,846,168.17
100.21

4.17%
1,853,829.50
26,279.55

1.34%
7,661.33
Aa1/AA+
AA+

2.67 2.46
91282CKG5 UNITED STATES TREASURY 4.125
03/31/2029 1,600,000.00 --

4.49%
1,574,437.50
1,585,681.52

99.88 4.17%
1,598,124.80
16,590.16

1.16%
12,443.28
Aa1/AA+
AA+

2.75 2.55
91282CKP5 UNITED STATES TREASURY 4.625
04/30/2029 1,600,000.00 --

4.49%
1,609,593.75
1,605,636.45
101.20

4.17%
1,619,124.80
12,467.39

1.17%
13,488.35
Aa1/AA+
AA+

2.83 2.61
91282CKT7 UNITED STATES TREASURY 4.5
05/31/2029 1,600,000.00 06/20/2024

4.29%
1,614,812.50
1,608,739.79
100.91

4.17%
1,614,500.80
6,098.36

1.17%
5,761.01
Aa1/AA+
AA+

2.92 2.70
91282CEV9 UNITED STATES TREASURY 3.25
06/30/2029 1,500,000.00 07/29/2024

4.10%
1,443,515.64
1,465,562.15

97.43 4.17%
1,461,504.00
132.47

1.06%
(4,058.15)
Aa1/AA+
AA+

3.00 2.82
91282CKX8 UNITED STATES TREASURY 4.25
06/30/2029 1,600,000.00 09/10/2024

3.45%
1,656,250.00
1,635,136.20
100.23

4.17%
1,603,625.60
184.78

1.16%
(31,510.60)
Aa1/AA+
AA+

3.00 2.79
91282CLC3 UNITED STATES TREASURY 4.0
07/31/2029 2,000,000.00 --

3.87%
2,013,585.93
2,007,429.59

99.52 4.17%
1,990,468.00
33,370.17

1.44%
(16,961.59)
Aa1/AA+
AA+

3.08 2.82
91282CFJ5 UNITED STATES TREASURY 3.125
08/31/2029 2,100,000.00 --

3.48%
2,066,046.88
2,078,327.02

96.91 4.17%
2,035,196.10
21,934.44

1.47%
(43,130.92)
Aa1/AA+
AA+

3.17 2.94
91282CLN9 UNITED STATES TREASURY 3.5
09/30/2029 2,050,000.00 --

4.22%
1,992,615.23
2,006,656.80

97.97 4.17%
2,008,360.40
18,035.52

1.45%
1,703.60
Aa1/AA+
AA+

3.25 3.01
91282CLR0 UNITED STATES TREASURY 4.125
10/31/2029 2,000,000.00 11/19/2024

4.24%
1,990,234.38
1,993,413.88

99.84 4.18%
1,996,796.00
13,899.46

1.44%
3,382.12
Aa1/AA+
AA+

3.34 3.06
91282CMA6 UNITED STATES TREASURY 4.125
11/30/2029 1,750,000.00 12/09/2024

4.07%
1,754,375.00
1,753,006.61

99.84 4.17%
1,747,266.50
6,114.24

1.26%
(5,740.11)
Aa1/AA+
AA+

3.42 3.14
91282CMD0 UNITED STATES TREASURY 4.375
12/31/2029 2,000,000.00 --

4.31%
2,004,042.97
2,003,888.21
100.64

4.17%
2,012,890.00
237.77

1.46%
9,001.79
Aa1/AA+
AA+

3.50 3.21
91282CGJ4 UNITED STATES TREASURY 3.5
01/31/2030 2,000,000.00 --

4.14%
1,947,089.84
1,958,548.24

97.75 4.18%
1,955,078.00
29,198.90

1.41%
(3,470.24)
Aa1/AA+
AA+

3.59 3.28
91282CGQ8 UNITED STATES TREASURY 4.0
02/28/2030 1,750,000.00 06/23/2025

3.90%
1,757,587.89
1,755,937.19

99.39 4.18%
1,739,403.75
23,396.74

1.26%
(16,533.44)
Aa1/AA+
AA+

3.67 3.33
91282CMU2 UNITED STATES TREASURY 4.0
03/31/2030 2,000,000.00 --

4.02%
1,998,808.59
1,998,453.63

99.36 4.18%
1,987,266.00
20,109.29

1.44%
(11,187.63)
Aa1/AA+
AA+

3.75 3.41
35 Item: 6.2
Item Page Number: 39
Menifee Finance Committee September 14, 2026 Page 46 of 155

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CMZ1 UNITED STATES TREASURY 3.875
04/30/2030 1,750,000.00 05/28/2025

4.07%
1,734,619.14
1,738,025.70

98.92 4.18%
1,731,065.00
11,424.93

1.25%
(6,960.70)
Aa1/AA+
AA+

3.83 3.50
91282CNG2 UNITED STATES TREASURY 4.0
05/31/2030 2,000,000.00 --

4.10%
1,991,738.29
1,992,883.76

99.32 4.19%
1,986,484.00
6,775.96

1.44%
(6,399.76)
Aa1/AA+
AA+

3.92 3.58
91282CNK3 UNITED STATES TREASURY 3.875
06/30/2030 2,000,000.00 --

3.93%
1,995,273.44
1,996,275.05

98.84 4.19%
1,976,876.00
210.60

1.43%
(19,399.05)
Aa1/AA+
AA+

4.00 3.66
91282CNN7 UNITED STATES TREASURY 3.875
07/31/2030 2,000,000.00 --

3.80%
2,006,982.43
2,005,802.47

98.82 4.19%
1,976,406.00
32,327.35

1.43%
(29,396.47)
Aa1/AA+
AA+

4.08 3.68
91282CNX5 UNITED STATES TREASURY 3.625
08/31/2030 2,000,000.00 --

3.71%
1,992,753.90
1,993,874.35

97.83 4.20%
1,956,640.00
24,232.34

1.42%
(37,234.35)
Aa1/AA+
AA+

4.17 3.77
91282CPA3 UNITED STATES TREASURY 3.625
09/30/2030 1,750,000.00 --

3.70%
1,743,916.02
1,744,687.45

97.80 4.20%
1,711,445.75
15,946.04

1.24%
(33,241.70)
Aa1/AA+
AA+

4.25 3.86
91282CPD7 UNITED STATES TREASURY 3.625
10/31/2030 2,000,000.00 10/31/2025

3.71%
1,992,343.75
1,993,362.63

97.74 4.20%
1,954,844.00
12,214.67

1.41%
(38,518.63)
Aa1/AA+
AA+

4.34 3.94
91282CPN5 UNITED STATES TREASURY 3.5
11/30/2030 2,250,000.00 --

3.74%
2,225,781.26
2,228,457.02

97.20 4.20%
2,186,894.25
6,670.08

1.58%
(41,562.77)
Aa1/AA+
AA+

4.42 4.03
91282CJX0 UNITED STATES TREASURY 4.0
01/31/2031 2,000,000.00 --

4.05%
1,995,507.81
1,995,558.55

99.13 4.21%
1,982,656.00
33,370.17

1.43%
(12,902.55)
Aa1/AA+
AA+

4.59 4.08
91282CQD6 UNITED STATES TREASURY 3.5
02/28/2031 2,000,000.00 03/10/2026

3.70%
1,981,718.75
1,982,846.85

97.07 4.20%
1,941,328.00
23,396.74

1.40%
(41,518.85)
Aa1/AA+
AA+

4.67 4.20
91282CKF7 UNITED STATES TREASURY 4.125
03/31/2031 2,000,000.00 06/30/2026

4.18%
1,995,468.75
1,995,471.36

99.63 4.21%
1,992,500.00
20,737.70

1.44%
(2,971.36)
Aa1/AA+
AA+

4.75 4.23
Total US Treasury 67,785,000.00 4.10%
67,369,726.63
67,500,603.34

99.19 4.18%
67,226,845.60
581,608.81

48.63%
(273,757.75)

3.25 2.98
Total Portfolio 140,093,810.09 4.36%
137,845,906.22
138,451,405.25

97.98 4.33%
138,234,723.02
1,224,347.31
100.00%
(216,682.23)

3.26 2.79
Total Market Value +
Accrued 139,459,070.33
36 Item: 6.2
Item Page Number: 40
Menifee Finance Committee September 14, 2026 Page 47 of 155

TRANSACTIONS
37 Item: 6.2
Item Page Number: 41
Menifee Finance Committee September 14, 2026 Page 48 of 155

TRANSACTION LEDGER
City of Menifee | Account #10112|04/01/2026 Through 06/30/2026| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/
Sold Total Amount Gain/Loss

ACQUISITIONS
Purchase 04/27/2026 3137F8ZV8 1,200,000.00 FHMS K-123 A2 1.621 12/25/2030 89.621 4.13% (1,075,453.12) (1,404.87) (1,076,857.99) 0.00 Purchase 04/30/2026 023135DD5 1,500,000.00 AMAZON.COM INC

4.25 03/13/2031 98.982 4.48% (1,484,730.00) (8,322.92) (1,493,052.92) 0.00 Purchase 05/07/2026 002824BS8 1,750,000.00
ABBOTT
LABORATORIES 4.0
03/15/2031

98.361 4.38% (1,721,317.50) (11,277.78) (1,732,595.28) 0.00 Purchase 05/13/2026 43814YAD3 1,025,000.00 HAROT 2026-2 A3 4.3 11/15/2030 99.997 3.02% (1,024,970.38) 0.00 (1,024,970.38) 0.00 Purchase 05/14/2026 36275AAD1 450,000.00 GMALT 2026-2 A3 4.3 03/20/2029 99.989 4.40% (449,951.31) 0.00 (449,951.31) 0.00 Purchase 05/15/2026 14913V2D9 350,000.00

CATERPILLAR

FINANCIAL SERVICES
CORP 4.5 05/15/2031

99.863 4.53% (349,520.50) 0.00 (349,520.50) 0.00
Purchase 05/20/2026 58769MAD2 1,000,000.00 MBART 261 A3 4.36 10/15/2030 99.978 4.60% (999,782.20) 0.00 (999,782.20) 0.00 Purchase 06/08/2026 57636QBL7 1,180,000.00 MASTERCARD INC 4.6 06/08/2031 99.920 4.62% (1,179,056.00) 0.00 (1,179,056.00) 0.00 Purchase 06/17/2026 44935KAD5 780,000.00 HART 26B A3 4.81 02/18/2031 99.988 4.86% (779,905.85) 0.00 (779,905.85) 0.00 Purchase 06/17/2026 26442CBR4 1,165,000.00

DUKE ENERGY
CAROLINAS LLC 4.65
06/15/2031
100.244 4.59% (1,167,842.60) (1,805.75) (1,169,648.35) 0.00 Purchase 06/18/2026 67066GAR5 710,000.00 NVIDIA CORP 4.5 06/15/2031 99.810 4.54% (708,651.00) 0.00 (708,651.00) 0.00 Purchase 06/30/2026 91282CLC3 700,000.00

UNITED STATES
TREASURY 4.0
07/31/2029

99.598 4.14% (697,183.59) (11,602.21) (708,785.80) 0.00 Purchase 06/30/2026 91282CGJ4 500,000.00

UNITED STATES
TREASURY 3.5
01/31/2030

97.855 4.15% (489,277.34) (7,251.38) (496,528.72) 0.00
Purchase 06/30/2026 91282CMD0 500,000.00

UNITED STATES
TREASURY 4.375
12/31/2029
100.703 4.16% (503,515.63) 0.00 (503,515.63) 0.00
38 Item: 6.2
Item Page Number: 42
Menifee Finance Committee September 14, 2026 Page 49 of 155

UNITED STATES
TREASURY 4.0
03/31/2030

99.469 4.15% (497,343.75) (4,972.68) (502,316.43) 0.00
Purchase 06/30/2026 91282CNG2 500,000.00

UNITED STATES
TREASURY 4.0
05/31/2030

99.426 4.16% (497,128.91) (1,639.34) (498,768.25) 0.00
Purchase 06/30/2026 91282CJX0 500,000.00

UNITED STATES
TREASURY 4.0
01/31/2031

99.277 4.17% (496,386.72) (8,287.29) (504,674.01) 0.00
Purchase 06/30/2026 91282CJN2 1,000,000.00

UNITED STATES
TREASURY 4.375
11/30/2028
100.500 4.15% (1,005,000.00) (3,586.07) (1,008,586.07) 0.00 Purchase 06/30/2026 91282CJW2 1,000,000.00

UNITED STATES
TREASURY 4.0
01/31/2029

99.637 4.15% (996,367.19) (16,574.59) (1,012,941.78) 0.00 Purchase 06/30/2026 91282CJR3 1,000,000.00

UNITED STATES
TREASURY 3.75
12/31/2028

99.063 4.15% (990,625.00) 0.00 (990,625.00) 0.00
Purchase 06/30/2026 91282CKD2 1,000,000.00

UNITED STATES
TREASURY 4.25
02/28/2029
100.266 4.14% (1,002,656.25) (14,089.67) (1,016,745.92) 0.00 Purchase 06/30/2026 91282CKF7 2,000,000.00

UNITED STATES
TREASURY 4.125
03/31/2031

99.773 4.18% (1,995,468.75) (20,512.30) (2,015,981.05) 0.00 Purchase 06/30/2026 91282CLN9 700,000.00

UNITED STATES
TREASURY 3.5
09/30/2029

98.063 4.14% (686,437.50) (6,091.53) (692,529.03) 0.00
Purchase 06/30/2026 91282CNY3 2,000,000.00

UNITED STATES
TREASURY 3.375
09/15/2028

98.391 4.14% (1,967,812.50) (19,626.36) (1,987,438.86) 0.00 Total Purchase 23,010,000.00 (22,766,383.59) (137,044.74) (22,903,428.33) 0.00 TOTAL
ACQUISITIONS 23,010,000.00 (22,766,383.59) (137,044.74) (22,903,428.33) 0.00

DISPOSITIONS
39 Item: 6.2
Item Page Number: 43
Menifee Finance Committee September 14, 2026 Page 50 of 155

BANK OF NEW YORK
MELLON CORP 4.947
04/26/2027
100.000 5.38% 700,000.00 0.00 700,000.00 0.00
Total Call
Redemption (700,000.00) 700,000.00 0.00 700,000.00 0.00 Maturity 04/20/2026 4581X0DV7 (75,000.00)

INTER-AMERICAN

DEVELOPMENT BANK

0.875 04/20/2026
100.000 0.97% 75,000.00 0.00 75,000.00 0.00
Maturity 06/16/2026 3130AMM33 (1,500,000.00)

FEDERAL HOME
LOAN BANKS 0.875
06/16/2026
100.000 0.88% 1,500,000.00 0.00 1,500,000.00 0.00
Maturity 06/22/2026 3133EML67 (2,500,000.00)

FEDERAL FARM CREDIT

BANKS FUNDING CORP

0.8 06/22/2026
100.000 0.89% 2,500,000.00 0.00 2,500,000.00 0.00
Maturity 06/30/2026 3130AMWZ1 (5,000,000.00)

FEDERAL HOME
LOAN BANKS 1.05
06/30/2026
100.000 1.05% 5,000,000.00 0.00 5,000,000.00 0.00
Maturity 06/30/2026 3130AMT28 (5,000,000.00) FEDERAL HOME LOAN BANKS 1.0 06/30/2026 100.000 1.00% 5,000,000.00 0.00 5,000,000.00 0.00 Total Maturity (14,075,000.00) 14,075,000.00 0.00 14,075,000.00 0.00 Sale 04/30/2026 3130AMM33 (500,000.00)

FEDERAL HOME
LOAN BANKS 0.875
06/16/2026

99.616 0.88% 498,080.00 1,628.47 499,708.47 (1,920.00)
Sale 04/30/2026 26442CAS3 (35,000.00)

DUKE ENERGY
CAROLINAS LLC 2.95
12/01/2026

99.340 1.82% 34,769.00 427.34 35,196.34 (360.07)
Sale 04/30/2026 931142ER0 (10,000.00) WALMART INC 1.05
09/17/2026 98.841 1.09% 9,884.10 12.54 9,896.64 (114.45) Sale 04/30/2026 857477CL5 (125,000.00) STATE STREET CORP

4.993 03/18/2027 100.739 4.99% 125,923.75 728.15 126,651.90 923.75 Sale 05/07/2026 3130AMM33 (1,500,000.00)

FEDERAL HOME
LOAN BANKS 0.875
06/16/2026

99.682 0.88% 1,495,230.00 5,140.62 1,500,370.62 (4,770.00) Sale 05/07/2026 91282CFH9 (1,630,000.00)

UNITED STATES
TREASURY 3.125
08/31/2027

99.094 4.55% 1,615,228.13 9,412.36 1,624,640.49 13,247.72 40 Item: 6.2
Item Page Number: 44
Menifee Finance Committee September 14, 2026 Page 51 of 155

3.95 08/15/2027 99.507 4.65% 99,507.00 965.56 100,472.56 288.97 Sale 05/13/2026 87612EBM7 (20,000.00) TARGET CORP 1.95
01/15/2027 98.720 1.99% 19,744.00 127.83 19,871.83 (251.38) Sale 05/14/2026 084664CZ2 (45,000.00)

BERKSHIRE HATHAWAY
FINANCE CORP 2.3
03/15/2027

98.550 2.30% 44,347.50 169.63 44,517.13 (651.35)
Sale 05/14/2026 808513BY0 (25,000.00) CHARLES SCHWAB
CORP 2.45 03/03/2027 98.712 2.46% 24,678.00 120.80 24,798.80 (320.85) Sale 05/14/2026 22160KAM7 (20,000.00) COSTCO WHOLESALE
CORP 3.0 05/18/2027 99.152 3.52% 19,830.40 293.33 20,123.73 (72.50) Sale 05/14/2026 828807DE4 (800,000.00)

SIMON PROPERTY
GROUP LP 3.375
12/01/2027

98.619 5.32% 788,952.00 12,225.00 801,177.00 10,689.16
Sale 05/14/2026 665859AW4 (15,000.00) NORTHERN TRUST
CORP 4.0 05/10/2027 99.929 4.03% 14,989.35 6.67 14,996.02 (6.62) Sale 05/14/2026 91282CFB2 (815,000.00)

UNITED STATES
TREASURY 2.75
07/31/2027

98.641 4.76% 803,921.09 6,377.04 810,298.13 7,105.67
Sale 06/08/2026 69371RS31 (100,000.00) PACCAR FINANCIAL CORP 4.6 01/10/2028 100.486 4.71% 100,486.00 1,891.11 102,377.11 640.32 Sale 06/17/2026 06051GGF0 (75,000.00)

BANK OF AMERICA
CORP 3.824
01/20/2028

99.682 5.51% 74,761.50 1,171.10 75,932.60 274.79
Sale 06/17/2026 02665WED9 (130,000.00)

AMERICAN HONDA
FINANCE CORP 4.7
01/12/2028
100.333 4.52% 130,432.90 2,630.69 133,063.59 105.51
Sale 06/17/2026 89236TKQ7 (80,000.00)

TOYOTA MOTOR
CREDIT CORP 4.625
01/12/2028
100.683 4.64% 80,546.40 1,593.06 82,139.46 562.56
Sale 06/17/2026 91282CFM8 (800,000.00)

UNITED STATES
TREASURY 4.125
09/30/2027
100.176 4.54% 801,406.25 7,032.79 808,439.04 5,288.00
Total Sale (6,825,000.00) 6,782,717.37 51,954.09 6,834,671.46 30,659.24 TOTAL
DISPOSITIONS (21,600,000.00) 21,557,717.37 51,954.09 21,609,671.46 30,659.24 41 Item: 6.2
Item Page Number: 45
Menifee Finance Committee September 14, 2026 Page 52 of 155

IMPORTANT DISCLOSURES
2026 Chandler Asset Management, Inc, An Independent Registered Investment Adviser.

Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.

Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio.

Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.

Source ICE Data Indices, LLC (“ICE”), used with permission. ICE permits use of the ICE indices and related data on an “as is” basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an “as is” basis and licensee’s use it at licensee’s own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services.

This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment.

Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates.

Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy.

Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest.

LGIP Yields: Reported yields for local government investment pools may be presented as either the 30-day yield or the monthly distribution yield, as applicable. For certain funds, the 30-day yield is calculated using reported daily yield data. Yield calculations are subject to change and may not be directly comparable across funds.

LAIF Yields: Additional Disclosure for CA Clients - As a result of a reporting lag from the Local Agency Investment Fund (LAIF), reported LAIF yields represent the most recently available Daily Effective Yield and may reflect data from approximately 7–10 days prior to month-end. 42 Item: 6.2
Item Page Number: 46
Menifee Finance Committee September 14, 2026 Page 53 of 155

BENCHMARK DISCLOSURES
Benchmark Disclosure
ICE BofA 1-5 Yr Unsubordinated US
Treasury & Agency Index
The ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies. 43 Item: 6.2
Item Page Number: 47
Menifee Finance Committee September 14, 2026 Page 54 of 155

1 City of Menifee
Cash Flow Analysis
Alaynè Marie Sampson, CTP
Portfolio Strategy Manager
June 2026
Item: 6.2
Item Page Number: 48
Menifee Finance Committee September 14, 2026 Page 55 of 155

2 • Daily cash required
for payroll,
operational and
other outgoing
invoices
• Local Government
Investment Pools
(LGIP)
• Government Money
Market Funds
• Matching maturities to
known expenditures
Total Portfolio
Liquidity Portfolio
Less than 1 year
Checking Account
Daily liquidity
Segmenting Account Structure
Custom Solutions
Dependent on need
Reserve Portfolio
Greater than 1 year
• Limited Maturity or
Short-Term Bond
Strategy
• Longer-duration, high-
quality securities
allowed by
Government Code and
the Investment Policy
to potentially increase
earnings
• Book or total return
objective
• Option for
customized
investment solutions
for operating, project,
and restricted bond
reserves
• OPEB, 115 Trusts
Item: 6.2
Item Page Number: 49
Menifee Finance Committee September 14, 2026 Page 56 of 155

3 Source: City of Menifee's Monthly Statements December 31, 2020 through June 30, 2026. Please see disclosures at the end of this presentation.

Menifee Seasonality of Cash & Investment Balances
(Average % Change Dec 2020 – June 2026)
Seasonality Analysis
Monthly
Average % of Average
Average 192,240,277 100.0%
January 187,864,723 97.7%
February 195,708,364 101.8%
March 192,524,216 100.1%
April 196,382,472 102.1%
May 206,803,034 107.5%
June 212,721,786 110.6%
July 198,786,626 103.4%
August 196,491,674 102.2%
September 195,308,112 101.6%
October 192,009,607 99.8%
November 191,542,352 99.6%
December 194,781,324 101.3%
Seasonality of Menifee’s Balances
90%
95%
100%
105%
110%
115%
% of Average
Item: 6.2
Item Page Number: 50
Menifee Finance Committee September 14, 2026 Page 57 of 155

4 $0
$50
$100
$150
$200
$250
$300
$350Millions
City of Menifee Cash and Investments
Amount available for
longer-term investments
Actual Portfolio of Securities
$138 million as of June 30, 2026
Minimum needed to cover
+ 15% cushion
$85 Million
more
available for
longer-
duration
investments
Historical Cash Flow Analysis
 Cash balances have grown 21% annually (CAGR) for December 2020 through June 2026.  The City maintains ample liquidity and retains optionality for laddering its portfolio of investments.

Historical Securities Portfolio includes assets not managed by Chandler Asset Management. This information was sourced from the City of Menifee's Monthly Statements December 31, 2020 through June 30, 2026. Please see disclosures at the end of this presentation.

Piper Sandler broker-dealer relationship
established 05/2021
Item: 6.2
Item Page Number: 51
Menifee Finance Committee September 14, 2026 Page 58 of 155

5 Source: City of Menifee's Monthly Statements December 31, 2020 through June 30, 2026. Please see disclosures at the end of this presentation. *This is not a guarantee of a specific rate of growth, as past performance is not indicative of future results.

Forecast Based Upon Historical
Data Provided by City of Menifee
As of June 30, 2026
 Assuming a 4% growth from
all revenue sources*, the
peak balance could be $323
million.
 Balances for reserve portfolio
could range between $223-
262 million in FY2027-2029.
 Balances for liquidity portfolio
could range between $39-81
million in FY2027-2029.

Item: 6.2
Item Page Number: 52
Menifee Finance Committee September 14, 2026 Page 59 of 155

7 Disclosures
This report is being provided for informational purposes only. No investment decision should be made based solely on the information provided herein. All investments involve risk, including loss of principal invested. The strategies referenced may not be suitable for all investors. The information contained herein is based on internal research derived from various sources and does not purport to be statements of all material facts relating to the strategies. While not guaranteed as to accuracy or completeness, some of the information has been obtained from sources we believe to be reliable. Opinions expressed herein are subject to change without notice. There can be no assurance that an account or specific investment product will be able to achieve its investment objective. No guarantee of investment performance is being provided and no inference to the contrary should be made.

Any forecasts, forward-looking statements and assumptions are inherently limited and should not be relied upon as an indicator of future results. Any opinions and views constitute judgments made by the author at the date of this presentation and may become outdated or superseded at any time without notice. Any statements concerning financial market trends are based on current market conditions, which will fluctuate.

Economic factors, market conditions and investment strategies will affect the performance of any portfolio and there are no assurances that it will match or outperform any particular benchmark. The data contained in this presentation is the property of those providers, which were obtained from sources believed to be reliable, but are subject to change at any time at the provider’s discretion. Unless otherwise noted, Chandler is the source of data contained in this presentation.

Fixed Income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally must pay higher interest rates to attract investors willing to take on greater risk.

Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates.

References to specific securities are examples of securities held in a portfolio and are not intended to be, and should not be interpreted as an offer, solicitation, or recommendation to purchase or sell any financial instrument, an indication that the purchase of such securities was or will be profitable, or representative of the composition or performance of the portfolio.

The information contained in this sample presentation was obtained from sources we believe to be reliable, but we do not guarantee its accuracy. Past performance is not indicative of future success.

Performance results are presented gross-of-advisory fees and represent the client's Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio. Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.

Where listed, certain performance shown is hypothetical and does not represent actual trading in a client's account. HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK AND DOES NOT TAKE INTO ACCOUNT THAT MATERIAL AND MARKET FACTORS MAY HAVE IMPACTED THE ADVISER'S DECISION MAKING IF THE ADVISER WERE ACTUALLY MANAGING CLIENT'S MONEY. NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS

IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS. It should not be assumed that investors who invest in Chandler Asset Management's Portfolios will be profitable or achieve the hypothetical performance results reflected or any corresponding index presented. Actual performance of and holdings and investment implementation in Chandler Asset Management's client accounts can materially differ from that of the hypothetical models presented herein and performance can be higher or lower than the results shown. Investors may have experienced investment results during the corresponding time periods that were materially different from those portrayed. The opinions referenced are as of the date of publication and are subject to change. Chandler Asset Management has discretion in the timing of trade execution and selection of securities traded and utilized in any client account, which can and will materially differ from the hypothetical simulated performance based upon a variety of factors, including the adviser's discretion to not follow any trading signal generated and to determine the timing and implementation of a trade (which can include securities other than those listed). There is a possibility of loss on all investments and investor principal is not guaranteed. Performance information provided should not be used in making investment decisions.

Item: 6.2
Item Page Number: 53
Menifee Finance Committee September 14, 2026 Page 60 of 155

CITY OF MENIFEE
SUBJECT: Formation of Community Facilities District (CFD) 2026-3, Cypress Sands, and formation of Public Safety CFD, 2026-S MEETING DATE: September 14, 2026
TO: Finance Committee
PREPARED BY: Lauri Lockwood, Financial Analyst
REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Bryan Jones, Assistant City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Review the proposed Community Facilities District (“CFD”) 2026-3 to finance certain costs of public improvements for the development of 132 townhomes located at the southwest corner of Chambers Avenue and Antelope Road, and recommend submittal to the City Council for consideration.

2. Review the proposal for Cypress Sands to be the cornerstone project for the City’s formation of Public Safety CFD, 2026-S, and recommend submittal to the City Council for consideration.

DISCUSSION
FB Cypress Sands, a Delaware-based LLC, (the “Landowner”) is proposing a 132-unit townhome project at the southwest corner of Chambers Avenue and Antelope Road. The project includes 126 market-rate units and six affordable housing units.

The addition of the affordable housing units makes this townhome development somewhat unique. All units are intended to be sold to individual owners, not to an entity that would lease them.

The Landowner is requesting the City assist in forming CFD 2026-3 to finance public improvements and infrastructure necessary to support the development as well as maintenance of those public improvements.

Item: 6.3
Item Page Number: 1
Menifee Finance Committee September 14, 2026 Page 61 of 155

City of Menifee Staff Report
Formation of CFD 2026-3, Cypress Sands, and formation of Public Safety CFD, 2026-S September 14, 2026

Page 2 of 4 ends

3 5
5 0
The home sizes of the market-rate units would range from 1,312 to 1,510 square feet (“SF”), with sales prices ranging from an estimated $450,000 to $510,000. The six affordable housing units would have 1,364 SF and the sales price for those units is estimated at $106,134.

Special tax rates for the facilities CFD would vary by home size, ranging from $2,630 for market-rate homes under 1,400 SF to $3,137 for market-rate homes over 1,499 square feet. Those rates could escalate by 2% per year. The affordable housing units would be exempt from the special tax associated with the facilities district.

The annual property tax burden, including ad valorem and fixed charges, is estimated to range from 1.61% for the affordable housing units to 2% for the market-rate units.

The proposed facilities CFD would fund a portion of the costs associated with City facilities and Menifee Union School District facilities. The cost of these public improvements would be financed through the levy of a special tax and the issuance of approximately $4.7 million in bonds.

Public Safety CFD (CFD 2026-S)
In June 2026, the City Council authorized the Finance Department to move forward with plans to form a new Public Safety CFD, which would provide a dedicated revenue stream that would allow the City to maintain public safety levels as growth continues. The City Council also indicated that all new residential developments that have not received their Conditions of Approval (“COAs”) will be expected to annex into the Public Safety CFD.

Although Cypress Sands has received its COAs and was not conditioned to annex into CFD 2026-S, the Landowner has agreed to participate in the public safety CFD in exchange for certain concessions, including the City waiving the 20% premium associated with the facilities CFD, which is estimated at approximately $379,000.

The landowner also sought to eliminate the special taxes associated with the City’s maintenance CFD and the Public Safety CFD for the six affordable housing units, and allowing the homeowners association (“HOA”) to assume maintenance of certain public right-of-way items that would otherwise be maintained by the City, which would reduce the special tax levy for the maintenance CFD.

According to recent City Council direction, if a development has already received its COAs, city staff may consider reducing or waiving the premium on a case-by-case basis.

The Landowner noted this project is providing six affordable housing units, thereby moving the City closer to meeting its Regional Housing Needs Assessment allocation.

Item: 6.3
Item Page Number: 2
Menifee Finance Committee September 14, 2026 Page 62 of 155

City of Menifee Staff Report
Formation of CFD 2026-3, Cypress Sands, and formation of Public Safety CFD, 2026-S September 14, 2026

Page 3 of 4 ends

3 5
5 0
City staff sees the value in Cypress Sands’ affordable units and in the landowner’s willingness to have this development serve as the cornerstone project for the new Public Safety CFD. The Finance Department worked to reach a compromise with the landowner, who was concerned about the limited financing capacity of the facilities district given the 2% tax rate ceiling and the number of overlapping special tax districts applicable to the development. After meeting with the Landowner, staff recommend the City agree to not deduct the 20% premium out of the bond proceeds. The development would contribute $66,150 to the public safety CFD in its first year, and potentially more than $1.75 million over the next 20 years, which exceeds the one-time flat amount of $379,000 for the premium. Alternately, the City could still choose to recapture the premium through ongoing assessments collected after bonds are issued.

Additionally, rather than exempting the six housing units from paying all special taxes for the maintenance CFD and the Public Safety CFD, staff is recommending these special tax amounts be reduced for the affordable housing units from $440 to $125 for the maintenance CFD and from $525 to $150 for the Public Safety CFD. And City staff does not recommend approving the request to have the HOA maintain facilities in the right-of- way, in order to maintain consistency with City-established service levels.

This project would be the first project in the City’s new Public Safety CFD, which would include a special tax levy of $525 on market rate homes and $150 for affordable housing units. All future residential developments that have not already received COAs would be required to annex into CFD 2026-S. The special tax for this CFD could escalate as much as 4% per year, and the escalator is subject to an annual review by the City Council.

Because the City’s maintenance fee would be discounted for the six affordable units, this development does not meet the requirements to annex into CFD 2017-1 for maintenance.

The annual maintenance cost is therefore incorporated into CFD 2026-3 to ensure the City can still recoup money for maintenance services.

Staff seeks a recommendation to forward both the formation of CFD 2026-3 and the formation of CFD 2026-S to the City Council for consideration.

Item: 6.3
Item Page Number: 3
Menifee Finance Committee September 14, 2026 Page 63 of 155

City of Menifee Staff Report
Formation of CFD 2026-3, Cypress Sands, and formation of Public Safety CFD, 2026-S September 14, 2026

Page 4 of 4 ends

3 5
5 0

ATTACHMENTS

1. CFD 2026-3 Proforma Summary

2. CFD 2026-3 Project Map

3. CFD 2026-3 Proforma

4. CFD 2026-3 Boundary Map

5. CFD 2026-3 Maintenance Exhibit

6. CFD 2026-3 RMA

7. Facilities CFD Application

8. Cypress Sands CFD Premium Waiver Request

9. CFD 2026-S Boundary Map

10. CFD 2026-S Potential Annexation Area

11. CFD 2026-S RMA
Item: 6.3
Item Page Number: 4
Menifee Finance Committee September 14, 2026 Page 64 of 155

CFD 2026-3 (Cypress Sands)
Proforma Summary Sheet
Applicant: FB Cypress Sands LLC (Fairbrook Communities) Project Description
Acreage Gross: 9.27; Net Taxable: 4.46
Development Description Attached Townhome Condominium Units Number of Units 132 Total; 126 Taxa ble / 6 Affordable Housing Exempt Estimated Home Size Range 1,312 SF to 1,510 SF
Average Home Size 1,386 SF
Average Estimated Home Price Market Rate Avg.: $474,921; Affordable: $106,134 Total Effective Tax Rate (2.00% Max) 1.96% to 2.00% Market Rate; 1.61% Affordable Facilities CFD Tax Rate Range $2,630 to $3,137; Affordable Housing $0 Backup Special Tax $2,833 per Taxable Residential Unit
Escalation (2.00% Max) Yes, 2.00%
Maintenance CFD Rate – Tax B Preliminary: $440/Market Rate Unit; $125/Affordable Unit Safety Services CFD Rate Preliminary: $5 25/Market Rate Unit; $150/Affordable Unit Bond Sizing Assumptions
Average Coupon 5.00%
Priority Administration $30,000
Cost of Issuance $250,000
Capitalized Interest Period 6-months
Special Tax Escalation 2.00%
Bond Term 30 Years
Underwriter Discount 2.00%
Total Special Tax Revenues $356,899
Estimated Sources and Uses
Sources
Par Bond Amount $5,710,000
Uses
Reserve Fund $493,695
Capitalized Interest $142,750
Underwriter Discount $114,200
Cost of Issuance $250,000
Improvement Fund / Net Bond Proceeds $4,709,355
Allocation of Improvement Fund
Description % of Total Total Eligible Potentially Funded City Premium (20%) – Proposed to be waived 7% $379,162 TBD City Fees 34% $1,895,810 $1,895,810
City Facilities 43% $2,375,000 $2,375,000
MUSD Fees 16% $884,233 $438,545
Totals 100% $5,534,205 $4,709,355
Unfunded $824,850
Proposed Schedule
Finance Committee September 14, 2026
Resolution of Intention October 21, 2026
Public Hearing December 2, 2026
2nd Reading Ordinance December 16, 2026

Item: 6.3
Item Page Number: 5
Menifee Finance Committee September 14, 2026 Page 65 of 155

Summary
CFD No. 2026-3 (Cypress Sands) is proposed to finance eligible City development impact fees, public improvements, and Menifee Union School District obligations associat ed with the 132-unit Cypress Sands residential development. The proposed structure includes 126 taxable residential units and si x Affordable Housing units proposed to be exempt from the Facilities CFD Special T ax.

Based on current assumptions, the CFD is estimated to support approximately $5.71 million in bonds and generate approximately $4.71 million in net bond proceeds for eligible project costs. Th e proposed formation will be co ordinated with the project’s participation in the providing maintenance services through a CFD 2026-3 Special Tax B and Special Tax C (Contingent) structure and Public Safety Services CFD. All financing assumptions, tax rates, eligible costs, and allocations remain preliminary and subject to City review and approval.

Item: 6.3
Item Page Number: 6
Menifee Finance Committee September 14, 2026 Page 66 of 155

Item: 6.3
Item Page Number: 7
Menifee Finance Committee September 14, 2026 Page 67 of 155

CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2026-3
(Cypress Sands)
Tract Nos. 39364
Calculation of Bond Sizing and Total Tax Rates
I. Home Prices and Combined Tax Rates:

Plan 1 1-E 2 3 4 CFD TOTAL
Range of Home Sizes in Square Feet per RMA Under Under 1,401 to Over Affordable 1,400 1,400 1,499 1,499 Housing
Estimated Home Size 1,312 1,312 1,423 1,510 1,364 1,386 Estimated Home Price $450,000 $470,000 $490,000 $510,000 $106,134 $346,112 Ad-Valorem Tax Rate (1.00%) $4,500.00 $4,700.00 $4,900.00 $5,100.00 $1,061.34 $3,461.12 Metro Water East (0.00700%) $31.50 $32.90 $34.30 $35.70 $7.43 $24.23 Menifee School (0.07500%) $337.50 $352.50 $367.50 $382.50 $79.60 $259.58 Perris Union HS (0.04712%) $212.04 $221.46 $230.89 $240.31 $50.01 $163.09 Mt. San Jacinto Jr. College (0.00254%) $11.43 $11.94 $12.45 $12.95 $2.70 $8.79 EMWD Improvement District U-35 (0.00430%) $101.25 $105.75 $110.25 $114.75 $23.88 $77.88 Subtotal GO Bond Debt $5,193.72 $5,424.55 $5,655.38 $5,886.22 $1,224.96 $3,994.69 Flood Control Stormwater $3.75 $3.75 $3.75 $3.75 $3.75 $2.93 EMWD Standby $11.00 $11.00 $11.00 $11.00 $11.00 $8.58
MWD Standby Charge $6.94 $6.94 $6.94 $6.94 $6.94 $5.42
Perris Union HS CFD 92-1 $190.00 $190.00 $190.00 $190.00 $190.00 $148.26 Proposed CFD No. 2017-1 - Maint Svcs* $440.00 $440.00 $440.00 $440.00 $125.00 $329.02 Proposed CFD No. 2026-S - Safety Svcs* $525.00 $525.00 $525.00 $525.00 $150.00 $392.61 Proposed CFD No. 2026-3 - Facilities Tax** $2,630.00 $2,630.00 $2,968.00 $3,137.00 $0.00 $2,014.59 Subtotal Special Assessments and Taxes $3,806.69 $3,806.69 $4,144.69 $4,313.69 $486.69 $2,901.40 Total Annual Property Taxes $9,000.41 $9,231.24 $9,800.07 $10,199.91 $1,711.65 $6,896.09 Annual Prop. Tax Rates as % of Home Price 2.00% 1.96% 2.00% 2.00% 1.61% 1.99% Unit Mix 59 6 32 29 6 132
(1)Total CFD - Annual Tax Collections $155,170 $15,780 $94,976 $90,973 $0 $356,899 (2)Administration $30,000
Total Annual Special Taxes for Bonding
((1)Special Taxes - (2)Admin. / 110% Cov) $129,206 $13,140 $79,084 $75,751 $0 $297,181 II. Total Estimated Home Square Footage: 77,408 7,872 45,536 43,790 8,184 182,790 * Escalates at greater of 2% or CPI
** Includes a 2% annual escalator for debt service
III. CFD Bond Sizing & Construction Proceeds:
2026 Bond Amount (5.00% Interest, 30 Year Term, 29 Year Amortization) $5,710,000 Underwriter Discount (2.00%) $114,200
Reserve Fund (Maximum Annual Debt Service) $493,695
Capitalized Interest (6 mos.) $142,750
Incidental Costs (Estimate) $250,000
Total Discount, Reserve Fund, Capitalized Interest and Incidental Costs $1,000,645 Net Bond Proceeds $4,709,355
Item: 6.3
Item Page Number: 8
Menifee Finance Committee September 14, 2026 Page 68 of 155

CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2026-3
(Cypress Sands)
Tract Nos. 39364
Summary of Acreage, Undeveloped Property
And Backup Special Tax Rates
Tract Nos. 39364
126 Taxable Lots
(Cypress Sands)
I. Calculation of Net Taxable Acres:

Gross Acreage 9.27
Less: Exempt Acres 4.81

Net Taxable Acres 4.46

II. Calculation of Undeveloped Property Tax Rate:

Total Developed Property Revenues $356,899
Net Taxable Acres 4.46

Less: Contingency Factor (10%) 0.45

Net Taxable Acres (Adjusted) 4.01

Undeveloped Property Tax Rate per Acre $88,914
Total Exempt Acreage 5.26

III. Calculation of Backup Special Tax Rate:

A. Backup Special Tax Rate per Unit
Total Taxable Acres (Adjusted) 4.01
Undeveloped Property Tax Rate per Acre $88,914
Total Units 126
Backup Special Tax per Unit $2,833
B. Backup Special Tax Rate per Lot Square Foot
Total Developed Property Revenues $356,899
Total Net Acres (Square Feet) 174,850
Backup Special Tax Rate per Lot Square Foot $2.0412
Item: 6.3
Item Page Number: 9
Menifee Finance Committee September 14, 2026 Page 69 of 155

CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2026-3
(Cypress Sands)
Tract Nos. 39364
Calculation of Bond Sizing and Total Tax Rates
Debt Service No. o f Total Annual
Tax Rate Units Collectable Tax Max Tax Rates
1,400 $2,630 59 $155,170 $167,120
1,400 $2,630 6 $15,780 $16,995
to 1,499 $2,968 32 $94,976 $94,976
Less than
Less than
1,401
Greater than 1,499 $3,137 29 $90,973 $90,973
Affordable Housing $0 6 $0 $16,995
Non-residential Property $88,914
Backup Tax Rate per Unit $2,833
Backup Tax Rate per S.F. $2.0412
132 $356,899 $387,06 0
Tax Rate for Bonding $324,60 0
Sizing at Max tax rate $6,200,00 0
Future Facilities (rounded up) $5,500,000
Range of Home Sizes
Item: 6.3
Item Page Number: 10
Menifee Finance Committee September 14, 2026 Page 70 of 155

CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2026-3
(Cypress Sands)
Tract Nos. 39364
Use of Bond Proceed
s
CFD 2026-3 Tract Nos. 39364
132 Lots
FUNDING REQUIREMENTS Per Lot (Cypress Sands)
City Fees
Law Enforcement $724 $95,568
Fire Facilities $506 $66,792
Circulation $3,585 $473,22 0
General Govt $920 $121,44 0
Parks and Recreation $1,348 $177,93 6
Storm Drain Fee $50 $6,600
Quimby $7,229 $954,254
Subtotal City Fees $14,362 $1,895,81 0
City Premium (20%) $2,872 $379,162
Total City Fees $17,235 $2,274,972
City Facilities
Street Improvements $14,394 $1,900,000
Design, Planning, Engineering (25%) $3,598 $475,00 0
Total City Facilities $17,992 $2,375,000
Total City Facilities and Fees $35,227 $4,649,972
Menifee Union School District Fees
Level I School Developer Fee $5,359 $707,38 6
Developer Fee Premium $1,340 $176,847
Total Menifee Union School District Fees $6,699 $884,233 Total Cost $41,926 $5,534,205
Potential Project Funds Available $4,709,355
ALLOCATION OF PROCEEDS % Per Lot Total
City Premium 0% $0 $0
City Facilities 50% $17,992 $2,375,00 0
City Fees 40% $9,852 $1,895,81 0
Other Agency 9% $0 $438,545
Total Funded by Bond Proceeds 100% $27,84 4 $4,709,355

UNFUNDED REQUIREMENTS
Total Fees to be Funded by Developer $824,850
Item: 6.3
Item Page Number: 11
Menifee Finance Committee September 14, 2026 Page 71 of 155

CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2026-3
(Cypress Sands)
Tract Nos. 39364
Revenue Coverage - Assigned Tax Rate
Year
Period
Ending
Gross
Revenues
Priority
Admin Principal Coupon Interest
Capitalized
Interest
Net Debt
Service
Debt
Service
Coverage
1 9/1/2027 $356,899 $30,00 0 $0 5.00% $285,50 0 $142,750 $142,750 N/A 2 9/1/2028 $364,03 7 $30,600 $15,000 5.00% $285,50 0 $300,500 110.96% 3 9/1/2029 $371,31 8 $31,212 $20,00 0 5.00% $284,75 0 $304,750 111.60% 4 9/1/2030 $378,74 4 $31,836 $30,000 5.00% $283,75 0 $313,750 110.57% 5 9/1/2031 $386,319 $32,473 $35,00 0 5.00% $282,25 0 $317,250 111.54% 6 9/1/2032 $394,045 $33,122 $45,00 0 5.00% $280,50 0 $325,500 110.88% 7 9/1/2033 $401,92 6 $33,785 $55,00 0 5.00% $278,25 0 $333,250 110.47% 8 9/1/203 4 $409,965 $34,461 $65,00 0 5.00% $275,50 0 $340,500 110.28% 9 9/1/2035 $418,16 4 $35,150 $75,000 5.00% $272,25 0 $347,250 110.30% 10 9/1/2036 $426,52 7 $35,853 $85,00 0 5.00% $268,50 0 $353,500 110.52% 11 9/1/2037 $435,05 8 $36,570 $95,000 5.00% $264,25 0 $359,250 110.92% 12 9/1/2038 $443,759 $37,301 $110,00 0 5.00% $259,50 0 $369,500 110.00% 13 9/1/2039 $452,63 4 $38,047 $120,00 0 5.00% $254,00 0 $374,000 110.85% 14 9/1/2040 $461,68 7 $38,808 $135,00 0 5.00% $248,00 0 $383,000 110.41% 15 9/1/2041 $470,921 $39,58 4 $150,000 5.00% $241,25 0 $391,250 110.25% 16 9/1/2042 $480,339 $40,37 6 $165,000 5.00% $233,75 0 $398,750 110.34% 17 9/1/2043 $489,94 6 $41,184 $180,000 5.00% $225,50 0 $405,500 110.67% 18 9/1/204 4 $499,745 $42,007 $195,00 0 5.00% $216,50 0 $411,500 111.24% 19 9/1/2045 $509,74 0 $42,847 $215,00 0 5.00% $206,75 0 $421,750 110.70% 20 9/1/2046 $519,93 4 $43,704 $235,000 5.00% $196,00 0 $431,000 110.49% 21 9/1/2047 $530,333 $44,578 $255,00 0 5.00% $184,25 0 $439,250 110.59% 22 9/1/2048 $540,94 0 $45,470 $275,000 5.00% $171,50 0 $446,500 110.97% 23 9/1/2049 $551,759 $46,379 $300,00 0 5.00% $157,75 0 $457,750 110.41% 24 9/1/2050 $562,79 4 $47,307 $325,00 0 5.00% $142,75 0 $467,750 110.21% 25 9/1/2051 $574,05 0 $48,253 $350,00 0 5.00% $126,50 0 $476,500 110.35% 26 9/1/2052 $585,531 $49,218 $375,00 0 5.00% $109,00 0 $484,000 110.81% 27 9/1/2053 $597,241 $50,203 $405,00 0 5.00% $90,25 0 $495,250 110.46% 28 9/1/205 4 $609,186 $51,207 $435,00 0 5.00% $70,00 0 $505,000 110.49% 29 9/1/2055 $621,37 0 $52,231 $465,00 0 5.00% $48,25 0 $513,250 110.89% 30 9/1/2056 $633,79 7 $53,275 $500,00 0 5.00% $25,00 0 $525,000 110.58% Total $14,478,70 7 $1,217,042 $5,710,00 0 $6,267,500 $142,750 $11,834,750 110.65% Item: 6.3
Item Page Number: 12
Menifee Finance Committee September 14, 2026 Page 72 of 155

Item: 6.3
Item Page Number: 13
Menifee Finance Committee September 14, 2026 Page 73 of 155

LOT 'E'

LOT 'D'

LOT 'C'

LOT 'B'
PARCEL 1
PARCEL 2
PARCEL 3
PARCEL 4
ENGINEERING CONSULTANTS200 South Main Street, Suite 300 Corona, CA 92882 (951) 280-3300 TRACT 39364 - CYPRESS SANDSCOMMUNITY FACILITIES DISTRICT EXHIBIT AUGUST 17, 2026
Item: 6.3
Item Page Number: 14
Menifee Finance Committee September 14, 2026 Page 74 of 155

City of Menifee
Community Facilities District No. 2026-3 (Cypress Sands) Page 1

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2026-3 (CYPRESS SANDS)

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 Fa cilities District No. 2026-3 (Cypress Sands) ("CFD No. 2026-3”). 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 capa city as the legislative body of CFD No. 2026-3, by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exem pt Property as set forth below. All of the real property, unless exempted by law or by the provisions hereof in Section F, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS

The terms hereinafter set forth have the following meanings:

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

"Acre” or “Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other 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. 2026-3: the costs of computing the Special Tax A and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Tax A (whether by the City or otherwise); the costs of remitting Special Tax A 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. 2026-3 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No . 2026-3 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2026-3 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 Tax A; the costs of the City, CFD No. 2026-3 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. 2026-3 for any other administrative purposes of CFD No. 2026-3, including attorney’s fees and other costs relate d to commencing and pursuing to completion any foreclosure of delinquent Special Tax A.

Item: 6.3
Item Page Number: 15
Menifee Finance Committee September 14, 2026 Page 75 of 155

City of Menifee
Community Facilities District No. 2026-3 (Cypress Sands) Page 2

“Affordable Housing” means housing as defined in State Density Bonus Law, as amended, being Chapter

4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code of the State of California.

“Affordable Housing Property” means an Assessor’s Parcel containing a Residential Unit that is restricted as Affordable Housing.

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

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

"Assessor’s Parcel Map" means an official map of the 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 A" means the Special Tax of that name described in Section D below.

"Backup Special Tax A" 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. 2026-3 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 A 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. Item: 6.3
Item Page Number: 16
Menifee Finance Committee September 14, 2026 Page 76 of 155

City of Menifee
Community Facilities District No. 2026-3 (Cypress Sands) Page 3

"CFD” or “CFD No. 2026-3” means Community Facilities District No. 2026-3 (Cypress Sands) established by the City under the Act.

“CFD Administrator" means an official of the City, or designee thereof, responsible for (i) determining the Special Tax A Requirement, (ii) determining the Spec ial Tax B Requirement, (iii) determining the Special Tax C (Contingent) Requirement, and (iv) 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. 2026-3.

“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 Tax A 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 A" means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2026-3 on such Assessor’s Parcel.

“Maximum Special Tax B” means the maximum Special Tax B, determined in accordance with Section L below, that can be levied in any Fi scal Year on an Assessor’s Parcel of Taxable Property within CFD No. 2026-3.

“Maximum Special Tax C (Contingent )” means the maximum Special Tax C (Contingent), determined in accordance with Section R below, that can be levied in any Fiscal Year on an A ssessor’s Parcel of Taxable Property within CFD No. 2026-3.

Item: 6.3
Item Page Number: 17
Menifee Finance Committee September 14, 2026 Page 77 of 155

City of Menifee
Community Facilities District No. 2026-3 (Cypress Sands) Page 4

“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 A obligation in full for an Assessor’s Parcel, as described in Section G.1.

“Property Owner Association” or “POA” means a corporation or association responsible for maintaining private improvements within CFD No. 2026-3.

“Proportionately” means for Taxable Property that is (i) Develo ped Property, that the ratio of the actual Special Tax A 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 A levy to the Maximum Special Tax A is the same for all Assessor’s Parcels of Approved Proper ty, and (iii) Undeveloped Property or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax A 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. 2026-3.

"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(es)" means any of the special taxes authorized to be levied within CFD No. 2026-3 pursuant to the Act.

Item: 6.3
Item Page Number: 18
Menifee Finance Committee September 14, 2026 Page 78 of 155

City of Menifee
Community Facilities District No. 2026-3 (Cypress Sands) Page 5

“Special Tax A” means the special tax authorized to be levi ed within CFD No. 2026-3 to fund the Special Tax A Requirement.

"Special Tax A 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 A delinquencies and (vi) for the collection or accumulation of funds for the acquisition or construction of facilities au thorized by CFD No. 2026-3 or the pa yment 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 A on Approved Property or Unde veloped 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.

“Special Tax B” means the annual special tax authorized to be levied within CFD No. 2026-3 to fund the Special Tax B Requirement.

“Special Tax B Requirement” means the amount required in any Fiscal Year to pay the direct costs of authorized maintenance services, fund an operating reserve for such se rvices as determined by the CFD Administrator, and pay an allocable share of Administ rative Expenses, less a credit for funds available to reduce the annual Special Tax B levy, as determined by the CFD Administrator. Under no circumstances shall the Special Tax B Requirement include funds for Bonds.

“Special Tax B Services” means the maintenance and operation services authorized to be funded by CFD No. 2026-3 and described in Exhibit “A” attached hereto.

“Special Tax C (Contingent)” means the special tax authorized to be levied within CFD No. 2026-3 to fund the Special Tax C (Contingent) Requirement following a Failure to Perform as described in Section P.

“Special Tax C (Contingent) Requirement” means the amount required in any Fiscal Year to pay the direct costs of Special Tax C (Contingent) Services anticipate d to be incurred or otherwise payable by the City, together with an allocable share of Administrative Expenses, less a credit for funds available to reduce the annual Special Tax C (Contingent) levy, as determined by the CFD Administrator.

“Special Tax C (Contingent) Services” means the City’s maintenance and operation of improvements otherwise required to be maintained by the Property Owner Association, as described in Exhibit “B” attached hereto, following a Failure to Perform as described in Section P.

"Taxable Property" means all Assessor’s Parcels within CFD No. 2026-3, which are not Exempt Property.

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

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

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

Item: 6.3
Item Page Number: 19
Menifee Finance Committee September 14, 2026 Page 79 of 155

City of Menifee
Community Facilities District No. 2026-3 (Cypress Sands) Page 6

B. SPECIAL TAX A
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 A, to fund the Special Tax A Requirement.

C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX A

Each Fiscal Year, beginning with Fiscal Year 2026-2027, each Assessor’s Parcel within CFD No. 2026-3 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 T a x A l e v y o n s u c h A s s e s s o r ’ s P a r c e l f o r e a c h F i s c a l Y e a r s h a l l b e d e t e r m i n e d a s f o l l o w s : ( 1 ) t h e C F D Administrator shall first determine an amount of th e Maximum Special Tax A 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 A 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 A levy in clause (2) shall be equal to: (A) the percentage of the Maximum Special Tax A 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 A

1. Developed Property

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

The Maximum Special Tax A for each Assessor’s Parc el 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 A

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 A. The Assigned Special Tax A for Fiscal Year 2026-2027 applicable to an Assessor's Parcel of Develope d Property shall be determined pursuant to Table 1 below.

Item: 6.3
Item Page Number: 20
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Community Facilities District No. 2026-3 (Cypress Sands) Page 7

TABLE 1

ASSIGNED SPECIAL A TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2026-2027

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

1. Single Family Residential Property RU Less than 1,400 sq. ft $2,630.00

2. Single Family Residential Property RU 1,400 sq. ft to 1,500 sq. ft $2,968.00

6. Single Family Residential Property RU Greater than 1,500 sq. ft $3,137.00

7. Multifamily Property Acre N/A $88,914.00

8. Non-Residential Property Acre N/A $88,914.00
On each July 1, commencing July 1, 2027, the Assigned Special Tax A 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 A levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax A for each Taxable Unit for all Land Us e Categories located on the Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final.

c. Backup Special Tax A

The Backup Special Tax A for an Assessor’s Parcel within a Final Map or Condominium Plan classified as Single Family Residential Property shall be $2,833 per Residential Unit.

Notwithstanding the foregoing, if all or any portio n of a Final Map or Condominium Plan within the boundaries of CFD No. 2026-3 is subsequently ch anged or modified, the Backup Special Tax A applicable to Single Family Residential Property and Approved Property within the changed or modified area shall be recalculated as follows:

1. Determine the total Backup Special Tax A anticipa ted to apply to the changed or modified Final Map or Condominium Plan area immediately prior to the change or modification.

2. Divide the amount determined pursuant to paragraph 1 above by the total number of Residential Units constructed and/or anticipated to be cons tructed within such changed or modified Final Map or condominium plan area, as reasonably determined by the CFD Administrator.

The amount determined pursuant to paragraph 2 above shall be the Backup Special Tax A per Residential Unit applicable to A ssessor’s Parcels of Single Family Residential Property and Approved Property within such changed or modified Final Map or Condominium Plan area.

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

Item: 6.3
Item Page Number: 21
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Community Facilities District No. 2026-3 (Cypress Sands) Page 8

On each July 1, commencing July 1, 2027, the Back up Special Tax A 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 A for each Assessor’s Parcel of Approved Property expected to be classified as Single Family Residential Property shall be the Backup Special Tax A computed pursuant to Section D.1.c above.

The Maximum Special Tax A for each Assessor’s Parc el of Approved Property not expected to be classified as Single Family Residential Property shall be $88,914 per Acre.

On each July 1, commencing July 1, 2027, the Maximum Special Tax A 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 A for each Assessor’s Pa rcel of Undeveloped Property and Provisional Undeveloped Property shall be $88,914 per Acre.

On each July 1, commencing July 1, 2027, the Maximum Special Tax A 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 A

Commencing Fiscal Year 2026-2027 and for each subsequent Fiscal Year, the City Council shall levy Special Tax A on all Taxable Property in accordance with the following steps:

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

Step Two: 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 Assessor’s Parcel of Approved Property at up to 100% of the Maximum Special Tax A applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax A Requirement.

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

Step Four: If additional moneys are needed to sa tisfy the Special Tax A Re quirement after the first three steps have been completed, then the Sp ecial Tax A levy on each Assessor's Parcel of Developed Property for which the Maximu m Special Tax A is the Backup Special Tax A Item: 6.3
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Community Facilities District No. 2026-3 (Cypress Sands) Page 9

shall be increased in equal percentages from the Assigned Special Tax A up to 100% of the Backup Special Tax A as needed to satisfy the Special Tax A Requirement.

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

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

F. EXEMPTIONS

The City shall classify as Exempt Property, in the following order of priority, (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels 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.

Affordable Housing Property shall be exempt from Special Tax A. Affordable Housing Property shall remain subject to Special Tax B and Special Tax C (C ontingent), as applicable, at the rates and in the manner provided herein.

G. PREPAYMENT OF SPECIAL TAX

The following additional definitions apply to this Section G:

“CFD Facilities” means $5,500,000 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- 3, 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 A 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. 2026-3.

Item: 6.3
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Community Facilities District No. 2026-3 (Cypress Sands) Page 10

“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 A 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 A 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 A obligation applicable to an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax A 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 Tax A 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 A 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-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 Tax A.

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 A delinque ncies apply to such Assessor’s Parcel.

Item: 6.3
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Community Facilities District No. 2026-3 (Cypress Sands) Page 11

2. For an Assessor’s Parcel of Developed Prop erty, compute the Maximum Special Tax A 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 A 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 A for the Assessor’s Parcel.

3. Divide the Maximum Special Tax A derived pursuant to paragraph 2 by the total amount of Maximum Special Tax A that could be levied assumi ng build out of all Assessor’s Parcels of Taxable Property based on the applicable Maximum Special Tax A for Assessor’s Parcels of Developed Property not including any Assessor’s Parc els for which the Special Tax A 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 Tax A levied on the Assesso r’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 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 A obligation fo r the Assessor’s Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).

Item: 6.3
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Community Facilities District No. 2026-3 (Cypress Sands) Page 12

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 Ye ar’s Special Tax A levy as determined pursuant to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax A levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for which the Special Tax A 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 A 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 pr epayment shall be allowed unless the amount of Maximum Special Tax A 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 A 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 A obligation for an Assessor’s Parc el of Developed Property, Approved Property, 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 = ((P
E – A) x F) + A
These terms have the following meaning:

PP = Partial Prepayment Amount
Item: 6.3
Item Page Number: 26
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Community Facilities District No. 2026-3 (Cypress Sands) Page 13

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 A obligation
A = the Administrative Fees and Expenses determined pursuant to Section G.1 The owner of an Assessor’s Parcel who desires to pa rtially prepay the Special Tax A obligation for the Assessor’s Parcel shall notify the CF D Administrator of (i) such owner’s intent to partially prepay the Special Tax A obligation, (ii) the percentage of the Special Tax A 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 Parcel for which the Special Tax A obligat ion 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 A obligati on equal to the remaining percentage (1.00 - F) of the applicable Special Tax A will continue to be levied on the Assessor’s Parcel pursuant to Section E.

H. TERMINATION OF SPECIAL TAX A

For each Fiscal Year that any Bonds are outstanding the Special Tax A shall be levied on all Assessor’s Parcels subject to the Special Tax pursuant to Section E. The Special Tax A shall cease not later than the 2071-2072 Fiscal Year, however, Special Tax A 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. 2026-3 Bonds have been paid; (ii) all authorized fac ilities of CFD No. 2026-3 have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Special Tax A remain uncollected and (iv) all other obligations of CFD No. 2026-3 have been satisfied.

I. MANNER OF COLLECTION

The Special Tax A shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2026-3 may collect Special Tax A at a different time or in a different manner if necessary to meet its financia l obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.

J. SPECIAL TAX B

Commencing Fiscal Year 2026-2027 and for each subsequent Fiscal Year, the City Council shall levy Special Tax B on all Taxable Property, up to the applicable Maximum Special Tax B, to fund the Special Tax B Requirement.

K. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX B

For each Fiscal Year, all Assessor’s Parcels of Taxable Property shall be classified as Developed Property, Item: 6.3
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Community Facilities District No. 2026-3 (Cypress Sands) Page 14

Approved Property, or Undeveloped Property and shall be subject to the levy of Special Tax B as determined pursuant to Sections L and M below. De veloped Property and Approved Property shall be classified as Residential Property or Non-Resident ial Property. Residential Property shall be further classified as Single Family Residential Property or Multifamily Property. For purposes of determining the applicable Maximum Special Tax B, Affordable Housing Property shall be separately identified by the CFD Administrator based upon a recorded affordability rest riction, regulatory agreement, or other City- approved instrument. No more than six (6) Residentia l Units within CFD No. 2026-3 shall be classified as Affordable Housing Property and subject to the Maximum Special Tax B applicable to Affordable Housing Property.

L. MAXIMUM SPECIAL TAX B

For Fiscal Year 2026-2027, the Maximum Special Tax B for Developed Property shall be as shown in Table 2 below. For Single Family Residential Property, the number of Residential Units shall be determined by the CFD Administrator based on the Building Permit, Final Map, or other City-approved development information.

TABLE 2

MAXIMUM SPECIAL TAX B FOR DEVELOPED PROPERTY
FISCAL YEAR 2026-2027

Land Use Category
Taxable
Unit Classification
Maximum
Special Tax B
Per Taxable
Unit

1. Single Family Residential Property RU Market Rate $440.00

2. Affordable Housing Property RU Affordable $125.00

3. Multifamily Property Acre N/A [TBD]

4. Non-Residential Property Acre N/A [TBD]

On each July 1, commencing July 1, 2027, the Maximum Special Tax B shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year or ii) by two percent (2.0%), whichever is greater.

The Maximum Special Tax B for Approved Property and Undeveloped Property for Fiscal Year 2026-2027 shall be [TBD] per Acre and shall increase annually by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fi scal Year or ii) by two percent (2.0%), whichever is greater.

M. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX B

Commencing Fiscal Year 2026-2027 and for each subsequent Fiscal Year, the City Council shall determine the Special Tax B Requirement and shall levy Special Tax B on Taxable Property until the aggregate amount of Special Tax B equals the Special Tax B Requirement. Special Tax B shall first be levied Proportionately on Developed Property up to 100% of the applicable Maximum Special Tax B; if additional moneys are needed, it shall next be levied Proportionately on Approved Property up to 100% of the applicable Item: 6.3
Item Page Number: 28
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Community Facilities District No. 2026-3 (Cypress Sands) Page 15

Maximum Special Tax B; and if additional moneys are needed, it shall then be levied Proportionately on Undeveloped Property up to 100% of the applicable Maximum Special Tax B.

N. DURATION OF SPECIAL TAX B

Special Tax B shall be levied in perpetuity to fund the Special Tax B Requirement, unless no longer required as determined by the City Council.

O. MANNER OF COLLECTION OF SPECIAL TAX B

Special Tax B shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2026-3 may collect Special Tax B at a different time or in a different manner if necessary to meet its funding requirements.

P. SPECIAL TAX C (CONTINGENT)

The City Council may levy the Special Tax C (Contingent), commencing in the first Fiscal Year following the occurrence of any of the following events (each such event, a “Failure to Perform”):

a. the Property Owner Association files a voluntary petition in bankruptcy or the approval by a court of competent jurisdiction of a petition applicable to the Property Owner Association of any proceedings instituted under the Federal Bankruptcy Code, as amended;

b. the Property Owner Association is dissolved;

c. the Property Owner Association fails to levy annual assessments sufficient to fund (i) the maintenance for the then Property Owner Association owned and/or Property Owner Association maintained Maintenance Services (C ontingent) or (ii) the replacement of such facilities related to the Maintenance Services (Contingent) in accordance with (A) the requirements of the then current reserve funding plan of the Property Owner Association performed pursuant to California Civil Code Section 5550 or (B) if California Civil Code 5550 is no longer applicable, the requirements of the then applicable law and/or regulations governing the Property Owner Association’s requirements to budget for and finance such replacement; or

d. the Property Owner Association fails to mainta in the Maintenance Services (Contingent) at the same level as defined within the Property Owner Association maintenance specifications. In the event the Property Owner Association maintena nce specifications do not meet the City maintenance requirements, the City Council will have sole discretion to determine the required level of maintenance required for purposes of this section.

In the event of the occurrence of a Failure to Perform described in “c.” or “d.” above, the City shall give the Property Owner Association written notice of such event. If such Failure to Perform is reasonably capable of being cured within sixty (60) days from the date of such notice, the Property Owner Association shall have such period of time to cure such Failure to Perform prior to the levy by the City Council of Special Tax C (Contingent). If such Failure to Perform is such that it is reasonably capable of being cured, but not within such sixty (60) day period and the Property Owner Association (i) initiates corrective action within such sixty (60) day period, and (ii) diligently, continually, and in good faith works to effect a cure of such Failure to Perform as soon as possible, then the Property Owner Asso ciation shall have such Item: 6.3
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additional time, as is reasonably necessary, to cure su ch Failure to Perform prior to the levy by the City Council of Special Tax C (Contingent).

The City Council may suspend the levy of Special Tax C (Contingent) if the Property Owner Association has cured the Failure to Perform to the satisfaction of the City Council and the Property Owner Association has agreed to such conditions as th e City Council may find necessary to minimize the occurrence of such Failure to Perform in the future. In the event the City Council initiates the Special Tax C (Contingent), it will apply to all Assessor’s Parcels of Taxable Property in addition to, and not in lieu of, the Special Tax B.

For purposes of Special Tax C (Contingent), Affordable Housing Property shall be classified according to its underlying residential land use and shall not be exem pt from or subject to a reduced Maximum Special Tax C (Contingent) by reason of its classification as Affordable Housing Property.

Q. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX C (CONTINGENT)

For each Fiscal Year in which Special Tax C (Contingent) is authorized to be levied, all Assessor’s Parcels of Taxable Property shall be classified as Developed Property, Approved Property, or Undeveloped Property.

Developed Property and Approved Property shall be further classified as Residential Property or Non- Residential Property. Residential Property shall be further classified as Single Family Residential Property or Multifamily Property.

R. MAXIMUM SPECIAL TAX C (CONTINGENT)

For Fiscal Year 2026-2027, the Maximum Special Tax C (Contingent) shall be as shown in Table 3 below.

TABLE 3

MAXIMUM SPECIAL TAX C (CONTINGENT) FOR DEVELOPED PROPERTY FISCAL YEAR 2026-2027

Land Use Category
Taxable
Unit Classification
Maximum Special
Tax C (Contingent)
Per Taxable Unit

1. Single Family Residential Property RU All Residential [TBD]

2. Multifamily Property Acre N/A [TBD]

3. Non-Residential Property Acre N/A [TBD]

The Maximum Special Tax C (Contingent) for Approved Property and Undeveloped Property for Fiscal Year 2026-2027 shall be [TBD] per Acre. The Maximum Special Tax C (Contingent) shall increase annually by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year or ii) by two percent (2.0%), whichever is greater.

S. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX C (CONTINGENT)

Commencing with the first Fiscal Year in which Specia l Tax C (Contingent) is authorized to be levied and for each subsequent Fiscal Year, the City Council shall determine the Special Tax C (Contingent) Requirement and shall levy Special Tax C (Contingent ) on Taxable Property until the aggregate amount equals the Special Tax C (Contingent) Requirement. Special Tax C (Contingent) shall first be levied Item: 6.3
Item Page Number: 30
Menifee Finance Committee September 14, 2026 Page 90 of 155

City of Menifee
Community Facilities District No. 2026-3 (Cypress Sands) Page 17

Proportionately on Developed Property up to 100% of the applicable Maximum Special Tax C (Contingent); if additional moneys are needed, it shall next be levied Proportionately on Approved Property; and if additional moneys are needed, it shall then be levied Proportionately on Undeveloped Property.

T. DURATION OF SPECIAL TAX C (CONTINGENT)

Special Tax C (Contingent) shall be levied in perpetuity when required to fund the Special Tax C (Contingent) Requirement, unless no longer required as determined by the City Council.

U. MANNER OF COLLECTION OF SPECIAL TAX C (CONTINGENT)

Special Tax C (Contingent) shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2026-3 may collect Special Tax C (Contingent) at a different time or in a different manner if necessary to meet its funding requirements.

V. APPEALS OF SPECIAL TAXES

Any taxpayer may file a written appeal of a Special Tax levied on his/her Assessor’s Parcel(s) with the CFD Administrator, provided that the appellant is current in his/her payments of all Special Taxes. During the pendency of an appeal, all Special Taxes previously le vied must be paid on or before the applicable payment date. 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 determin ation. If the CFD Admini strator 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), as appropriate. 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 classification of property and the annu al levy and administration of Special Tax A, Special Tax B, and Special Tax C (Contingent). Any taxpayer who disputes such a determination may appeal as provided herein.

Item: 6.3
Item Page Number: 31
Menifee Finance Committee September 14, 2026 Page 91 of 155

City of Menifee
Community Facilities District No. 2026-3 (Cypress Sands) Page 18

EXHIBIT “A”

DESCRIPTION OF AUTHORIZED SPECIAL TAX B SERVICES

The services which may be funded with proceeds of Special Tax B of CFD No. 2026-3, as provided by Section 53313 of the Act, will include a ll costs attributable to maintainin g, servicing, cleaning, repairing and/or replacing landscaped areas (m ay include reserves for replacement) in public street right-of-way, public landscaping, public open spaces and other sim ilar landscaped areas officially dedicated for public use. These services including the following:
(a) maintenance and lighting of parks, park ways, 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 repl acement) 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 op en 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 improvem ents, 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. 2026-3; as well as local roads within residential su bdivisions located within CFD No. 2026-3; and any portions adjacent to the properties within CFD No. 2026-3; 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 Special Tax B of CFD No. 2026-3 only to the extent that they are in addition to those provided in the territory of CFD No. 2026-3 before CFD No. 2026-3 was created.

Item: 6.3
Item Page Number: 32
Menifee Finance Committee September 14, 2026 Page 92 of 155

City of Menifee
Community Facilities District No. 2026-3 (Cypress Sands) Page 19

EXHIBIT “B”

DESCRIPTION OF AUTHORIZED SPECIAL TAX C (CONTINGENT) SERVICES

The services which may be funded with proceeds of Special Tax C (Contingent) of CFD No. 2026-3, 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 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 improvem ents, and other items necessary for the maintenance and servicing of the water quality basin improvements within flood control channel improvements; and

The above services may be financed by proceeds of Special Tax C (Contingent) of CFD No. 2026-3 only to the extent that they are in addition to those prov ided in the territory of CFD No. 2026-3 before CFD No. 2026-3 was created.

Item: 6.3
Item Page Number: 33
Menifee Finance Committee September 14, 2026 Page 93 of 155

City of Menifee
Proposed Community Facilities District
Special Funding District Application Packet

Cypress Sands
(Tract No. 39364)

FB Cypress Sands LLC,

August 12 , 2026
Item: 6.3
Item Page Number: 34
Menifee Finance Committee September 14, 2026 Page 94 of 155

City of Menifee
Special Funding District Application Packet

Cypress Sands
(Tract No. 39364)

Cypress Sands LLC,

August 12, 2026

Table of Contents
▪ Special Funding District Application Form
▪ Exhibits
▪ Exhibit 1: Bond Sizing and Total Tax Rate Analysis
▪ Exhibit 2: Facilities List
▪ Exhibit 3: Proposed Special Tax
▪ Exhibit 4: Summary of Acreage, Undeveloped and Backup Special Tax Rates

▪ Exhibit 5: Product Mix and Pricing
▪ Exhibit 6: Absorption Schedule
▪ Exhibit 7: Site Plan
▪ Exhibit 8: Title Report
▪ Exhibit 9: Draft RMA
Item: 6.3
Item Page Number: 35
Menifee Finance Committee September 14, 2026 Page 95 of 155

DEPOSIT REQUIREMENTS
Total Deposit of $70,000 required at time application is submitted. $65,000 will be eligible for reimbursement at time bond proceeds are available. $5,000 is non-refundable.

An additional $7
0,000 will be required for each zone or improvement area.

SPECIAL FUNDING DISTRICT
APPLICATION FORM
Proposed Special District: CFD for Facilities
Proposed Name of Project:

CITY USE ONLY
Date Received: Amount:

Proposed Special District Number:

1. IDENTIFICATION OF SUBJECT PROPERTY
Description of Property (include N, S, E &/or W, borders, acreage & tract number) A. APN(s) and/or Master Parcel Number
Attach Backup (if needed)
Include all Assessor Parcel Numbers to be included in the Special District in their entirety (XXX‐XXX‐XXX‐X)
B. Tract/Tentative Tract Map Number
Enclose copy of map
C. Recorded Lot Line Adjustments
Enclose copy of document(s)
D. Mapping Status □ Approved □ Tentative
E. Environmental Permits Required □ Yes □ No
F. Status of Permits □ Application in Process
G. Conditions of Approval Required □ Yes □ No
By Whom
H. Status of Conditions □ In Process □ Completed
Cypress Sands

9.27 gross acres of vacant land located on the southwest intersection of Chambers Avenue and Antelope Road proposed to be developed into 132 attached town homes. 6 of the proposed 132 units will be affordable units. 344-120-001
TTM No. 39364
■
■
City of Menifee
■
✔
Item: 6.3
Item Page Number: 36
Menifee Finance Committee September 14, 2026 Page 96 of 155

Special District Application

Page 2 of 4 ends

2. PROPERTY OWNER INFORMATION (Attach Grant Deed)

3. CONSULTANT/APPLICANT INFORMATION

4. ENGINEERING INFORMATION

5. PROJECT LAND USE (Per Improvement Area or Zone, When Applicable) A. Number of Taxable Units
B. Proposed Product Mix See below
C. Base Sale Price Information See below
D. Number of Taxable Acres
Attach Backup
E. Number of Exempt Acres
Attach Backup
F. Desired Tax Rate Burden %
G. Anticipated Absorption per month
A. Landowner Name(s)
Attach Backup (if needed)
B. Contact Name
C. Title
D. Mailing Information
E. Phone
F. Fax
G. E -Mail
A. Company Name
B. Contact Name
C. Title
D. Mailing Information
E. Phone
F. Fax
G. E -Mail
A. Company Name
B. Contact Name
C. Title
D. Mailing Information
E. Phone
F. Fax
G. E -Mail
FB Cypress Sands LLC, a Delaware limited liability company James P. Walter
Managing Director
151 Kalmus Drive, Unit A202 Costa Mesa, CA 92626
(949) 274- 3526
[email protected]

DPFG, LLC
Manju Pokharel
Senior Manager
26840 Aliso Viejo Parkway, Suite 110, Aliso Viejo, CA 92656 (949) 388-9269 Ext. 1143
(949) 388-9272
[email protected]
Proactive Engineering Consultants
Carlos Moreno, P.E.
200 S. Main Street Suite 300, Corona CA 92882
(951) 280 - 3300
[email protected]
126

4.46 5.26

2.00% See Exhibit 1.
4 per month. See Exhibit 6.

Item: 6.3
Item Page Number: 37
Menifee Finance Committee September 14, 2026 Page 97 of 155

Special District Application

Page 3 of 4 ends

6. COMPOSITION OF DEVELOPABLE ACREAGE
Attach Additional Backup (if needed)
Residential
Commercial-Retail
Business Park
School Site

PROPOSED RESIDENTIAL PRODUCT MIX
Plan Number
Apartment, Attached, or Detached
Number of Units
Average Lot Size
Prices
Square Footage of Living Area
Occupancies (See Table Below)
Quarter & Year Plan 1 Plan 2 Plan 3 Plan 4

7. FINANCING STRUCTURES OFFERED TO HOMEBUYERS
□ FHA □ VA □ VARIABLE
□ OTHER

8. FINANCING MECHANICS
Acreage Commence Occupancy
(Quarter & Year)
1 2 3 4
sq. ft.

A. Preparation of Boundary Map
Attach if possible
B. Preparation of RMA
Attach if possible
C. Proposed JCFAs
Agency Name
Funding Purpose (i.e. fees, facilities)
Name
Contact Name
Mailing Address
Phone
Fax
Email

9.27 Gross Acres.

Q3 2028
Detached
See Exhibit 5
See Exhibit 5
See Exhibit 5
Q3 2028. See Exhibit 6
■
TBD
To be prepared by Spicer Consulting Group, LLC.

See Exhibit 9
Proposed JCFA with Menifee Union School District
Menifee Union School District
School Mitigation Fees
Key Analytics
Jesse Landre
555 Corporate Drive, Suite 100, Ladera Ranch, CA 92694
(949) 272-0970
[email protected] (Consultant)
1,541
Item: 6.3
Item Page Number: 38
Menifee Finance Committee September 14, 2026 Page 98 of 155

Special District Application

Page 4 of 4 ends

Agency Name
Funding Purpose (i.e. fees, facilities)
Name
Contact Name
Mailing Address
Phone
Fax
Email
D. Additional Land Secured Financings Proposed
Agency Name & Backup
E. Overlapping Land Secured Financings List all existing special taxes, assessments, & liens as well as agency name(s)* F. Improvement Area(s)/Zone(s) ☐ Yes ☐ No
G. Basis for Either
H. Initial Levy Fiscal Year
I. Final Levy Fiscal Year (Anticipated)
J. Proposed Capitalized Interest Months
K. Proposed Facilities Costs Breakout Between Improvement Area(s)/Zone(s) & Type of Facility/Agency L. Summary of Proposed Methodology Proposed Land Use Categories & Method of Apportionment Questions? Contact our Special Tax Consultant, Spicer Consulting Group at 866-504-2067. Thank you. * Attach backup as needed
None. See Exhibit 1.
■
Fiscal Year 2027-2028
Fiscal Year 2071-2072
6 See Exhibit 3.

See Exhibit 1.

See Exhibit 2.

Item: 6.3
Item Page Number: 39
Menifee Finance Committee September 14, 2026 Page 99 of 155

EXHIBIT 1

BOND SIZING AND TOTAL TAX RATE ANALYSIS

Item: 6.3
Item Page Number: 40
Menifee Finance Committee September 14, 2026 Page 100 of 155

Fairbrook Communities
Cypress Sands - Townhomes
Bond Sizing and Total Tax Rate Analysis
Proposed City of Menifee CFD with MUSD JCFA
August 12, 2026
I. Home Prices and Combined Tax Rates:

LAND USE INFORMATION TOTAL TAX RATE ANALYSIS
Proposed 0 FY 25/26 Perris Union ESTIMATED Proposed
City Facilities Estimated Ad Valorem Other Fixed High School City of Menifee City of Menifee City of Menifee Total Total Product CFD Home Unit Base Tax Rate Charges & District Maintenance CFD Safety Services CFD Facilities CFD Total Tax Facilities CFD Type Plan Tax Category Size (Sq Ft) Count Sales Price (1.15416%) Assess. CFD 92-1 Special Tax Special Tax Special Tax Taxes Rate Revenues (a) (a) (a) (a) (a) (b) (c) (d) (e) (f) (g)
Market Rate Units
Townhomes 1 < 1,400 1,312 59 450,000$ 5,194 $ 22 $ 190 $ 440 $ 525 $ 2,625 $ 8,996 $ 2.00% 154,875 $ Townhomes 1-E < 1,400 1,312 6 470,000 5,425 22 190 440 525 2,625 9,227 1.96% 15,750 Townhomes 2 1,400 - 1,499 1,423 32 490,000 5,655 22 190 440 525 2,965 9,797 2.00% 94,880 Townhomes 3 > 1,499 1,510 29 510,000 5,886 22 190 440 525 3,135 10,198 2.00% 90,915 Market Rate - Total/ Wtd. Avg. 1,386 126 474,921$ 5,481 $ 22 $ 190 $ 440 $ 525 $ 2,829$ 9,487 $ 2.00% 356,420$ Affordable Units
Townhomes 4 N/A 1,364 6 106,134 1,225 22 190 - - - 1,437 1.35% - Affordable - Total/ Wtd. Avg. 1,364 6 106,134$ 1,225 $ 22 $ 190 $ - $ - $ - $ 1,437$ 1.35% -$ II. Proposed City CFD Bond Sizing & Construction Proceeds: Total Revenue available for Debt Service [(Taxes for Bonding less Admin Expenses of $30,000)/ 110% Debt Service Coverage)] 296,745$ Bond Amount (5.00% Interest, 30 Year Term and 30 Year Amortization, 2.00% Escalating Special Taxes) 5,745,000$ Underwriter Discount (Minimum of $50,000 or 2.0%) (114,900) Reserve Fund (Average Annual Debt Service x 1.25) (501,600) Capitalized Interest (6 months) (143,625)
Incidental Costs (250,000)
Total Net Construction Proceeds 4,734,875$
Per Unit 37,578$
III. Allocation of Net Construction Proceeds: Per Unit Total City of Menifee DIF (100% of $1,895,810 or $15,046 per Unit) 15,046$ 1,895,810$ MUSD Mitigation Payment (100% of $884,232 or $7,018 per Unit) 7,018 884,232 City of Menifee Facilities (82% of $2,375,000 or $18,849 per Unit) 15,515 1,954,833 Total Net Construction Proceeds 37,578$ 4,734,875$ IV. Footnotes:
(a) Product mix and pricing provided by Fairbrook Communities on 7/14/2026. (b) Includes 1.00% plus the following:
- A tax of 0.04712% is charged for fiscal year 2025-2026 by the Perris Union High School District to pay debt service for outst anding bonds within the district. - A tax of 0.00254% is charged for fiscal year 2025-2026 by the Mt. San Jacinto Junior College to pay debt service for outstanding bonds within the district. - A tax of 0.07500% is charged for fiscal year 2025-2026 by the Menifee Union School District to pay debt service for outstandi ng bonds within the district. - A tax of 0.02250% is charged for fiscal year 2025-2026 by the EMWD Improvement District U-6 to pay debt service for outstandi ng bonds within the district. - A tax of 0.00700% is charged for fiscal year 2025-2026 by the Metropolitan Water District to pay debt service for outstanding bonds within the district. (c) Includes the following:
- MWD charges a standby fee at a rate of $6.94 per acre, or $6.94 per parcel if less than an acre. - EMWD charges a standby fee at a rate of $11.00 per acre, or $11.00 per parcel if less than an acre. - Riverside County Flood Control and Water Conservation District annual assessment of $3.74 per unit. (d) Represents the fiscal year 2026-27 assigned special tax for the Perris Union High School District CFD 92-1. This amount escalates by 2% each year. (e)
(f)
(g)
Represents the PRELIMINARY ESTIMATE per client for the special tax of the City of Menifee CFD for the maintenance of the right -of-way landscaping, streetlights, traffic signals, streets, graffiti abatement and other public improvements. This special tax escalates each fiscal year by the greater of 2% or the percentage increase in the CPI for Los An geles-Riverside-Orange County. This ESTIMATE is subject to change until a maintenance exhibit is prepared and a budget is prepared by the City.

Represents the proposed Special Tax for the City of Menifee CFD to finance City DIF, EMWD water and sewer fees, and Menifee Uni on School District fees. Please note that the Ci ty typically requires a premium of 20% of DIF to form a Facilities CFD. Per the 6/17/2026 City Staff Report, the ci ty may consider a waiver/reduction of the premium for requiring the project to annex into the Safety Services CFD No. 2026-S. The analysis above assumes the City will waive the 20% premium, however further discussions with the City are required to confirm if they will allow this.

Represents the ESTIMATED fiscal year 2026-27 maximum special tax for the City of Menifee CFD No. 2026-S to pay for police, fire protection and suppression services, and paramedic services. The maximum special tax escalates each year by 4.00%. Please note that the Conditions of Approval do not require the project to annex into CFD No. 2026 -S. However, per the Amended City Council Po licy CC-20 approved on 6/17/2026, the City will require the project to annex into CFD No. 2026-S as a co ndition to forming the proposed City Facilities CFD.

Item: 6.3
Item Page Number: 41
Menifee Finance Committee September 14, 2026 Page 101 of 155

EXHIBIT 2

FACILITIES LIST

Item: 6.3
Item Page Number: 42
Menifee Finance Committee September 14, 2026 Page 102 of 155

City of Menifee DIF (MF Rate)[1]
Rate Per Units Total
General Government 920 $ DU 132 121,440 $ Fire 506 DU 132 66,792
Law Enforcement 724 DU 132 95,568 Parks and Recreation 1,348 DU 132 177,936 Transportation Impact Fee 3,585 DU 132 473,220 Storm Drain Fee (Zone F_A) 50 DU 132 6,600 Quimby EST.[2]
7,229 DU 132 954,254
Total City Development Impact Fees 14,362 $ 1,895,810 $ Menifee Union School District[3]
Rate Per Units Total
2026 Level I School Fee 3.87$ SF 182,787 707,386 $ Developer Fee Premium (25%) 0.97 SF 182,787 176,846 Total MUSD Mitigation Payment 884,232$
City of Menifee Facilities[4]
Rate Per Units Total
Street Improvements 14,394 $ DU 132 1,900,000 $ Prevailing Wage 3,598 DU 132 475,000
Total City Facilities 17,992 $ 2,375,000 $
Total Fees and Facilities 5,155,043$
Footnotes:
[4] Reflects the estimated cost for Street Improvements. [2] The Quimby fee is calculated per section 7.75.070 of the municipal code and is equal to the average number of persons per attached townhome unit (2.48) x 0.005 acres x the estimated fair market value per acre ($583,000). The fair market value of the land is estimated to be $583,000 based on a currently completed appraisal that was approved by the City.
[3] Per the MUSD CFD consultant, the estimated MUSD mitigation fee is calculated based on 125% of the 2026 Level I school fee of $3.87 per SF. A formal request to MUSD will be required in order to determine the actual mitigation fee amount.

Cypress Sands - Townhomes
Fairbrook Communities
Bond Sizing and Total Tax Rate Analysis
Preliminary List of Authorized Facilities
August 12, 2026
[1] Reflects the City of Menifee Development Impact Fees for Multi-Family units effective as of 7/1/2023. Per the Conditions of Approval, the DIF applicable to the Project is frozen under SB330 at the rates that were in effect at the time of pre-application submittal (4/3/2024). The DIF will remain frozen for a period of 2.5 years from the date of entitlement approval (11/12/2025) and will become null and void on 5/12/2028. Per the City on 7/28/2026, the Multi- Family Development Impact Fee rates are applicable to the project.

Item: 6.3
Item Page Number: 43
Menifee Finance Committee September 14, 2026 Page 103 of 155

EXHIBIT 3

PROPOSED SPECIAL TAX

Item: 6.3
Item Page Number: 44
Menifee Finance Committee September 14, 2026 Page 104 of 155

Fairbrook Communities
Cypress Sands - Townhomes
Proposed City of Menifee CFD with MUSD JCFA
Proposed Special Tax for Developed Property
Land Use Category Taxable Unit
Developed
Floor Area
Proposed
Special Tax
1 - Residential Property DU < 1,400 2,625 $
2 - Residential Property DU 1,400 - 1,499 2,965
3 - Residential Property DU > 1,499 3,135
Item: 6.3
Item Page Number: 45
Menifee Finance Committee September 14, 2026 Page 105 of 155

EXHIBIT 4

SUMMARY OF ACREAGE, UNDEVELOPED PROPERTY AND BACKUP SPECIAL

TAX RATES

Item: 6.3
Item Page Number: 46
Menifee Finance Committee September 14, 2026 Page 106 of 155

Fairbrook Communities
Cypress Sands - Townhomes
Proposed City of Menifee CFD with MUSD JCFA
Summary of Acreage, Undeveloped Property Special Tax Rates I. Calculation of Net Taxable Acres:

No. of Units 126
Gross Acreage 9.27
Less: Other (Streets, Open Space, Park Site, Detention Basin, etc.) 4.81 Net Taxable Acres (Est.) 4.46
II. Calculation of Undeveloped Property Tax Rate:

Total Developed Property Revenues 356,420 $
Net Taxable Acres 4.46
Less: Contingency Factor (10.00%) (0.45)
Net Taxable Acres (Adjusted) 4.01
Undeveloped Property Tax Rate per Acre 88,850 $
Item: 6.3
Item Page Number: 47
Menifee Finance Committee September 14, 2026 Page 107 of 155

EXHIBIT 5

PRODUCT MIX AND PRICING

Item: 6.3
Item Page Number: 48
Menifee Finance Committee September 14, 2026 Page 108 of 155

Fairbrook Communities
Cypress Sands - Townhomes
Proposed City of Menifee CFD with MUSD JCFA
Product and Pricing
Plan Number 1 1-E 2 3
Apartment, Attached, or Detached Attached Attached Attached Attached Number of Market Rate Units 59 6 32 29
Total Number of Units 63 6 33 30
Market Rate Units Pricing 450,000 $ 470,000 $ 490,000 $ 510,000 $ Square Footage of Living Area 1,312 1,312 1,423 1,510 Item: 6.3
Item Page Number: 49
Menifee Finance Committee September 14, 2026 Page 109 of 155

EXHIBIT 6

ABSORPTION SCHEDULE

Item: 6.3
Item Page Number: 50
Menifee Finance Committee September 14, 2026 Page 110 of 155

Plan Number 1 1-E 2 3 Total
Number of Units 59 6 32 29 126 Q1 - - - - - Q2 - - - - - Q3 - - - - - Q4 6 1 3 2 12 Q1 9 1 4 4 18 Q2 9 1 5 3 18 Q3 8 1 4 5 18 Q4 9 - 5 4 18 Q1 8 1 4 5 18 Q2 8 1 5 4 18 Q3 2 - 2 2 6 Q4 - - - - - Q1 - - - - - Q2 - - - - - Q3 - - - - - Q4 - - - - - Q1 - - - - - Q2 - - - - - Q3 - - - - - Q4 - - - - - Plan Number 1 1-E 2 3 Total
Number of Units 59 6 32 29 126 Q1 - - - - - Q2 - - - - - Q3 - - - - - Q4 - - - - - Q1 - - - - - Q2 - - - - - Q3 6 1 3 2 12 Q4 6 1 3 2 12 Q1 6 - 3 3 12 Q2 5 1 3 3 12 Q3 6 - 3 3 12 Q4 5 1 3 3 12 Q1 6 - 3 3 12 Q2 5 1 3 3 12 Q3 5 1 3 3 12 Q4 6 - 3 3 12 Q1 3 - 2 1 6 Q2 - - - - - Q3 - - - - - Q4 - - - - - 2031
Fairbrook Communities
Cypress Sands - Townhomes
Home Closings
2027
2028
2029
Building Permit Issuance
2027
2028
2029
Estimated Absorption Schedule
2030
2031
2030
Item: 6.3
Item Page Number: 51
Menifee Finance Committee September 14, 2026 Page 111 of 155

EXHIBIT 7

SITE PLAN

Item: 6.3
Item Page Number: 52
Menifee Finance Committee September 14, 2026 Page 112 of 155

PROJECT SUMMARY

PROPOSED MEDIUM DENSITY RESIDENTIAL PROJECT
CONSISTING OF 18 TWO STORY ROW TOWNHOME
BUILDINGS (132 UNITS) WITH ASSOCIATED

AMENITY AREAS AND PARKING

EXISTING USE VACANT

ZONEMEDIUM DENSITY RESIDENTIAL (MDR)
A.P.N.333-050-034
# OF UNITS 132
# OF BLDG'S 18
GROSS SITE 8.15 GROSS ACRES
NET SITE 7.34 ACRES
DENSITY 18.0 DU/ACRE

BLDG CODE CALIFORNIA RESIDENTIAL CODE
CONST. TYPE VB
OCCUPANCY R3/U
FIRE SPRINKLERS 13D (PER CRC R313)
BLDG HEIGHT 30' @ RIDGE, 21' @ EAVE (2 STORY)
MAXIMUM BUILDING AREA = 14,970 S.F. (8 PLEX)
FIRE FLOW = 1,625 GPM @ 20 PSI FOR 2 HRS
OFM-01B ITEM 2B, CFC TABLE B105.1(1) AND B105.1(2)
HYDRANT SPACING PER OFM-01B ATTACHMENT 4

PRODUCT SUMMARY
69 - PL 1 1,312 SF 3 BD + LOFT
33 - PL 2 1,423 SF 3 BD + LOFT
30 - PL 31,510 SF4 BD
132 TOTAL UNITS

ACCESSIBLE UNIT SUMMARY
PER CBC SECTION 1102A.3 10% REQUIRED
132 UNITS X 10% = 13.2 OR 14 ADA UNITS
ACCESSIBLE UNITS #'S
(3, 5, 16, 24, 25, 45, 52, 60, 76, 83, 91, 106, 112, 120)

REQUIRED PARKING

DENSITY BONUS
102 U @ 3 BD = 1.5 ST/U 153 STALLS
30 U @ 4 BD = 2.5 ST/U 75 STALLS
TOTAL REQ'D 228 STALLS

PROVIDED PARKING
GARAGE STALLS 264 STALLS
OPEN STALLS 31 STALLS
295 TOTAL
BICYCLE PARKING 15 REQUIRED

ADA PARKING SUMMARY
2% ASSIGNED STALLS = 264 X .02 = 6 STALLS
5% UNASSIGNED STALLS = 31 X .05 = 2 STALLS
REQUIRED ADA STALLS = 8 TOTAL

PROVIDED ADA STALLS
ASSIGNED ACCESSIBLE GARAGES = 14 STALLS
UNASSIGNED OPEN = 2 STALLS
TOTAL ADA STALLS = 16 STALLS

OPEN SPACE SUMMARY
PRIVATE YARDS 39,081 SF (296 SF/UNIT)
COMMON AREA 6,256 SF (47 SF/UNIT)
PASSIVE OPEN 4,002 SF
SLOPE AREA 10,302 SF
WATER QUALITY 10,656 SF
OTHER OPEN 51,994 SF
NET SITE AREA319,824 SF
DRIVES/PARKING 73,129 SF (22.9%)
BLDG. COVERAGE 124,404 SF (38.9%)
(50% ALLOWED)
OPEN SPACE122,291 SF (38.2%)
(30% REQ'D)

UTILITY/SERVICES PROVIDERS
WATER SERVICE: EASTERN MUNICIPAL WATER DISTRICT
SEWER SERVICE: EASTERN MUNICIPAL WATER DISTRICT
GAS:SOUTHERN CALIFORNIA GAS COMPANY
ELECTRICITY: SOUTHERN CALIFORNIA EDISON
TEL./ CABLE: AT&T/ FRONTIER COMMUNICATIONS
SCHOOL DISTRICT: MENIFEE UNION
DEDICATIONS 9' AT ANTELOPE ROAD
6' AT CHAMBERS AVENUE
30' AT TIOGA LANE

LOT 'E'

LOT 'D'

LOT 'C'

LOT 'B'
1 2
6 5
4 3
BLDG 1 - TYPE C (SPANISH)
PL 3
PL 3
7 8
PL 1
PL 2
PL 1
PL 2
PL 1
PL 1
PL 3 PL 3
9 10 11 12 13 14 15 16BLDG 2 - TYPE C-R (COTTAGE)
PL 1PL 1 PL 1PL 2PL 1 PL 2
BLDG 18 - TYPE B (BUNGALOW)
PL 3
PL 2
PL 2
PL 1
PL 1
PL 1
PL 1
129
130
131
132
126
127
128
BLDG 3 - TYPE C (SPANISH)
PL 3 PL 3
2423222120191817
PL 2PL 2 PL 1 PL 1PL 1PL 1
BLDG 16 - TYPE B(R) (COTTAGE)
PL 1
PL 2
PL 1
PL 3
PL 1
PL 1
PL 2
113
114
115
116
117
118
119
BLDG 17 - TYPE A (SPANISH)
PL 3
PL 3
PL 2
PL 1
PL 1
PL 1
125
124
123
122
121
120
BLDG 15 - TYPE B (SPANISH)
PL 1
PL 1
PL 2
PL 3
PL 1
PL 2
PL 1
112
111
110
109
108
107
106
BLDG 14 - TYPE A(R) (BUNGALOW)
PL 3 100
PL 2
PL 3
PL 1
PL 1
PL 1
101
102
103
104
105 BLDG 13 - TYPE C (COTTAGE)
PL 3
PL 399
98 97
96 95
94 93
92 PL 1
PL 1
PL 1
PL 1
PL 2
PL 2
BLDG 12 - TYPE C(R) (BUNGALOW)
PL 3
PL 3
85 84
87 86
89 88
91 90
PL 2
PL 2
PL 1
PL 1
PL 1
PL 1
BLDG 11 - TYPE C (SPANISH)
PL 3
PL 3
82 83
80 81
78 79
76 77
PL 2
PL 2
PL 1
PL 1
PL 1
PL 1
BLDG 10 - TYPE C(R) (BUNGALOW)
PL 3
PL 3
74 75
72 73
70 71
68 69
PL 2
PL 2
PL 1
PL 1
PL 1
PL 1
BLDG 8 - TYPE C(R) (COTTAGE)
PL 3
PL 3
54 53
56 55
58 57
60 59
PL 2
PL 2
PL 1
PL 1
PL 1
PL 1
BLDG 9 - TYPE B (SPANISH)
PL 1
62 61
64 63
66 65
67 PL 1
PL 2
PL 2
PL 1
PL 1
PL 3
BLDG 7 - TYPE C (BUNGALOW)
PL 3
PL 3
51 52
49 50
47 48
45 46
PL 2
PL 2
PL 1
PL 1
PL 1
PL 1
BLDG 6 - TYPE B(R) (COTTAGE)
PL 1
43 44
41 42
39 40
38 PL 2
PL 1
PL 1
PL 3
PL 1
PL 2
BLDG 4 - TYPE A(R) (COTTAGE)
PL 3
PL 3
25 26
27 28
29 30
PL 1
PL 1
PL 2
PL 1
BLDG 5 - TYPE B(R) (SPANISH)
PL 3
PL 1
PL 1
PL 1
PL 2
PL 2
PL 1
31 32
33 34
37 36
35 15.066.4

18.1 25.0

25.0 28.0

25.0 9.7

8.0 9.0

9.0 18.0 25.0

38.0 37.0

23.5 22.1

18.0 18.0

15.0 18.0

18.0 48.5

20.3 7.2

20.3 6.0 8.0 36.0

31.4 38.2

25.0 47.8

47.6 18.1

18.1 18.1

18.1 16.2 14.5

37.0 38.0

38.0 37.0

36.0 38.0

38.038.0

38.0 47.849.3

25.0 39.3

40.4 19.3

19.6 46.428.0

14.9 15.2

33.6 15.9

11.4 10.7

10.7 15.0

14.0 15.0

15.0 7.8

18.0 25.0

9.0 25.0

37.0 38.0
R48.0
R28.0
R48.0
R28.0
R48.0
R28.0
R48.0
R28.0
R48.0
R28.0
R48.0
R28.0
R48.0
R28.0
R48.0
R28.0
R48.0
R28.0
R48.0
R28.0
R48.0
R28.0
R48.0
R28.0
R48.0
R28.0

25.0 25.0

37.0 38.0

37.0 66.4

18.1 18.1

18.1 43.0

42.0 18.0

9.0 18.0

9.0 10.0 20.0 18.0
6 CHAMBERS AVENUE

CHATHAM LANE

ANTELOPE ROAD

TIOGA LANE

12.018.0

9.0 12.0

38.0 11.7

54.5 2
1 47
8 14
7 3
4 6
1 7
2 7 4 1
7 3
7 1
4 7
7 9
9 6
6 3
5 9
2 6
6 396
9 6
1011
R48.0
R28.0
12 12
12 12
1 2

PROPOSED RIGHT OF WAY
3 4
5 6
7 8

PERIMETER WALL
9 AMENITY AREA
STANDARD PARKING STALL - 9' X 18'
2-STORY TOWNHOME BUILDING
FIRE LANE - DESIGNED TO SUPPORT 80,000 LBS LIVE

LOAD & SURFACED TO PROVIDE ALL-WEATHER

DRIVING CAPABILITIES

LANDSCAPED SLOPE

SITE PLAN KEYNOTES

WATER QUALITY BASIN

WALKWAY

SITE PLAN LEGEND

UNIT NUMBER

UNIT PLAN TYPE

ADA UNIT LOCATION

ADA PATH OF TRAVEL
10ACCESSIBLE PARKING STALL - 9' X 18' W/ 5'

WIDE LOADING ZONE
11 VAN ACCESSIBLE PARKING STALL - 9' X 18' W/ 8'

WIDE LOADING ZONE LOCATED ON

PASSENGER SIDE
12COMMUNITY MAILBOXES REFER TO LANDSCAPE

PLANS FOR DESIGN
NORTH

CONCEPTUAL SITE PLAN
Scale
JULY 22, 20255256 S. Mission Road, Ste. 404
Bonsall, CA 92003
www.summarch.com p.760.724.1198

ARCHITECTURE

CYPRESS SANDS TOWNHOMES MENIFEE
Fairbrook Communities LLC
2280 Wardlow Circle Suite 250
Corona, CA 92878

DATEREVISION DESCRIPTION
0 40 80 120SP1
PL 3
#
PROJECT FIRE NOTES:
·PROJECT IS LOCATED IN A VERY HIGH FIRE SEVERITY ZONE AND SHALL COMPLY WITH CHAPTER 7A OF THE CALIFORNIA
BUILDING CODE AND CHAPTER 49 OF THE CALIFORNIA FIRE
CODE.
·PROJECT SHALL COMPLY WITH TITLE 14 REQUIREMENTS FROM
THE CALIFORNIA BOARD OF FORESTRY AND FIRE PROTECTION.
·FIRE APPARATUS ACCESS ROADS SHALL HAVE AN
UNOBSTRUCTED WIDTH OF NOT LESS THAN 24 FEET AND A
VERTICAL CLEARACNE OF 13 FEET 6 INCHES
Item: 6.3
Item Page Number: 53
Menifee Finance Committee September 14, 2026 Page 113 of 155

MM
DC
DC
APN 333-230-033

LOT 'E' LOT 'D' LOT 'C' LOT 'B'
PARCEL 1 PARCEL 2
PARCEL 3 PARCEL 4
TR. 37409-FUTURE LEGADO DEVELOPMENT
LAND USE: VACANT
ZONE: EDC-MB
LAND USE: VACANT
ZONE: EDC-MB
LAND USE: VACANT
ZONE: LEGADO SP
TR. 27093
LAND USE: SINGLE FAMILY RESIDENTIAL
ZONE: MDR
FH
FHFH
FH
FH
FH
FH
FH
FH
FH
FHFH
N88°30'20"W 529.33'
N88°30'20"W 657.38'
N88°38'04"W 657.39'
N88°38'04"W 549.35'
1480
\A1;59'\A1;21' \A1;32'
\A1;30'\A1;20'\A1;10'
\A1;31' \A1;25'
\A1;10'
\A1;60'
\A1;20'
\A1;30'
\A1;50'\A1;32'\A1;12'
\A1;109'
\A1;30'
\A1;20'\A1;10'
\A1;9'
\A1;110'
\A1;36' \A1;36'
\A1;24'
\A1;50'
\A1;29'
\A1;16' \A1;6'
\A1;12'
\A1;13'
\A1;6'
\A1;30'\A1;12'
1490.51490.01489.61488.81487.51486.91485.21484.61482.91482.31480.3CHATHAM LANE

ANTELOPE ROAD

TIOGA LANE

CHAMBERS AVENUE
16 8
17 17
17 17
18 19
17 17
17 19
19 A
A
17 17
17 17
18 18
19 19
19 1
1 1
1 1
1 1
1 2
2 2
6 6
A
5 5
5 5
4 8
9 9
11 12
12 13
13 13
13 13
13 21
20 =
1 5
'
=
1 5
'
=
15 '
=
1 5
'
=
15 '
=
1 5
'
=
15 '
=
1 5
'
=
1 5
'
=
15 '
=
1 5
'
=
1 5
'
=
1 5
'
=
2 5
'
=
2 5
'
=
2 5
'
=
2 5
'
BLDG. 7BLDG. 8
BLDG. 11
BLDG. 12
BLDG. 2
BLDG. 3
BLDG. 10
BLDG. 13
BLDG. 9
BLDG. 6
BLDG. 15
BLDG. 16
BLDG. 14
BLDG. 17
BLDG. 1
BLDG. 18 BLDG. 4
BLDG. 5
=
1 5
'
=
1 5
'
\A1;25'
\A1;25'
\A1;25'
\A1;25'
\A1;25'\A1;25'
\A1;25'
\A1;25'
\A1;25'
\A1;28'
\A1;25'
\A1;25'\A1;18'
\A1;25'\A1;18'
\A1;25'
\A1;18'\A1;25'
\A1;20.3'REC PARK
1 29
2 2
2 3
5 5
5 4
4 4
4 4
4 14
14WQ/DETENTION
BASIN
17 13
15 15
12 9
18 18
\A1;28'
23 23
23 22
10 10
24 ADAADA
ADA
ADA
ADA
ADA
ADAADA

ADA ADA
ADA
ADA
ADA
ADA
\A1;12'
\A1;9'\A1;8.6'
\A1;20.3'
\A1;20.3'
\A1;15'
\A1;3'
\A1;15'
\A1;15'
\A1;15'
ADA
\A1;18.5'
23 23
3 3
3 3
3 3
3 3
25 25
25 25
25 25
25 25
25 26
26 ASTREET 'A'

STREET 'B'

STREET 'C'

STREET 'D'

STREET 'E'STREET 'F'

STREET 'H'

STREET 'G'

STREET 'I'
\A1;12'
24 24
27 28
29 29
29 29
29 29
29 29
29 29
29 29
11 11
11 40 40 800

SITE PLAN
SHEET NO.
9 SCALE: 1"=40'
SG
Avoid cutting underground
utility lines. It's costly.
1-800-422-4133
OR

ENGINEERING CONSULTANTS
200 South Main Street, Suite 300
Corona, CA 92882 (951) 280-3300

PLANS PREPARED
SCOTT P. GILBERT
R.C.E. #65194
DATE
UNDER THE SUPERVISION OF:

STA TE OF CA FORN
A
NO. 65194
C
R
E
E
N
G
N
E

ANOSSEFORP
DER
E
T
S
G
E
R
S
C
O
T T P. G
BE
R
T
Z:\10.102_CYPRESS SANDS ENTITLEMENT\DRAWINGS\SITE PLAN\001-SP.DWG NO. DESCRIPTION

REVISIONS
DATE BYSHT. APRD
EX
EG
FS
TR
- EXISTING
- EXISTING GRADE
- FINISHED SURFACE
- ASSESSOR'S PARCEL NUMBER
SD

SS - SANITARY SEWER
18100 VON KARMAN AVE
(951) 928-3777x4291
%%USEWER:
(951) 928-3777x4291
(800) 655-4555
(800) 427-2200
(877) 530-0911
26100 MENIFEE ROAD
MENIFEE,CA 92585
1 MENIFEE RD
215
30205 MENIFEE RD.
(951) 672-1851
228
153
295
264
31 0" CURB
1 2
3 4
5 6
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 29

\A1;6'
N'LY
E'LY
S'LY
W'LY
EP

EASEMENTS AND DEDICATIONS
A

SITESCAPES

EXISTING
333-050-034

8.15 AC
246,487 SQ. FT.
06065C2060H, ZONE X
200 SOUTH MAIN STREET
\A1;9'\A1;8'
18100 VON KARMAN AVE
\A1;6'
\A1;9'\A1;9'
4,14 & 17 1-6 PLEX 2

2.5 3 3 4 18 60 45
5,6,9,15, 16 & 18
2 2.5 3 3 4 42 132 105
1,2,3,7,8,10,11,12 & 133-8 PLEX 2

2.5 3 3 4 72 234 180TOTAL
132 426 330
*
*
*
75 \A1;2'
*
*

WASTE MANAGEMENT
(800) 423-9986
Item: 6.3
Item Page Number: 54
Menifee Finance Committee September 14, 2026 Page 114 of 155

MM
DC
DC
CO
FH
FH
FH
FH
FH
U
FH
APN 333-230-033

LOT 'E'

LOT 'D'

LOT 'C'

LOT 'B'
PARCEL 1
PARCEL 2
PARCEL 3
PARCEL 4
TR. 37409-FUTURE LEGADO DEVELOPMENT
LAND USE: VACANT
ZONE: EDC-MB
LAND USE: VACANT
ZONE: EDC-MB
LAND USE: VACANT
ZONE: LEGADO SP
TR. 27093
LAND USE: SINGLE FAMILY RESIDENTIAL
ZONE: MDRCHATHAM LANE

ANTELOPE ROAD

TIOGA LANE

CHAMBERS AVENUE
LOT "1"

STREET 'A'

STREET 'B'

STREET 'C'

STREET 'D'

STREET 'E'

STREET 'F'

STREET 'H'
A
A
A
E
E
E
E
E
E
E
E
E

ESTREET 'G'

STREET 'I'
\A1;60'\A1;30'
\A1;30'
\A1;10'\A1;20'\A1;12'\A1;18'
\A1;109'
1481
1482
1484
1483
1485
1486
1487
1488
1489
1491
1492
1493
1494
1495
1496
1497
1498
1499
1499
1482
1483
1484
1486
1485
1488
1487
1491
1490
1489
1490
1491
1494
1493
1492
1497
1495
1492
1493
1494
1491
1491
1491
1493
1497
1499
1498
1500
1500
1499
1495
1499
1496
1495
1499
1498
1501
1501
1501
1498
1499
1502
1502
1501
1497
1496
1495
1494
1491
1492
1490
1493
1487
1488
1485
1486
1484
1483
1482
1480
1479
1479
1482
1482
1482
1481
1480
1480
1482
1482
1483
1483
1483
1483

33.10'

15.62'
\A1;59' \A1;50'

20.97'
N88%%D38'04"W
1489
N88%%D30'20"W
1496
1497
1484
1486
1485
1488
1487
1490
1489
1493
1492
1491
1494
1495
1496
1495
1494
1491
1492
1493
1489
1490
1487
1488
1485
1486
1484
1483
1484
1486
1485
1488
1487
1490
1489
1493
1492
1491
\A1;32'\A1;12'\A1;30'
\A1;60'\A1;30'
\A1;30'\A1;10'\A1;20'\A1;20'
\A1;10'
\A1;21'
A
SHEET NO.
9 Z:\10.102_CYPRESS SANDS ENTITLEMENT\DRAWINGS\SITE PLAN\002-TTM.DWG SCALE: 1"=40'
SG
Avoid cutting underground
utility lines. It's costly.
1-800-422-4133
OR

ENGINEERING CONSULTANTS
200 South Main Street, Suite 300
Corona, CA 92882 (951) 280-3300

PLANS PREPARED
SCOTT P. GILBERT
R.C.E. #65194
DATE
UNDER THE SUPERVISION OF:

STA TE OF CA FORN
A
NO. 65194
C
R
E
E
N
G
N
E

ANOSSEFORP
DER
E
T
S
G
E
R
S
C
O
T T P. G
BE
R
T
NO. DESCRIPTION

REVISIONS
DATE BYSHT. APRD
2280 WARDLOW CIRCLE
200 SOUTH MAIN STREET
2280 WARDLOW CIRCLE

MENIFEE RD
215
2 STREET 'B', 'C', 'D', 'E', 'G' & 'I'
N.T.S
TENTATIVE TRACT MAP 39364
LEGEND

MAX MAXIMUM

MINIMUMMIN

ELEV ELEVATION
ABINV
FS
SD
EVC
EP
SS
NTS

FINISH SURFACE

FINISH GRADE

SANITARY SEWER

SHEET FLOW RATE

SWALE HIGH POINT
100
100
2%
HP
100.2
S
123.5
F
RW RW
F

DESCRIPTION

FINISHED GRADE

FINISHED SURFACE

SEWER MANHOLE
SEWER

PROPOSED
FG
FL
FS
TC

EXISTING
(FG ELEV)
(FL ELEV)
(FS ELEV)
(TC ELEV)
SD
SS
DWDW
SS
SD
FL
P/LP/L
{PRIVATE
LOT AREA}
2%%%
℄
{PRIVATE
LOT AREA}

STREET 'F'
N.T.S

EASEMENTS AND DEDICATIONS
A
50 25 50 100 1500
E
1 355,072 SF
319,768 SFLOT TABLE:

P/LP/L
{PRIVATE
LOT AREA}
2%%%
℄
{PRIVATE
LOT AREA}
P/LP/L
{PRIVATE
LOT AREA}
2%%%
℄
{PRIVATE
LOT AREA}

STREET 'A' AND 'H'
N.T.S
2%%%
1"=50'
Item: 6.3
Item Page Number: 55
Menifee Finance Committee September 14, 2026 Page 115 of 155

EXHIBIT 8

TITLE REPORT

Item: 6.3
Item Page Number: 56
Menifee Finance Committee September 14, 2026 Page 116 of 155

Commitment
File No.:

FBSC2509156
Property Address:

Vacant Land, Menifee, CA 92585
Title Officer:

John Balassi
Welcome to the new titleLOOK®!
titleLOOK upgrades the traditional title report experience from a static report with large zip files of supporting documents to a real-time interactive title report. With titleLOOK, you'll enjoy:
•
an easy-to-use summary page of your report findings
•
color-coded requirements and exceptions so you can focus on what is important •
hyperlinks directly into the documents referenced on your report •
a transparent and convenient title report experience
When you click on the above button/link to access your titleLOOK report, you will be taken to inHere, our platform designed to transform the experience of buying or selling real estate from the moment a transaction is started all the way through closing. inHere provides a safe and convenient method of delivering documents and information about your real estate transaction.

Item: 6.3
Item Page Number: 57
Menifee Finance Committee September 14, 2026 Page 117 of 155

This page is only a part of a 2021 ALTA ® Commitment for Title Insurance issued by Chicago Title Insurance Company . This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I-Requirements; Schedule B, Part II-Exceptions; and a counter-signature by the Company or its issuing agent that may be in electronic form.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association.

ALTA Commitment for Title Insurance (07/01/2021) Printed: 04.15.26 @ 11:04 AM

Page 1 ends

ALTA COMMITMENT FOR TITLE INSURANCE
Commitment Number:
issued by:

FBSC2509156
Amendment 2
NOTICE
IMPORTANT - READ CAREFULLY: THIS COMMITMENT IS AN OFFER TO ISSUE ONE OR MORE TITLE INSURANCE POLICIES. ALL CLAIMS OR REMEDIES SOUGHT AGAINST THE COMPANY INVOLVING THE CONTENT OF THIS COMMITMENT OR THE POLICY MUST BE BASED SOLELY IN CONTRACT.

THIS COMMITMENT IS NOT AN ABSTRACT OF TITLE, REPORT OF THE CONDITION OF TITLE, LEGAL OPINION, OPINION OF TITLE, OR OTHER REPRESENTATION OF THE STATUS OF TITLE. THE PROCEDURES USED BY

THE COMPANY TO DETERMINE INSURABILITY OF THE TITLE, INCLUDING ANY SEARCH AND EXAMINATION,

ARE PROPRIETARY TO THE COMPANY, WERE PERFORMED SOLELY FOR THE BENEFIT OF THE COMPANY, AND CREATE NO EXTRACONTRACTUAL LIABILITY TO ANY PERSON, INCLUDING A PROPOSED INSURED.

THE COMPANY'S OBLIGATION UNDER THIS COMMITMENT IS TO ISSUE A POLICY TO A PROPOSED INSURED IDENTIFIED IN SCHEDULE A IN ACCORDANCE WITH THE TERMS AND PROVISIONS OF THIS COMMITMENT.

THE COMPANY HAS NO LIABILITY OR OBLIGATION INVOLVING THE CONTENT OF THIS COMMITMENT TO ANY OTHER PERSON.

COMMITMENT TO ISSUE POLICY
Subject to the Notice; Schedule B, Part I-Requirements; Schedule B, Part II-Exceptions; and the Commitment Conditions, Chicago Title Insurance Company , a Florida corporation (the "Company"), commits to issue the Policy according to the terms and provisions of this Commitment. This Commitment is effective as of the Commitment Date shown in Schedule A for each Policy described in Schedule A, only when the Company has entered in Schedule A both the specified dollar amount as the Proposed Amount of Insurance and the name of the Proposed Insured.

If all of the Schedule B, Part I-Requirements have not been met within one hundred eighty (180) days after the Commitment Date, this Commitment terminates and the Company's liability and obligation end.

Chicago Title Insurance Company
By:

Countersigned By:

Joe Goodman
Authorized Officer or Agent
Michael J. Nolan, President
Attest:

Marjorie Nemzura, Secretary
Item: 6.3
Item Page Number: 58
Menifee Finance Committee September 14, 2026 Page 118 of 155

ALTA Commitment for Title Insurance (07/01/2021) Printed: 04.15.26 @ 11:04 AM

Page 2 ends

CHICAGO TITLE INSURANCE COMPANY
COMMITMENT NO. FBSC2509156
AMENDMENT 2
Transaction Identification Data, for which the Company assumes no liability as set forth in Commitment Condition 5.e.:

ISSUING OFFICE: FOR SETTLEMENT INQUIRIES, CONTACT:

Title Officer: John Balassi
Chicago Title Company
4911 Birch St
Newport Beach, CA 92660
Phone: 949-724-3117 Fax: 951-710-5955
Main Phone: (949)724-3100
Email: [email protected]
Order Number: FBSC2509156
Project Name: //
Property Address: Vacant Land, Menifee, CA 92585

SCHEDULE A

1. Commitment Date: April 3, 2026 at 07:30 AM

2. Policy to be issued:
(a) ALTA Loan Policy 2021
Proposed Insured: West Bay Capital, its successors and/or assigns as their respective interests may appear.

Proposed Amount of Insurance: $2,850,000.00
The estate or interest to be insured: A FEE

3. The estate or interest in the Land at the Commitment Date is:

A FEE

4. The Title is, at the Commitment Date, vested in:

FB CYPRESS SANDS LLC, a Delaware limited liability company

5. The Land is described as follows:

SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF

END OF SCHEDULE A
Item: 6.3
Item Page Number: 59
Menifee Finance Committee September 14, 2026 Page 119 of 155

EXHIBIT "A"
Legal Description
This page is only a part of a 2021 ALTA ® Commitment for Title Insurance issued by Chicago Title Insurance Company . This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I-Requirements; Schedule B, Part II-Exceptions; and a counter-signature by the Company or its issuing agent that may be in electronic form.

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For APN/Parcel ID(s): 333-050-034

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF MENIFEE, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:

PARCEL 4 AS SHOWN BY PARCEL MAP NO. 4736 ON FILE IN BOOK 6, PAGE 16 OF PARCEL MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.

EXCEPTING THEREFROM 60 PERCENT OF THE OIL AND MINERAL RIGHTS IN, ON, AND UNDER SAID LAND WITHOUT THE RIGHT OF INGRESS AND EGRESS AS RESERVED IN DEED FROM GEORGE D. NEWPORT AND DOROTHEA K. NEWPORT, HUSBAND AND WIFE, RECORDED NOVEMBER 29, 1957 IN BOOK 2185, PAGE 189 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.

APN: 333-050-034
Item: 6.3
Item Page Number: 60
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CHICAGO TITLE INSURANCE COMPANY
COMMITMENT NO. FBSC2509156
AMENDMENT 2
SCHEDULE B, PART I - Requirements
All of the following Requirements must be met:

1. The Proposed Insured must notify the Company in writing of the name of any party not referred to in this Commitment who will obtain an interest in the Land or who will make a loan on the Land. The Company may then make additional Requirements or Exceptions.

2. Pay the agreed amount for the estate or interest to be insured.

3. Pay the premiums, fees, and charges for the Policy to the Company.

4. Documents satisfactory to the Company that convey the Title or create the Mortgage to be insured, or both, must be properly authorized, executed, delivered, and recorded in the Public Records.

5. The Company will require the following documents for review prior to the issuance of any title insurance predicated upon a conveyance or encumbrance from the entity named below.

Limited Liability Company: FB CYPRESS SANDS LLC, a Delaware limited liability company a. A copy of its operating agreement, if any, and any and all amendments, supplements and/or modifications thereto, certified by the appropriate manager or member. b. If a domestic Limited Liability Company, a copy of its Articles of Organization and all amendment thereto with the appropriate filing stamps.
c. If the Limited Liability Company is member-managed a full and complete current list of members certified by the appropriate manager or member.
d. A current dated certificate of good standing from the proper governmental authority of the state in which the entity was created
e. If less than all members, or managers, as appropriate, will be executing the closing documents, furnish evidence of the authority of those signing.
f. If Limited Liability Company is a Single Member Entity, a Statement of Information for the Single Member will be required.
g. Each member and manager of the LLC without an Operating Agreement must execute in the presence of a notary public the Certificate of California LLC (Without an Operating Agreement) Status and Authority form

6. Prior to the close of escrow, the Company requires a Statement of Information to be completed by the following party(s),
Party(s): All Parties
The Company reserves the right to add additional items or make further requirements after review of the requested Statement of Information.

Item: 6.3
Item Page Number: 61
Menifee Finance Committee September 14, 2026 Page 121 of 155

CHICAGO TITLE INSURANCE COMPANY
COMMITMENT NO. FBSC2509156
AMENDMENT 2
SCHEDULE B, PART I - Requirements
(continued)
This page is only a part of a 2021 ALTA ® Commitment for Title Insurance issued by Chicago Title Insurance Company . This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I-Requirements; Schedule B, Part II-Exceptions; and a counter-signature by the Company or its issuing agent that may be in electronic form.

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7. Furnish for review a full and complete copy of any unrecorded agreement, contract, license and/or lease together with all supplements, assignments and amendments thereto, prior to the close of this transaction.

The Company reserves the right to add additional items or make further requirements after review of the requested documentation.

8. Unrecorded matters which may be disclosed by an Owner’s Affidavit or Declaration. A form of the Owner’s Affidavit/Declaration is attached to this Preliminary Report/Commitment. This Affidavit/Declaration is to be completed by the record owner of the land and submitted for review prior to the closing of this transaction. Your prompt attention to this requirement will help avoid delays in the closing of this transaction. Thank you.

The Company reserves the right to add additional items or make further requirements after review of the requested Affidavit/Declaration.

END OF REQUIREMENTS

END OF SCHEDULE B, PART I
Item: 6.3
Item Page Number: 62
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CHICAGO TITLE INSURANCE COMPANY
COMMITMENT NO. FBSC2509156
AMENDMENT 2
SCHEDULE B, PART II - Exceptions
Some historical land records contain Discriminatory Covenants that are illegal and unenforceable by law. This Commitment and the Policy treat any Discriminatory Covenant in a document referenced in Schedule B as if each Discriminatory Covenant is redacted, repudiated, removed, and not republished or recirculated. Only the remaining provisions of the document will be excepted from coverage.

The Policy will not insure against loss or damage resulting from the terms and conditions of any lease or easement identified in Schedule A, and will include the following Exceptions unless cleared to the satisfaction of the Company:

A. Property taxes, which are a lien not yet due and payable, including any assessments collected with taxes to be levied for the fiscal year 2026-2027.

B. There were no taxes levied for the fiscal year 2025-2026 as the property was vested in a public entity.

Tax Identification No.: 333-050-034
C. Said property has been declared tax defaulted for non-payment of delinquent taxes for the fiscal year 2024 .

Tax Identification No.: 333-050-034
Amounts to redeem for the above-stated fiscal year (and subsequent years if any) are:

Amount: $49,238.35 by April 30, 2026
Amount: $49,828.32 by May 31, 2026
D. The herein described property lies within the boundaries of a Mello-Roos Community Facilities District (CFD) as follows:

CFD No.: 91-1
For: Perris Union High School District
Disclosed by: Notice of Special Tax Lien
Recording Date: January 25, 1993
Recording No.: Instrument No. 1993-28785 of Official Records This property, along with all other parcels in the CFD, is liable for an annual special tax.

This special tax is included with and payable with the general property taxes of the City of Menifee, County of Riverside. The tax may not be prepaid.

E. The lien of supplemental or escaped assessments of property taxes, if any, made pursuant to the provisions of Chapter 3.5 (commencing with Section 75) or Part 2, Chapter 3, Articles 3 and 4, respectively, of the Revenue and Taxation Code of the State of California as a result of the transfer of title to the vestee named in Schedule A or as a result of changes in ownership or new construction occurring prior to Date of Policy.

1. Water rights, claims or title to water, whether or not disclosed by the public records.

Item: 6.3
Item Page Number: 63
Menifee Finance Committee September 14, 2026 Page 123 of 155

CHICAGO TITLE INSURANCE COMPANY
COMMITMENT NO. FBSC2509156
AMENDMENT 2
SCHEDULE B, PART II - Exceptions
(continued)
This page is only a part of a 2021 ALTA ® Commitment for Title Insurance issued by Chicago Title Insurance Company . This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I-Requirements; Schedule B, Part II-Exceptions; and a counter-signature by the Company or its issuing agent that may be in electronic form.

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2. An irrevocable offer to dedicate an easement over a portion of said Land for Purpose(s): Public road and public utilities
Recording Date: September 27, 1972
Recording No.: as Instrument No. 1972-129309 of Official Records Affects: A portion of said land as more particularly described in said document

3. An irrevocable offer to dedicate an easement over a portion of said Land for Purpose(s): public road and public utilities
Recording Date: September 27, 1972
Recording No.: as Instrument No. 1972-129310 of Official Records Affects: A portion of said land as more particularly described in said document Said offer was accepted by resolution, a certified copy of which was recorded January 17, 2003, as Instrument No. 2003-039755 of Official Records.

4. The Land described herein is included within a project area of the Redevelopment Agency shown below, and that proceedings for the redevelopment of said project have been instituted under the Redevelopment Law (such redevelopment to proceed only after the adoption of the Redevelopment Plan) as disclosed by a document.

Redevelopment Agency: Redevelopment Agency for the County of Riverside Recording Date: May 26, 2006
Recording No.: as Instrument No. 2006-0385207 of Official Records

5. This exception has been intentionally deleted.

6. A deed of trust to secure an indebtedness in the amount shown below, Amount: $1,500,000.00
Dated: February 14, 2024
Trustor/Grantor FB Cypress Sands LLC, a Delaware limited liability company Trustee: Pacific Coast Title Company
Beneficiary: TBG Capital LLC, a Washington limited liability company Recording Date: February 16, 2024
Recording No.: as Instrument No. 2024-0044137 of Official Records Item: 6.3
Item Page Number: 64
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This Company will require that the original note, the original deed of trust and a properly executed request for full reconveyance together with appropriate documentation (i.e., copy of trust, partnership agreement or corporate resolution) be in this office prior to the close of this transaction if the above-mentioned item is to be paid through this transaction or deleted from a policy of title insurance.

Any demands submitted to us for payoff must be signed by all beneficiaries as shown on said deed of trust, and/or any assignments thereto. In the event said demand is submitted by an agent of the beneficiary(s), we will require the written approval of the demand by the beneficiary(s). Servicing agreements do not constitute approval for the purposes of this requirement.

If no amounts remain due under the obligation a zero balance demand will be required along with the reconveyance documents.

In addition, we require the written approval of said demand by the trustor(s) on said deed of trust or the current owners if applicable.

7. A deed of trust to secure an indebtedness in the amount shown below, Amount: $4,900,000.00
Dated: January 31, 2024
Trustor/Grantor FB Cypress Sands, LLC
Trustee: Chicago Title Company, a California corporation Beneficiary: CES Properties Fund XXXVII (Cypress Sands), LLC Recording Date: May 20, 2024
Recording No.: as Instrument No. 2024-0145773 of Official Records This Company will require that the original note, the original deed of trust and a properly executed request for full reconveyance together with appropriate documentation (i.e., copy of trust, partnership agreement or corporate resolution) be in this office prior to the close of this transaction if the above-mentioned item is to be paid through this transaction or deleted from a policy of title insurance.

If no amounts remain due under the obligation a zero balance demand will be required along with the reconveyance documents.

In addition, we require the written approval of said demand by the trustor(s) on said deed of trust or the current owners if applicable.

Item: 6.3
Item Page Number: 65
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8. Notice of Pendency of Administrative Proceedings No. CE-24-0908, and the lien of any assessment arising therefrom by the Department of Building and Safety of the County of Riverside, in the matter of unlawful or unsafe conditions on the herein described Land.

Property Owner: FB Cypress Sands
Recording Date: October 22, 2024
Recording No.: as Instrument No. 2024-0317328 of Official Records Reference is hereby made to said document for full particulars.

9. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other matters which a correct survey would disclose and which are not shown by the public records.

10. Any easements not disclosed by the public records as to matters affecting title to real property, whether or not said easements are visible and apparent.

11. Matters which may be disclosed by an inspection and/or by a correct ALTA/NSPS Land Title Survey of said Land that is satisfactory to the Company, and/or by inquiry of the parties in possession thereof.

12. Any rights of the parties in possession of a portion of, or all of, said Land, which rights are not disclosed by the public records.

The Company will require, for review, a full and complete copy of any unrecorded agreement, contract, license and/or lease, together with all supplements, assignments and amendments thereto, before issuing any policy of title insurance without excepting this item from coverage.

The Company reserves the right to except additional items and/or make additional requirements after review.

END OF EXCEPTIONS

END OF SCHEDULE B, PART II
Item: 6.3
Item Page Number: 66
Menifee Finance Committee September 14, 2026 Page 126 of 155

CHICAGO TITLE INSURANCE COMPANY
COMMITMENT NO. FBSC2509156
AMENDMENT 2
This page is only a part of a 2021 ALTA ® Commitment for Title Insurance issued by Chicago Title Insurance Company . This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I-Requirements; Schedule B, Part II-Exceptions; and a counter-signature by the Company or its issuing agent that may be in electronic form.

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INFORMATIONAL NOTES

1. Note: None of the items shown in this report will cause the Company to decline to attach ALTA Endorsement Form 9 to an Extended Coverage Loan Policy, when issued.

2. Notice: Please be aware that due to the conflict between federal and state laws concerning the cultivation, distribution, manufacture or sale of marijuana, the Company is not able to close or insure any transaction involving Land that is associated with these activities.

3. Pursuant to Government Code Section 27388.1, as amended and effective as of 1-1-2018, a Documentary Transfer Tax (DTT) Affidavit may be required to be completed and submitted with each document when DTT is being paid or when an exemption is being claimed from paying the tax. If a governmental agency is a party to the document, the form will not be required. DTT Affidavits may be available at a Tax Assessor-County Clerk-Recorder.

4. Note: The policy of title insurance will include an arbitration provision. The Company or the insured may demand arbitration. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the insured arising out of or relating to this policy, any service of the Company in connection with its issuance or the breach of a policy provision or other obligation. Please ask your escrow or title officer for a sample copy of the policy to be issued if you wish to review the arbitration provisions and any other provisions pertaining to your Title Insurance coverage.

Item: 6.3
Item Page Number: 67
Menifee Finance Committee September 14, 2026 Page 127 of 155

CHICAGO TITLE INSURANCE COMPANY
COMMITMENT NO. FBSC2509156
AMENDMENT 2
(continued)
This page is only a part of a 2021 ALTA ® Commitment for Title Insurance issued by Chicago Title Insurance Company . This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I-Requirements; Schedule B, Part II-Exceptions; and a counter-signature by the Company or its issuing agent that may be in electronic form.

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5. The following Exclusion(s) are added to preliminary reports, commitments and will be included as an endorsement in the following policies:

A. 2006 ALTA Owner’s Policy (06-17-06).

6. Defects, liens, encumbrances, adverse claims, notices, or other matters not appearing in the Public Records but that would be disclosed by an examination of any records maintained by or on behalf of a Tribe or on behalf of its members.

B. 2006 ALTA Loan Policy (06-17-06)

8. Defects, liens, encumbrances, adverse claims, notices, or other matters not appearing in the Public Records but that would be disclosed by an examination of any records maintained by or on behalf of a Tribe or on behalf of its members.

9. Any claim of invalidity, unenforceability, or lack of priority of the lien of the Insured Mortgage based on the application of a Tribe’s law resulting from the failure of the Insured Mortgage to specify State law as the governing law with respect to the lien of the Insured Mortgage.

C. ALTA Homeowner’s Policy of Title Insurance (12-02-13) and CLTA Homeowner's Policy of Title Insurance (12-02-13).

10. Defects, liens, encumbrances, adverse claims, notices, or other matters not appearing in the Public Records but that would be disclosed by an examination of any records maintained by or on behalf of a Tribe or on behalf of its members.

D. ALTA Expanded Coverage Residential Loan Policy - Assessments Priority (04-02-15).

12. Defects, liens, encumbrances, adverse claims, notices, or other matters not appearing in the Public Records but that would be disclosed by an examination of any records maintained by or on behalf of a Tribe or on behalf of its members.

13. Any claim of invalidity, unenforceability, or lack of priority of the lien of the Insured Mortgage based on the application of a Tribe’s law resulting from the failure of the Insured Mortgage to specify State law as the governing law with respect to the lien of the Insured Mortgage.

E. CLTA Standard Coverage Policy 1990 (11-09-18).

7. Defects, liens, encumbrances, adverse claims, notices, or other matters not appearing in the public records but that would be disclosed by an examination of any records maintained by or on behalf of a tribe or on behalf of its members.

8. Any claim of invalidity, unenforceability, or lack of priority of the lien of the insured mortgage based on the application of a tribe’s law resulting from the failure of the insured mortgage to specify state law as the governing law with respect to the lien of the insured mortgage.

Item: 6.3
Item Page Number: 68
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5. the lien of the insured mortgage.

6. Note: There are NO conveyances affecting said Land recorded within 24 months of the date of this report.

END OF INFORMATIONAL NOTES
Item: 6.3
Item Page Number: 69
Menifee Finance Committee September 14, 2026 Page 129 of 155

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COMMITMENT CONDITIONS

1. DEFINITIONS
a. "Discriminatory Covenant": Any covenant, condition, restriction, or limitation that is unenforceable under applicable law because it illegally discriminates against a class of individuals based on personal characteristics such as race, color, religion, sex, sexual orientation, gender identity, familial status, disability, national origin, or other legally protected class. b. "Knowledge" or "Known": Actual knowledge or actual notice, but not constructive notice imparted by the Public Records. c. "Land": The land described in Item 5 of Schedule A and improvements located on that land that by State law constitute real property. The term "Land" does not include any property beyond that described in Schedule A, nor any right, title, interest, estate, or easement in any abutting street, road, avenue, alley, lane, right-of-way, body of water, or waterway, but does not modify or limit the extent that a right of access to and from the Land is to be insured by the Policy. d. "Mortgage": A mortgage, deed of trust, trust deed, security deed, or other real property security instrument, including one evidenced by electronic means authorized by law.
e. "Policy": Each contract of title insurance, in a form adopted by the American Land Title Association, issued or to be issued by the Company pursuant to this Commitment.
f. "Proposed Amount of Insurance": Each dollar amount specified in Schedule A as the Proposed Amount of Insurance of each Policy to be issued pursuant to this Commitment.
g. "Proposed Insured": Each person identified in Schedule A as the Proposed Insured of each Policy to be issued pursuant to this Commitment. h. "Public Records": The recording or filing system established under State statutes in effect at the Commitment Date under which a document must be recorded or filed to impart constructive notice of matters relating to the Title to a purchaser for value without Knowledge. The term "Public Records" does not include any other recording or filing system, including any pertaining to environmental remediation or protection, planning, permitting, zoning, licensing, building, health, public safety, or national security matters. i. "State": The state or commonwealth of the United States within whose exterior boundaries the Land is located. The term "State" also includes the District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, and Guam. j. "Title": The estate or interest in the Land identified in Item 3 of Schedule A.

2. If all of the Schedule B, Part I-Requirements have not been met within the time period specified in the Commitment to Issue Policy, this Commitment terminates and the Company's liability and obligation end.

3. The Company's liability and obligation is limited by and this Commitment is not valid without:
a. the Notice;
b. the Commitment to Issue Policy;
c. the Commitment Conditions;
d. Schedule A;
e. Schedule B, Part I-Requirements;
f. Schedule B, Part II-Exceptions; and
g. a counter-signature by the Company or its issuing agent that may be in electronic form.

4. COMPANY'S RIGHT TO AMEND
The Company may amend this Commitment at any time. If the Company amends this Commitment to add a defect, lien, encumbrance, adverse claim, or other matter recorded in the Public Records prior to the Commitment Date, any liability of the Company is limited by Commitment Condition 5. The Company is not liable for any other amendment to this Commitment.

5. LIMITATIONS OF LIABILITY
a. The Company's liability under Commitment Condition 4 is limited to the Proposed Insured's actual expense incurred in the interval between the Company's delivery to the Proposed Insured of the Commitment and the delivery of the amended Commitment, resulting from the Proposed Insured's good faith reliance to:
i. comply with the Schedule B, Part I-Requirements;
ii. eliminate, with the Company's written consent, any Schedule B, Part II-Exceptions; or iii. acquire the Title or create the Mortgage covered by this Commitment. b. The Company is not liable under Commitment Condition 5.a. if the Proposed Insured requested the amendment or had Knowledge of the matter and did not notify the Company about it in writing. c. The Company is only liable under Commitment Condition 4 if the Proposed Insured would not have incurred the expense had the Commitment included the added matter when the Commitment was first delivered to the Proposed Insured. d. The Company's liability does not exceed the lesser of the Proposed Insured's actual expense incurred in good faith and described in Commitment Condition 5.a. or the Proposed Amount of Insurance.

Item: 6.3
Item Page Number: 70
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Commitment Condition 5.a. or the Proposed Amount of Insurance. e. The Company is not liable for the content of the Transaction Identification Data, if any. f. The Company is not obligated to issue the Policy referred to in this Commitment unless all of the Schedule B, Part I-Requirements have been met to the satisfaction of the Company.
g. The Company's liability is further limited by the terms and provisions of the Policy to be issued to the Proposed Insured .

6. LIABILITY OF THE COMPANY MUST BE BASED ON THIS COMMITMENT; CHOICE OF LAW AND CHOICE OF FORUM a. Only a Proposed Insured identified in Schedule A, and no other person, may make a claim under this Commitment. b. Any claim must be based in contract under the State law of the State where the Land is located and is restricted to the terms and provisions of this Commitment. Any litigation or other proceeding brought by the Proposed Insured against the Company must be filed only in a State or federal court having jurisdiction.
c. This Commitment, as last revised, is the exclusive and entire agreement between the parties with respect to the subject matter of this Commitment and supersedes all prior commitment negotiations, representations, and proposals of any kind, whether written or oral, express or implied, relating to the subject matter of this Commitment. d. The deletion or modification of any Schedule B, Part II-Exception does not constitute an agreement or obligation to provide coverage beyond the terms and provisions of this Commitment or the Policy. e. Any amendment or endorsement to this Commitment must be in writing and authenticated by a person authorized by the Company. f. When the Policy is issued, all liability and obligation under this Commitment will end and the Company's only liability will be under the Policy.

7. IF THIS COMMITMENT IS ISSUED BY AN ISSUING AGENT
The issuing agent is the Company's agent only for the limited purpose of issuing title insurance commitments and policies. The issuing agent is not the Company's agent for closing, settlement, escrow, or any other purpose.

8. PRO-FORMA POLICY
The Company may provide, at the request of a Proposed Insured, a pro-forma policy illustrating the coverage that the Company may provide. A pro-forma policy neither reflects the status of Title at the time that the pro-forma policy is delivered to a Proposed Insured, nor is it a commitment to insure.

9. CLAIMS PROCEDURES
This Commitment incorporates by reference all Conditions for making a claim in the Policy to be issued to the Proposed Insured. Commitment Condition 9 does not modify the limitations of liability in Commitment Conditions 5 and 6.

10. CLASS ACTION

ALL CLAIMS AND DISPUTES ARISING OUT OF OR RELATING TO THIS COMMITMENT, INCLUDING ANY SERVICE OR OTHER MATTER IN

CONNECTION WITH ISSUING THIS COMMITMENT, ANY BREACH OF A COMMITMENT PROVISION, OR ANY OTHER CLAIM OR DISPUTE

ARISING OUT OF OR RELATING TO THE TRANSACTION GIVING RISE TO THIS COMMITMENT, MUST BE BROUGHT IN AN INDIVIDUAL CAPACITY. NO PARTY MAY SERVE AS PLAINTIFF, CLASS MEMBER, OR PARTICIPANT IN ANY CLASS OR REPRESENTATIVE PROCEEDING. ANY POLICY ISSUED PURSUANT TO THIS COMMITMENT WILL CONTAIN A CLASS ACTION CONDITION.

11. ARBITRATION
The Policy contains an arbitration clause. All arbitrable matters when the Proposed Amount of Insurance is Two Million And No/100 Dollars ($2,000,000.00) or less may be arbitrated at the election of either the Company or the Proposed Insured as the exclusive remedy of the parties. A Proposed Insured may review a copy of the arbitration rules at http://www.alta.org/arbitration.

END OF CONDITIONS
Item: 6.3
Item Page Number: 71
Menifee Finance Committee September 14, 2026 Page 131 of 155

EXHIBIT 9

DRAFT RMA
Item: 6.3
Item Page Number: 72
Menifee Finance Committee September 14, 2026 Page 132 of 155

City of Menifee
Community Facilities District No. 2026-XX22-2 (Cypress SandsMcLaughlin Village) Page 1

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2026-XX22-2 (CYPRESS SANDSMCLAUGHLIN VILLAGE)

OF THE CITY OF MENIFEE

A Special Tax (all capitalized terms not otherwise defined herein are defined in Section A, “Definitions”, below) shall be applicable to each Assessor’s Parcel of Taxable Property located within the boundaries of the City of Menifee Community Facilities District No. 202 6-XX2-2 - (Cypress SandsMcLaughlin Village ) ("“CFD No. 202 6-XX2-2"). 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-XX22-2, by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeve loped 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:

"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 20 26-XX22-2: 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-XX22-2 or any designee thereof of complying with arbitrage rebate requirements; the co sts to the City, CFD No. 20 26-XX22-2 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2026-XX22-2 and any major property owner associated with applicable federa l and state securities laws and th e 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. 20 26-XX22-2 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. Ad ministration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 20 26-XX22-2 for any other administrative purposes of CFD No. 20 26-XX22-2, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.

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

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

"Assessor’s Parcel Map" means an official map of the 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.

"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.

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

31. "CFD” or “CFD No. 20 26-XX22-2" means Community Facilities District No. 20 26-XX22-1 ( Cypress SandsMcLaughlin Village) established by the City under the Act.

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

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

"City Council" means the City Council of the City of Menif ee, acting as the legislative body of CFD No. 2026-XX22-2.

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

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

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Community Facilities District No. 2026-XX22-2 (Cypress SandsMcLaughlin Village) Page 3

"Developed Property" means all Assessor’s Parcels that: (i) are included in a Final Map that was recorded prior to the January 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.

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

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

"Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2026-XX22-2 on such Assessor’s Parcel.

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

"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 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 Item: 6.3
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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.

"Residential Property" means all Assessor’s Parcels of Develope d Property for which a Building Permit has been issued for purposes of constructing one or more Residential Units.

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

“RMA" means this Rate and Method of Apportionment of Special Taxes.

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

"Special Tax" or “Special Taxes” means any of the special taxes authorized to be levied within CFD No. 2026-XX22-2 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. 20 26-XX22-2 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. 20 26-XX22-2, which are not Exempt Property.

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

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

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

B. SPECIAL TAX

Commencing Fiscal Year 20 27-202822-2023 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property, up to the applicable Maximum Special Tax, to fund the Special Tax Requirement.

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Community Facilities District No. 2026-XX22-2 (Cypress SandsMcLaughlin Village) Page 5

C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX

Each Fiscal Year, beginning with Fiscal Year 20 27-202822-2023, each Assessor’s Parcel within CFD No. 2026-XX22-2 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property.

In 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 20 27-202822-2023 applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 below.

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Community Facilities District No. 2026-XX22-2 (Cypress SandsMcLaughlin Village) Page 6

TABLE 1

ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 20272-20283

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

1. Single Family Residential Property RU
Less than 1,400 sq. ftLess
than 2,100 sq. ft
$2,625.00$2,41

5.00 2. Single Family Residential Property
RU
1,400 sq. ft to 1,499 sq. ft
2,100 sq. ft to 2,300 sq. ft
$2,965.0095$2,
461.00

3. Single Family Residential Property4.

Multifamily Property RUAcre-
Greater than 1,499 sq.
ftN/A
$3,135.00$49,9

79.00 5. Multifamily Property Acre N/A $88,850.00

5. Non-Residential Property Acre N/A
$88,850.00$49,
979.00
On each July 1, commencing July 1, 202823, 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 As sessor’s Parcel shall be the sum of the Maximum Special Tax for each Taxable Unit for all Land Use Categories located on the Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final.

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

B = (U x A) / L

The terms above have the following meanings:

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

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

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

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

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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 $88,85049,979 per Acre.

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

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 $88,85049,979 per Acre.

The Backup Special Tax shall not apply to Multifamily Residential Property or Non-Residential Property.

On each July 1, commencing July 1, 20 2823, 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 $88,85049,979 per Acre.

On each July 1, commencing July 1, 202320285, 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 Parc el of Undeveloped Property and Provisional Undeveloped Property shall be $88,85049,979 per Acre.

On each July 1, commencing July 1, 202823, 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 20 27-202822-2023 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property in accordance with the following steps:

Step One: The Special Tax shall be levied 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.

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 Item: 6.3
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Community Facilities District No. 2026-XX22-2 (Cypress SandsMcLaughlin Village) Page 8

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 4.466.20 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 Taxable Property to less than 4.466.20 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 4.466.20 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E.

G. PREPAYMENT OF SPECIAL TAX

The following additional definitions apply to this Section G:

“CFD Facilities” means $4,860,000000,0005,800,000 expressed in 20262 dollars, which shall increase by the Construction Inflation Index on July 1, 20273, 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 Item: 6.3
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for CFD No. 20 26-XX22-2, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to finance additional facilit ies 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-XX22-2.

“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.

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

Item: 6.3
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Community Facilities District No. 2026-XX22-2 (Cypress SandsMcLaughlin Village) Page 10

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

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

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

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

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

6. Determine the Future Facilities Costs.

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

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Community Facilities District No. 2026-XX22-2 (Cypress SandsMcLaughlin Village) 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”).

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

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

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

2. Prepayment in Part

The Special Tax obligation for an Assessor’s Parcel of Developed Property, Approved Property, Item: 6.3
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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 2064-2065 Fiscal Year, however, Special Taxes will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all the required interest and principal payments on the CFD No. 2026-XX22-2 Bonds have been paid; (ii) all authorized facilities of CFD No. 20 26-XX22-2 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-XX22-2 have been satisfied.

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Community Facilities District No. 2026-XX22-2 (Cypress SandsMcLaughlin Village) Page 13

I. MANNER OF COLLECTION

The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2026-XX22-2 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 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: 6.3
Item Page Number: 85
Menifee Finance Committee September 14, 2026 Page 145 of 155

18100 Von Karman Ave Suite 870 | Irvine, CA 92612
600 Bushel Rd, Mission Viejo, CA 92694

Travis Hickey, CPA August 31, 2026
Chief Financial Officer
City of Menifee
29844 Haun Road
Menifee, CA 92586

Re: Request for Waiver of 20% Facilities CFD Premium

Dear Travis,

FB Cypress Sands LLC (“ Developer”) recently submitted an application to the City of Menifee (“City”) requesting formation of a Community Facilities District (“CFD”) for Cypress Sands (the “Project”) to finance eligible City development fees and improvements . As part of the City’s review of the CFD application, we request that the City consider waiving the 20% premium applicable to the City development fees proposed to be financed through the CFD.

According to a recent policy update, if the Developer elects to utilize the City’s Facilities CFD, the Project would be required to annex into the Public Safety CFD in addition to paying the 20% premium. During the policy update meeting, it was also discussed that, to reduce the financial burden on projects, the City would consider reducing or waiving the 20% premium on a case-by- case basis.

Per the Conditions of Approval (“COA”), the Project is not required to annex into the City’s Public Safety CFD. The Developer is willing to comply with the Public Safety CFD annexation requirement. However, the combined impact of 20% premium and Public Safety CFD annexation requirements reduces the overall benefit of utilizing the City’s Facilities CFD.

The project has limited CFD financing capacity within its targeted overall property tax rate. In addition, by providing affordable housing, the project is advancing the City of Menifee’s affordable housing goals while effectively financing those units through a reduction in the project’s residual land value. Imposing the 20% premium would consume a portion of the project’s limited CFD capacit y without increasing the amount available for financing actual project costs.

Considering the project’s affordable housing contribution and its Public Safety CFD obligation, we respectfully request that the City waive the 20% premium.

Item: 6.3
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Menifee Finance Committee September 14, 2026 Page 146 of 155

If the waiver request cannot be considered, we ask that the City consider allowing the HOA to maintain the public right-of-way items that would otherwise be maintained through the Citywide CFD. This would allow the Project to utilize that CFD capacity toward financing eligible development fees and improvement.

For context, the 20% premium would generate approximately $379,000 in one-time revenue to the City. In comparison, the Public Safety CFD is expected to generate approximately $66,000 annually, or about $1,320,000 over 20 years. If the Project does not use the City’s Facilities CFD, the City will lose this ongoing Public Safety CFD revenue.

The Developer’s preference is to proceed with the City’s Facilities CFD. However, if neither the 20% premium waiver nor the alternative HOA maintenance approach can be accommodated, the Developer may need to evaluate other available financing options to determine the most beneficial financing structure for the Project.

We appreciate the City’s consideration of this request.

Sincerely,

James Walters
Fairbrook Communities LLC

CC: Chris Cole, Manju Pokharel and Russell Sager (DPFG) Shane Spicer (Spicer Consulting Group)
Item: 6.3
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Menifee Finance Committee September 14, 2026 Page 147 of 155

Item: 6.3
Item Page Number: 88
Menifee Finance Committee September 14, 2026 Page 148 of 155

Item: 6.3
Item Page Number: 89
Menifee Finance Committee September 14, 2026 Page 149 of 155

City of Menifee Page 1
Community Facilities District No. 2026-S (Safety Services)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2026-S (SAFETY 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. 2026-S (Safety Services) (the “CFD No. 2026-S” or “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2026, in an amount determined by the City Council of the City of Menifee, acting in its capacity as the legislative body of CFD No. 2026-S, by applying the rate and meth od of apportionment set forth below. All of the real property in CFD No. 2026-S, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.

A. DEFINITIONS

“Accessory Dwelling Unit” means a residential unit of limited size including smaller secondary unit(s) that shares an Assessor’s Parcel with Single Family Property that has a stand-alone Residential Unit.

“Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation and administration of CFD No. 2026-S including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Ta x collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2026-S, or any designee thereof associated with fulfilling the CFD No. 2026-S re porting requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2026-S or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees, collection expenses, and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2026-S for any ot her administrative purposes of CFD No. 2026-S, including attorney’s fees and other costs relate d 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.

“Affordable Housing” means housing as defined in State De nsity Bonus Law, as amended, being Chapter 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code of the State of California.

“Affordable Housing Property” means any Affordable Housing reside ntial property on an Assessor’s Parcel for which a building permit for new construction has been issued by the City on or prior to 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 the identification number assigned to a parcel by the County Assessor of the County of Riverside.

“CFD” or “CFD No. 2026-S” means the City of Menifee Community Facilities District No. 2026-S (Safety Services).

Item: 6.3
Item Page Number: 90
Menifee Finance Committee September 14, 2026 Page 150 of 155

City of Menifee Page 2
Community Facilities District No. 2026-S (Safety Services)

“City” means the City of Menifee.

“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 May 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 D.

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

“Maximum Special Tax” means the Maximum Special Tax, as ap plicable, levied within the CFD for any Fiscal Year.

“Multi-Family Property” means all Assessor's Parcels of Deve loped Property for which a building permit or use permit for the construction of a residential structure with two or more Residential Units that share a single Assessor's Parcel Number, as determined by the Administrator, has been issued prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.

“Proportionately” means for Taxable Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels.

“Rate and Method of Apportionment” or “RMA" means this Rate and Method of Apportionment of Special Taxes.

“Residential Property” means all Assessor’s Parcels of Taxa ble Property upon which completed Residential Units have been constructed or for which building permits have been or may be 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 Administrator.

An Accessory Dwelling Unit that shares
an Assessor’s Parcel with a Single Family Property shall not be considered a Residential Unit for purposes of this Rate and Method of Apportionment.

“Services” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, thos e services authorized to be fund ed by CFD No. 2026-S as set forth in Appendix B.

“Single Family Property” means any residential property other th an a Multi-Family Property on an Assessor’s Parcel for which a building permit for new construction has been issued by the City on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.

“Special Tax” means the Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.

Item: 6.3
Item Page Number: 91
Menifee Finance Committee September 14, 2026 Page 151 of 155

City of Menifee Page 3
Community Facilities District No. 2026-S (Safety Services) "Special Tax Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the public safety needs of CFD No. 2026-S in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for (i) police protection services, (ii) fire protection services and suppressi on services, (iii) paramedic services, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax Requirement include funds for bonds. "Taxable Property" means all Assessor’s Parcels within CFD No. 2026-S, which are not Exempt Property.

“Taxable Unit” means a Residential Unit.

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

B. RATE AND METHOD OF APPORTIONMENT OF MAXIMUM SPECIAL TAX RATES

As of July 1 of each Fiscal Year, commencing July 1, 2025, the Council shall determine the Special Tax Requirement and shall levy the Special Tax upon each of the Assessor’s Parcels within the CFD which constitute a Developed Property of Residential Pr operty, including Single Family Property, Multi- Family Property, or an Affordable Housing Property, until the aggregate amount of Special Tax equals the Special Tax Requirement. The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicab le Maximum Special Tax to satisfy the Special Tax Requirement.

No Special Tax shall be levied upon Undeveloped Property for which a Building Permit has not been issued on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.

The Maximum Special Tax for Fiscal Year 2026- 2027 for a Single Family Property, Multi-Family Property, and Affordable Housing Property are shown below in Table 1.

TABLE 1

MAXIMUM SPECIAL TAX RATES
FISCAL YEAR 2026-2027

Description
Taxable
Unit
Maximum
Special Tax
Single Family Property RU $525
Multi-Family Property RU $411
Affordable Housing Property RU $150

Increase in the Maximum Special Tax

On each July 1, commencing on July 1, 2027 the Maximum Special Tax for Developed Property of Single Family Property, Multi-Family Property, and Affordable Housing Property shall increase by four percent (4.0%).

C. TERM OF SPECIAL TAX

For each Fiscal Year, the Maximum Special Taxes sha ll be levied as long as the Services are being provided within the boundaries of CFD No. 2026-S.

Item: 6.3
Item Page Number: 92
Menifee Finance Committee September 14, 2026 Page 152 of 155

City of Menifee Page 4
Community Facilities District No. 2026-S (Safety Services) D. EXEMPTIONS

The City shall classify as Exempt Property within CFD No. 2026-S, any Assessor’s Parcel in any of the following categories; (i) Assessor’s Parcels which ar e owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public en tity; (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public uses; (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined by the Administrator; or (v) any Assessor’s Parcel which is not a Single Family Property, Multi-Family Property, or an Affordable Housing Property; (vi) any Assessor’s Parcel that qualifies for a welfare exemption under applicable state or local law; or (vii) any Assessor’s Parcel that is owned by a property owner association and used for common area purposes.

E. 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 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).

F. MANNER OF COLLECTION

The Maximum Special Taxes levied in each Fiscal Year shall be collected in the same manner as ordinary ad valorem property taxes are collected an d 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.

However, the District may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.

The Maximum Special Taxes when levied shall be secured by the lien imposed pursuant to Section 3115.5 of the Streets and Highways Code. This lien sh all be a continuing lien and shall secure each levy of Maximum Special Taxes. The lien of Maximum Special Taxes shall continue in force and effect until the Special Tax ceases to be levied in the manner provided by Section 53330.5 of the Government Code.

G. INTERPRETATION
Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment.

Item: 6.3
Item Page Number: 93
Menifee Finance Committee September 14, 2026 Page 153 of 155

City of Menifee Page 5
Community Facilities District No. 2026-S (Safety Services)

APPENDIX A

CITY OF MENIFEE
COMMUNITY FACILITIES DISTRICT NO. 2026-S
(SAFETY SERVICES)

SUMMARY

Safety Services - It is estimated that the cost of providing police, fire protection and suppression services, and paramedic services being funded by the Specia l Tax for the Community Facilities District No. 2026-S (Safety Services) will be as follows for the Fiscal Year 2026-2027:
 $525 per residential unit for Single Family Property
 $411 per residential unit for Multi-Family Property
 $150 per residential unit for Affordable Housing Property

Annual Escalation - On each July 1, commencing on July 1, 2027 the Maximum Special Tax for Developed Property of Single Family Property, Multi-Family Property, and Affordable Housing Property shall increase by four percent (4.0%).

Annex #
Fiscal
Year
Tract/
APN
Development
Name
No. of
Taxable
Units
Land Use
Category
Maximum
Special Tax Subdivider
Original 2026-27 TR 39364 Cypress Sands
126 Single Family
Property $525 Fairbrooks
Communities 6 Affordable
Housing Property $150

Item: 6.3
Item Page Number: 94
Menifee Finance Committee September 14, 2026 Page 154 of 155

City of Menifee Page 6
Community Facilities District No. 2026-S (Safety Services)

APPENDIX B

CITY OF MENIFEE
COMMUNITY FACILITIES DISTRICT NO. 2026-S
(SAFETY SERVICES)

DESCRIPTION OF AUTHORIZED SERVICES

The services which may be funded wi th proceeds of the special tax of CFD No. 2026-S, as provided by Section 53313 of the Act, will include some or all of the costs attributable to public safety.

These services include police protection services (inc luding but not limited to criminal justice services), fire protection and suppression services, and paramedic services.

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 and to establish an operating reserve for the costs of services a s d e t e r m i n e d b y t h e Administrator.

The above services shall be limited to those provid ed within the boundaries of CFD No. 2026-S for the benefit of the properties within the boundaries of CFD No. 2026-S and said services may be financed by proceeds of the special tax of CFD No. 2026-S only to the extent that they are in addition to those provided in the territory of CFD No. 2026-S before CFD No. 2026-S was created.

Item: 6.3
Item Page Number: 95
Menifee Finance Committee September 14, 2026 Page 155 of 155

Finance CommitteeSeptember 14, 2026

Finance Committee
September 14, 2026