Public Hearing Report
Community Facilities District No. 2025-2
(Maintenance Services)
April 1, 2025
Table of Contents
Sections P age ____________________________________________ 1 Introduction ______________________________________________________ 1 2 Description of Services ___________________________________________________ 2 3 Cost Estimate ______________________________________________________ 3 4 Proposed Development ___________________________________________________ 4 5 Rate and Method of Apportionment _________________________________________ 5 6 Certifications ______________________________________________________ 6
Tables Page
3-1 Cost Estimate ______________________________________________________ 3 3-2 Maximum Special Taxes __________________________________________________ 3
Appendices P age ____________________________________________ A Rate and Method of Apportionment ____________________________________ B Proposed Boundary Map _________________________________________ C Resolution of Intention
1 Introduction Page | 1
City of Murrieta
CFD No. 2025-2 (Maintenance Services)
Public Hearing Report
Background
On February 4, 2025, the City Council of the City of Murrieta (the “City”), adopted a Resolution of Intention to form Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta (the “CFD No. 2025-2” or “District”), Resolution No. 2025-4806, pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, (the “Act”).
The CFD No. 2025-2 is currently comprised of Tract Map No. 38228 that includes seven undeveloped parcels and approximately 54 gross acres with 23 planned for development. The proposed development includes 365 single family homes. The properties are generally located on the southwest corner of the intersection of Whitewood Road and Baxter Road, east of Interstate 215.
For a map showing the boundaries of CFD No. 2025-2 please see Appendix B.
Purpose of Public Hearing Report
WHEREAS, this Community Facilities District Report (“Report”) is being provided to the City Council and generally contains the following:
1. A general description of the services proposed to be financed from the levy of the special tax; and
2. A general cost estimate setting forth costs of providing such services; and
3. Further information regarding the implementation of the rate and method of apportionment of the special tax proposed to be levied within the District.
The Rate and Method of Apportionment of the Special Tax which was included in the Resolution of Intention and approved by the City Council.
For particulars, reference is made to the Resolution of Intention as previously approved and adopted and is included in Appendix C.
2 Description of Services Page | 2
City of Murrieta
CFD No. 2025-2 (Maintenance Services)
Public Hearing Report
NOW, THEREFORE, the undersigned, authorized representative of Spicer Consulting Group, LLC, the appointed responsible officer, or person directed to prepare the Public Hearing Report, does hereby submit the following data:
Description of the Services
The services which may be funded with proceeds of the special tax of CFD No. 2025-2, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right-of-way, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electr ical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catc h basin inserts, infiltration basins, flood control channels, f ossil 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 remov al of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance and servicing of the water quality basin improvements within flood control channel improvements; and (c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2025-2; as well as local roads within residential subdivisions located within CFD No. 2025-2; and any portions adjacent to the properties within CFD No. 2025-2; and
Administrative Expenses
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 shall be limited to those provided within the boundaries of CFD No. 2025-2 and the future Annexation Area of CFD No. 2025-2 or for the benefit of the properties within the boundaries of CFD No. 2025-2 and the future Annexation Area of CFD No. 2025-2, as the boundary is expan ded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CF D No. 2025-2 only to the extent that they are in addition to those provided in the territory of CFD No. 2025-2 before CFD No. 2025-2 was created. 3 Cost Estimate Page | 3
City of Murrieta
CFD No. 2025-2 (Maintenance Services)
Public Hearing Report
The estimate is based on the cost of actual services provided by the City of Murrieta. The estimated cost for Fiscal Year 2025-26 of providing such services, based upon current dollars, which is subject to escalation, is as follows:
Maintenance Services
The estimated annual cost of providing maintenance services at build-out for the subject properties are detailed below. The maintenance services funded by the special taxes of the CFD No. 2025-2, as outlined above, will be as follows:
Estimated Cost of Service
Special Tax A Services
- The estimate breaks down the costs of providing one year's maintenance services for Fiscal Year 2025-
26. These services are being funded by the levy of Special Tax A for Community Facilities District No. 2025-2.
Table 3-1
Cost Estimate
Item Description Estimated Cost
1 Landscapin g $16,301
2 Streetlights $3,360
3 Traffic Signals $0
4 Street & Pavement $15,381
5 Draina ge $8,416
6 Parks $34,206
7 Trails $4,285
8 Graffiti Abatement $1,607
9 Reserves $3,693
10 Administration $12,761
Total $100,010
Special Tax B Contingent Services – There are no services being funded by the levy of Special Tax B (Contingent) for Community Facilities District No. 2025-2 . However, additional Tax Zones may have Special Tax B Contingent Services being provided.
Table 3-2
Maximum Special Taxes Assigned
Tax
Zone
Fiscal
Year
Included Tract
No. of
Taxable
Units
Land Use
Category
Taxable
Unit
Maximum
Special
Tax A
Maximum
Special Tax B
(Contingent) Subdivider
O 2025-26 TR 38228 365 SFR RU $274 $0 Discovery Village, LLC
Escalation of Maximum Special Taxes
On each July 1, commencing on July 1, 2026 the Maximum Special Tax A for Developed Property shall increase by i) the year- over-year percentage increase for the month of March in the C onsumer Price Index (All Items) for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
4 Proposed Development Page | 4
City of Murrieta
CFD No. 2025-2 (Maintenance Services)
Public Hearing Report
The CFD No. 2025-2 includes approximately 54 gross acres with 23 planned for development on seven undeveloped parcels within Tract 38228. The District is located on the southwest corner of the intersection of Whitewood Road and Baxter Road, east of Interstate 215. As of Fiscal Year 2025-26 the proposed CFD No. 2025-2 includes the following Assessor's Parcel Number: 392-290-049.
The boundaries of CFD No. 2025-2 are those properties and parcels where services are authorized to be provided and upon which special taxes may be levied in order to pay for the costs and expenses of said services. A map showing the boundaries of CFD No. 2025-2 is included in Appendix B.
Additional properties that are within the boundaries of th e annexation map may annex to CFD No. 2025-2 subsequent to formation of CFD No. 2025-2. The owner of the property to be annexed shall submit a written consent for said annexation to CFD No. 2025-2 and the Council, acting ex-officio as the legislative body of CFD No. 2025-2, shall call a special election as to the imposition of the special tax on said property as required by law. A general description of the boundaries of the territory within which any property may annex to CFD No. 2025-2 and shown on that certain map entitled “Boundaries – Potential Annexation Area Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta, County of Riverside, State of California,” is attached as Appendix B.
5 Rate and Method of Apportionment Page | 5
City of Murrieta
CFD No. 2025-2 (Maintenance Services)
Public Hearing Report
The Rate and Method of Apportionment allows each property owner within CFD No. 2025-2 to estimate the annual Special Tax amount that would be required for payment. The Rate and Method of Apportionment of the Special Tax established pursuant to these proceedings, is attached hereto as Appendix A (the “Rate and Method”). The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the CFD Administrator may directly bill the Special Taxes, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations, and provided further that CFD No. 2025-2 may covenant to foreclose and may actually foreclose on parcels having delinquent Special Taxes as permitted by the Act.
All of the property located within CFD No. 2025-2, unless exempted by law or by the Rate and Method proposed for CFD No. 2025-2, shall be taxed for the purpose of providing necessary services to serve the District. On each July 1, commencing on July 1, 2026 the Maximum Special Taxes for Developed Property shall increase by i) the year-over-year percentage increase for the month of March in the Consumer Price Inde x (All Items) for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. The Boundary Map for CFD No. 2025-2 is attached hereto as Appendix B.
Pursuant to Section 53325.3 of the Act, the tax imposed “is a Special Tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of bene fit to any property.” The Special Tax may be based on the benefit received by property, the cost of making facilities or aut horized services available or other reasonable basis as determined by the City, although the Special Tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Constitution.
For particulars as to the Rate and Method for CFD No. 2025-2, see the attached and incorporated in Appendix A.
6 Certifications Page | 6
City of Murrieta
CFD No. 2025-2 (Maintenance Services)
Public Hearing Report
Based on the information provided herein, it is my opinion that the described services herein are those that are necessary to meet increased demands placed upon the City of Murrieta as a result of development occurring within the CFD No. 2025- 2 and benefits the lands within said CFD No. 2025-2. Further, it is my opinion that the special tax rates and method of apportionment, as set forth herein, are fair and equitable, uniformly applied and not discriminating or arbitrary.
Date: April 1, 2025 SPICER CONSULTING GROUP, LLC
__________________________
SHANE SPICER
SPECIAL TAX CONSULTANT FOR
CITY OF MURRIETA
RIVERSIDE COUNTY
STATE OF CALIFORNIA
Appendix A:
Rate and Method of Apportionment
City of Murrieta 1
Community Facilities District No. 2025-2 (Maintenance Services)
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE SERVICES)
OF THE CITY OF MURRIETA
A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities Di strict No. 2025-2 (Maintenance Se rvices) (the “CFD No. 2025-2” or “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2025, in an amount determined by the City Council of the City of Murrieta, acting in its capacity as the legislative body of CFD No. 2025-2, by applying the rate and method of apportionment set forth below.
All of the real property in CFD No. 2025-2, 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 Fami ly Residential Property that has a stand-alone Residential Unit.
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Asse ssor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator.
“Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2025-2 includi ng, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2025-2, or any designee thereof associated with fulfilling the CFD No. 2025-2 disclo sure requirements; the costs associated with responding to public inquiries re garding the Special Taxes; the cost s of the City, CFD No. 2025-2 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees, collection expenses, including payment of a proportional share of City overhead and salaries and benefits of any City employees whose duties are related to the administration of CFD No. 2025-2 and third party expenses related to CFD No. 2025-2. Ad ministrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2025- 2 for any other administrative purposes of CFD No. 2025-2, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
“Administrator” means the City Manager of the City of Murrieta, or his or her designee.
“Approved Property” means all Assessor’s Parcels of Taxable Property that are included in a Final Map that was recorded prior to the January 1 preced ing the Fiscal Year in which the Special Tax is being levied, and that have not been issued a building permit on or prior to the May 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.
City of Murrieta 2
Community Facilities District No. 2025-2 (Maintenance Services) “Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County.
“Building Square Footage” or “BSF” means the floor area square f ootage reflected on the original construction building permit issued for construction of a building of Non-Residential Property and any Building Square Footage subsequently added to a building of such Non-Residential Property after issuance of a building permit for expansion or renovation of such building.
“Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD” or “CFD No. 2025-2” means the Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta.
“City” means the City of Murrieta.
“Contingent Services” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services au thorized to be funded by CFD No. 2025-2 as set forth in the documents adopted by the City Council at the time the CFD was formed to be provided by the City in the event the Administrator makes a determination pursuant to Section C(2) that a Property Owners’ Association fails to adequately provide such services.
“County” means the County of Riverside.
“Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to 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 G.
“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 (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 6624 that creates individual lots for which building permits may be issued without further subdivision.
“Fiscal Year” means the period from and including July 1 st of any year to and including the following
June 30th.
“Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with th e land use approvals that have been received or proposed for the Assessor’s Parcel as of May 1 prec eding the Fiscal Year in which the Special Tax is being levied.
“Maximum Special Tax” means either Maximum Special Tax A and/or Maximum Special Tax B (Contingent), as applicable.
“Maximum Special Tax A” means for each Assessor’s Parcel and each Fiscal Year, the maximum Special Tax A, as determined in accordance with Section C below that can be levied on such Assessor’s Parcel in such Fiscal Year.
City of Murrieta 3
Community Facilities District No. 2025-2 (Maintenance Services) “Maximum Special Tax B (Contingent)” means for each Assessor’s Parcel and each Fiscal Year, the maximum Special Tax B (Contingent), as determined in accordance with Section C below that can be levied on such Assessor’s Parcel in such Fiscal Year.
“Multi-Family Residential Property” or “MFR” means any Assessor’s Parcel of Residential Property upon which a building or buildings comprised of attached Residential Units sharing at least one common wall with another unit are constructed or are intended to be constructed that share a single Assessor’s Parcel Number, as determined by the Administrator.
“Non-Residential Property” or “NR” means all Assessor's Parcels of Taxable Property for which a building permit(s) was issued for a non-residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property.
“Property Owner’s Association” or “POA” means the property owner’s association or homeowner’s association established to maintain certain Services within a Tax Zone.
“Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property, and (iii) Undeveloped Property that the ratio of the actual Special Tax levy per acre to the Maximum Specia l Tax per acre is the same for all Parcels of Undeveloped Property.
“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 Taxable Property upon which Residential Units have been constructed or are intended to be constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units.
“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 an Assessor’s Parcel classified as Single Family Residential Property shall not be considered a Residential Unit for purposes of levying the Special Tax pursuant to Section D.
“Service(s)” means services permitted under the Me llo-Roos Community Facilities Act of 1982 including, without limitation, those services author ized to be funded by CFD No. 2025-2 as set forth in the documents adopted by the City Council at the time the CFD was formed.
“Single Family Residential Property” or “SFR” means any Residential Property other than Multi- Family Residential Property on an Assessor’s Parcel as determined by the Administrator.
“Special Tax(es)” means the Special Tax A or Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
“Special Tax A” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax A Requirement.
"Special Tax A Requirement" means for each Tax Zone that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of such Tax Zone within CFD No. 2025-2 in both
City of Murrieta 4
Community Facilities District No. 2025-2 (Maintenance Services) the current Fiscal Year and the next Fiscal Year. Th e costs to be covered shall be the direct costs for maintenance services including but not limited to (i) maintenance and lighting of parks, parkways, streets, roads and open space, (ii) maintenance and operation of water quality improvements, (iii) public street sweeping, (iv) fund an operating reserv e for the costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax A Requirement include funds for the repayment of bonds.
“Special Tax B (Contingent)” means the annual special tax to be le vied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax B (Contingent) Requirement, if required.
“Special Tax B (Contingent) Requirement” means that amount required in any Fiscal Year, if the POA is unable to maintain the Contingent Service(s) to: (i) pay the costs of Contingent Services incurred or otherwise payable in the Calendar Year commencing in such Fiscal Year; (ii) fund an operating reserve for the costs of Contingent Services as dete rmined by the Administrator; less a credit for funds available to reduce the annual Special Tax B (Continge nt) levy for the subsequent Fiscal Year as determined by the Administrator.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2025-2, which are not Exempt Property.
“Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre. "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may be levied following annexation of additional property to the CFD and pursuant to an amended Rate and Method of Apportionment of Special Tax. Appendix C identifies the Tax Zone Original included in CFD No. 2025-2 at formation; additional Tax Zones may be created when property is annexed into the CFD.
"Tax Zone Original" means the specific geographic area identified on the CFD Boundary Map as Tax Zone Original included in Appendix C.
"Tract(s)" means an area of land: i) within a subdivision identified by a particular tract number on a Final Map, ii) identified within a Parcel Map; or iii) identified within lot line adjustment approved for subdivision.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property.
B. ASSIGNMENT TO LAND USE CATEGORIES
For each Fiscal Year, all Assessor’s Parcels of Taxable Property within CFD No. 2025-2 shall be classified as Developed Property, Approved Property, or Undeveloped Property, and shall be subject to the levy of Special Taxes as determined pursuant to Sectio ns C and D below. Assessor’s Parcels of Developed Property and Approved Property shall be classified as either Residential Property or Non-Residential Property. Residential Property shall be further cla ssified as Single Family Residential Property or Multi-Family Residential Property and the number of Residential Units shall be determined by the Administrator.
C. MAXIMUM SPECIAL TAX RATES
City of Murrieta 5
Community Facilities District No. 2025-2 (Maintenance Services) For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classifi ed as Residential Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or shown on the building permit (s) issued or Final Map as determined by the Administrator. Once a single family attached or multi-family building or buildings have been built on an Assessor's Parcel, the Administ rator shall determine the actual number of Residential Units contained within the building or buildings, and the Special Tax A levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax per Residential Unit for the Ta x Zone below or as included in Appendix A as future annexations occur.
To determine the Maximum Special Tax for Non-Re sidential Developed and Approved Properties, the Administrator assigns each Assessor's Parcel a Building Square Footage or Acreage based on the Final Map. The Special Tax A for the next Fiscal Year is calculated by multiplying this figure by the Maximum Special Tax per Taxable Unit for the app licable Tax Zone, as identified below or in Appendix A for future annexations.
1. Special Tax A
a. Developed Property
(i) Maximum Special Tax A
The Maximum Special Tax A for each Assessor’s Pa rcel of Developed Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2025-2, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax A for Developed Property for Fiscal Year 2025-26 within Tax Zone Original is identified in Table 1 below:
TABLE 1
MAXIMUM SPECIAL TAX A RATES
DEVELOPED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
Original TR 38228 Single Family Residential Property RU $274
(ii) Increase in the Maximum Special Tax A
On each July 1, commencing on July 1, 2026 the Maximum Special Tax A for Developed Property shall increase by i) the year-over-ye ar percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metrop olitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
(iii) Multiple Land Use Categories
In some instances, an Assesso r's Parcel of Developed Proper ty may contain more than one Land Use Category. The Maximum Special Tax A th at can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax A that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assesso r's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based
City of Murrieta 6
Community Facilities District No. 2025-2 (Maintenance Services) on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.
b. Approved Property
The Maximum Special Tax A for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2025-2, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone(s) annexed and included in Appendix A. The Maximum Special Tax A for Approved Property for Fiscal Year 2025-26 within Tax Zone Original is identified in Table 2 below:
TABLE 2
MAXIMUM SPECIAL TAX A RATES
APPROVED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
Original TR 38228 Single Family Residential Property RU $274
On each July 1, commencing on July 1, 2026 th e Maximum Special Tax A for Developed Property shall increase by i) the year-over-year percen tage increase for the month of March in the Consumer Price Index (All Items) for all Urba n Consumers for the Riverside-San Bernardino- Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
c. Undeveloped Property
The Maximum Special Tax A for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additi onal property is annexed into CFD No. 2025-2, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone(s) annexed and included in Appendix A. The Maximum Special Tax A for Undeveloped Property for Fiscal Year 2025-26 within Tax Zone Original is identified in Table 3 below:
TABLE 3
MAXIMUM SPECIAL TAX A RATES
UNDEVELOPED PROPERTY
Tax Zone Tracts Taxable Unit Maximum Special Tax A
Original TR 38228 Acre $8,839
On each July 1, commencing on July 1, 2026 the Maximum Special Tax A for Developed Property shall increase by i) the year-over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for th e Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a compar able replacement index for the area if this index is no longer published, since the beginning of the pr eceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
2. Special Tax B (Contingent)
City of Murrieta 7
Community Facilities District No. 2025-2 (Maintenance Services) The City Council shall levy Special Tax B (Contingent) only in the event the POA defaults in its obligation to maintain the Contingent Services, which default shall be deemed to have occurred, as determined by the Administrator, in each of the following circumstances:
(a) The POA files for bankruptcy;
(b) The POA is dissolved;
(c) The POA
ceases to impose dues or levy annual assessments sufficient to provide for the Contingent Services; or
(d) The POA fails to provide the Contingent Services at the same level as the City provides similar services and maintains similar improvements throughout the City and within ninety (90) days after written
notice from the City, or such longer period permitted by the City Manager, fail s to reme
dy the deficiency to the reasonable satisfaction of the City Council. a.
Developed Property
(i)
Maximum Special Tax B (Contingent)
The Maximum Special Tax B (Contingent) for ea ch Assessor’s Parcel of Taxable Property is shown in Table 4 and shall be specific to each Tax Zone within the CFD. When additi onal property is annexed into CFD No. 2025-2, th e rate and method adopted for the annexed property shal
l reflect the Maximum Special Tax B (Contingent) for the Tax Zones annexed and included in Appendix A. Th e Maximum Special Tax B (Conti ngent) for Fiscal Year 2025-26 within Tax Zone Original is identified in Table 4 below:
TABLE 4
MAXIMUM SPECIA
L TAX B (CONTINGENT) RATES
DEVELOPED PROPERTY
Tax
Zo
ne Tract Land Use Category
Taxable
Unit
Maximum Special
Tax B (Contingent)
Original TR 38228 Single Family Residential Property RU $0 (ii) Increase in the Maximum Special Tax B (Contingent) On each July 1, commencing on July 1, 2026 the Maximum Special Tax B (Contingent) for Developed Property shall increase by i) the year-over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. (iii) Multiple Land Use Categories
In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax B (Contingent) that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax B (Contingent) that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.
City of Murrieta 8
Community Facilities District No. 2025-2 (Maintenance Services) b. Approved Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Approved Property shall be specific to ea
ch Tax Zone within the CFD. When additional property is annexed into CFD No. 2025- 2, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone(s) annexed and included in Appendix A. The Maximum Sp ecial Tax B (Contingent) for Fiscal Year 2025-26 within Ta
x Zone Original is identified in Table 5 below:
TABLE 5
MAXIMUM SPECIA
L TAX B (CONTINGENT) RATES
APPROVED PROPERTY
Tax
Zo
ne Tract Land Use Category
Taxable
Unit
Maximum Special
Tax B (Contingent)
Original TR 38228 Single Family Residential Property RU $0 On each July 1, commencing on July 1, 2026 the Maximum Special Tax B (Contingent) for Developed Property shall increase by i) the year-over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside-San Bernardino- Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
c. Undeveloped Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CF D No. 2025-2, the r
ate and method adopted for the annexed property shall reflect the Maximum Special Tax B
(Contingent) for the Tax Zone(s) annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2025-26 within Tax Zone Original is identified in Table 6 below:
TABLE 6
MAXIMUM SPECIA
L TAX B (CONTINGENT) RATES
UNDEVELOPED PROPERTY
Tax Zone
Tracts Taxable
Unit
Maximum Special
Tax B (Contingent)
Original TR 38228 Acre $0
On
each July 1, commencing on July 1, 2026 the Maximum Spec ial Tax B (Contingent) for Developed Property shall increase by i) the year-over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Co nsumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX
1. Special Tax A
Commencing with Fiscal Year 2025-26 and for each following Fiscal Year, the City Council shall deter
mine the Special Tax A Requirement for each Ta x Zone and shall levy the Special Tax A on all Assessor’s Parcels of Taxable Property within such Tax Zone until the aggregate amount of Special Tax
City of Murrieta 9
Community Facilities District No. 2025-2 (Maintenance Services) A equals the Special Tax A Requirement for such Tax Zone. The Special Tax A shall be levied for each Fiscal Year as follows:
First: The Special Tax A shall be levied Propor tionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximu m Special Tax A to satisfy the Special Tax A Requirement;
Second: If additional moneys are needed to sati sfy the Special Tax A Requ irement after the first step has been completed, the Special Tax A shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax A for Approved Property;
Third: If additional monies are needed to sati sfy the Special Tax A Requ irement after the first two steps has been completed, the Special Tax A sh all be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax A for Undeveloped Property.
2. Special Tax B (Contingent)
Commencing with the first Fiscal Year in which Specia l Tax B (Contingent) is authorized to be levied and for each following Fiscal Year, the City Council shall determine the Special Tax B (Contingent) Requirement for each Tax Zone, if any, and shall levy the Special Tax on all Assessor’s Parcels of Taxable Property within such Tax Zone until the aggregate amount of Special Tax B (Contingent) equals the Special Tax B (Contingent) Requirement for such Tax Zone. The Special Tax B (Contingent) shall be levied for each Fiscal Year as follows:
First: The Special Tax B (Contingent) shall be le vied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax B (Contingent) to satisfy the Special Tax B (Contingent) Requirement;
Second: If additional moneys are needed to satisfy the Special Tax B (Contingent) Requirement after the first step has been completed, the Special Tax B (Contingent) shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax B (Contingent) for Approved Property;
Third: If additional monies are needed to sa tisfy the Special Tax B (Contingent) Requirement after the first two steps has been completed, the Special Tax B (Contingent) shall be levied Proportionately on all Assessor’s Parcels of U ndeveloped Property up to 100% of the Maximum Special Tax B (Contingent) for Undeveloped Property.
E. FUTURE ANNEXATIONS
It is anticipated that ad ditional properties will be annexed to CFD No. 2025-2 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services to such properties. Based on this anal ysis, any properties to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned the appropriate Maximum Special Tax rates for the Tax Zone when annexed and included in Appendix A.
F. DURATION OF SPECIAL TAX
For each Fiscal Year, the Special Tax A shall be levied as long as the Services are being provided.
City of Murrieta 10
Community Facilities District No. 2025-2 (Maintenance Services) For each Fiscal Year, the Special Tax B (Contingent) sh all be levied as long as the Contingent Services are being provided.
G. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2025-2, a ll Assessor’s Parcels; (i) which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) which are privately owne d but are encumbered by or restricted solely for public uses; or (iv) which are in use in the performance of a public function as determined by the Administrator; (v) any Assessor’s Parcel that qualifies for a welfare exemption under applicable state or local law; or (vi) any Assessor’s Parcel that is owned by a property owner association and used for common area purposes.
H. APPEALS
Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. The Administrator of CFD No. 2025-2 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 adju stment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).
I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manne r and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2025-2 may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.
J. 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.
City of Murrieta 11
Community Facilities District No. 2025-2 (Maintenance Services)
APPENDIX A
CITY OF MURRIETA
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE SERVICES)
COST ESTIMATE
Special Tax A Services - The estimate breaks down the costs of providing one year's maintenance services for Fiscal Year 2025-26. These services are being funded by the levy of Special Tax A for Community Facilities District No. 2025-2.
TAX ZONE ORIGINAL (SERVICES)
TRACT NO. 38228
Item Description Estimated Cost
1 Landscaping $16,301
2 Streetlights $3,360
3 Traffic Signals $0
4 Street & Pavement $15,381
5 Drainage $8,416
6 Parks $34,206
7 Trails $4,285
8 Graffiti Abatement $1,607
9 Reserves $3,693
10 Administration $12,761
Total $100,010
Special Tax B Contingent Services – There are no services being funded by the levy of Special Tax B (Contingent) for Community Faciliti es District No. 2025-2. However, additional Tax Zones may have Special Tax B Contingent Services being provided.
MAXIMUM SPECIAL TAXES ASSIGNED TO EACH TAX ZONE
Tax
Zone
Fiscal
Year
Included Tract
No. of
Taxable
Units
Land Use
Category
Taxable
Unit
Maximum
Special Tax
A
Maximum
Special Tax B
(Contingent) Subdivider
Original 2025-26 38228 365 SFR RU $274 $0 Discovery Village, LLC
ESCALATION OF MAXIMUM SPECIAL TAXES
On each July 1, commencing on July 1, 2026 the Maximum Special Taxes for Developed Property shall increase by i) the year-over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
City of Murrieta 12
Community Facilities District No. 2025-2 (Maintenance Services)
APPENDIX B
CITY OF MURRIETA
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE SERVICES)
DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2025-2, 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 qualit y 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. 2025-2; as well as local roads within residential su bdivisions located within CFD No. 2025-2; and any portions adjacent to the properties within CFD No. 2025-2; and
In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.
The above services may be financed by proceeds of the special tax of CFD No. 2025-2 only to the extent that they are in addition to those provided in the territory of CFD No. 2025-2 before CFD No. 2025-2 was created or those provided in the territory annexed to CFD No. 2025-2 before the territory was annexed, as applicable.
City of Murrieta 13
Community Facilities District No. 2025-2 (Maintenance Services)
APPENDIX C
CITY OF MURRIETA
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE SERVICES)
PROPOSED BOUNDARIES AND POTENTIAL ANNEXATION AREA BOUNDARIES
Appendix B:
Proposed Boundary Map
I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED
BOUNDARIES OF THE POTENTIAL ANNEXATION AREA OF
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE
SERVICES), CITY OF MURRIETA, COUNTY OF RIVERSIDE, STATE
OF CALIFORNIA, WAS APPROVED BY THE CITY OF MURRIETA
AT A REGULAR MEETING THEREOF, HELD ON �
DAY OF�__,, 20�, BY RESOLUTION NO. �0(,
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"'D-t.1>"� C.."'\ c� �
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cITYCLE,� =�!�
CITY OF MURRIETA
FILED IN THE OFFICE OF THE CITY CLERK,
CITY OF MURRIETA, THIS 5-t'h DAY OF� 20_15_.
jliM�L14 (u\'Y\ir"-t'l.,
1'� ti� Cl�IL-
� � �yL-CITYCLER, �t)m�1tA.
CITY OF MURRIETA
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SPICER
CONSULTING GROUP
W+E
BOUNDARIES - POTENTIAL ANNEXATION AREA
COMMUNITY FACILITIES DISTRICT NO. 2025-2
(MAINTENANCE SERVICES)
CITY OF MURRIETA,
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
co� ��
-�
SHEET 1 OF 1 SHEET
RECORDED THIS 10"':;AY OF�l1nc\lll'j) , 20 ,. � AT
THE HOUR OFI� O'CLOCK �M I BOOK �
PAGE 1J.t_ OF MAPS OF ASSESSMENT AND COMMUNITY
FACILITIES DISTRICTS IN THE OFFICE OF THE COUNTY
RECORDER, IN THE COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA.
FEE:� No.: 101 �-oo�O�f1o
PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDER
BY: d?:
DEPUTY
LEGEND
ANNEXATION BOUNDARY
Appendix C:
Resolution of Intention
4862-8658-4495v7/022972-0048
RESOLUTION NO. 25-4806
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MURRIETA DECLARING ITS INTENTION TO ESTABLISH
COMMUNITY FACILITIES DISTRICT NO. 2025-2
(MAINTENANCE SERVICES) OF THE CITY OF MURRIETA, TO
AUTHORIZE THE LEVY OF A SPECIAL TAX ON PROPERTY
WITHIN THE DISTRICT TO PAY THE COSTS OF PROVIDING
PUBLIC MAINTENANCE SERVICES
WHEREAS, the City of Murrieta (the “City”) has received a petition (the “Petition”) signed by the owner of more than ten percent of the land within the boundaries of which is proposed for inclusion in a proposed community facilities district which meets the requirements of Sections 53318 and 53319 of the Government Code of the State of California (the “Govern ment Code”); and
WHEREAS, the City Council of the City (the “City Council”) desires to adopt this resolution of intention as provided in Section 53321 of the Government Code to establish a community facilities district consisting of the territory described in Attachment “A” hereto and incorporated herein by this reference, which the City Council hereby determines shall be known as “Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta” (“Community Facilities District No. 2025-2” or the “District”) pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code (the “Act”) to (1) finance the services described in Attachment “B” hereto and incorporated herein by this reference (the “Services”), and (2) finance the incidental expenses to be incurred in connection with forming and administering the District and financing the Services (the “Services Incidental Expenses”); and
WHEREAS, the City Council proposes to design ate the property described in Attachment “B” hereto and incorporated herein by this references as territory proposed for annexation to Community Facilities District No. 2025-2 in the future (the “Potential Annexation Area”), with the condition that a parce l or parcels within such territory shall be annexed and subjected to the special tax of Community Facilities District No. 2025-2 pursuant to the procedures set forth in Section 53339 et seq. of the Act or in compliance with other procedures established by the Act; and
WHEREAS, the City Council further intends to approve an estimate of the costs of the Services and the Services Incidental Expenses for Community Facilities District No. 2025-2; and WHEREAS, it is the intention of the City Council to consider financing the Services and the Services Incidental Expenses through the formation of Community Facilities District No. 2025-2 and the levy of a special tax to pay for such Services and Services Incidental Expenses;
NOW, THEREFORE, BE IT RESOLVED BY THE CI TY COUNCIL OF THE CITY OF MURRIETA AS FOLLOWS:
Section 1. The above recitals are true and correct.
Section 2. A community facilities district is proposed to be established under the terms of the Act. It is further proposed that the legal boundaries of Community Facilities District No. 2025-2 shall be those described in Attachment “A” hereto, which boundaries sh all, upon Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59
2 4862-8658-4495v7/022972-0048
recordation of the boundary map for proposed Community Facilities District No. 2025-2, include the entirety of any parcel subject to taxation by the District. The City Council further proposes to designate the Potential Annexation Area described in Attachment “A” hereto as property proposed for annexation into the District in the future, as approved by the City Council acting as the legislative body of the District.
The proposed boundaries of the District and the Potential Annexation Area are depicted on the map of the proposed Community Facilities District No. 2025-2, which is included in Attachment “A” hereto. The City Clerk is hereby directed to sign the original map of the proposed boundaries and record it with all proper endorsements thereon with the County Recorder of the County of Riverside within 15 days after the adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California.
Section 3. The name of the proposed community facilit ies district shall be “Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta.” Section 4. The Services proposed to be provided for the benefit of Community Facilities District No. 2025-2 are public services as defined in the Act, and this City Council finds and determines that the Services to be financed are in addition to those provided in the territory of the District, including the Potential Annexation Area, at the present time and do not supplant services already available within the territory of the District at the present time. The City Council hereby finds and determines that the description of the Services herein is sufficiently informative to allow taxpayers within the proposed District, including the Potential Annexation Area, to understand what the funds of the District may be used to finance. The Services Incidental Expenses expected to be incurred include the costs of planning the Services, the costs of forming the District, the cost of levying and collecting a special tax within the proposed District and the cost of administration.
Section 5. Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with the procedures contained in the Act a separate special tax, secured by recordation of a continuing lien against all nonexempt real property in the District, sufficient to pay for the Services and the Services Incidental Expenses.
Notwithstanding the foregoing, the District shall not record a special tax l ien on property within the Potential Annexation Area until the owner or owners of the parcel or parcels thereof have given their unanimous approval of the parcel’s or parcels’ annexation to the District. The rate and method of apportionment and manner of collection of the special taxes are described in detail in Attachment “C” attached hereto, which Attachment “C” is incorporated herein by this reference. Attachment “C” allows each landowner within the District to estimate the maximum amount that may be levied against each parcel.
The special taxes for Services may be increased based on the year-over-year percentage increase for the month of March in the consumer price index by an amount not to exceed two percent (2%) per year to the extent permitted in th e Rate and Method. The special tax for Services may be levied for such period as the Services are needed, as further described in Attachment “C” hereto.
The special taxes are based on the expected demand that each parcel of real property within the proposed Community Facilities District No. 2025-2 will place on the Services. The City Council hereby determines that the proposed Services are necessary to meet the increased demand placed upon the City and the existing services in the City as a result of the development of the land proposed for inclusion in the District. The City Council hereby Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59
3 4862-8658-4495v7/022972-0048
determines the rate and method of apportionment of the special taxes set forth in Attachment “C” to be reasonable. The special tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and such special taxes are not on or based upon the value or ownership of real property.
Section 6. A public hearing (the “Hearing”) on the establishment of th e proposed Community Facilities District No. 2025-2, the proposed rate and method of apportionment of the special taxes to finance the Services and the Services Incidental Expenses shall be held 6:00 p.m., or as soon thereafter as practicable, on April 1 , 2025, at the City of Murrieta Council Chambers, 1 Town Square, Murrieta, California. Should the City Council determine to form the District, a special election will be held to authorize the levy of the special taxes in accordance with the procedures contained in Government Code Section 53326. If held, the proposed voting procedure at the election will be a landowner vote with each landowner who is the owner of record of land within the District (excluding the Potential Annexation Area) at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within the proposed District. Ballots for the special election may be distributed by mail or by personal service.
Section 7. The City Council does n ot intend to make any adjustment in property taxation pursuant to Sections 53313.6 and 53313.7 of the Act.
Section 8. At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote wit hin proposed Community Facilities District No. 2025-2 and in the Potential Annexation Area, may appear and be heard.
Section 9. Each City officer who is or will be responsible for administering the proposed Community Facilities District No. 2025-2, if it i s established, is hereby directed to study the proposed District and, at or before the time of the above -mentioned Hearing, file a report with the City Council containing a brief description of services by type which will in his or her opinion be required to meet adequately the needs of Community Facilities District No. 2025- 2 and an estimate of the cost of providing those services, and an estimate of the fair and reasonable cost of Services Incidental Expenses to be incurred.
Section 10. The District may a ccept advances of funds or work -in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred in creating Community Facilities District No. 2025-2. The District may enter into an agreement with the person or entity advancing the funds or work -in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work -in-kind, as determined by the City Council, with or without interest.
Section 11. The City Clerk is hereby directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of proposed Community Facilities District No. 2025-2. The City Clerk is further directed to mail a copy of the Notice to each landowner within the boundaries of the District at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the proposed dis trict and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing.
Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59
4 4862-8658-4495v7/022972-0048
Section 12. This Resolution shall be effective upon its adoption.
PASSED AND ADOPTED by the City Council at a regular meeting held on the 4th day of February, 2025.
CITY COUNCIL OF THE CITY OF MURRIETA
By:_______________________________
Cindy Warren
Mayor of the City of Murrieta
ATTEST:
________________________________
Cristal McDonald
City Clerk of the City of Murrieta
Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59 ____________________________
Tiffany Israel, City Attorney
APPROVED AS TO FORM:
5 4862-8658-4495v7/022972-0048
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )ss.
CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, do hereby certify that the foregoing Resolution No. 25-4806 was duly adopted by the City Council of the City of Murrieta at a regular meeting held on the 4th day of February, 2025, by the following votes:
AYES:
NOES:
ABSENT:
Cristal McDonald, City Clerk
Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59 None
Stone
DeForest, Holliday, Levell, Warren
A-1
4862-8658-4495v7/022972-0048
ATTACHMENT A
Proposed Boundaries
Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta,
Riverside County, California
Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59
A-2
4862-8658-4495v7/022972-0048
Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59
B-1
4862-8658-4495v7/022972-0048
ATTACHMENT B
Types of Services
to be Financed by
Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta
The services which may be funded with proceeds of the special tax of CFD No. 2025 -2, 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 o ther similar landscaped areas officially dedicated for public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and
(b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, includ ing, 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 repai rs; and cleanup to improvements, and other items necessary for the maintenance and servicing of the water quality basin improvements within flood control channel improvements; and
(c) public street sweeping, on the segments of the arterials within the bo undaries of CFD No. 2025 -2; as well as local roads within residential subdivisions located within CFD No. 2025-2; and any portions adjacent to the properties within CFD No. 2025-2; and
In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.
The above services may be financed by p roceeds of the special tax of CFD No. 2025 -2 only to the extent that they are in addition to those provided in the territory of CFD No. 2025 -2 before CFD No. 2025 -2 was created or those provided in the territory annexed to CFD No. 2025 -2 before the territory was annexed, as applicable.
Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59
C-1
4862-8658-4495v7/022972-0048
ATTACHMENT C
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE SERVICES)
OF THE CITY OF MURRIETA
A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2025 -2 (Maintenance Services) (the “CFD No. 2025-2” or “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2025, in an amount determined by the City Council of the C ity of Murrieta, acting in its capacity as the legislative body of CFD No. 2025 -2, by applying the rate and method of apportionment set forth below. All of the real property in CFD No. 2025-2, unless exempted by law or by the provisions herein, shall be t axed 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 Residential Property that has a stand-alone Residential Unit.
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator.
“Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2 025-2 including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2025-2, or any designee thereof associated with fulfilling the CFD No. 2025-2 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2025 -2 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees, collection expenses, including payment of a proportional share of City overhead and salaries and benefits of any City employees whose duties are related to the administration of CFD No. 2025 -2 and third party expens es related to CFD No. 2025 -2. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2025 -2 for any other administrative purposes of CFD No. 2025 -2, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
“Administrator” means the City Manager of the City of Murrieta, or his or her designee.
“Approved Property” means all Assessor’s Parcels of Taxable Property that are included in a Final Map that was recorded prior to the January 1 preceding the Fiscal Year in which the Special Tax is being levied, and that have not been issued a building permit on or prior to the May 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.
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“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County.
“Building Square Footage” or “BSF” means the floor area square footage reflected on the original construction building permit issued for construction of a building of Non -Residential Property and any Building Square Footage subsequently added to a building of such Non - Residential Property after issuance of a building permit for expansion or renovation of such building.
“Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD” or “CFD No. 2025 -2” means the Community Facilities District No. 2025 -2 (Maintenance Services) of the City of Murrieta.
“City” means the City of Murrieta.
“Contingent Services” means services permitted under the Mello -Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2025 -2 as set forth in the documents adopte d by the City Council at the time the CFD was formed to be provided by the City in the event the Administrator makes a determination pursuant to Section C(2) that a Property Owners’ Association fails to adequately provide such services.
“County” means the County of Riverside.
“Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to 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 G.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivisio n Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 6624 that creates individual lots for which building permits may be issued without further subdivision.
“Fiscal Year” means the period from and including July 1 st of any year to and including the following June 30th.
“Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor’s Parcel as of May 1 preceding the Fiscal Year in which the Special Tax is being levied.
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“Maximum Special Tax” means either Maximum Special Tax A and/or Maximum Special Tax B (Contingent), as applicable.
“Maximum Special Tax A” means for each Assessor’s Parcel and each Fiscal Year, the maximum Special Tax A, as dete rmined in accordance with Section C below that can be levied on such Assessor’s Parcel in such Fiscal Year.
“Maximum Special Tax B (Contingent)” means for each Assessor’s Parcel and each Fiscal Year, the maximum Special Tax B (Contingent), as determined i n accordance with Section C below that can be levied on such Assessor’s Parcel in such Fiscal Year.
“Multi-Family Residential Property” or “MFR” means any Assessor’s Parcel of Residential Property upon which a building or buildings comprised of attached R esidential Units sharing at least one common wall with another unit are constructed or are intended to be constructed that share a single Assessor’s Parcel Number, as determined by the Administrator.
“Non-Residential Property” or “NR” means all Assessor's Parcels of Taxable Property for which a building permit(s) was issued for a non -residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property.
“Property Owner’s Association” or “POA” means the proper ty owner’s association or homeowner’s association established to maintain certain Services within a Tax Zone.
“Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the actual Special Tax levy to the Maximum Specia l Tax is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property, and (iii) Undeveloped Property that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property.
“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 Taxable Property upon which Residential Units have been constructed or are intended to be constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units.
“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 an Assessor’s Parcel classified as Single Family Residential Property shall not be considered a Residential Unit for purposes of levying the Special Tax pursuant to Section D.
“Service(s)” means services permitted under the Mello -Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2025 - 2 as set forth in the documents adopted by the City Council at the time the CFD was formed.
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“Single Family Residential Property” or “SFR” means any Residential Property other than Multi -Family Residential Property on an Assessor’s Parcel as determined by the Administrator.
“Special Tax(es)” means the Special Tax A or Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
“Special Tax A” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax A Requirement.
"Special Tax A Requirement" means for each Tax Zone that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of such Tax Zone within CFD No. 2025 -2 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for maintenance services including but not limited to (i) maintenance and lighting of parks, parkways, streets, roads and open space, (ii) maintenance and operation of water quality improvements, (iii) public street sweeping, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, a nd (v) Administrative Expenses. Under no circumstances shall the Special Tax A Requirement include funds for the repayment of bonds.
“Special Tax B (Contingent)” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Tax able Property to fund the Special Tax B (Contingent) Requirement, if required.
“Special Tax B (Contingent) Requirement” means that amount required in any Fiscal Year, if the POA is unable to maintain the Contingent Service(s) to: (i) pay the costs of Contingent Services incurred or otherwise payable in the Calendar Year commencing in such Fiscal Year; (ii) fund an operating reserve for the costs of Contingent Services as determined by the Administrator; less a credit for funds available to reduce the annu al Special Tax B (Contingent) levy for the subsequent Fiscal Year as determined by the Administrator.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2025 -2, which are not Exempt Property.
“Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre.
"Tax Zone" means a mutually exclusive geographic area within which particular Special Tax rates may be levied following the annexation of additional property to the CFD and pursuant to an amended Rate and Method of Apportionment of Special Tax. Appendix C identifies the Tax Zone Original included in CFD No. 2025 -2 at formation; additional Tax Zones may be created when property is annexed into the CFD.
"Tax Zone Original" means the specifi c geographic area identified on the CFD Boundary Map as Tax Zone Original included in Appendix C.
"Tract(s)" means an area of land: i) within a subdivision identified by a particular tract number on a Final Map, ii) identified within a Parcel Map; or iii) identified within lot line adjustment approved for subdivision.
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“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property.
B. ASSIGNMENT TO LAND USE CATEGORIES
For each Fiscal Year, a ll Assessor’s Parcels of Taxable Property within CFD No. 2025 -2 shall be classified as Developed Property, Approved Property, or Undeveloped Property, and shall be subject to the levy of Special Taxes as determined pursuant to Sections C and D below. Asses sor’s Parcels of Developed Property and Approved Property shall be classified as either Residential Property or Non -Residential Property. Residential Property shall be further classified as Single Family Residential Property or Multi -Family Residential Property and the number of Residential Units shall be determined by the Administrator.
C. MAXIMUM SPECIAL TAX RATES
For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are class ified as Residential Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or shown on the building permit(s) issued or Final Map as determined by the Administrato r. Once a single family attached or multi -family building or buildings have been built on an Assessor's Parcel, the Administrator shall determine the actual number of Residential Units contained within the building or buildings, and the Special Tax A levi ed against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax per Residential Unit for the Tax Zone below or as included in Appendix A as future annexations occur.
To determine the Maximum Special Tax for Non -Residential Developed and Approved Properties, the Administrator assigns each Assessor's Parcel a Building Square Footage or Acreage based on the Final Map. The Special Tax A for the next Fiscal Year is calculated by multiplying this figure by the Maximum Special Tax per Taxable Unit for the applicable Tax Zone, as identified below or in Appendix A for future annexations.
1. Special Tax A
a. Developed Property
(i) Maximum Special Tax A
The Maximum Special Tax A for each Assessor’s Parcel of Developed Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2025 -2, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax A for Developed Property for Fiscal Year 2025-26 within Tax Zone Original is identified in Table 1 below:
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TABLE 1
MAXIMUM SPECIAL TAX A RATES
DEVELOPED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
Original TR 38228 Single-Family Residential
Property
RU $274
(ii) Increase in the Maximum Special Tax A
On each July 1, commencing on July 1, 2026 , the Maximum Special Tax A for Developed Property shall increase by i) the year -over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
(iii) Multiple Land Use Categories
In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax A that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax A that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use a s determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.
b. Approved Property
The Maximum Special Tax A for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2025-2, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone(s) annexed and included in Appendix A. The Maximum Special Tax A for Approved Property for Fiscal Year 2025 -26 within Tax Zone Original is identified in Table 2 below:
TABLE 2
MAXIMUM SPECIAL TAX A RATES
APPROVED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
Original TR 38228 Single-Family Residential
Property
RU $274
On each July 1, commencing on July 1, 2026 , the Maximum Special Tax A for Developed Property shall increase by i) the year -over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59
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Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
c. Undeveloped Property
The Maximum Special Tax A for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2025 -2, the rate and method adopted for the annexed property shall reflect the Maximum S pecial Tax A for the Tax Zone(s) annexed and included in Appendix A. The Maximum Special Tax A for Undeveloped Property for Fiscal Year 2025-26 within Tax Zone Original is identified in Table 3 below:
TABLE 3
MAXIMUM SPECIAL TAX A RATES
UNDEVELOPED PROPERTY
Tax Zone
Tracts Taxable Unit
Maximum Special Tax
A
Original TR 38228 Acre $8,839
On each July 1, commencing on July 1, 2026 , the Maximum Special Tax A for Developed Property shall increase by i) the year -over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside -San Bernardino-Ontario California Standar d Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
2. Special Tax B (Contingent)
The City Council shall levy Special Tax B (Contingent) only in the event the POA defaults in its obligation to maintain the Contingent Services, which default shall be deemed to have occurred, as determined by the Administrator, in each of the following circumstances:
(a) The POA files for bankruptcy;
(b) The POA is dissolved;
(c) The POA ceases to impose dues or levy annual assessments sufficient to provide for the Contingent Services; or
(d) The POA fails to provide the Contingent Services at the same level as the City provides similar services and maintains similar improvements throughout the City and within ninety (90) days after written notice from the City, or such longer period permitted by the City Manager, fails to remedy the deficiency to the reasonable satisfaction of the City Council.
a. Developed Property
(i) Maximum Special Tax B (Contingent)
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 4 and shall be specific to each Tax Zone within the CFD.
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adopted for the a nnexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2025 -26 within Tax Zone Original is identified in Table 4 below:
TABLE 4
MAXIMUM SPECIAL TAX B (CONTINGENT) RATES
DEVELOPED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum Special
Tax B (Contingent)
Original TR 38228 Single-Family Residential
Property
RU $0
(ii) Increase in the Maximum Special Tax B (Contingent) On each July 1, commencing on July 1, 2026 , the Maximum Special Tax A for Developed Property shall increase by i) the year -over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
(iii) Multiple Land Use Categories
In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax B (Contingent) that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax B (Contingent) that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.
b. Approved Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2025 -2, the rate and method adopted for the annexed propert y shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone(s) annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2025- 26 within Tax Zone Original is identified in Table 5 below:
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TABLE 5
MAXIMUM SPECIAL TAX B (CONTINGENT) RATES
APPROVED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum Special
Tax B (Contingent)
Original TR 38228 Single-Family Residential
Property
RU $0
On each July 1, commencing on July 1, 2026 , the Maximum Special Tax A for Developed Property shall increase by i) the year -over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside -San Bernardino-Ontario California Standar d Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
c. Undeveloped Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2025 -2, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone(s) annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2025- 26 within Tax Zone Original is identified in Table 6 below:
TABLE 6
MAXIMUM SPECIAL TAX B (CONTINGENT) RATES
UNDEVELOPED PROPERTY
Tax Zone
Tracts Taxable Unit
Maximum Special
Tax B (Contingent)
Original TR 38228 Acre $0
On each July 1, commencing on July 1, 2026 the Maximum Special Tax A for Developed Property shall increase by i) the year-over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside -San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX
1. Special Tax A
Commencing with Fiscal Year 2025 -26 and for eac h following Fiscal Year, the City Council shall determine the Special Tax A Requirement for each Tax Zone and shall levy the Special Tax A on all Assessor’s Parcels of Taxable Property within such Tax Zone until the aggregate amount of Special Tax A equals the Special Tax A Requirement for such Tax Zone. The Special Tax A shall be levied for each Fiscal Year as follows:
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First: The Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maxi mum Special Tax A to satisfy the Special Tax A Requirement;
Second: If additional moneys are needed to satisfy the Special Tax A Requirement after the first step has been completed, the Special Tax A shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax A for Approved Property;
Third: If additional monies are needed to satisfy the Special Tax A Requirement after the first two steps has been completed, the Special Tax A shall be levied Proportionat ely on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax A for Undeveloped Property.
2. Special Tax B (Contingent)
Commencing with the first Fiscal Year in which Special Tax B (Contingent) is authorized to be levied and for each following Fiscal Year, the City Council shall determine the Special Tax B (Contingent) Requirement for each Tax Zone, if any, and shall levy the Special Tax on all Assessor’s Parcels of Taxable Property within such Tax Zone until the aggregate amount of Special Tax B (Contingent) equals the Special Tax B (Contingent) Requirement for such Tax Zone. The Special Tax B (Contingent) shall be levied for each Fiscal Year as follows:
First: The Special Tax B (Contingent) shall be levied Proportionately o n all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax B (Contingent) to satisfy the Special Tax B (Contingent) Requirement; Second: If additional moneys are needed to satisfy the Special Tax B (Contingent) Requirement after the first step has been completed, the Special Tax B (Contingent) shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax B (Contingent) for Approved Property; Third: If additional monies are n eeded to satisfy the Special Tax B (Contingent) Requirement after the first two steps has been completed, the Special Tax B (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax B (Contingent) for Undeveloped Property.
E. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2025 -2 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services to such properties. Based on this analysis, any properties to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned the appropriate Maximum Special Tax rates for the Tax Zone when annexed and included in Appendix A.
F. DURATION OF SPECIAL TAX
For each Fiscal Year, the Special Tax A shall be levied as long as the Services are being provided.
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For each Fiscal Year, the Special Tax B (Contingent) shall be levied as long as the Contingent Services are being provided.
G. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2025-2, all Assessor’s Parcels; (i) which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) which are privately owned but are encumbered by or restricted solely for public uses; or (iv) which are in use in the performance of a public func tion as determined by the Administrator; (v) any Assessor’s Parcel that qualifies for a welfare exemption under applicable state or local law; or (vi) any Assessor’s Parcel that is owned by a property owner association and used for common area purposes.
H. APPEALS
Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disput ed. The Administrator of CFD No. 2025-2 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the Administrator’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).
I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2025 -2 may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.
J. 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.
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APPENDIX A
CITY OF MURRIETA
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE SERVICES)
COST ESTIMATE
Special Tax A Services - The estimate breaks down the costs of providing one year's maintenance services for Fiscal Year 2025 -26. These services are being funded by the levy of Special Tax A for Community Facilities District No. 2025-2.
TAX ZONE ORIGINAL (SERVICES)
TRACT NO. 38228
Item Description Estimated Cost
1 Landscaping $16,301
2 Streetlights $3,360
3 Traffic Signals $0
4 Street &
Pavement
$15,381
5 Drainage $8,416
6 Parks $34,206
7 Trails $4,285
8 Graffiti Abatement $1,607
9 Reserves $3,693
10 Administration $12,761
Total $100,010
Special Tax B Contingent Services – There are no services being funded by the levy of Special Tax B (Contingent) for Community Facilities District No. 2025 -2. However, additional Tax Zones may have Special Tax B Contingent Services being provided.
MAXIMUM SPECIAL TAXES ASSIGNED TO EACH TAX ZONE
Tax
Zone
Fiscal
Year
Included Tract
No. of
Taxable
Units
Land
Use
Category
Taxable
Unit
Maximum
Special
Tax A
Maximum
Special Tax
B
(Contingent) Subdivider
Original 2025-26 38228 365 SFR RU $274 $0
Discovery
Village,
LLC
ESCALATION OF MAXIMUM SPECIAL TAXES
On each July 1, commencing on July 1, 2026 , the Maximum Special Tax A for Developed Property shall increase by i) the year -over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Cons umers for the Riverside -San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59
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APPENDIX B
CITY OF MURRIETA
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE SERVICES)
DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2025 -2, 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 a nd other similar landscaped areas officially dedicated for public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without li mitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and
(b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, includin g, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities.
Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right -of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs ; and cleanup to improvements, and other items necessary for the maintenance and servicing of the water quality basin improvements within flood control channel improvements; and
(c) public street sweeping, on the segments of the arterials within the boun daries of CFD No. 2025 -2; as well as local roads within residential subdivisions located within CFD No. 2025-2; and any portions adjacent to the properties within CFD No. 2025-2; and
In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.
The above services may be financed by proceeds of the special tax of CFD No. 2025 -2 only to the extent that the y are in addition to those provided in the territory of CFD No. 2025 -2 before CFD No. 2025 -2 was created or those provided in the territory annexed to CFD No. 2025 -2 before the territory was annexed, as applicable.
Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59
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APPENDIX C
CITY OF MURRIETA
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE SERVICES)
PROPOSED BOUNDARIES AND POTENTIAL ANNEXATION AREA BOUNDARIES Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59
C-15
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Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59
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Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59