Agenda packet — Murrieta City Council, May 6, 2025 (part 6 of 7)

14381 Franklin Ave. Tustin CA 92780 (714) 544-2500 Fax (714) 544 4091 To: Michael Amado
RE: Murrieta PD – Traffic Bureau remodel data needs
Estimate #: 25-D-022
Date: April 7, 2025
Dear Mr. Michael Amado,
Briggs Datacom is pleased to present the bid proposal for Murrieta PD – Traffic Bureau project located in Murrieta, CA. The proposal is based on information gathered from the provided floor plans and our experience with similar projects.

We invite you to carefully review our project approach, understanding of the project scope, inclusions, exclusions, and clarifications.

We look forward to working in conjunction with you on the implementation of this project.

Should you require further information, please do not hesitate to reach out to me directly.

Sincerely,
John Capelle
John Capelle
Systems Division Manager
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14381 Franklin Ave. Tustin CA 92780 (714) 544-2500 Fax (714) 544 4091 Structured Cabling System
• (6) Relocate existing Cat6 cables to new 2 Port Work Area Outlets locations • (9) New 2 Port Work Area Outlets - Cat6 Blue
• (2) New 1 Port Work Area Outlets - Cat6 Blue
• (30) Cat6 Jacks – Blue
• (2) 1 Port Surface Mount Box – White
• (14) 2 Port Surface Mount Box – White
• (16) 5 Ft. Cat6 Blue Patch Cords
• (*) Termination to existing IDF Patch Panels
• (*) Miscellaneous materials (i.e supports, velcro) needed for complete installation • (*) Required Labor for complete installation
The following items are clarifications to scope/project items. • All Cabling terminations to be mounted within head-end provided by others • All Cabling Management within head-end provided by others • Quotation is based on continuous scheduling with no dependency delays • Any additions/changes to the provided & above listed SOW may require change order approval prior to execution of added/changed SOW.
• Work will be performed during normal business hours.
• Overtime, weekend work or holiday scheduling is also available for a premium surcharge accordingly.
• Client will provide update floor plans denoting cable locations prior to the commencement of work.
• Proposal is valid for 30 Days
The following items are exclusions to scope/project items. • All primary voice cross-connects will be provided and installed by others. • TR Equipment and Buildout provided by others
• Plan & Permits not included in cost
• On-Site Storage not included in cost
• Grounding, bonding, or protector blocks at MPOE.

Project Scope of Work
Project Clarifications
Project Exclusions
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14381 Franklin Ave. Tustin CA 92780 (714) 544-2500 Fax (714) 544 4091 Material total $4,100.00
Labor total $8,400.00
Total: $ 12,500.00
(6) New 2 Port Work Area Outlets - Cat6 Blue
** additional cost required should the existing location scheduled to be repurposed are found not usable.

Material total $1,100.00
Labor total $640.00
Total: $ 1,740.00
• Payments Net 30
• 1.5% service charge may apply per month chargeable thereafter. • Price is valid for 30 days.
• Applicable tax on material included
Client: ______________________
Print Name: __________________
Title: _______________________
Date: _______________________
Project Pricing Summary
Add Alternate
Project Acceptance
1773

CITY OF MURRIETA
City Council Meeting Agenda
Report
5/6/2025
Agenda Item No. 16.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Diego Chavez, Administrative Services Director
PREPARED BY: Jakkie Arellano, Management Analyst - Administrative Services SUBJECT:

Public Hearing: Compliance with Assembly Bill 2561 - Status of Vacancies

RECOMMENDATION
Conduct a Public Hearing to present the status of vacancies and the City’s recruitment and retention efforts, as required by Government Code Section 3502.3.

PRIOR ACTION/VOTE
None.

CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.

BACKGROUND
On September 22, 2024, Governor Newsom signed into law Assembly Bill 2561 (AB 2561), which became effective January 1, 2025. The Legislature found that job vacancies are a widespread and significant problem for the public sector, and that high job vacancies impact public service delivery and the workers who are forced to handle heavier workloads. The Legislature further declared that there is a statewide interest in ensuring that public agency operations are appropriately staffed and that high vacancy rates do not undermine public employee labor relations.

AB 2561 added Section 3502.3 to the Government Code, which requires a public agency to present the status of vacancies and recruitment and retention efforts at a public hearing at least once per fiscal year. If the public agency is adopting a budget, the public hearing must occur prior to the adoption of the final budget. The new law also entitles recognized employee organizations to make a presentation during the hearing. In its presentation of this item, the public agency is required to identify any necessary changes to policies, procedures, and recruitment activities leading to obstacles in the hiring process.

If the number of job vacancies within a single bargaining unit meets or exceeds 20% of the total number of authorized positions, the public agency shall, upon request of the employee organization, include the following CITY OF MURRIETA Page 1 of 3 Printed on 5/1/2025
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Agenda Item No. 16.
authorized positions, the public agency shall, upon request of the employee organization, include the following information during the public hearing:
1) The total number of job vacancies within the bargaining unit; 2) The total number of applicants for vacant positions within the bargaining unit; 3) The average number of days to complete the hiring process from when a position is posted; and 4) Opportunities to improve compensation and other working conditions.

The City of Murrieta has six bargaining units, and no bargaining unit has a job vacancy rate of 20% or greater.

To comply with this new law, staff will conduct a public hearing to present the current status of vacancies and the City’s recruitment and retention efforts, which are summarized below.

Status of Vacancies
The City currently has 468 authorized positions covering 142 different job classifications. Of the authorized positions, 427 are full-time, while the remaining are staffed with part-time employees. This past year, the average vacancy rate was approximately 8% across all authorized positions. City departments with the highest vacancy rates included the Community Services Department (Recreation), City Clerk, Finance, City Manager’s Office, and Building & Safety.

Staff did not identify any specific classification with consistent vacancies. Most vacancies were due to parttime turnover, retirements, promotions, inter-departmental appointments, and other personal reasons. As such, staff are not recommending any changes to policies, procedures, or recruitment activities this year.

The City is currently recruiting for the following vacancies:

Recruitment Efforts
The City utilizes various methods to recruit employees, including:
· Online recruitment platforms, such as Government Jobs, LinkedIn, and the City’s website; · Trade-specific platforms that are unique to the position and profession. For example, the Building Official recruitment was publicized on the International Code Council and California Building Officials websites;
· The Human Resources team participates in various job fairs throughout the year, including fairs hosted by the Wildomar/Murrieta Chamber of Commerce, local colleges (MSJC, UC San Marcos, CBU), and local high schools;
· Announcements at City Council Meetings and other community events; and · Advertisements in City publications and on local billboards.

Retention Efforts
Recent employee retention efforts include the following:
· Negotiated contracts with bargaining units that considered market competitiveness in compensation, including benefits;
· Market equity adjustments to salaries for public safety classifications, including Dispatch, Police, and Fire personnel, and new specialty pay items;
· Implementation of alternative work schedules in certain divisions; · Implementation of hybrid work schedules that provide for onsite and remote work opportunities for CITY OF MURRIETA Page 2 of 3 Printed on 5/1/2025
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Agenda Item No. 16.
eligible employees;
· Investments in new office furniture and renovations of certain facilities; · Enhancements to equipment and technology that provide employees with the latest tools to perform their work in modern, safe, and efficient ways;
· Ongoing discussions with management to identify opportunities for employee development and engagement; and
· Longevity Pay that provides base salary increases after 15 and 20 years of employment.

FISCAL IMPACT
There is no fiscal impact associated with this Public Hearing, which is required by State law.

ATTACHMENTS

1. Assembly Bill 2561
CITY OF MURRIETA Page 3 of 3 Printed on 5/1/2025
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Assembly Bill No. 2561
CHAPTER 409
An act to add Section 3502.3 to the Government Code, relating to public employment.
[Approved by Governor September 22, 2024. Filed with
Secretary of State September 22, 2024.]
legislative counsel’s digest
AB 2561, McKinnor. Local public employees: vacant positions.

Existing law, the Meyers-Milias-Brown Act (act), authorizes local public employees, as defined, to form, join, and participate in the activities of employee organizations of their own choosing for the purpose of representation on matters of labor relations. The act requires the governing body of a public agency to meet and confer in good faith regarding wages, hours, and other terms and conditions of employment with representatives of recognized employee organizations and to consider fully presentations that are made by the employee organization on behalf of its members before arriving at a determination of policy or course of action.

This bill would, as specified, require a public agency to present the status of vacancies and recruitment and retention efforts at a public hearing at least once per fiscal year, and would entitle the recognized employee organization to present at the hearing. If the number of job vacancies within a single bargaining unit meets or exceeds 20% of the total number of authorized full-time positions, the bill would require the public agency, upon request of the recognized employee organization, to include specified information during the public hearing. By imposing new duties on local public agencies, the bill would impose a state-mandated local program. The bill would also include related legislative findings.

The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.

This bill would make legislative findings to that effect.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement shall be made pursuant to these statutory provisions for costs mandated by the state pursuant to this act, but would recognize that a local agency or school district may pursue any available remedies to seek reimbursement for these costs.

92 1777 2101
The people of the State of California do enact as follows:

SECTION 1. The Legislature finds and declares as follows:
(a) Job vacancies in local government are a widespread and significant problem for the public sector affecting occupations across wage levels and educational requirements.
(b) High job vacancies impact public service delivery and the workers who are forced to handle heavier workloads, with understaffing leading to burnout and increased turnover that further exacerbate staffing challenges. (c) There is a statewide interest in ensuring that public agency operations are appropriately staffed and that high vacancy rates do not undermine public employee labor relations.

SEC. 2. Section 3502.3 is added to the Government Code, to read:
3502.3. (a)  (1)  A public agency shall present the status of vacancies and recruitment and retention efforts during a public hearing before the governing board at least once per fiscal year.
(2)  If the governing board will be adopting an annual or multiyear budget during the fiscal year, the presentation shall be made prior to the adoption of the final budget.
(3)  During the hearing, the public agency shall identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process.
(b)  The recognized employee organization for a bargaining unit shall be entitled to make a presentation at the public hearing at which the public agency presents the status of vacancies and recruitment and retention efforts for positions within that bargaining unit.
(c)  If the number of job vacancies within a single bargaining unit meets or exceeds 20 percent of the total number of authorized full-time positions, the public agency shall, upon request of the recognized employee organization, include all of the following information during the public hearing:
(1)  The total number of job vacancies within the bargaining unit. (2)  The total number of applicants for vacant positions within the bargaining unit.
(3)  The average number of days to complete the hiring process from when a position is posted.
(4)  Opportunities to improve compensation and other working conditions. (d)  This section shall not prevent the governing board from holding additional public hearings about vacancies.
(e)  The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(f)  For purposes of this section, “recognized employee organization” has the same meaning as defined in subdivision (a) of Section 3501.

SEC. 3. The Legislature finds and declares that Section 2 of this act, which adds Section 3502.3 to the Government Code, furthers, within the 92 Ch. 409 — 2 —
1778 2102
meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:

It is in the public interest, and it furthers the purposes of paragraph (7) of subdivision (b) of Section (3) of Article I of the California Constitution, to ensure that information concerning public agency employment is available to the public.

SEC. 4. No reimbursement shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code for costs mandated by the state pursuant to this act. It is recognized, however, that a local agency or school district may pursue any remedies to obtain reimbursement available to it under Part 7 (commencing with Section 17500) and any other law.

O
92 — 3 — Ch. 409
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CITY OF MURRIETA
City Council Meeting Agenda
Report
5/6/2025
Agenda Item No. 17.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Javier Carcamo, Finance Director
SUBJECT:

Formation of Community Facilities District No. 2025-1 (Safety Services) of the City of Murrieta

RECOMMENDATION
Hold a Public Hearing regarding the formation of Community Facilities District No. 2025-1 (Safety Services) of the City of Murrieta;
Adopt Resolution No. 25-4820 entitled: A Resolution of the City Council of the City of Murrieta, California, Establishing Community Facilities District No. 2025-1 (Safety Services) of the City of Murrieta, Authorizing the Levy of a Special Tax Therein, Calling an Election and Approving and Authorizing Certain Actions Related Thereto;
Direct the City Clerk to hold an Election within CFD No. 2025-1; Adopt Resolution No. 25-4821 entitled: A Resolution of the City Council of the City of Murrieta, California, Acting in its Capacity as the Legislative Body of Community Facilities District No. 2025-1 (Safety Services) of the City of Murrieta Certifying Election Results; and
Conduct the first reading and introduce Ordinance No. 614-25 entitled: An Ordinance of the City Council of the City of Murrieta, California, Acting in its Capacity as the Legislative Body of Community Facilities District No. 2025-1 (Safety Services) of the City of Murrieta Authorizing the Levy of Special Taxes.

PRIOR ACTION/VOTE
On October 3, 2023, the City Council considered an amendment to the Community Facilities District Goals and Policies and directed staff to present the recommendations in a workshop (Vote 3-2).

On December 5, 2023, the City Council held a workshop on and adopted the proposed Amendment to the Community Facilities District Goals and Policies (Non-Action Item).

On December 5, 2023, the City Council Adopted Resolution No. 23-4717 Amending and Restated Community Facilities District Goals and Policies (Vote 5-0).

On February 4, 2025, the City Council adopted a Resolution of Intention to establish Community Facilities CITY OF MURRIETA Page 1 of 6 Printed on 5/1/2025
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Agenda Item No. 17.

On February 4, 2025, the City Council adopted a Resolution of Intention to establish Community Facilities District No. 2025-1 (Safety Services) and set a public hearing for the formation of the Community Facilities District for April 1, 2025 (Vote 5-0).

On February 4, 2025, the City Council adopted Resolutions of Intention to establish each of Community Facilities Districts 2025-2 (Maintenance Services) and 2025-3 (Discovery Village) and set public hearings for the formation of the Community Facilities Districts for April 1, 2025 (Vote 4-1).

On April 1, 2025, the City Council opened the public hearing on the formation and continued it until May 6, 2025 (Vote 4-0-1).

CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.

BACKGROUND
On December 5, 2023, the City Council amended the City’s Community Facilities District Goals and Policies.

The amendments included the ability to finance public safety services and maintenance services adding an escalator to cover increases in the cost of providing services, changes to the list of eligible facilities that can be financed, allowing Development Impact Fees (DIF) to be financed, and increasing the maximum cap on the effective tax rate from 1.8% to 2.0% for Community Facility Districts (CFDs).

Historically, the City has conditioned new residential projects to pay for basic landscaping and lighting maintenance services pursuant to the Landscaping and Lighting Act of 1972 (LLD) of the Street & Highways Code. This funding mechanism includes limited services and requires the City to pay for the General Benefit portion of the assessment, typically up to 25% of the service costs. In addition, the City previously charged new development the following for services: (i) rooftop Fire tax, (ii) Community Services District assessment, and (iii) a Park and Recreation assessment totaling $125 per residential unit combined.

The owner of the property within the proposed Discovery Village project within the City is Discovery Village LLC (Property Owner), and the Property Owner requested the City to assist in forming three CFDs to provide public safety services, maintenance services, and facilities financing. The property to be included in the proposed CFDs is located at the southwest corner of the intersection of Whitewood Road and Baxter Road, east of Interstate 215. The Discovery Village Project (Project) is proposed to include approximately 365 singlefamily homes at full buildout. The Project was not conditioned to form the services’ CFDs but was conditioned to form a Landscape and Lighting Maintenance District to provide landscaping and lighting services.

Eastern Municipal Water District (EMWD) previously established a facilities CFD for the Discovery Village project for approximately $18 million in bond proceeds for improvements with a 2.0% overall effective tax rate that included the $125 assessment per Residential Unit (“RU”) for the rooftop Fire, Community Services District (CSD), and Park & Recreation for basic public services and a potential LLD of approximately $200 per RU for Project specific landscaping and lighting from the City. At its March 19, 2025, board meeting, EMWD, at the request of the Property Owner, canceled the previously established CFD in anticipation of the formation of the City’s proposed CFDs.

District No. 2025-3 (Discovery Village) of the City of Murrieta (“CFD No. 2025-3”), and setting public hearings for April 1, 2025, on the formations of each CFD. On April 1, 2025, the City Council continued the public hearing scheduled for that date to May 6, 2025. The City Council will now be asked to hold three separate public hearings to consider forming each CFD and, if approved following the public hearings, hold three separate special elections within each CFD regarding the levy of special taxes within each CFD.

Discovery Village Project and Community Facilities District No. 2025-3 The Property Owner submitted a petition requesting that the City form CFD No. 2025-3. The Property Owner has requested that the City form CFD No. 2025-3 to encompass the Property in accordance with the MelloRoos Act to finance the costs of certain public improvements through the levy of a special tax and the issuance of bonds. The maximum amount of bonded indebtedness proposed is $27.5 million. The proceeds of bonds issued by CFD No. 2025-3 are expected to be used to finance public facilities to be owned and operated by the City and by Eastern Municipal Water District, as well as financing the payment of DIF owed by the Property Owner to the City and Eastern Municipal Water District.

The Property Owner has requested that the boundaries of CFD No. 2025-3 include the area described in Attachment A of the Resolution of Intention to Establish CFD No. 2025-3, adopted by the City Council on February 4, 2025 (CFD No. 2025-3 Resolution of Intention) and that special taxes be levied within the boundaries of CFD No. 2025-3 in accordance with the Rate and Method of Apportionment for CFD No. 2025-3 (CFD No. 2025-3 RMA) described in Attachment C to the Resolution of Intention. The proposed rates of the special tax range from $3,086.76 per unit for single-family homes less than 1,350 square feet to $4,772 per unit for single-family homes greater than 2,400 square feet and also include tax rates of $69,954 per acre of multi-family property and non-residential property. The special tax rates within CFD No. 2025-3 will increase two percent (2.00%) annually on July 1 of each year, commencing July 1, 2026.

The CFD No. 2025-3 Resolution of Intention was the first step in the process of forming CFD No. 2025-3 and, together with the Resolution of Intention to Incur Bonded Indebtedness by CFD No. 2025-3 adopted by the City Council on February 4, 2025, declared the City’s intention to establish CFD No. 2025-3 incur bonded indebtedness by CFD No. 2025-3, and called for a public hearing to take place on April 1, 2025. Notice of the public hearing was published in The Press-Enterprise and mailed to the Property Owner. On April 1, 2025, the City Council continued the public hearing scheduled for that date to May 6, 2025.

In connection with the public hearing, Spicer Consulting Group has prepared a Public Hearing Report, which describes and analyzes the facilities to be financed by CFD No. 2025-3 and the estimated costs of such facilities. Following the close of the public hearing, the City Council will be asked to adopt the Resolution of Formation for CFD No. 2025-3 and the Resolution Determining Necessity to Incur Bonded Indebtedness by CFD No. 2025-3 which, together, approve the formation of the CFD No. 2025-3, the levy of the special taxes in CFD No. 2025-3 in accordance with the CFD No. 2025-3 RMA and determines the necessity for the Facilities CFD to issue bonds in an amount not to exceed $27,500,000. Such resolutions call for an election to submit to the qualified voters of the CFD No. 2025-3 ballot measures on the approval of the special taxes, the issuance of bonds, and an appropriations limit for the CFD No. 2025-3.

The CFD No. 2025-3 Resolution of Formation also approves the execution and delivery of an Acquisition Agreement with the Property Owner. The Acquisition Agreement sets forth the terms pursuant to which CFD No. 2025-3 will acquire improvements constructed by the Property Owner from bond proceeds from CFD No. 2025-3 and how the Property Owner will be reimbursed for development impact fees from bond proceeds. In order to be eligible for acquisition, such facilities must be constructed in accordance with the terms and conditions of the Acquisition Agreement. The City and CFD No. 2025-3 are only required to pay for the acquisition of such facilities from the proceeds of bonds or special taxes levied in CFD No. 2025-3 and not from any other source.

The CFD No. 2025-3 Resolution of Formation also approves the execution and delivery of a Joint Community CITY OF MURRIETA Page 3 of 6 Printed on 5/1/2025
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Agenda Item No. 17.

The CFD No. 2025-3 Resolution of Formation also approves the execution and delivery of a Joint Community Facilities Agreement (Water District JCFA) with Eastern Municipal Water District (Water District) and the Developer relating to certain facilities proposed to be financed by the District and owned and operated by the Water District. The form of the Water District JCFA is on file with the City Clerk.

The Property Owner has executed a consent and waiver of certain election procedures with respect to the election, including certain timing requirements with respect to the election, in accordance with the Mello-Roos Act. This allows the special election to be held on the same day as the formation. Accordingly, if the City Council approves the Resolution of Formation and the Resolution Determining Necessity to Incur Bonded Indebtedness, the City Clerk will conduct the election. The Property Owner will have delivered their ballot to the City Clerk in advance of the public hearing, and the City Clerk will announce the election results, and the City Council will be asked to adopt the Resolution Certifying the Election Results. Upon certification that 2/3rds of the votes cast are in favor of the propositions voted upon in CFD No. 2025-3, the Resolution Certifying the Election Results will direct the City Clerk to record a notice of special tax lien on the property within CFD No. 2025-3. The City Council will then be asked to introduce the ordinance authorizing the levy of the special tax within CFD No. 2025-3, in accordance with the CFD No. 2025-3 RMA.

CFD No. 2025-1 (Safety Services) and CFD No. 2025-2 (Maintenance Services) The Property Owner is required by the City’s Community Facilities District Goals and Policies, as amended in December 2023, to also request the formation of a Public Safety Services CFD and a Maintenance Services CFD. Accordingly, the Property Owner has submitted separate petitions requesting the formation of Community Facilities District No. 2025-1 (Safety Services) of the City of Murrieta (CFD No. 2025-1) and Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta (CFD No. 2025-2).

Both CFD No. 2025-1 and CFD No. 2025-2 will each initially consist only of the Property (i.e. the Discovery Village Project); however, the remainder of the City will be designated as a “Potential Annexation Area” and new development projects meeting certain design criteria will be required to annex to CFD No. 2025-1 and/or CFD No. 2025-2.

CFD No. 2025-1 would levy a special tax in accordance with the Mello-Roos Act on parcels of residential property to finance public safety services. Services eligible to be financed by CFD No. 2025-1 include police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services. The special taxes within CFD No. 2025-1 are $250 per unit of affordable housing residential property, $468 per unit of multi-family residential property, and $580 per unit of singlefamily property and will increase annually each July 1 by four percent (4.0%), commencing July 1, 2026, excluding affordable housing residential property, which has a nonadjustable rate.

Although the Project was not conditioned to form CFD 2025-1, the request to form the Public Safety Services CFD will allow the project to mitigate its cost of public safety services brought on by the new residential units within the Project. The Property Owner has agreed to include these additional service costs.

CFD No. 2025-2 would levy a separate special tax in accordance with the Mello-Roos Act on parcels of residential property to finance public maintenance services. Services eligible to be financed by CFD No. 2025- 2 include maintenance and lighting of parks, parkways, streets, street lighting, roads, and open space, maintenance and operation of water quality improvements, including storm drainage and flood protection facilities, landscaping, and public street sweeping. The special taxes within CFD No. 2025-2 for the Discovery Village Project are $274 per unit of single-family residential property and increase each July 1, by the greater of two percent (2.0%) or the year-over-year percentage increase for the month of March in the Consumer CITY OF MURRIETA Page 4 of 6 Printed on 5/1/2025
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Agenda Item No. 17.
of two percent (2.0%) or the year-over-year percentage increase for the month of March in the Consumer Price Index, commencing July 1, 2026.

The Maintenance Services CFD will provide funding for enhanced public maintenance services to include landscape maintenance, lighting, street sweeping and pavement management, park and trails maintenance, drainage and stormwater maintenance, and graffiti abatement. The ability to finance these Project-specific costs will alleviate the General Fund from subsidizing those services created by the new development of the Project and eliminate the additional costs incurred from the general benefit portion of those costs identified with each LLD formed; provided, however, that the costs must be additional services under the Act which has generally been determined to be the impact of the project on these services. The Property Owner has agreed to include these additional Maintenance Service costs.

The Resolutions of Intention for each of CFD No. 2025-1 and 2025-2, adopted on February 4, 2025, were the first step in the process of forming CFD No. 2025-1 and 2025-2, respectively. The Resolutions of Intention declared the City’s intention to establish CFD No. 2025-1 and CFD No. 2025-2 and called for public hearings on the matter of the formation of CFD No. 2025-1 and CFD No. 2025-2 to take place on April 1, 2025. On April 1, 2025, the City Council continued the public hearing scheduled for that date to May 6, 2025.

On file with the City Clerk are a Certificate of the Registrar of Voters of Riverside County for both CFD No. 2025-1 and CFD No. 2025-2, certifying that there are no registered voters residing within the boundaries of each CFD. Accordingly, under the Mello-Roos Act, only property owners owning land are eligible to vote at the elections, with each owner having one vote for each acre (or portion thereof) that they own within CFD No. 2025-1 and CFD No. 2025-2. The Property Owner has executed a consent and waiver of certain election procedures for each of CFD No. 2025-1 and CFD No. 2025-2 with respect to the elections, including certain timing requirements with respect to the elections, in accordance with the Mello-Roos Act. Accordingly, if the City Council approves Resolutions of Formation, the City Clerk will conduct the elections. The Property Owner will have delivered its ballots for CFD No. 2025-1 and CFD No. 2025-2 to the City Clerk in advance of the public hearings, the City Clerk will announce the election results, and the City Council will be asked to adopt Resolutions Certifying the Election Results for each of CFD No. 2025-1 and CFD No. 2025-2. Upon certification that two-thirds of the votes cast are in favor of the propositions voted upon, the Resolutions Certifying the Election Results will direct the City Clerk to record notices of special tax lien on the property within CFD No. 2025-1 and CFD No. 2025-2. The City Council will then be asked to introduce ordinances authorizing the levy of the special tax within CFD No. 2025-1 and CFD No. 2025-2, in accordance with their respective RMAs.

Future Actions
If the three ordinances authorizing the levy of special taxes within each CFD are introduced, a second reading of each ordinance will be scheduled for the next City Council meeting.

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Agenda Item No. 17.

FISCAL IMPACT
There is no fiscal impact of this action on the City. The Property Owner has made a deposit of $65,000 to pay for the costs of the formation proceedings which may be reimbursed to the Property Owner from proceeds of a future bond issuance in accordance with the reimbursement agreement with the Property Owner. If established and subject to necessary Council and voter approvals, each of the CFDs will annually levy special taxes on all the taxable property within the applicable District in accordance with the applicable RMA. Such special taxes will be used to pay for the costs of services or facilities, administration of the CFDs, and, in the case of CFD No. 2025-3, debt service on bonds. Any bonds issued by CFD No. 2025-3 are not obligations of the City and will be secured solely by the Special Taxes levied within CFD No. 2025-3. The levying of special taxes for services is expected to alleviate some of the financial impact of the new development on the costs of providing such services to the Property by the City’s General Fund.

ATTACHMENTS

1. Landowner Waiver (CFD No. 2025-1)

2. Public Hearing Report (CFD No. 2025-1)

3. Resolution No. 25-4820 (CFD No. 2025-1)

4. Resolution No. 25-4821 (CFD No. 2025-1)

5. Ordinance No. 614-25 (CFD No. 2025-1)

6. Certificate of the Registrar of Voters (CFD No. 2025-1) CITY OF MURRIETA Page 6 of 6 Printed on 5/1/2025
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WAIVER OF CERTAIN ELECTION PROCEDURES

WITH RESPECT TO LANDOWNER ELECTION FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SAFETY SERVICES)

OF THE CITY OF MURRIETA
The undersigned, Stephen Z. Elieff, acting on behalf of Discovery Village LLC, a Delaware limited liability company (the “Owner”), hereby certifies to the City of Murrieta (the “City”), with respect to the proposed formation of Community Facilities District No. 2025-1 (Safety Services) of the City of Murrieta (the “District”), as follows:

1. The undersigned has been duly authorized by the Owner and possesses all authority necessary to execute this Waiver on behalf of the Owner in connection with the election to be called by the City Council of the City with respect to the District. The Owner hereby appoints Stephen Z. Elieff to act as its authorized representatives to vote in the election referred to herein and certifies that their true and exact signatures are set forth below:

Signature of Stephen Z. Elieff: __________________________________

2. The Owner is the present owner of 28.94 acres of land located within the proposed boundaries of the District. There are no registered voters residing within the territory owned by the Owner and have been none during the 90-day period preceding May 6, 2025.

3. The Owner has received notice of the May 6, 2025 public hearing to be held by the City Council of the City regarding the levy of a special tax in the District. The Owner agrees that it received adequate notice of the May 6, 2025 hearing.

4. The Owner has received from the City and the City has made available to the Owner necessary and relevant information regarding the proposed formation of the District and the imposition of the special tax as set forth in Resolution No. 25-4805 adopted by the City Council on February 4, 2025 (together, the “Resolution”) to finance the services as set forth in the Resolution. The proposed rate and method of apportionment of the District is set forth in Exhibit “B” hereto.

5. The undersigned understands that if the District is formed on or after May 6, 2025, an election will be held by the District on the propositions set forth in the sample ballot attached hereto as Exhibit “A” less than 90 days after the close of the May 6, 2025 public hearing as in accordance with Section 53326 of the Government Code, without the preparation of an impartial analysis, arguments or rebuttals concerning the election as provided for by Elections Code Sections 9160 to 9167, inclusive, and 9190 and without preparation of a tax rate statement as provided in Section 9401 of the Elections Code and without further notice of such election as required pursuant to the Elections Code or the Government Code. Having been fully advised with respect to the election, in accordance with the authority contained in Government Code Sections 53326 and 53327, the Owner waives compliance with the foregoing provisions of the Elections Code and Government Code, with any time limits or other procedural requirements pertaining to the conduct of the election which are not being complied with and consents to having the election on any date on or after the close of the May 6, 2025 public hearing and consents to the closing of the election as soon as all ballots are received by the City Clerk.

6. The undersigned hereby represents that compliance with the procedural requirements for conducting the election, including the receipt of any ballot arguments and 1786
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impartial analysis and the time limitations which apply in connection with scheduling, mailing and publishing notices for such an election, are unnecessary in light of the fact that the undersigned has received sufficient information regarding the imposition of the special tax as set forth in the Resolution to allow it to properly complete the attached ballot. The Owner further waives its right to make any protest or complaint or undertake any legal action challenging the validity of the election, the validity of any bonded indebtedness issued by the District as approved at the election, or the levy of the special tax to finance services for the benefit of the District.

Dated: April__, 2025

DISCOVERY VILLAGE LLC,
a Delaware limited liability company
By:___________________________
Name: ________________________
Its: Authorized Signatory
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EXHIBIT A

OFFICIAL BALLOT
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SAFETY SERVICES)

OF THE CITY OF MURRIETA

SPECIAL TAX ELECTION
May 6, 2025
PROPOSITION A: Shall a special tax with a rate and
method of apportionment as provided in the resolution
establishing Community Facilities District No. 2025-1
(Safety Services) adopted on May 6, 2025 (the
“Resolution of Formation”) by the City Council of the City of Murrieta establishing the District be levied to pay for the Services, Services Incidental Expenses and other
purposes described in the Resolution of Formation?
YES______
NO_______
PROPOSITION B: For each year commencing with
Fiscal Year 2025-2026, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for Community Facilities
District No. 2025-1 (Safety Services) be an amount
equal to $1,000,000,000?
YES______
NO_______
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EXHIBIT “B”

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SAFETY 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. 2025-1 (Safety Services) (the “CFD No. 2025-1” 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. 2025-1, by applying the rate and method of apportionment set forth below. All of the real property in CFD No. 2025-1, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.

A. DEFINITIONS
“Accessory Dwelling Unit” means a residential unit of limited size including smaller secondary unit(s) that shares an Assessor’s Parcel with Single Family Residential Property that has a stand-alone Residential Unit.
“Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation and administration of CFD No. 2025-1 including, but not limited to:
the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2025-1, or any designee thereof associated with fulfilling the CFD No. 2025-1 reporting requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2025-1 or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees, collection expenses, and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2025-1 for any other administrative purposes of CFD No. 2025-1, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. “Administrator” means the City Manager of the City of Murrieta, or his or her designee. “Affordable Housing” means housing as defined in State Density Bonus Law, as amended, being Chapter 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code of the State of California.
“Affordable Housing Property” means any Affordable Housing residential property on an Assessor’s Parcel for which a building permit for new construction has been issued by the City on or prior to June 1 preceding the Fiscal Year in which the Special Tax is being levied. “Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
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“Assessor’s Parcel Number” means the identification number assigned to a parcel by the County Assessor of the County of Riverside.
“CFD” or “CFD No. 2025-1” means the City of Murrieta Community Facilities District No. 2025-1 (Safety Services).
“City” means the City of Murrieta.
“County” means the County of Riverside.
“Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section D.
“Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th.
“Maximum Special Tax” means the Maximum Special Tax, as applicable, levied within the CFD for any Fiscal Year.
“Multi-Family Property” means all Assessor's Parcels of Developed Property for which a building permit or use permit for the construction of a residential structure with two or more Residential Units that share a single Assessor's Parcel Number, as determined by the Administrator, has been issued prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Proportionately” means for Taxable Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels. “Rate and Method of Apportionment” or “RMA" means this Rate and Method of Apportionment of Special Taxes.
“Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this Rate and Method of Apportionment.
“Services” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2025- 1 as set forth in Appendix B.
“Single Family Property” means any residential property other than a Multi-Family Property on an Assessor’s Parcel for which a building permit for new construction has been 1790
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issued by the City on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Special Tax” means the Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
"Special Tax Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the public safety needs of CFD No. 2025-1 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for (i) police protection services, (ii) paramedic services, (iii) fund an operating reserve for the costs of Services as determined by the Administrator, and (iv) Administrative Expenses. Under no circumstances shall the Special Tax Requirement include funds for bonds.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2025-1, which are not Exempt Property.
“Taxable Unit” means a Residential Unit.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property.

B. RATE AND METHOD OF APPORTIONMENT OF MAXIMUM SPECIAL TAX RATES
As of July 1 of each Fiscal Year, commencing July 1, 2025, the Council shall determine the Special Tax Requirement and shall levy the Special Tax upon each of the Assessor’s Parcels within the CFD which constitute a Developed Property of Single Family Property, Multi-Family Property, or an Affordable Housing Property until the aggregate amount of Special Tax equals the Special Tax Requirement. The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement.

No Special Tax shall be levied upon Undeveloped Property for which a Building Permit has not been issued on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.

The Maximum Special Tax for Fiscal Year 2025-2026 for a Single Family Property, MultiFamily Property, and an Affordable Housing Property are shown below in Table 1.

TABLE 1

MAXIMUM SPECIAL TAX RATES
FISCAL YEAR 2025-2026
Description
Taxable
Unit
Maximum
Special Tax
Single Family Property RU $580
Multi-Family Property RU $468
Affordable Housing Property RU $250
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Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2026 the Maximum Special Tax for Developed Property of Single Family Property and Multi-Family Property shall increase by four percent (4.0%). The Maximum Special Tax for Developed Property of Affordable Housing Property shall not increase annually.

C. TERM OF SPECIAL TAX
For each Fiscal Year, the Maximum Special Taxes shall be levied as long as the Services are being provided within the boundaries of CFD No. 2025-1.

D. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2025-1, any Assessor’s Parcel in any of the following categories; (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public uses; (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined by the Administrator; or (v) any Assessor’s Parcel which is not a Single Family Property, Multi-Family Property, or an Affordable Housing Property; (vi) any Assessor’s Parcel that qualifies for a welfare exemption under applicable state or local law; or (vii) any Assessor’s Parcel that is owned by a property owner association and used for common area purposes.

F. MANNER OF COLLECTION
The Maximum Special Taxes levied in each Fiscal Year shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes. However, the District may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.

The Maximum Special Taxes when levied shall be secured by the lien imposed pursuant to Section 3115.5 of the Streets and Highways Code. This lien shall be a continuing lien and shall secure each levy of Maximum Special Taxes. The lien of Maximum Special Taxes shall continue in force and effect until the Special Tax ceases to be levied in the manner provided by Section 53330.5 of the Government Code.
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G. INTERPRETATION
Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment. 1793
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APPENDIX A

CITY OF MURRIETA
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(SAFETY SERVICES)

SUMMARY
Safety Services - It is estimated that the cost of providing police, fire protection and suppression services, and paramedic services being funded by the Special Tax for the Community Facilities District No. 2025-1 (Safety Services) will be as follows for the Fiscal Year 2025-2026:
 $580 per residential unit for Single Family Residential Property  $468 per residential unit for Multi-Family Residential Property  $250 per residential unit for Affordable Housing Residential Property Annual Escalation - On each July 1, commencing on July 1, 2026 the Maximum Special Tax for Developed Property of Single Family Property and Multi-Family Property shall increase by four percent (4.0%). The Maximum Special Tax for Developed Property of Affordable Housing Property shall not increase annually.

Fiscal
Year
Tract/
APN
Development
Name
No. of
Taxable
Units
Land Use
Category
Maximum
Special
Tax Subdivider
2025-
26 TR
38228
Discovery
Village 365 Single Family Property $580 Discovery Village, LLC 1794
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APPENDIX B

CITY OF MURRIETA
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(SAFETY SERVICES)

DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2025-1, as provided by Section 53313 of the Act, will include some or all of the costs attributable to public safety.

These services include police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services.

In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses” as said term is defined in the Rate and Method of Apportionment and to establish an operating reserve for the costs of services as determined by the Administrator.

The above services shall be limited to those provided within the boundaries of CFD No. 2025-1 for the benefit of the properties within the boundaries of CFD No. 2025-1 and said services may be financed by proceeds of the special tax of CFD No. 2025-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2025-1 before CFD No. 2025-1 was created.
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APPENDIX C
Proposed Boundaries
Community Facilities District No. 2025-1 (Safety Services) of the City of Murrieta,
Riverside County, California
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Public Hearing Report
Community Facilities District No. 2025-1
(Safety Services)
April 1, 2025
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Table of Contents
Sections Page ____________________________________________ 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 Appendices Page ____________________________________________ A Rate and Method of Apportionment ____________________________________ B Proposed Boundary Map _________________________________________ C Resolution of Intention
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1 Introduction Page | 1
City of Murrieta
CFD No. 2025-1 (Safety 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. 2025-1 (Safety Services) of the City of Murrieta (the “CFD No. 2025-1” or “District”), Resolution No. 2025-4805, 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. 2025-1 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. 2025-1 please see Appendix B.

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

1. A 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.
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2 Description of Services Page | 2
City of Murrieta
CFD No. 2025-1 (Safety 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. 2025-1, as provided by Section 53313 of the Act, will include some or all of the costs attributable to public safety. Capitalized terms used and not defined herein shall have the meanings set forth in the Rate and Method of Apportionment of Special Tax for CFD No. 2025-1.

These services include police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services.

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. 2025-1 and the future Annexation Area of CFD No. 2025-1 or for the benefit of the properties within the boundaries of CFD No. 2025-1 and the future Annexation Area of CFD No. 2025-1, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2025-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2025-1 before CFD No. 2025-1 was created. 1801
3 Cost Estimate Page | 3
City of Murrieta
CFD No. 2025-1 (Safety 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:

The estimated annual cost of providing police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services being funded by the Special tax for Community Facilities District No. 2025-1 (Safety Services) as, as outlined above, will be as follows:

1. $580.00 per residential unit for single family residential property

2. $468.00 per residential unit for multi-family residential property

3. $250.00 per residential unit for affordable housing property The estimated annual cost of providing safety services at build-out for the subject properties are detailed below:

Table 3-1
Cost Estimate
Development Tract
Land Use
Category
No. of
Taxable Units
Estimated Cost
At Build Out
Discovery Village TR 38228 Single Family Residential 365 $206,480.00 Total $206,480.00
Escalation of Maximum Special Taxes
On each July 1, commencing on July 1, 2026 the Maximum Special Tax shall increase by four percent (4.0%). 1802
4 Proposed Development Page | 4
City of Murrieta
CFD No. 2025-1 (Safety Services)
Public Hearing Report
The CFD No. 2025-1 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. 2025-1 includes the following Assessor's Parcel Number: 392-290-049.

The boundaries of CFD No. 2025-1 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. 2025-1 is included in Appendix B.

Additional properties that are within the boundaries of the annexation map may annex to CFD No. 2025-1 subsequent to formation of CFD No. 2025-1. The owner of the property to be annexed shall submit a written consent for said annexation to CFD No. 2025-1 and the Council, acting ex-officio as the legislative body of CFD No. 2025-1, 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. 2025-1 and shown on that certain map entitled “Boundaries – Potential Annexation Area Community Facilities District No. 2025-1 (Safety Services) of the City of Murrieta, County of Riverside, State of California,” is attached as Appendix B. 1803
5 Rate and Method of Apportionment Page | 5
City of Murrieta
CFD No. 2025-1 (Safety Services)
Public Hearing Report
The Rate and Method of Apportionment allows each property owner within CFD No. 2025-1 to estimate the annual Special Tax amount that would be required for payment. The Rate and Method of Apportionment of the Special Tax established pursuant to these proceedings, is attached hereto as Appendix A (the “Rate and Method”). The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the CFD Administrator may directly bill the Special Taxes, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations, and provided further that CFD No. 2025-1 may covenant to foreclose and may actually foreclose on parcels having delinquent Special Taxes as permitted by the Act.

All of the property located within CFD No. 2025-1, unless exempted by law or by the Rate and Method proposed for CFD No. 2025-1, 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 Tax shall increase by four percent (4.0%). The Boundary Map for CFD No. 2025-1 is attached hereto as Appendix B. Pursuant to Section 53325.3 of the Act, the tax imposed “is a Special Tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property.” The Special Tax may be based on the benefit received by property, the cost of making facilities or authorized services available or other reasonable basis as determined by the City, although the Special Tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Constitution.

For particulars as to the Rate and Method for CFD No. 2025-1, see the attached and incorporated in Appendix A. 1804
6 Certifications Page | 6
City of Murrieta
CFD No. 2025-1 (Safety 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- 1 and benefits the lands within said CFD No. 2025-1. Further, it is my opinion that the special tax rates and method of apportionment, as set forth herein, are fair and equitable, uniformly applied and not discriminating or arbitrary.

Date: April 1, 2025 SPICER CONSULTING GROUP, LLC
__________________________

SHANE SPICER

SPECIAL TAX CONSULTANT FOR

CITY OF MURRIETA

RIVERSIDE COUNTY

STATE OF CALIFORNIA
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Appendix A:

Rate and Method of Apportionment
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Community Facilities District No. 2025‐1 (Safety Services)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2025‐1 (SAFETY 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. 2025‐1 (Safety Services) (the “CFD No. 2025‐1” 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 asthe legislative body of CFD No. 2025‐1, by applying the rate and method of apportionment set forth below. All of the real property in CFD No. 2025‐1, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.

A. DEFINITIONS
“Accessory Dwelling Unit” means a residential unit of limited size including smaller secondary unit(s) that shares an Assessor’s Parcel with Single Family Residential Property that has a stand‐alone Residential Unit.
“Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation and administration of CFD No. 2025‐1 including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2025‐1, or any designee thereof associated with fulfilling the CFD No. 2025‐1 reporting requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2025‐1 or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees, collection expenses, and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2025‐1 for any other administrative purposes of CFD No. 2025‐1, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
“Administrator” means the City Manager of the City of Murrieta, or his or her designee. “Affordable Housing” means housing as defined in State Density Bonus Law, as amended, being Chapter 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code of the State of California.
“Affordable Housing Property” means any Affordable Housing residential property on an Assessor’s Parcel for which a building permit for new construction has been issued by the City on or prior to June 1 preceding the Fiscal Year in which the Special Tax is being levied. “Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means the identification number assigned to a parcel by the County Assessor of the County of Riverside.
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City of Murrieta Page 2
Community Facilities District No. 2025‐1 (Safety Services) “CFD” or “CFD No. 2025‐1” means the City of Murrieta Community Facilities District No. 2025‐1 (Safety Services).
“City” means the City of Murrieta.
“County” means the County of Riverside.
“Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section D.
“Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th.
“Maximum Special Tax” means the Maximum Special Tax, as applicable, levied within the CFD for any Fiscal Year.
“Multi‐Family Property” means all Assessor's Parcels of Developed Property for which a building permit or use permit for the construction of a residentialstructure with two or more Residential Units that share a single Assessor's Parcel Number, as determined by the Administrator, has been issued prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied. “Proportionately” means for Taxable Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels. “Rate and Method of Apportionment” or “RMA" means this Rate and Method of Apportionment of Special Taxes.
“Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this Rate and Method of Apportionment. “Services” means services permitted under the Mello‐Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2025‐1 as set forth in Appendix B.
“Single Family Property” means any residential property other than a Multi‐Family Property on an Assessor’s Parcel for which a building permit for new construction has been issued by the City on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied. 1808
City of Murrieta Page 3
Community Facilities District No. 2025‐1 (Safety Services) “Special Tax” means the Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
"Special Tax Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the public safety needs of CFD No. 2025‐1 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for (i) police protection services, (ii) paramedic services, (iii) fund an operating reserve for the costs of Services as determined by the Administrator, and (iv) Administrative Expenses. Under no circumstances shall the Special Tax Requirement include funds for bonds.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2025‐1, which are not Exempt Property.
“Taxable Unit” means a Residential Unit.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property.

B. RATE AND METHOD OF APPORTIONMENT OF MAXIMUM SPECIAL TAX RATES As of July 1 of each Fiscal Year, commencing July 1, 2026, the Council shall determine the Special Tax Requirement and shall levy the Special Tax upon each of the Assessor’s Parcels within the CFD which constitute a Developed Property of Single Family Property, Multi‐Family Property, or an Affordable Housing Property until the aggregate amount of Special Tax equals the Special Tax Requirement. The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement.

No Special Tax shall be levied upon Undeveloped Property for which a Building Permit has not been issued on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.

The Maximum Special Tax for Fiscal Year 2025‐2026 for a Single Family Property, Multi‐Family Property, and an Affordable Housing Property are shown below in Table 1.

TABLE 1

MAXIMUM SPECIAL TAX RATES
FISCAL YEAR 2025‐2026
Description
Taxable
Unit
Maximum
Special Tax
Single Family Property RU $580
Multi‐Family Property RU $468
Affordable Housing Property RU $250
Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2026 the Maximum Special Tax for Developed Property of Single Family Property and Multi‐Family Property shall increase by four percent (4.0%). The Maximum Special Tax for Developed Property of Affordable Housing Property shall not increase annually. 1809
City of Murrieta Page 4
Community Facilities District No. 2025‐1 (Safety Services) C. TERM OF SPECIAL TAX
For each Fiscal Year, the Maximum Special Taxes shall be levied as long as the Services are being provided within the boundaries of CFD No. 2025‐1.

D. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2025‐1, any Assessor’s Parcel in any of the following categories; (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public uses; (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined by the Administrator; or (v) any Assessor’s Parcel which is not a Single Family Property, Multi‐Family Property, or an Affordable Housing Property; (vi) any Assessor’s Parcel that qualifies for a welfare exemption under applicable state or local law; or (vii) any Assessor’s Parcel that is owned by a property owner association and used for common area purposes.

However, the District may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.

G. INTERPRETATION
Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment. 1810
City of Murrieta Page 5
Community Facilities District No. 2025‐1 (Safety Services)

APPENDIX A

CITY OF MURRIETA
COMMUNITY FACILITIES DISTRICT NO. 2025‐1
(SAFETY SERVICES)

SUMMARY
Safety Services ‐ It is estimated that the cost of providing police and paramedic services being funded by the Special Tax for the Community Facilities District No. 2025‐1 (Safety Services) will be as follows for the Fiscal Year 2025‐2026:
 $580 per residential unit for Single Family Residential Property  $468 per residential unit for Multi‐Family Residential Property  $250 per residential unit for Affordable Housing Residential Property Annual Escalation ‐ On each July 1, commencing on July 1, 2026 the Maximum Special Tax for Developed Property of Single Family Property and Multi‐Family Property shall increase by four percent (4.0%). The Maximum Special Tax for Developed Property of Affordable Housing Property shall not increase annually.

Fiscal
Year
Tract/
APN
Development
Name
No. of
Taxable
Units
Land Use
Category
Maximum
Special Tax Subdivider
2025‐26 TR 38228 Discovery
Village 365 Single FamilyProperty $580 Discovery Village, LLC

1811
City of Murrieta Page 6
Community Facilities District No. 2025‐1 (Safety Services)

APPENDIX B

CITY OF MURRIETA
COMMUNITY FACILITIES DISTRICT NO. 2025‐1
(SAFETY SERVICES)

DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2025‐1, as provided by Section 53313 of the Act, will include some or all of the costs attributable to public safety.

These services include police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services.

The above services shall be limited to those provided within the boundaries of CFD No. 2025‐1 for the benefit of the properties within the boundaries of CFD No. 2025‐1 and said services may be financed by proceeds of the special tax of CFD No. 2025‐1 only to the extent that they are in addition to those provided in the territory of CFD No. 2025‐1 before CFD No. 2025‐1 was created. 1812
Appendix B:

Proposed Boundary Map
1813
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I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED
BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2025-1
(SAFETY SERVICES), OF THE CITY OF MURRIETA, COUNTY

OF RIVERSIDE, STATE OF CALIFORNIA, WAS APPROVED BY THE

CITY COUNCIL OF THE CITY OF MURRIETA AT A REGULAR
MEETING THEREOF, HELD ON � DAY OF �y
20_!2_, BY RESOLUTION NO. '15--t/&0 '5
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CITY OF MURRIETA

FILED IN THE OFFICE OF THE CITY CLERK, CITY OF MURRIETA, THIS� DAY OF�, 20 1.�.
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CITY OF MURRIETA
SPICER

CONSULTING GROUP
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(SAFETY SERVICES}

OF THE CITY OF MURRIETA,

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
(j)
0 150 300
CT\ I I D

COTTAGE WAY
2 RUNNING RABBIT RD �
600 Feet
L
RECORDED THIS�AY OF'ff� , 201,� AT
THE HOUR oF\d1o'CLOCK fr._MI BOOK�
PAGE � OF MAPS OF ASSESSMENT AND COMMUNITY

FACILITIES DISTRICTS IN THE OFFICE OF THE COUNTY

RECORDER, IN THE COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA.

No.:tei�•nososs�

PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDER
BY: __ -�rk---: ____ _
DEPUTY
LEGEND

CITY BOUNDARY

CFD BOUNDARY

PARCEL LINE

PARCEL NUMBER
0 LOT NUMBER

THIS BOUNDARY MAP CORRECTLY SHOWS THE LOT OR PARCEL OF LAND INCLUDED WITHIN THE BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT.

FOR DETAILS CONCERNING THE LINES AND DIMENSIONS OF LOTS OR PARCEL REFER TO THE COUNTY ASSESSOR MAPS FOR FISCAL YEAR 2024-25.

THE BOUNDARY OF COMMUNITY FACILITIES DISTRICT
NO. 2025-1 (SAFETY SERVICES) INCLUDES PARCELS 1 AND
2 AND LOTS 4, 5, 6, 7, AND 8, OF THE CITY OF
MURRIETA TRACT MAP NO. 38228 RECORDED IN

THE OFFICIAL RECORDS OF THE COUNTY OF
RIVERSIDE, STATE OF CALIFORNIA, ON THE 13TH DAY
OF DECEMBER, 2024, IN BOOK 499 OF MAPS, AT
PAGES 71-78, AS DOCUMENT NO. 2024-0379976.
1814

I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED

BOUNDARIES OF THE POTENTIAL ANNEXATION AREA
OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SAFETY

SERVICES), CITY OF MURRIETA, COUNTY OF

RIVERSIDE, STATE OF CALIFORNIA, WAS APPROVED BY

THE CITY OF MURRIETA AT A REGULAR MEETING
THEREOF, HELD ON 4-ht DAY OF�, 20_!_3 BY
RESOLUTION NO. 1,t; • '{( 0�
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CITY OF MURRIETA

FILED IN THE OFFICE OF THE CITY CLERK,
CITY OF MURRIETA, THIS � DAY OF hr.-11MK'i.A . 20h,
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BOUNDARIES - POTENTIAL ANNEXATION AREA
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(SAFETY SERVICES)

CITY OF MURRIETA,

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
coP'1 �ti
SHEET 1 OF 1 SHEET
RECORDED THIS �AV OF r� . 201'5' AT
THE HOUR OFf�O'CLOCK �M IN OOK ��
PAGE rt OF MAPS OF ASSESSMENT AND COMMUNITY

FACILITIES DISTRICTS IN THE OFFICE OF THE COUNTY

RECORDER, IN THE COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA.

FEE: '" N0.:1,0JS· D0SO�S'Z.

PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDER
BY: cf?:

DEPUTY
LEGEND

ANNEXATION BOUNDARY
1815
Appendix C:

Resolution of Intention
1816
4888-3862-0847v5/022972-0046
RESOLUTION NO. 25-4805

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MURRIETA DECLARING ITS INTENTION TO ESTABLISH
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SAFETY

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

SAFETY 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 “Government 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. 2025-1 (Safety Services) of the City of Murrieta” (“Community Facilities District No. 2025-1” 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 police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic 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, pursuant to Sections 53329.6 and 53339 et seq. of the Act and in accordance with the request of the owner submitting the petition, the City Council proposes to designate the property described in Attachment “B” hereto and incorporated herein by this references as territory proposed for annexation to Community Facilities District No. 2025-1 in the future (the “Potential Annexation Area”), with the condition that a parcel or parcels within such territory may be annexed and subjected to the special tax of Community Facilities District No. 2025-1 only with the unanimous consent and approval of the owner or owners of the parcel or parcels (the “Unanimous Consent and Approval”) at the time of annexation 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. 2025-1; 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. 2025-1 and the levy of a special tax to pay for such Services and Services Incidental Expenses; and
WHEREAS, it is the intention of the City Council to consider financing the Services and the Services Incidental Expenses through the annexation of additional property within the Potential Annexation Area to the District and the levy of a special tax within the property so annexed to pay for the Services and the Services Incidental Expenses, provided that the special Docusign Envelope ID: B96829C6-E17C-46E9-8B05-11A9CBF32911 1817
2 4888-3862-0847v5/022972-0046
tax levies are approved by the Unanimous Consent and Approval of the owner or owners of the parcel or parcels in accordance with Sections 53329.6 and 53339 et seq. of the Act, and approval of the City Council acting as the legislative body of the District at the time of annexation;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY 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. 2025-1 shall be those described in Attachment “A” hereto, which boundaries shall, upon recordation of the boundary map for proposed Community Facilities District No. 2025-1, 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, by submittal of Unanimous Consent and Approval of the owner or owners of such parcel or parcels, as approved by the City Council acting as the legislative body of the District at the time that such parcel or parcels are annexed to the District.

The proposed boundaries of the District and the Potential Annexation Area are depicted on the map of proposed Community Facilities District No. 2025-1 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 facilities district shall be “Community Facilities District No. 2025-1 (Safety Services) of the City of Murrieta.” Section 4. The Services proposed to be provided for the benefit of Community Facilities District No. 2025-1 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 lien 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 Docusign Envelope ID: B96829C6-E17C-46E9-8B05-11A9CBF32911 1818
3 4888-3862-0847v5/022972-0046
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 by an amount not to exceed four percent (4%) per year to the extent permitted in the 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 proposed Community Facilities District No. 2025-1 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 police protection services (including but not limited to criminal justice services), fire, rescue and paramedic services in the City as a result of the development of the land proposed for inclusion in the District. The City Council hereby determines the rate and method of apportionment of the special 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 the proposed Community Facilities District No. 2025-1, 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 May 6, 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 not 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 within proposed Community Facilities District No. 2025-1 and 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. 2025-1, if it is established, is hereby directed to study the proposed District and, at or before the time of the above-mentioned Hearing, file a report with the City Council containing a brief description of services by type which will in his or her opinion be required to meet adequately the needs of Community Facilities District No. 2025- 1 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 accept advances of funds or work-in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred in creating Community Facilities Docusign Envelope ID: B96829C6-E17C-46E9-8B05-11A9CBF32911 1819
4 4888-3862-0847v5/022972-0046
District No. 2025-1. 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. 2025-1. 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 district and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing.

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: B96829C6-E17C-46E9-8B05-11A9CBF32911 _______________________
Tiffany Israel, City Attorney
APPROVED AS TO FORM:
1820
5 4888-3862-0847v5/022972-0046

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. 25-4805 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: DeForest, Holliday, Levell, Warren
NOES: Stone
ABSENT: None
Cristal McDonald, City Clerk
Docusign Envelope ID: B96829C6-E17C-46E9-8B05-11A9CBF32911 None
DeForest, Stone, Holliday, Levell, Warren
1821
A-1
4888-3862-0847v5/022972-0046

ATTACHMENT A
Proposed Boundaries
Community Facilities District No. 2025-1 (Safety Services) of the City of Murrieta,
Riverside County, California
Docusign Envelope ID: B96829C6-E17C-46E9-8B05-11A9CBF32911 1822
A
-2
4888-3862-0847v5/022972-0046
Docusign Envelope ID: B96829C6-E17C-46E9-8B05-11A9CBF32911 1823
B-1
4888-3862-0847v5/022972-0046

ATTACHMENT B
Types of Services
to be Financed by
Community Facilities District No. 2025-1 (Safety Services) of the City of Murrieta
The services which may be funded with proceeds of the special tax of CFD No. 2025-1, as provided by Section 53313 of the Act, will include some or all of the costs attributable to public safety. Capitalized terms used and not defined herein shall have the meanings set forth in the Rate and Method of Apportionment of Special Tax for CFD No. 2025-1.

These services include police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services.

The above services shall be limited to those provided within the boundaries of CFD No. 2025-1 and the Potential Annexation Area of CFD No 2025-1 or for the benefit of the properties within the boundaries of CFD No. 2025-1 and the Potential Annexation Area of CFD No, 2025-1, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2025-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2025-1 before CFD No. 2025-1 was created.

Docusign Envelope ID: B96829C6-E17C-46E9-8B05-11A9CBF32911 1824
C-1
4888-3862-0847v5/022972-0046

ATTACHMENT C

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SAFETY SERVICES)

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.
“Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation and administration of CFD No. 2025-1 including, but not limited to:
the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2025-1, or any designee thereof associated with fulfilling the CFD No. 2025-1 reporting requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2025-1 or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees, collection expenses, and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2025-1 for any other administrative purposes of CFD No. 2025-1, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. “Administrator” means the City Manager of the City of Murrieta, or his or her designee. “Affordable Housing” means housing as defined in State Density Bonus Law, as amended, being Chapter 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code of the State of California.
“Affordable Housing Property” means any Affordable Housing residential property on an Assessor’s Parcel for which a building permit for new construction has been issued by the City on or prior to June 1 preceding the Fiscal Year in which the Special Tax is being levied. “Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.

Docusign Envelope ID: B96829C6-E17C-46E9-8B05-11A9CBF32911 1825
C-2
4888-3862-0847v5/022972-0046
“Assessor’s Parcel Number” means the identification number assigned to a parcel by the County Assessor of the County of Riverside.
“CFD” or “CFD No. 2025-1” means the City of Murrieta Community Facilities District No. 2025-1 (Safety Services).
“City” means the City of Murrieta.
“County” means the County of Riverside.
“Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section D.
“Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th.
“Maximum Special Tax” means the Maximum Special Tax, as applicable, levied within the CFD for any Fiscal Year.
“Multi-Family Property” means all Assessor's Parcels of Developed Property for which a building permit or use permit for the construction of a residential structure with two or more Residential Units that share a single Assessor's Parcel Number, as determined by the Administrator, has been issued prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Proportionately” means for Taxable Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels. “Rate and Method of Apportionment” or “RMA" means this Rate and Method of Apportionment of Special Taxes.
“Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this Rate and Method of Apportionment.
“Services” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2025- 1 as set forth in Appendix B.
“Single Family Property” means any residential property other than a Multi-Family Property on an Assessor’s Parcel for which a building permit for new construction has been Docusign Envelope ID: B96829C6-E17C-46E9-8B05-11A9CBF32911 1826
C-3
4888-3862-0847v5/022972-0046
issued by the City on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Special Tax” means the Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
"Special Tax Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the public safety needs of CFD No. 2025-1 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for (i) police protection services, (ii) paramedic services, (iii) fund an operating reserve for the costs of Services as determined by the Administrator, and (iv) Administrative Expenses. Under no circumstances shall the Special Tax Requirement include funds for bonds.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2025-1, which are not Exempt Property.
“Taxable Unit” means a Residential Unit.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property.

B. RATE AND METHOD OF APPORTIONMENT OF MAXIMUM SPECIAL TAX RATES As of July 1 of each Fiscal Year, commencing July 1, 2026, the Council shall determine the Special Tax Requirement and shall levy the Special Tax upon each of the Assessor’s Parcels within the CFD which constitute a Developed Property of Single Family Property, Multi-Family Property, or an Affordable Housing Property until the aggregate amount of Special Tax equals the Special Tax Requirement. The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement.

No Special Tax shall be levied upon Undeveloped Property for which a Building Permit has not been issued on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.

The Maximum Special Tax for Fiscal Year 2025-2026 for a Single Family Property, MultiFamily Property, and an Affordable Housing Property are shown below in Table 1.

TABLE 1

MAXIMUM SPECIAL TAX RATES
FISCAL YEAR 2025-2026
Description
Taxable
Unit
Maximum
Special Tax
Single Family Property RU $580
Multi-Family Property RU $468
Affordable Housing Property RU $250
Docusign Envelope ID: B96829C6-E17C-46E9-8B05-11A9CBF32911 1827
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Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2026 the Maximum Special Tax for Developed Property of Single Family Property and Multi-Family Property shall increase by four percent (4.0%). The Maximum Special Tax for Developed Property of Affordable Housing Property shall not increase annually.

C. TERM OF SPECIAL TAX
For each Fiscal Year, the Maximum Special Taxes shall be levied as long as the Services are being provided within the boundaries of CFD No. 2025-1.

Docusign Envelope ID: B96829C6-E17C-46E9-8B05-11A9CBF32911 1828
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G. INTERPRETATION
Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment.

Docusign Envelope ID: B96829C6-E17C-46E9-8B05-11A9CBF32911 1829
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APPENDIX A

CITY OF MURRIETA
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(SAFETY SERVICES)

SUMMARY
Safety Services - It is estimated that the cost of providing police and paramedic services being funded by the Special Tax for the Community Facilities District No. 2025-1 (Safety Services) will be as follows for the Fiscal Year 2025-2026:
 $580 per residential unit for Single Family Residential Property  $468 per residential unit for Multi-Family Residential Property  $250 per residential unit for Affordable Housing Residential Property Annual Escalation - On each July 1, commencing on July 1, 2026 the Maximum Special Tax for Developed Property of Single Family Property and Multi-Family Property shall increase by four percent (4.0%). The Maximum Special Tax for Developed Property of Affordable Housing Property shall not increase annually.

Fiscal
Year
Tract/
APN
Development
Name
No. of
Taxable
Units
Land Use
Category
Maximum
Special Tax Subdivider
2025-26 TR
38228
Discovery
Village 365 Single Family Property $580 Discovery Village, LLC Docusign Envelope ID: B96829C6-E17C-46E9-8B05-11A9CBF32911 1830
C-7
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APPENDIX B

CITY OF MURRIETA
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(SAFETY SERVICES)

These services include police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services.

Docusign Envelope ID: B96829C6-E17C-46E9-8B05-11A9CBF32911 1831
1832
RESOLUTION NO. 25-4820

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MURRIETA, CALIFORNIA, ESTABLISHING
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(SAFETY SERVICES) OF THE CITY OF MURRIETA,

AUTHORIZING THE LEVY OF A SPECIAL TAX

THEREIN, CALLING AN ELECTION AND APPROVING

AND AUTHORIZING CERTAIN ACTIONS RELATED

THERETO
WHEREAS, the City Council (the “City Council”) of the City of Murrieta (the “City”) has heretofore adopted Resolution No. 25-4805 stating its intention to form Community Facilities District No. 2025-1 (Safety Services) of the City of Murrieta (“Community Facilities District No. 2025-1 (Safety Services)” or the “District”) and a Potential Annexation Area therein (the “Potential Annexation Area”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”); and
WHEREAS, a copy of Resolution No. 25-4805 setting forth a description of the proposed boundaries of Community Facilities District No. 2025-1 (Safety Services), the proposed boundaries of the Potential Annexation Area, the services and incidental expenses to be financed by the District and the rate and method of apportionment of the special tax proposed to be levied within the District is on file with the City Clerk; and WHEREAS, notice was published and mailed to all landowners of the land proposed to be included within the District as required by law relative to the intention of this City Council to form proposed Community Facilities District No. 2025-1 (Safety Services), to designate the Potential Annexation Area proposed for annexation to the District in the future and to levy a special tax therein to finance the services and incidental expenses described in Resolution No. 25-4805; and
WHEREAS, on April 1, 2025, the public hearing called for such date relative to the proposed formation of Community Facilities District No. 2025-1 (Safety Services), the designation of the Potential Annexation Area and the levy of the special tax therein was continued to May 6, 2025; and
WHEREAS, on May 6, 2025, this City Council conducted a noticed public hearing as required by law relative to the proposed formation of Community Facilities District No. 2025-1 (Safety Services), the designation of the Potential Annexation Area, and the levy of the special tax therein; and
WHEREAS, at the May 6, 2025, public hearing there was filed with this City Council a report containing a description of the services necessary to meet the needs of the District and an estimate of the cost of such services as required by Section 53321.5 of the Act (the “Engineer’s Report”); and
1833
2 WHEREAS, at the May 6, 2025, public hearing all persons desiring to be heard on all matters pertaining to the formation of Community Facilities District No. 2025-1 (Safety Services), the designation of the Potential Annexation Area, and the levy of the special tax were heard and full and fair hearings were held; and
WHEREAS, following the public hearing, this City Council has determined to authorize the formation of the District to finance the types of services (the “Services”) and the incidental expenses (the “Services Incidental Expenses”) set forth in Attachment “B” hereto, which are described in more detail in the Engineer’s Report; and
WHEREAS, at the public hearing evidence was presented to this City Council on the matters before it and the proposed special tax to be levied within the District was not precluded by a majority protest of the type described in Section 53324 of the Act, and this City Council at the conclusion of the hearing was fully advised as to all matters relating to the formation of the District, the designation of the Potential Annexation Area and the levy of the special tax; and WHEREAS, this City Council has determined, based on a Certificate of Registrar of Voters of the County of Riverside on file in the office of the City Clerk, that no registered voters have been residing in the proposed boundaries of Community Facilities District No. 2025-1 (Safety Services) for each of the 90 days prior to May 6, 2025, and that the qualified electors in Community Facilities District No. 2025-1 (Safety Services) are the landowners within the District; and
WHEREAS, on the basis of all of the foregoing, this City Council has determined to proceed with the establishment of Community Facilities District No. 2025-1 (Safety Services) and to call an election therein to authorize (i) the levy of special taxes pursuant to the rate and method of apportionment of the special tax, as set forth in Attachment “A” attached hereto, and (ii) the establishment of an appropriations limit for Community Facilities District No. 2025-1 (Safety Services);

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MURRIETA AS FOLLOWS:

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

Section 2. A community facilities district to be designated “Community Facilities District No. 2025-1 (Safety Services) of the City of Murrieta” is hereby established pursuant to the Act. The City Council hereby finds and determines that all prior proceedings taken with respect to the establishment of the District were valid and in conformity with the requirements of law, including the Act. This finding is made in accordance with the provisions of Section 53325.1(b) of the Act.
1834
3 Section 3. The boundaries of Community Facilities District No. 2025-1 (Safety Services) are established as shown on the map designated “Proposed Boundary Map Community Facilities District No. 2025-1 (Safety Services) of the City of Murrieta, County of Riverside, State of California,” which map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the County Book of Maps of Assessment and Community Facilities Districts in the Assessor-County ClerkRecorder’s office of the County of Riverside in Book No. 95 Page No. 29, on February 20, 2025 as Instrument No. 2025-0050553.

In addition, the boundaries of the Potential Annexation Area are established and designated for future annexation to the District pursuant to Sections 53339.2 and 53339.3 of the Act in accordance with Resolution No. 25-4805, as shown on the map designated “Boundaries— Potential Annexation Area Community Facilities District No. 2025-1 (Safety Services) of the City of Murrieta, County of Riverside, State of California,” which map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the County Book of Maps of Assessment and Community Facilities Districts in the Assessor-County Clerk-Recorder’s office of the County of Riverside in Book No. 95 Page No. 28, on February 20, 2025, as Instrument No. 2025-0050552.

Section 4. The types of Services and Services Incidental Expenses authorized to be provided for Community Facilities District No. 2025-1 (Safety Services) are those set forth in Attachment “B” attached hereto. The estimated cost of the Services and Services Incidental Expenses to be financed is set forth in the Engineer’s Report, which estimates may change as the Facilities are designed and bid for construction and acquisition, as applicable.

Section 5. The City Council finds and determines that the proposed Services are necessary to meet the increased demand that will be placed upon local agencies and public infrastructure as a result of new development within the District and that the Services to be financed benefit residents of the City and the future residents of the District.

Section 6. Except where funds are otherwise available, it is the intention of this City Council, subject to the approval of the eligible voters of the District, to levy annually a special tax at the rates set forth in Attachment “A” hereto on all non-exempt property within the District sufficient to pay for the Services and the Services Incidental Expenses. This Resolution hereby amends Resolution No. 25-4805 to replace the Rate and Method of Apportionment of Special Tax for Community Facilities District No. 2025-1 (Safety Services) of the City of Murrieta, Attachment C thereto with Attachment A hereto in its entirety. The District expects to incur, and in certain cases has already incurred, Services Incidental Expenses in connection with the creation of the District, the levying and collecting of the special tax, and the annual administration of the District. The rate and method of apportionment of the special tax is described in detail in Attachment “A” hereto and incorporated herein by this reference, and the City Council hereby finds that Attachment “A” contains sufficient detail to allow each landowner within the District to estimate the maximum amount that may be levied against each parcel. As described in greater detail in the Engineer’s Report, which is incorporated by reference herein, the special tax is based on the expected demand that each parcel of real property within Community Facilities District No. 2025-1 (Safety Services) will place on the Services and on the benefit that each parcel will derive from the right to access the Services and, 1835
4 accordingly, is hereby determined to be reasonable. The special tax shall be levied on each assessor’s parcel so long as the Services are being provided within CFD No. 2025-1 (Safety Services). The special tax is apportioned to each parcel on the foregoing bases pursuant to Section 53325.3 of the Act and such special tax is not on or based upon the ownership of real property or the assessed value of real property.

Section 7. The City Manager of the City of Murrieta, 1 Town Square, Murrieta, California 92562, telephone number (951) 461-6010, will be responsible for preparing annually, or authorizing a designee to prepare, a current roll of special tax levy obligations by assessor’s parcel number and will be responsible for estimating future special tax levies pursuant to Section 53340.2 of the Act.

Section 8. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all non-exempt real property in the District and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the special tax by the District ceases.

Section 9. Consistent with Section 53325.6 of the Act, the City Council finds and determines that the land within Community Facilities District No. 2025-1 (Safety Services), if any, devoted primarily to agricultural, timber or livestock uses and being used for the commercial production of agricultural, timber or livestock products is contiguous to other land within Community Facilities District No. 2025-1 (Safety Services) and will be benefited by the Services proposed to be provided within Community Facilities District No. 2025-1 (Safety Services).

Section 10. It is hereby further determined that there is no ad valorem property tax currently being levied on property within proposed Community Facilities District No. 2025-1 (Safety Services) for the exclusive purpose of paying for the same services to the territory of Community Facilities District No. 2025-1 (Safety Services) as are proposed to be provided by the Services to be financed by Community Facilities District No. 2025-1 (Safety Services).

Section 11. Written protests against the establishment of the District have not been filed by one-half or more of the registered voters within the boundaries of the District or by the property owners of one-half (1/2) or more of the area of land within the District. The City Council hereby finds that the proposed special tax has not been precluded by a majority protest pursuant to Section 53324 of the Act.

Written protests against the establishment of the Potential Annexation Area have not been filed by one-half or more of the registered voters within the boundaries of the Potential Annexation Area or by the property owners of one-half (1/2) or more of the area of land within the Potential Annexation Area. The City Council hereby finds that the proposed special tax has not been precluded by a majority protest pursuant to Section 53339.6 of the Act.

Section 12. An election is hereby called for Community Facilities District No. 2025-1 (Safety Services) on the propositions of levying the special tax on the property within Community Facilities District No. 2025-1 (Safety Services) and establishing an appropriations 1836
5 limit for the District pursuant to Section 53325.7 of the Act. The language of the propositions to be placed on the ballot is attached hereto as Attachment “C.” Section 13. The date of the election for Community Facilities District No. 2025-1 (Safety Services) on the propositions of authorizing the levy of the special tax and establishing an appropriations limit for the District shall be May 6, 2025, or such later date as is consented to by the City Clerk of the City of Murrieta; provided that, if the election is to take place sooner than 90 days after May 6, 2025, then the unanimous written consent of each qualified elector within the District to such election date must be obtained. The polls shall be open for said election immediately following the public hearing. The election shall be conducted by the City Clerk. Except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City of Murrieta insofar as such provisions are determined by the City Clerk to be applicable. The City Clerk is authorized to conduct the election following the adoption of this resolution, and all ballots shall be received by, and the City Clerk shall close the election by, 11:00 p.m. on the election day; provided the election shall be closed at such earlier time as all qualified electors have voted as provided in Section 53326(d) of the Act. Pursuant to Section 53326 of the Act, the ballots for the special election shall be distributed in person, or by mail with return postage prepaid, to the qualified electors within Community Facilities District No. 2025-1 (Safety Services). The City Clerk has secured a certificate of the Certificate of Registrar of Voters of the County of Riverside certifying that there were no registered voters within the District. Accordingly, since there were fewer than 12 registered voters within the District for each of the 90 days preceding May 6, 2025, the qualified electors shall be the landowners within the District and each landowner, or the authorized representative thereof, shall have one vote for each acre or portion thereof that such landowner owns within Community Facilities District No. 2025-1 (Safety Services), as provided in Section 53326 of the Act. The landowners within the District have executed and delivered waivers of certain election law requirements and consenting to the holding of the election on May 6, 2025, which waivers are on file with the City Clerk.

Section 14. The preparation of the Engineer’s Report is hereby ratified. The Engineer’s Report, as submitted, is hereby approved and was made a part of the record of the public hearing regarding the formation of Community Facilities District No. 2025-1 (Safety Services). The Engineer’s Report is ordered to be kept on file with the transcript of these proceedings and open for public inspection.

Section 15. The District may accept advances of funds or work-in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred in creating Community Facilities District No. 2025-1. 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 16. This Resolution shall be effective upon its adoption. 1837
6 PASSED AND ADOPTED this 6th day of May, 2025.
____________________________
Cindy Warren, Mayor
ATTEST:
_____________________________
Cristal McDonald, City Clerk
APPROVED AS TO FORM:
_____________________________
Tiffany Israel, City Attorney

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )§

CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, California, do hereby certify that the foregoing Resolution No. 25-4820 was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the 6th day of May, 2025, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
Cristal McDonald, City Clerk
1838
A-1
ATTACHMENT “A”

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SAFETY SERVICES)

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.
“Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation and administration of CFD No. 2025-1 including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2025-1, or any designee thereof associated with fulfilling the CFD No. 2025-1 reporting requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2025-1 or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees, collection expenses, and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2025-1 for any other administrative purposes of CFD No. 2025-1, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
“Administrator” means the City Manager of the City of Murrieta, or his or her designee. “Affordable Housing” means housing as defined in State Density Bonus Law, as amended, being Chapter 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code of the State of California.
“Affordable Housing Property” means any Affordable Housing residential property on an Assessor’s Parcel for which a building permit for new construction has been issued by the City on or prior to June 1 preceding the Fiscal Year in which the Special Tax is being levied. “Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside. 1839
A-2
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means the identification number assigned to a parcel by the County Assessor of the County of Riverside.
“CFD” or “CFD No. 2025-1” means the City of Murrieta Community Facilities District No. 2025-1 (Safety Services).
“City” means the City of Murrieta.
“County” means the County of Riverside.
“Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section D.
“Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th.
“Maximum Special Tax” means the Maximum Special Tax, as applicable, levied within the CFD for any Fiscal Year.
“Multi-Family Property” means all Assessor's Parcels of Developed Property for which a building permit or use permit for the construction of a residential structure with two or more Residential Units that share a single Assessor's Parcel Number, as determined by the Administrator, has been issued prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Proportionately” means for Taxable Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels. “Rate and Method of Apportionment” or “RMA" means this Rate and Method of Apportionment of Special Taxes.
“Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property 1840
A-3
shall not be considered a Residential Unit for purposes of this Rate and Method of Apportionment.
“Services” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2025- 1 as set forth in Appendix B.
“Single Family Property” means any residential property other than a Multi-Family Property on an Assessor’s Parcel for which a building permit for new construction has been issued by the City on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Special Tax” means the Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
"Special Tax Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the public safety needs of CFD No. 2025-1 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for (i) police protection services, (ii) paramedic services, (iii) fund an operating reserve for the costs of Services as determined by the Administrator, and (iv) Administrative Expenses.

Under no circumstances shall the Special Tax Requirement include funds for bonds. "Taxable Property" means all Assessor’s Parcels within CFD No. 2025-1, which are not Exempt Property.
“Taxable Unit” means a Residential Unit.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property.

B. RATE AND METHOD OF APPORTIONMENT OF MAXIMUM SPECIAL TAX RATES
As of July 1 of each Fiscal Year, commencing July 1, 2025, the Council shall determine the Special Tax Requirement and shall levy the Special Tax upon each of the Assessor’s Parcels within the CFD which constitute a Developed Property of Single Family Property, MultiFamily Property, or an Affordable Housing Property until the aggregate amount of Special Tax equals the Special Tax Requirement. The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement.

No Special Tax shall be levied upon Undeveloped Property for which a Building Permit has not been issued on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.

The Maximum Special Tax for Fiscal Year 2025-2026 for a Single Family Property, MultiFamily Property, and an Affordable Housing Property are shown below in Table 1. 1841
A-4
TABLE 1

MAXIMUM SPECIAL TAX RATES
FISCAL YEAR 2025-2026
Description
Taxable
Unit
Maximum
Special Tax
Single Family Property RU $580
Multi-Family Property RU $468
Affordable Housing Property RU $250
Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2026 the Maximum Special Tax for Developed Property of Single Family Property and Multi-Family Property shall increase by four percent (4.0%). The Maximum Special Tax for Developed Property of Affordable Housing Property shall not increase annually.

C. TERM OF SPECIAL TAX
For each Fiscal Year, the Maximum Special Taxes shall be levied as long as the Services are being provided within the boundaries of CFD No. 2025-1.

E. APPEALS
Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. The Administrator shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the Administrator’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s). 1842
A-5
F. MANNER OF COLLECTION
The Maximum Special Taxes levied in each Fiscal Year shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes. However, the District may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.

G. INTERPRETATION
Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment. 1843
A-6

APPENDIX A

CITY OF MURRIETA
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(SAFETY SERVICES)

Fiscal
Year
Tract/
APN
Development
Name
No. of
Taxable
Units
Land Use
Category
Maximum
Special Tax Subdivider
2025-
26 TR
38228
Discovery
Village 365 Single Family Property $580 Discovery Village, LLC 1844
A-1

APPENDIX B

CITY OF MURRIETA
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(SAFETY SERVICES)

These services include police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services.

APPENDIX C
Proposed Boundaries
Community Facilities District No. 2025-1 (Safety Services) of the City of Murrieta,
Riverside County, California
1846
A
-3
1847
B-1
ATTACHMENT “B”

TYPES OF SERVICES

TO BE FINANCED BY
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SAFETY SERVICES)

OF THE CITY OF MURRIETA
The services which may be funded with proceeds of the special tax of CFD No. 2025-1, as provided by Section 53313 of the Act, will include some or all of the costs attributable to public safety. Capitalized terms used and not defined herein shall have the meanings set forth in the Rate and Method of Apportionment of Special Tax for CFD No. 2025-1.

These services include police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services.

BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SAFETY SERVICES)

OF THE CITY OF MURRIETA

SPECIAL TAX ELECTION
May 6, 2025
PROPOSITION A: Shall a special tax with a rate and
method of apportionment as provided in the resolution
establishing Community Facilities District No. 2025-1
(Safety Services) adopted on May 6, 2025 (the
“Resolution of Formation”) by the City Council of the
City of Murrieta establishing the District be levied to pay for the Services, Services Incidental Expenses and other purposes described in the Resolution of Formation?
YES______
NO_______
PROPOSITION B: For each year commencing with
Fiscal Year 2025-2026, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for Community Facilities District No. 2025-1 (Safety Services) be an amount equal to $1,000,000,000?
YES______
NO_______
1849
RESOLUTION NO. 25-4821

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MURRIETA, CALIFORNIA, ACTING IN ITS CAPACITY

AS THE LEGISLATIVE BODY OF COMMUNITY
FACILITIES DISTRICT NO. 2025-1 (SAFETY SERVICES)

OF THE CITY OF MURRIETA CERTIFYING ELECTION

RESULTS
WHEREAS, the City Council (the “City Council”) of the City of Murrieta called and duly held an election on May 6, 2025, within the boundaries of Community Facilities District No. 2025-1 (Safety Services) of the City of Murrieta (“Community Facilities District No. 2025- 1” or the “District”) pursuant to Resolution No. 25-4820 for the purpose of presenting to the qualified electors within the District Propositions A and B attached hereto as Exhibit A; and WHEREAS, there has been presented to this City Council a certificate of the City Clerk canvassing the results of the election, a copy of which is attached hereto as Exhibit B;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MURRIETA AS FOLLOWS:

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

Section 2. Propositions A and B presented to the qualified electors of the District on May 6, 2025, were approved by two-thirds or more of the votes cast at said election and Propositions A and B each has carried. The City Council, acting as the legislative body of the District, is hereby authorized to levy on the land within the District the special tax described in Proposition A for the purposes described therein.

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

Section 4. This Resolution shall be effective upon its adoption.

PASSED AND ADOPTED this 6th day of May, 2025.
____________________________
Cindy Warren, Mayor
ATTEST:
_____________________________
Cristal McDonald, City Clerk
1850
2 APPROVED AS TO FORM:
_____________________________
Tiffany Israel, City Attorney

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )§

CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, California, do hereby certify that the foregoing Resolution No. 25-4821 was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the 6th day of May, 2025, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
Cristal McDonald, City Clerk
1851
A-1

EXHIBIT A

BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SAFETY SERVICES)

OF THE CITY OF MURRIETA

SPECIAL TAX ELECTION
May 6, 2025
PROPOSITION A: Shall a special tax with a rate and
method of apportionment as provided in the resolution
establishing Community Facilities District No. 2025-1
(Safety Services) adopted on May 6, 2025 (the
“Resolution of Formation”) by the City Council of the
City of Murrieta establishing the District be levied to pay for the Services, Services Incidental Expenses and other purposes described in the Resolution of Formation?
YES______
NO_______
PROPOSITION B: For each year commencing with
Fiscal Year 2025-2026, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for Community Facilities District No. 2025-1 (Safety Services) be an amount equal to $1,000,000,000?
YES______
NO_______
1852
B-1

EXHIBIT B

CERTIFICATE OF CITY CLERK

AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS I, Cristal McDonald, City Clerk of the City of Murrieta, do hereby certify that I have examined the returns of the Special Tax Election for Community Facilities District No. 2025-1 (Safety Services) of the City of Murrieta. The election was held in the City of Murrieta Council Chambers, 1 Town Square, Murrieta, California, on May 6, 2025. I caused to be delivered ballots to each qualified elector. One (1) ballot was returned.

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

PROPOSITION A PROPOSITION B
YES: YES:

NO: NO:

TOTAL: TOTAL:

Dated this 6th day of May, 2025.

CRISTAL MCDONALD, CITY CLERK
1853
1854
ORDINANCE NO. 614-25

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

MURRIETA, CALIFORNIA ACTING IN ITS CAPACITY AS

THE LEGISLATIVE BODY OF COMMUNITY FACILITIES
DISTRICT NO. 2025-1 (SAFETY SERVICES) OF THE CITY

OF MURRIETA AUTHORIZING THE LEVY OF SPECIAL
TAXES
WHEREAS, on February 4, 2025, the City Council (the “City Council”) of the City of Murrieta (the “City”) adopted Resolution No. 25-4805 declaring its intention to form Community Facilities District No. 2025-1 (Safety Services) of the City of Murrieta (the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, comprising Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”); and WHEREAS, on April 1, 2025, the City Council continued the public hearing called for such date to May 6, 2025; and
WHEREAS, on May 6, 2025, after providing all notice required by the Act, the City Council conducted a noticed public hearing required by the Act relative to the proposed formation of the District, the proposed levy of a special tax therein to finance certain safety services described in Resolution No. 25-4805; and
WHEREAS, at the May 6, 2025 public hearing, all persons desiring to be heard on all matters pertaining to the formation of the District and the proposed levy of the special tax to finance the safety services described in Resolution No. 25-4805 were heard and a full and fair hearing was held; and
WHEREAS, on May 6, 2025, the Board adopted Resolution No. 25-4820 which formed the District and called a special election within the District on May 6, 2025, on two propositions relating to the levy of a special tax within the District and the establishment of an appropriations limit within the District; and
WHEREAS, on May 6, 2025, a special election was held within the District at which the qualified electors approved by a vote of two-thirds or more Propositions A and B authorizing the levy of a special tax within the District for the purposes described in Resolution No. 25-4820 and establishing an appropriations limit for the District; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MURRIETA

ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SAFETY SERVICES) OF THE CITY OF MURRIETA ORDAINS AS FOLLOWS:

Section 1. The above recitals are all true and correct. 1855
2 Section 2. By the passage of this Ordinance, the Board authorizes and levies special taxes within the District pursuant to Sections 53328 and 53340 of the Act at the rates and in accordance with the rate and method of apportionment set forth in Attachment “A” to Resolution No. 25-4820, which is incorporated by reference herein (the “Rate and Method”). The special taxes are hereby levied commencing in the fiscal year specified in the Rate and Method and in each fiscal year thereafter so long as the services authorized to be financed by the District, are provided through such financing within the District.

Section 3. Each of the Mayor, the City Manager, the Assistant City Manager, the Director of Finance, or their written designees (each, an “Authorized Officer”), acting alone, is hereby authorized and directed each fiscal year to determine the specific special tax rates and amounts to be levied in such fiscal year on each parcel of real property within the District, in the manner and as provided in the Rate and Method. The special tax rate levied on a parcel pursuant to the Rate and Method shall not exceed the maximum rate set forth in the Rate and Method for such parcel, but the special tax may be levied at a lower rate. Each Authorized Officer is hereby authorized and directed to provide all necessary information to the Treasurer-Tax Collector of the County of Riverside and to otherwise take all actions necessary in order to effect proper billing and collection of the special tax, so that the special tax shall be levied and collected in sufficient amounts and at times necessary to satisfy the financial obligations of the District in each fiscal year.

Section 4. Properties or entities of the state, federal, or other local governments shall be exempt from the special tax, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act and Section D of the Rate and Method. No other properties or entities are exempt from the special tax unless the properties or entities are expressly exempted in Resolution No. 25-4820, or in a resolution of consideration to levy a new special tax or special taxes or to alter the rate or method of apportionment or an existing special tax as provided in Section 53334 of the Act.

Section 5. All of the collections of the special tax shall be used as provided for in the Act, the Rate and Method and Resolution No. 25-4820.

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

Section 7. The Mayor of the City shall sign this Ordinance and the City Clerk or Deputy City Clerk (referred to herein as the “City Clerk”) shall attest to the Mayor’s signature and then cause the same to be published within fifteen (15) days after its passage at least once in The Press-Enterprise, a newspaper of general circulation published and circulated in the City of Murrieta.

Section 8. The specific authorization for the adoption of this Ordinance is pursuant to the provisions of Section 53340 of the Act.
1856
3 Section 9. The City Clerk is hereby authorized to transmit a certified copy of this ordinance to the Treasurer-Tax Collector of the County of Riverside and to perform all other acts which are required by the Act, this Ordinance, or by law in order to accomplish the purpose of this Ordinance.

Section 10. A full reading of this Ordinance is dispensed with prior to its final passage, a written or printed copy having been available to the City Council and the public a day prior to its final passage.

Section 11. This Ordinance shall take effect thirty days after its final passage.

PASSED AND ADOPTED this ___ day of ________, 202__.

Cindy Warren, Mayor
ATTEST:

Cristal McDonald, City Clerk
APPROVED AS TO FORM:

Tiffany J. Israel, City Attorney
1857
4 STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )§

CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, California, do hereby certify that the foregoing Ordinance No. 614-25 was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the ___th day of _______, 202__, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following
vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Cristal McDonald, City Clerk
I, Cristal McDonald, City Clerk of the City of Murrieta, California further certify that Ordinance No. 614-25 was duly published according to law and the order of the City Council of said City and the same was so published in Press Enterprise, a newspaper of general circulation on the following date(s):

Adopted Ordinance: , 2025.

In witness whereof, I have hereunto subscribed my name this __ day of ______________, 2025.

Cristal McDonald, City Clerk
1858

CITY OF MURRIETA
City Council Meeting Agenda
Report
5/6/2025
Agenda Item No. 18.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Javier Carcamo, Finance Director
SUBJECT: ..title
Formation of Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta

RECOMMENDATION
Hold a Public Hearing regarding the formation of Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta;
Adopt Resolution No. 25-4822, entitled: A Resolution of the City Council of the City of Murrieta, California, Establishing Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta, Authorizing the Levy of a Special Tax Therein, Calling an Election and Approving and Authorizing Certain Actions Related Thereto;
Direct the City Clerk to hold an Election within CFD No. 2025-2; Adopt Resolution No. 25-4823, entitled: A Resolution of the City Council of the City of Murrieta, California, Acting in its Capacity as the Legislative Body of Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta Certifying Election Results; and Conduct the first reading and introduce Ordinance No. 615-25, entitled: An Ordinance of the City Council of the City of Murrieta, California, Acting in its Capacity as the Legislative Body of Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta Authorizing the Levy of Special Taxes.

On December 5, 2023, the City Council held a workshop on and adopted the proposed Amendment to the Community Facilities District Goals and Policies (Non-Action Item).

On December 5, 2023, the City Council adopted Resolution No. 23-4717 Amending and Restated Community Facilities District Goals and Policies (Vote: 5-0).

On February 4, 2025, the City Council adopted a Resolution of Intention to establish Community Facilities CITY OF MURRIETA Page 1 of 6 Printed on 5/1/2025
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Agenda Item No. 18.

On April 1, 2025, the City Council opened the public hearing on the formation and continued it until May 6, 2025 (Vote: 4-0-1).

CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.

BACKGROUND
On December 5, 2023, the City Council amended the City’s Community Facilities District Goals and Policies.

The amendments included the ability to finance public safety services and maintenance services, adding an escalator to cover increases in the cost of providing services, changes to the list of eligible facilities that can be financed, allowing Development Impact Fees (DIF) to be financed, and increasing the maximum cap on the effective tax rate from 1.8% to 2.0% for Community Facility Districts (CFDs).

The owner of the property within the proposed Discovery Village project within the City is Discovery Village LLC (Property Owner), and the Property Owner requested the City to assist in forming three CFDs to provide public safety services, maintenance services, and facilities financing. The property to be included in the proposed CFDs is located at the southwest corner of the intersection of Whitewood Road and Baxter Road, east of Interstate 215. The Discovery Village Project (Project) is proposed to include approximately 365 single -family homes at full buildout. The Project was not conditioned to form the services’ CFDs but was conditioned to form a Landscape and Lighting Maintenance District to provide landscaping and lighting services.

Eastern Municipal Water District (EMWD) previously established a facilities CFD for the Discovery Village project for approximately $18 million in bond proceeds for improvements, with a 2.0% overall effective tax rate that included the $125 assessment per Residential Unit (RU) for the rooftop Fire, Community Services District (CSD), and Park & Recreation, for basic public services and a potential LLD of approximately $200 per RU for Project specific landscaping and lighting from the City. At its March 19, 2025, board meeting, EMWD, at the request of the Property Owner, canceled the previously established CFD in anticipation of the formation of the City’s proposed CFDs.

District No. 2025-3 (Discovery Village) of the City of Murrieta (CFD No. 2025-3), and setting public hearings for April 1, 2025 on the formations of each CFD. On April 1, 2025, the City Council continued the public hearing scheduled for that date to May 6, 2025. The City Council will now be asked to hold three separate public hearings to consider forming each CFD and, if approved, following the public hearings, hold three separate special elections within each CFD regarding the levy of special taxes within each CFD.

The Property Owner has requested that the boundaries of CFD No. 2025-3 include the area described in Attachment A of the Resolution of Intention to Establish CFD No. 2025-3 adopted by the City Council on February 4, 2025 (the “CFD No. 2025-3 Resolution of Intention”) and that special taxes be levied within the boundaries of CFD No. 2025-3 in accordance with the Rate and Method of Apportionment for CFD No. 2025-3 (the “CFD No. 2025-3 RMA”) described in Attachment C to the Resolution of Intention. The proposed rates of the special tax range from $3,086.76 per unit for single-family homes less than 1,350 square feet to $4,772 per unit for single-family homes greater than 2,400 square feet and also include tax rates of $69,954 per acre of multi-family property and non-residential property. The special tax rates within CFD No. 2025-3 will increase two percent (2.00%) annually on July 1, of each year, commencing July 1, 2026.

The CFD No. 2025-3 Resolution of Formation also approves the execution and delivery of a Joint Community CITY OF MURRIETA Page 3 of 6 Printed on 5/1/2025
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Agenda Item No. 18.

The CFD No. 2025-3 Resolution of Formation also approves the execution and delivery of a Joint Community Facilities Agreement (the “Water District JCFA”) with Eastern Municipal Water District (the “Water District”) and the Developer, relating to certain facilities proposed to be financed by the District and owned and operated by the Water District. The form of the Water District JCFA is on file with the City Clerk.

The Property Owner has executed a consent and waiver of certain election procedures with respect to the election, including certain timing requirements with respect to the election, in accordance with the Mello-Roos Act. This allows the special election to be held on the same day of formation. Accordingly, if the City Council approves the Resolution of Formation and the Resolution Determining Necessity to Incur Bonded Indebtedness, the City Clerk will conduct the election. The Property Owner will have delivered their ballot to the City Clerk in advance of the public hearing, and the City Clerk will announce the election results, and the City Council will be asked to adopt the Resolution Certifying the Election Results. Upon certification that 2/3rds of the votes cast are in favor of the propositions voted upon in CFD No. 2025-3, the Resolution Certifying the Election Results will direct the City Clerk to record a notice of special tax lien on the property within CFD No. 2025-3. The City Council will then be asked to introduce the ordinance authorizing the levy of the special tax within CFD No. 2025-3, in accordance with the CFD No. 2025-3 RMA.

CFD No. 2025-2 would levy a separate special tax in accordance with the Mello-Roos Act on parcels of residential property to finance public maintenance services. Services eligible to be financed by CFD No. 2025- 2 include maintenance and lighting of parks, parkways, streets, street lighting, roads, and open space, maintenance and operation of water quality improvements, including storm drainage and flood protection facilities, landscaping, and public street sweeping. The special taxes within CFD No. 2025-2 for the Discovery Village Project are $274 per unit of single-family residential property and increase each July 1, by the greater of two percent (2.0%) or the year-over-year percentage increase for the month of March in the Consumer CITY OF MURRIETA Page 4 of 6 Printed on 5/1/2025
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Agenda Item No. 18.
of two percent (2.0%) or the year-over-year percentage increase for the month of March in the Consumer Price Index, commencing July 1, 2026.

The Maintenance Services CFD will provide funding for enhanced public maintenance services to include landscape maintenance, lighting, street sweeping and pavement management, park and trails maintenance, drainage and storm water maintenance, and graffiti abatement. The ability to finance these Project-specific costs will alleviate the general fund from subsidizing those services created by the new development of the Project and eliminate the additional costs incurred from the general benefit portion of those costs identified with each LLD formed, provided, however, that the costs must be additional services under the Act which has generally been determined to be the impact of the project on these services. The Property Owner has agreed to include these additional Maintenance Service costs.

The Resolutions of Intention for each of CFD No. 2025-1 and 2025-2 adopted on February 4, 2025, were the first step in the process of forming CFD No. 2025-1 and 2025-2, respectively. The Resolutions of Intention declared the City’s intention to establish CFD No. 2025-1 and CFD No. 2025-2 and called for public hearings on the matter of the formation of CFD No. 2025-1 and CFD No. 2025-2 to take place on April 1, 2025. On April 1, 2025, the City Council continued the public hearing scheduled for that date to May 6, 2025.

In connection with the public hearings, Spicer Consulting Group has prepared a Public Hearing Report that describes and analyzes the services to be financed by CFD No. 2025-1 and CFD No. 2025-2 and the estimated costs of such services. Following the closure of the public hearings for each of CFD No. 2025-1 and CFD No. 2025-2, the City Council will be asked to adopt Resolutions of Formation which approve the formation of CFD No. 2025-1 and CFD No. 2025-2 and the levy of the special taxes in each of CFD No. 2025- 1 and CFD No. 2025-2 in accordance with their respective RMAs. The Resolutions of Formation call for an election to submit to the qualified voters of CFD No. 2025-1 and CFD No. 2025-2 ballot measures on the approval of the special taxes and appropriations limits for CFD No. 2025-1 and CFD No. 2025-2. The Resolutions also designate the rest of the City as future annexation areas pursuant to which future property owners may annex their properties to CFD No. 2025-1 and CFD No. 2025-2 by submitting a unanimous consent and waiver and without the need for a future public hearing or election On file with the City Clerk are a Certificate of the Registrar of Voters of Riverside County for both CFD No. 2025-1 and CFD No. 2025-2, certifying that there are no registered voters residing within the boundaries of each CFD. Accordingly, under the Mello-Roos Act, only property owners owning land are eligible to vote at the elections, with each owner having one vote for each acre (or portion thereof) that they own within CFD No. 2025-1 and CFD No. 2025-2. The Property Owner has executed a consent and waiver of certain election procedures for each of CFD No. 2025-1 and CFD No. 2025-2 with respect to the elections, including certain timing requirements with respect to the elections, in accordance with the Mello-Roos Act. Accordingly, if the City Council approves Resolutions of Formation, the City Clerk will conduct the elections. The Property Owner will have delivered its ballots for CFD No. 2025-1 and CFD No. 2025-2 to the City Clerk in advance of the public hearings, the City Clerk will announce the election results, and the City Council will be asked to adopt Resolutions Certifying the Election Results for each of CFD No. 2025-1 and CFD No. 2025-2. Upon certification that two-thirds of the votes cast are in favor of the propositions voted upon, the Resolutions Certifying the Election Results will direct the City Clerk to record notices of special tax lien on the property within CFD No. 2025-1 and CFD No. 2025-2. The City Council will then be asked to introduce ordinances authorizing the levy of the special tax within CFD No. 2025-1 and CFD No. 2025-2, in accordance with their respective RMAs.

Future Actions
If the three ordinances authorizing the levy of special taxes within each CFD are introduced, a second reading of each ordinance will be scheduled for the next City Council meeting.

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Agenda Item No. 18.

FISCAL IMPACT
There is no fiscal impact of this action on the City. The Property Owner has made a deposit of $65,000 to pay for the costs of the formation proceedings, which may be reimbursed to the Property Owner from the proceeds of a future bond issuance in accordance with the reimbursement agreement with the Property Owner. If established and subject to necessary Council and voter approvals, each of the CFDs will annually levy special taxes on all the taxable property within the applicable District in accordance with the applicable RMA. Such special taxes will be used to pay for the costs of services or facilities, administration of the CFDs, and, in the case of CFD No. 2025-3, debt service on bonds. Any bonds issued by CFD No. 2025-3 are not obligations of the City and will be secured solely by the Special Taxes levied within CFD No. 2025-3. The levying of special taxes for services is expected to alleviate some of the financial impact of the new development on the costs of providing such services to the Property by the City’s General Fund.

ATTACHMENTS

1. Landowner Waiver (CFD No. 2025-2)

2. Public Hearing Report (CFD No. 2025-2)

3. Resolution No. 25-4822 (CFD No. 2025-2)

4. Resolution No. 25-4823 (CFD No. 2025-2)

5. Ordinance No. 615-25 (CFD No. 2025-2)

6. Certificate of the Registrar of Voters (CFD No. 2025-2) CITY OF MURRIETA Page 6 of 6 Printed on 5/1/2025
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WAIVER OF CERTAIN ELECTION PROCEDURES

WITH RESPECT TO LANDOWNER ELECTION FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE SERVICES)

OF THE CITY OF MURRIETA
The undersigned, Stephen Z. Elieff, acting on behalf of Discovery Village LLC, a Delaware limited liability company (the “Owner”), hereby certifies to the City of Murrieta (the “City”), with respect to the proposed formation of Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta (the “District”), as follows:

Signature of Stephen Z. Elieff: __________________________________

2. The Owner is the present owner of 28.94 acres of land located within the proposed boundaries of the District. To the actual knowledge of the undersigned, there are no registered voters residing within the territory owned by the Owner and have been none during the 90-day period preceding May 6, 2025.

4. The Owner has received from the City and the City has made available to the Owner necessary and relevant information regarding the proposed formation of the District and the imposition of the special tax as set forth in Resolution No. 25-4806 adopted by the City Council on February 4, 2025 (together, the “Resolution”) to finance the services as set forth in the Resolution.

6. The undersigned hereby represents that compliance with the procedural requirements for conducting the election, including the receipt of any ballot arguments and 1865
4911-3671-1963v5/022972-0048
impartial analysis and the time limitations which apply in connection with scheduling, mailing and publishing notices for such an election, are unnecessary in light of the fact that the undersigned has received sufficient information regarding the imposition of the special tax as set forth in the Resolution to allow it to properly complete the attached ballot. The Owner further waives its right to make any protest or complaint or undertake any legal action challenging the validity of the election, the validity of any bonded indebtedness issued by the District as approved at the election, or the levy of the special tax to finance services for the benefit of the District.

Dated: April__, 2025

DISCOVERY VILLAGE LLC,
a Delaware limited liability company
By:___________________________
Name: ________________________
Its: Authorized Signatory
1866
A-1
4911-3671-1963v5/022972-0048

EXHIBIT A

OFFICIAL BALLOT
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE SERVICES)

OF THE CITY OF MURRIETA

SPECIAL TAX ELECTION
May 6, 2025
PROPOSITION A: Shall a special tax with a rate and
method of apportionment as provided in Resolution No.
25-4806 of the City Council of the City of Murrieta
establishing the District be levied to pay for the Services, Incidental Expenses and other purposes described in
Resolution No. 25-4806?
YES______
NO_______
PROPOSITION B: For each year commencing with
Fiscal Year 2025-2026, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for Community Facilities
District No. 2025-2 (Maintenance Services) be an
amount equal to $1,000,000,000?
YES______
NO_______
1867
Public Hearing Report
Community Facilities District No. 2025-2
(Maintenance Services)
April 1, 2025
1868
Table of Contents
Sections Page ____________________________________________ 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 Page ____________________________________________ A Rate and Method of Apportionment ____________________________________ B Proposed Boundary Map _________________________________________ C Resolution of Intention
1869
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.
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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 electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance and servicing of the water quality basin improvements within flood control channel improvements; and (c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 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 expanded from time to time by anticipated annexations, and said 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. 1871
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 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.

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 yearover-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.
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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 the 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. 1873
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 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. The Boundary Map for CFD No. 2025-2 is attached hereto as Appendix B.

Pursuant to Section 53325.3 of the Act, the tax imposed “is a Special Tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property.” The Special Tax may be based on the benefit received by property, the cost of making facilities or authorized services available or other reasonable basis as determined by the City, although the Special Tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Constitution.

For particulars as to the Rate and Method for CFD No. 2025-2, see the attached and incorporated in Appendix A. 1874
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
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Appendix A:

Rate and Method of Apportionment
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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 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 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 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. 2025-2 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 expenses 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.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
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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 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 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 recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 6624 that creates individual lots for which building permits may be issued without further subdivision. “Fiscal Year” means the period from and including July 1st 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.
“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.
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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 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. “Single Family Residential Property” or “SFR” means any Residential Property other than MultiFamily 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 1879
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Community Facilities District No. 2025-2 (Maintenance Services) 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, 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 levied 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 determined by the Administrator; less a credit for funds available to reduce the annual 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 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 Sections C and D below. Assessor’s Parcels of Developed Property and Approved Property shall be classified as either Residential Property or Non-Residential Property. Residential Property shall be further classified as Single Family Residential Property or Multi-Family Residential Property and the number of Residential Units shall be determined by the Administrator.

C. MAXIMUM SPECIAL TAX RATES
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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 classified as Residential Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or 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 Administrator 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 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:

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 1881
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 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 BernardinoOntario 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 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 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 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.

2. Special Tax B (Contingent)
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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, 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. 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 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 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. 1883
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 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 5 below:

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 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 BernardinoOntario 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 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 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.

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 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 1884
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 Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax A to satisfy the Special Tax A Requirement;
Second: If additional moneys are needed to satisfy the Special Tax A Requirement after the first step has been completed, the Special Tax A shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax A for Approved Property; Third: If additional monies are needed to satisfy the Special Tax A Requirement after the first two steps has been completed, the Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax A for Undeveloped Property.

First: The Special Tax B (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax B (Contingent) to satisfy the Special Tax B (Contingent) Requirement;
Second: If additional moneys are needed to satisfy the Special Tax B (Contingent) Requirement after the first step has been completed, the Special Tax B (Contingent) shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax B (Contingent) for Approved Property;
Third: If additional monies are needed to satisfy the Special Tax B (Contingent) Requirement after the first two steps has been completed, the Special Tax B (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax B (Contingent) for Undeveloped Property.

E. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 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. 1885
City of Murrieta 10
Community Facilities District No. 2025-2 (Maintenance Services) 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 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 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.

1886
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 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 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.
1887
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 all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right-of-way, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance and servicing of the water quality basin improvements within flood control channel improvements; and (c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 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 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.
1888
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 1889
Appendix B:

Proposed Boundary Map
1890
1891

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(,
iiWlbtrl� P-""; r-! 'l- ,
"'D-t.1>"� C.."'\ c� �
� • �� iMt, Jj
'f<)(lcITYCLE,� =�!�

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- � � CITYCLER, �t)m�1tA.
�yLCITY OF MURRIETA
� 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
1892
Appendix C:

Resolution of Intention
1893
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 “Government 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 designate 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 parcel 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 CITY 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 shall, upon Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59 1894
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 facilities 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.

Notwithstanding the foregoing, the District shall not record a special tax lien 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 the 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 1895
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 the 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 May 6, 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 not 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 within 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 is established, is hereby directed to study the proposed District and, at or before the time of the above-mentioned Hearing, file a report with the City Council containing a brief description of 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 accept advances of funds or work-in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred in creating Community Facilities District No. 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 district and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing.

Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59 1896
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:
1897
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
1898
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 1899
A
-2
4862-8658-4495v7/022972-0048
Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59 1900
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 other similar landscaped areas officially dedicated for public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and
(b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities.

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

Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59 1901
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)

Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59 1902
C-2
4862-8658-4495v7/022972-0048
“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 NonResidential 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 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 recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 6624 that creates individual lots for which building permits may be issued without further subdivision.
“Fiscal Year” means the period from and including July 1st 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.

Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59 1903
C-3
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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 determined in accordance with Section C below that can be levied on such Assessor’s Parcel in such Fiscal Year.
“Maximum Special Tax B (Contingent)” means for each Assessor’s Parcel and each Fiscal Year, the maximum Special Tax B (Contingent), as 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 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, 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 levied 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 determined by the Administrator; less a credit for funds available to reduce the annual 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 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.

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

C. MAXIMUM SPECIAL TAX RATES
For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Residential Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or 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 Administrator 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 Tax Zone below or as included in Appendix A as future annexations occur.

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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 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, 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 1907
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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 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 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.

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 annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 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 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 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 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 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 each following Fiscal Year, the City Council shall determine the Special Tax A Requirement for each Tax Zone and shall levy the Special Tax A on all Assessor’s Parcels of Taxable Property within such Tax Zone until the aggregate amount of Special Tax A equals the Special Tax A Requirement for such Tax Zone. The Special Tax A shall be levied for each Fiscal Year as follows:

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

First: The Special Tax B (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax B (Contingent) to satisfy the Special Tax B (Contingent) Requirement; Second: If additional moneys are needed to satisfy the Special Tax B (Contingent) Requirement after the first step has been completed, the Special Tax B (Contingent) shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax B (Contingent) for Approved Property; Third: If additional monies are needed to satisfy the Special Tax B (Contingent) Requirement after the first two steps has been completed, the Special Tax B (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax B (Contingent) for Undeveloped Property.

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.

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)

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 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.

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APPENDIX B

CITY OF MURRIETA
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE SERVICES)

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APPENDIX C

CITY OF MURRIETA
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE SERVICES)

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1918
RESOLUTION NO. 25-4822

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MURRIETA, CALIFORNIA, ESTABLISHING
COMMUNITY FACILITIES DISTRICT NO. 2025-2
(MAINTENANCE SERVICES) OF THE CITY OF

MURRIETA, AUTHORIZING THE LEVY OF A SPECIAL

TAX THEREIN, CALLING AN ELECTION AND

APPROVING AND AUTHORIZING CERTAIN ACTIONS

RELATED THERETO
WHEREAS, the City Council (the “City Council”) of the City of Murrieta (the “City”) has heretofore adopted Resolution No. 25-4806 stating its intention to form Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta (“Community Facilities District No. 2025-2 (Maintenance Services)” or the “District”) and a Potential Annexation Area therein (the “Potential Annexation Area”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”); and WHEREAS, a copy of Resolution No. 25-4806 setting forth a description of the proposed boundaries of Community Facilities District No. 2025-2 (Maintenance Services), the proposed boundaries of the Potential Annexation Area, the services and incidental expenses to be financed by the District and the rate and method of apportionment of the special tax proposed to be levied within the District is on file with the City Clerk; and WHEREAS, notice was published and mailed to all landowners of the land proposed to be included within the District as required by law relative to the intention of this City Council to form proposed Community Facilities District No. 2025-2 (Maintenance Services), to designate the Potential Annexation Area proposed for annexation to the District in the future, and to levy a special tax therein to finance the services and incidental expenses described in Resolution No. 25-4806; and
WHEREAS, on April 1, 2025, the public hearing called for such date relative to the proposed formation of Community Facilities District No. 2025-2 (Maintenance Services), the designation of the Potential Annexation Area and the levy of the special tax therein was continued to May 6, 2025; and
WHEREAS, on May 6, 2025, this City Council conducted a noticed public hearing as required by law relative to the proposed formation of Community Facilities District No. 2025-2 (Maintenance Services), the designation of the Potential Annexation Area, and the levy of the special tax therein; and
WHEREAS, at the May 6, 2025, public hearing there was filed with this City Council a report containing a description of the services necessary to meet the needs of the District and an estimate of the cost of such services as required by Section 53321.5 of the Act (the “Engineer’s Report”); and
1919
2 WHEREAS, at the May 6, 2025, public hearing all persons desiring to be heard on all matters pertaining to the formation of Community Facilities District No. 2025-2 (Maintenance Services), the designation of the Potential Annexation Area, and the levy of the special tax were heard and full and fair hearings were held; and
WHEREAS, following the public hearing, this City Council has determined to authorize the formation of the District to finance the types of services (the “Services”) and the incidental expenses (the “Services Incidental Expenses”) set forth in Attachment “B” hereto, which are described in more detail in the Engineer’s Report; and
WHEREAS, at the public hearing evidence was presented to this City Council on the matters before it and the proposed special tax to be levied within the District was not precluded by a majority protest of the type described in Section 53324 of the Act, and this City Council at the conclusion of the hearing was fully advised as to all matters relating to the formation of the District, the designation of the Potential Annexation Area and the levy of the special tax; and WHEREAS, this City Council has determined, based on a Certificate of Registrar of Voters of the County of Riverside on file in the office of the City Clerk, that no registered voters have been residing in the proposed boundaries of Community Facilities District No. 2025-2 (Maintenance Services) for each of the 90 days prior to May 6, 2025, and that the qualified electors in Community Facilities District No. 2025-2 (Maintenance Services) are the landowners within the District; and
WHEREAS, on the basis of all of the foregoing, this City Council has determined to proceed with the establishment of Community Facilities District No. 2025-2 (Maintenance Services) and to call an election therein to authorize (i) the levy of special taxes pursuant to the rate and method of apportionment of the special tax, as set forth in Attachment “A” attached hereto, and (ii) the establishment of an appropriations limit for Community Facilities District No. 2025-2 (Maintenance Services);

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MURRIETA AS FOLLOWS:

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

Section 2. A community facilities district to be designated “Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta” is hereby established pursuant to the Act. The City Council hereby finds and determines that all prior proceedings taken with respect to the establishment of the District were valid and in conformity with the requirements of law, including the Act. This finding is made in accordance with the provisions of Section 53325.1(b) of the Act.
1920
3 Section 3. The boundaries of Community Facilities District No. 2025-2 (Maintenance Services) are established as shown on the map designated “Proposed Boundary Map Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta, County of Riverside, State of California,” which map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the County Book of Maps of Assessment and Community Facilities Districts in the Assessor-County Clerk-Recorder’s office of the County of Riverside in Book No. 95 Page No. 27, on February 20, 2025 as Instrument No. 2025-0050551.

In addition, the boundaries of the Potential Annexation Area are established and designated for future annexation to the District pursuant to Sections 53339.2 and 53339.3 of the Act in accordance with Resolution No. 25-4806, as shown on the map designated “Boundaries— Potential Annexation Area Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta, County of Riverside, State of California,” which map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the County Book of Maps of Assessment and Community Facilities Districts in the Assessor-County Clerk-Recorder’s office of the County of Riverside in Book No. 95 Page No. 26, on February 20, 2025, as Instrument No. 2025-0050550.

Section 4. The types of Services and Services Incidental Expenses authorized to be provided for Community Facilities District No. 2025-2 (Maintenance Services) are those set forth in Attachment “B” attached hereto. The estimated cost of the Services and Services Incidental Expenses to be financed is set forth in the Engineer’s Report, which estimates may change as the Facilities are designed and bid for construction and acquisition, as applicable.

Section 6. Except where funds are otherwise available, it is the intention of this City Council, subject to the approval of the eligible voters of the District, to levy annually a special tax at the rates set forth in Attachment “A” hereto on all non-exempt property within the District sufficient to pay for the Services and the Services Incidental Expenses. The second paragraph of Section 5 of Resolution No. 25-4806 is hereby amended to clarify that, as described in Attachment “C” thereto and Attachment “A” hereto, on each July 1, commencing on July 1, 2026, the special tax 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. The District expects to incur, and in certain cases has already incurred, Services Incidental Expenses in connection with the creation of the District, the levying and collecting of the special tax, and the annual administration of the District. The rate and method of apportionment of the special tax is described in detail in Attachment “A” hereto and incorporated herein by this reference, and the City Council hereby finds that Attachment “A” contains sufficient detail to allow each landowner within the District to estimate the maximum amount that may be levied against each 1921
4 parcel. As described in greater detail in the Engineer’s Report, which is incorporated by reference herein, the special tax is based on the expected demand that each parcel of real property within Community Facilities District No. 2025-2 (Maintenance Services) will place on the Services and on the benefit that each parcel will derive from the right to access the Services and, accordingly, is hereby determined to be reasonable. The special tax shall be levied on each assessor’s parcel so long as the Services are being provided within CFD No. 2025-2 (Maintenance Services). The special tax is apportioned to each parcel on the foregoing bases pursuant to Section 53325.3 of the Act and such special tax is not on or based upon the ownership of real property or the assessed value of real property.

Section 9. Consistent with Section 53325.6 of the Act, the City Council finds and determines that the land within Community Facilities District No. 2025-2 (Maintenance Services), if any, devoted primarily to agricultural, timber or livestock uses and being used for the commercial production of agricultural, timber or livestock products is contiguous to other land within Community Facilities District No. 2025-2 (Maintenance Services) and will be benefited by the Services proposed to be provided within Community Facilities District No. 2025-2 (Maintenance Services).

Section 10. It is hereby further determined that there is no ad valorem property tax currently being levied on property within proposed Community Facilities District No. 2025-2 (Maintenance Services) for the exclusive purpose of paying for the same services to the territory of Community Facilities District No. 2025-2 (Maintenance Services) as are proposed to be provided by the Services to be financed by Community Facilities District No. 2025-2 (Maintenance Services).

Written protests against the establishment of the Potential Annexation Area have not been filed by one-half or more of the registered voters within the boundaries of the Potential Annexation Area or by the property owners of one-half (1/2) or more of the area of land within 1922
5 the Potential Annexation Area. The City Council hereby finds that the proposed special tax has not been precluded by a majority protest pursuant to Section 53339.6 of the Act.

Section 12. An election is hereby called for Community Facilities District No. 2025-2 (Maintenance Services) on the propositions of levying the special tax on the property within Community Facilities District No. 2025-2 (Maintenance Services) and establishing an appropriations limit for the District pursuant to Section 53325.7 of the Act. The language of the propositions to be placed on the ballot is attached hereto as Attachment “C.” Section 13. The date of the election for Community Facilities District No. 2025-2 (Maintenance Services) on the propositions of authorizing the levy of the special tax and establishing an appropriations limit for the District shall be May 6, 2025, or such later date as is consented to by the City Clerk of the City of Murrieta; provided that, if the election is to take place sooner than 90 days after May 6, 2025, then the unanimous written consent of each qualified elector within the District to such election date must be obtained. The polls shall be open for said election immediately following the public hearing. The election shall be conducted by the City Clerk. Except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City of Murrieta insofar as such provisions are determined by the City Clerk to be applicable. The City Clerk is authorized to conduct the election following the adoption of this resolution, and all ballots shall be received by, and the City Clerk shall close the election by, 11:00 p.m. on the election day; provided the election shall be closed at such earlier time as all qualified electors have voted as provided in Section 53326(d) of the Act. Pursuant to Section 53326 of the Act, the ballots for the special election shall be distributed in person, or by mail with return postage prepaid, to the qualified electors within Community Facilities District No. 2025-2 (Maintenance Services). The City Clerk has secured a certificate of the Certificate of Registrar of Voters of the County of Riverside certifying that there were no registered voters within the District. Accordingly, since there were fewer than 12 registered voters within the District for each of the 90 days preceding May 6, 2025, the qualified electors shall be the landowners within the District and each landowner, or the authorized representative thereof, shall have one vote for each acre or portion thereof that such landowner owns within Community Facilities District No. 2025-2 (Maintenance Services), as provided in Section 53326 of the Act. The landowners within the District have executed and delivered waivers of certain election law requirements and consenting to the holding of the election on May 6, 2025, which waivers are on file with the City Clerk.

Section 14. The preparation of the Engineer’s Report is hereby ratified. The Engineer’s Report, as submitted, is hereby approved and was made a part of the record of the public hearing regarding the formation of Community Facilities District No. 2025-2 (Maintenance Services). The Engineer’s Report is ordered to be kept on file with the transcript of these proceedings and open for public inspection.

Section 15. The District may accept advances of funds or work-in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred in creating Community Facilities District No. 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 1923
6 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 16. This Resolution shall be effective upon its adoption.

PASSED AND ADOPTED this 6th day of May, 2025.
____________________________
Cindy Warren, Mayor
ATTEST:
_____________________________
Cristal McDonald, City Clerk
APPROVED AS TO FORM:
_____________________________
Tiffany Israel, City Attorney

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )§

CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, California, do hereby certify that the foregoing Resolution No. 25-4822 was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the 6th day of May, 2025, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
Cristal McDonald, City Clerk
1924
A-1
ATTACHMENT “A”

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE SERVICES)

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. 2025-2 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 expenses 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. 1925
A-2
“Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County.
“Building Square Footage” or “BSF” means the floor area square footage reflected on the original 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 NonResidential 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 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 recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 6624 that creates individual lots for which building permits may be issued without further subdivision.
1926
A-3
“Fiscal Year” means the period from and including July 1st 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.
“Maximum Special Tax” means either Maximum Special Tax A and/or Maximum Special Tax B (Contingent), as applicable.
“Maximum Special Tax A” means for each Assessor’s Parcel and each Fiscal Year, the maximum Special Tax A, as determined in accordance with Section C below that can be levied on such Assessor’s Parcel in such Fiscal Year.
“Maximum Special Tax B (Contingent)” means for each Assessor’s Parcel and each Fiscal Year, the maximum Special Tax B (Contingent), as 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 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.
1927
A-4
“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. “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, 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 levied 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 determined by the Administrator; less a credit for funds available to reduce the annual 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. 1928
A-5
"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 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.

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 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 1930
A-7
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 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 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 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.

2. Special Tax B (Contingent)
1931
A-8
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.

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 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
1932
A-9
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 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 5 below:

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 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 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:
1933
A-10
TABLE 6

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

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 determine the Special Tax A Requirement for each Tax Zone and shall levy the Special Tax A on all Assessor’s Parcels of Taxable Property within such Tax Zone until the aggregate amount of Special Tax A equals the Special Tax A Requirement for such Tax Zone. The Special Tax A shall be levied for each Fiscal Year as follows:

First: The Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax A to satisfy the Special Tax A Requirement;
Second: If additional moneys are needed to satisfy the Special Tax A Requirement after the first step has been completed, the Special Tax A shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax A for Approved Property;
Third: If additional monies are needed to satisfy the Special Tax A Requirement after the first two steps has been completed, the Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax A for Undeveloped Property.

2. Special Tax B (Contingent)
Commencing with the first Fiscal Year in which Special Tax B (Contingent) is authorized to be levied and for each following Fiscal Year, the City Council 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:
1934
A-11
First: The Special Tax B (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax B (Contingent) to satisfy the Special Tax B (Contingent) Requirement; Second: If additional moneys are needed to satisfy the Special Tax B (Contingent) Requirement after the first step has been completed, the Special Tax B (Contingent) shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax B (Contingent) for Approved Property;
Third: If additional monies are needed to satisfy the Special Tax B (Contingent) Requirement after the first two steps has been completed, the Special Tax B (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax B (Contingent) for Undeveloped Property.

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

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

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 1935
A-12
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).

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. 1936
A-13

APPENDIX A

CITY OF MURRIETA
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE SERVICES)

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

APPENDIX B

CITY OF MURRIETA
COMMUNITY FACILITIES DISTRICT NO. 2025-2
(MAINTENANCE SERVICES)

APPENDIX C
Proposed Boundaries
Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta,
Riverside County, California
1940
A
-17
1941
A
-18
1942
B-1
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 other similar landscaped areas officially dedicated for public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and
(b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities.

BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE SERVICES)

OF THE CITY OF MURRIETA

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MURRIETA, CALIFORNIA, ACTING IN ITS CAPACITY

AS THE LEGISLATIVE BODY OF COMMUNITY
FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE

SERVICES) OF THE CITY OF MURRIETA CERTIFYING

ELECTION RESULTS
WHEREAS, the City Council (the “City Council”) of the City of Murrieta called and duly held an election on May 6, 2025 within the boundaries of Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta (“Community Facilities District No. 2025-2” or the “District”) pursuant to Resolution No. 25-4822 for the purpose of presenting to the qualified electors within the District Propositions A and B attached hereto as Exhibit A; and WHEREAS, there has been presented to this City Council a certificate of the City Clerk canvassing the results of the election, a copy of which is attached hereto as Exhibit B;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MURRIETA AS FOLLOWS:

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

Section 2. Propositions A and B presented to the qualified electors of the District on May 6, 2025 were approved by two-thirds or more of the votes cast at said election and Propositions A and B each has carried. The City Council, acting as the legislative body of the District, is hereby authorized to levy on the land within the District the special tax described in Proposition A for the purposes described therein.

Section 4. This Resolution shall be effective upon its adoption. 1945
2 PASSED AND ADOPTED this 6th day of May, 2025.
____________________________
Cindy Warren, Mayor
ATTEST:
_____________________________
Cristal McDonald, City Clerk
APPROVED AS TO FORM:
_____________________________
Tiffany Israel, City Attorney

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )§

CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, California, do hereby certify that the foregoing Resolution No. 25-4823 was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the 6th day of May, 2025, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
Cristal McDonald, City Clerk
1946
A-1

EXHIBIT A

BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE SERVICES)

OF THE CITY OF MURRIETA

EXHIBIT B

CERTIFICATE OF CITY CLERK

AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS I, Cristal McDonald, City Clerk of the City of Murrieta, do hereby certify that I have examined the returns of the Special Tax Election for Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta. The election was held in the City of Murrieta Council Chambers, 1 Town Square, Murrieta, California, on May 6, 2025. I caused to be delivered ballots to each qualified elector. One (1) ballot was returned.

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

PROPOSITION A PROPOSITION B
YES: YES:

NO: NO:

TOTAL: TOTAL:

Dated this 6th day of May, 2025.

CRISTAL MCDONALD, CITY CLERK
1948
ORDINANCE NO. 615-25

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

MURRIETA, CALIFORNIA ACTING IN ITS CAPACITY

AS THE LEGISLATIVE BODY OF COMMUNITY
FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE

SERVICES) OF THE CITY OF MURRIETA

AUTHORIZING THE LEVY OF SPECIAL TAXES
WHEREAS, on February 4, 2025, the City Council (the “City Council”) of the City of Murrieta (the “City”) adopted Resolution No. 25-4806 declaring its intention to form Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta (the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, comprising Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”); and
WHEREAS, on April 1, 2025, the City Council continued the public hearing called for such date to May 6, 2025; and
WHEREAS, on May 6, 2025, after providing all notice required by the Act, the City Council conducted a noticed public hearing required by the Act relative to the proposed formation of the District, the proposed levy of a special tax therein to finance certain maintenance services described in Resolution No. 25-4806; and WHEREAS, at the May 6, 2025 public hearing, all persons desiring to be heard on all matters pertaining to the formation of the District and the proposed levy of the special tax to finance the maintenance services described in Resolution No. 25-4806 were heard and a full and fair hearing was held; and
WHEREAS, on May 6, 2025, the Board adopted Resolution No. 25-4822 which formed the District and called a special election within the District on May 6, 2025 on two propositions relating to the levy of a special tax within the District and the establishment of an appropriations limit within the District; and
WHEREAS, on May 6, 2025, a special election was held within the District at which the qualified electors approved by two-thirds or more vote Propositions A and B authorizing the levy of a special tax within the District for the purposes described in Resolution No. 25-4822 and establishing an appropriations limit for the District; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MURRIETA

ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE SERVICES) OF THE CITY OF MURRIETA ORDAINS AS FOLLOWS:

Section 1. The above recitals are all true and correct. 1949
2 Section 2. By the passage of this Ordinance, the Board authorizes and levies special taxes within the District pursuant to Sections 53328 and 53340 of the Act at the rates and in accordance with the rate and method of apportionment set forth in Attachment “A” to Resolution No. 25-4822, which is incorporated by reference herein (the “Rate and Method”). The special taxes are hereby levied commencing in the fiscal year specified in the Rate and Method and in each fiscal year thereafter so long as the services authorized to be financed by the District, are provided through such financing within the District.

Section 3. Each of the Mayor, the City Manager, the Assistant City Manager, Director of Finance, or their written designees (each, an “Authorized Officer”), acting alone, is hereby authorized and directed each fiscal year to determine the specific special tax rates and amounts to be levied in such fiscal year on each parcel of real property within the District, in the manner and as provided in the Rate and Method. The special tax rate levied on a parcel pursuant to the Rate and Method shall not exceed the maximum rate set forth in the Rate and Method for such parcel, but the special tax may be levied at a lower rate. Each Authorized Officer is hereby authorized and directed to provide all necessary information to the Treasurer-Tax Collector of the County of Riverside and to otherwise take all actions necessary in order to effect proper billing and collection of the special tax, so that the special tax shall be levied and collected in sufficient amounts and at times necessary to satisfy the financial obligations of the District in each fiscal year.

Section 4. Properties or entities of the state, federal or other local governments shall be exempt from the special tax, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act and Section G of the Rate and Method. No other properties or entities are exempt from the special tax unless the properties or entities are expressly exempted in Resolution No. 25- 4822, or in a resolution of consideration to levy a new special tax or special taxes or to alter the rate or method of apportionment or an existing special tax as provided in Section 53334 of the Act.

Section 5. All of the collections of the special tax shall be used as provided for in the Act, the Rate and Method and Resolution No. 25-4822.

Section 7. The Mayor of the City shall sign this Ordinance and the City Clerk or Deputy City Clerk (referred to herein as the “City Clerk”) shall attest to the Mayor’s signature and then cause the same to be published within fifteen (15) days after its passage at least once in The Press Enterprise, a newspaper of general circulation published and circulated in the City of Murrieta.

Section 8. The specific authorization for adoption of this Ordinance is pursuant to the provisions of Section 53340 of the Act.
1950
3 Section 9. The City Clerk is hereby authorized to transmit a certified copy of this ordinance to the Treasurer-Tax Collector of the County of Riverside, and to perform all other acts which are required by the Act, this Ordinance or by law in order to accomplish the purpose of this Ordinance.

Section 11. This Ordinance shall take effect thirty days after its final passage.

PASSED AND ADOPTED this ___ day of ________, 202__.

Cindy Warren, Mayor
ATTEST:

Cristal McDonald, City Clerk
APPROVED AS TO FORM:

Tiffany J. Israel, City Attorney
1951
4 STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )§

CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, California, do hereby certify that the foregoing Ordinance No. 615-25 was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the ___th day of _______, 202__, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following
vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Cristal McDonald, City Clerk
I, Cristal McDonald, City Clerk of the City of Murrieta, California further certify that Ordinance No. 615-25 was duly published according to law and the order of the City Council of said City and the same was so published in Press Enterprise, a newspaper of general circulation on the following date(s):

Adopted Ordinance: , 2025.

In witness whereof, I have hereunto subscribed my name this __ day of ______________, 2025.

Cristal McDonald, City Clerk
1952
1953

CITY OF MURRIETA
City Council Meeting Agenda
Report
5/6/2025
Agenda Item No. 19.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Javier Carcamo, Finance Director
SUBJECT:

Formation of Community Facilities District No. 2025-3 (Discovery Village) of the City of Murrieta

RECOMMENDATION
Hold a Public Hearing regarding the formation of Community Facilities District No. 2025-3 (Discovery Village) of the City of Murrieta;
Adopt Resolution No. 25-4824, entitled: A Resolution of the City Council of the City of Murrieta, California, Establishing Community Facilities District No. 2025-3 (Discovery Village) of the City of Murrieta, Authorizing the Levy of a Special Tax Therein, Calling an Election and Approving and Authorizing Certain Actions Related Thereto;
Adopt Resolution No. 25-4825, entitled: A Resolution of the City Council of the City of Murrieta, California, Acting as the Legislative Body of Community Facilities District No. 2025-3 (Discovery Village) of the City of Murrieta, Determining the Necessity to Incur Bonded Indebtedness in an Amount Not to Exceed $27,500,000 Within Community Facilities District No. 2025-3 (Discovery Village) of the City of Murrieta and Calling an Election Therein;
Direct the City Clerk to hold an election within CFD No. 2025-3; Adopt Resolution No. 25-4826 entitled: A Resolution of the City Council of the City of Murrieta, California, Acting in its Capacity as the Legislative Body of Community Facilities District No. 2025-3 (Discovery Village) of the City of Murrieta Certifying Election Results;
Introduce Ordinance No. 616-25, entitled: An Ordinance of the City Council of the City of Murrieta, California, Acting in its Capacity as the Legislative Body of Community Facilities District No. 2025-3 (Discovery Village) of the City of Murrieta Authorizing the Levy of Special Taxes; and Approve a Joint Community Facilities Agreement with Eastern Municipal Water District for Community Facilities District No. 2025-3 (Discovery Village) of the City of Murrieta.

PRIOR ACTION/VOTE
On October 3, 2023, the City Council considered an amendment to the Community Facilities District Goals CITY OF MURRIETA Page 1 of 6 Printed on 5/1/2025
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Agenda Item No. 19.

On October 3, 2023, the City Council considered an amendment to the Community Facilities District Goals and Policies and directed staff to present the recommendations in a workshop (Vote: 3-2).

On December 5, 2023, the City Council held a workshop on and adopted the proposed Amendment to the Community Facilities District Goals and Policies (Non-Action Item).

On December 5, 2023, the City Council adopted Resolution No. 23-4717, amending and restating the Community Facilities District Goals and Policies (Vote: 5-0).

On April 1, 2025, the City Council opened the public hearing on the formation and continued it until May 6, 2025 (Vote: 4-0-1).

CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.

BACKGROUND
On December 5, 2023, the City Council amended the City’s Community Facilities District Goals and Policies.

Eastern Municipal Water District (EMWD) previously established a facilities CFD for the Discovery Village project for approximately $18 million in bond proceeds for improvements with a 2.0% overall effective tax rate that included the $125 assessment per Residential Unit (RU) for the rooftop Fire, Community Services District CITY OF MURRIETA Page 2 of 6 Printed on 5/1/2025
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Agenda Item No. 19.
that included the $125 assessment per Residential Unit (RU) for the rooftop Fire, Community Services District (CSD), and Park & Recreation, for basic public services and a potential LLD of approximately $200 per RU for Project specific landscaping and lighting from the City. At its March 19, 2025, board meeting, EMWD, at the request of the Property Owner, canceled the previously established CFD in anticipation of the formation of the City’s proposed CFDs.

On February 4, 2025, the City Council adopted various resolutions declaring its intention to form Community Facilities District No. 2025-1 (Safety Services) of the City of Murrieta (CFD No. 2025-1), Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta (CFD No. 2025-2) and Community Facilities District No. 2025-3 (Discovery Village) of the City of Murrieta (CFD No. 2025-3), and setting public hearings for April 1, 2025, on the formations of each CFD. On April 1, 2025, the City Council continued the public hearing scheduled for that date to May 6, 2025. The City Council will now be asked to hold three separate public hearings to consider forming each CFD and, if approved, following the public hearings, hold three separate special elections within each CFD regarding the levy of special taxes within each CFD.

Discovery Village Project and Community Facilities District No. 2025-3 The Property Owner submitted a petition requesting that the City form CFD No. 2025-3. The Property Owner has requested that the City form CFD No. 2025-3 to encompass the Property in accordance with the MelloRoos Act to finance the costs of certain public improvements through the levy of a special tax and the issuance of bonds. The maximum amount of bonded indebtedness proposed is $27.5 million. The proceeds of bonds issued by CFD No. 2025-3 are expected to be used to finance public facilities to be owned and operated by the City and by EMWD, as well as financing the payment of DIF owed by the Property Owner to the City and EMWD.

The Property Owner has requested that the boundaries of CFD No. 2025-3 include the area described in Attachment A of the Resolution of Intention to Establish CFD No. 2025-3 adopted by the City Council on February 4, 2025, (CFD No. 2025-3 Resolution of Intention) and that special taxes be levied within the boundaries of CFD No. 2025-3 in accordance with the Rate and Method of Apportionment for CFD No. 2025-3 (CFD No. 2025-3 RMA) described in Attachment C to the Resolution of Intention. The proposed rates of the special tax range from $3,086.76 per unit for single-family homes less than 1,350 square feet to $4,772 per unit for single-family homes greater than 2,400 square feet and also include tax rates of $69,954 per acre of multi-family property and non-residential property. The special tax rates within CFD No. 2025-3 will increase two percent (2.0%) annually on July 1, of each year, commencing July 1, 2026.

The CFD No. 2025-3 Resolution of Intention was the first step in the process of forming CFD No. 2025-3 and, together with the Resolution of Intention to Incur Bonded Indebtedness by CFD No. 2025-3 adopted by the City Council on February 4, 2025, declared the City’s intention to establish CFD No. 2025-3 incur bonded indebtedness by CFD No. 2025-3, and called for a public hearing to take place on April 1, 2025. Notice of the Public Hearing was published in The Press-Enterprise and mailed to the Property Owner. On April 1, 2025, the City Council continued the public hearing called for such date to May 6, 2025.

In connection with the public hearing, Spicer Consulting Group has prepared a Public Hearing Report which describes and analyzes the facilities to be financed by CFD No. 2025-3 and the estimated costs of such facilities. Following the close of the public hearing, the City Council will be asked to adopt the Resolution of Formation for CFD No. 2025-3 and the Resolution Determining Necessity to Incur Bonded Indebtedness by CFD No. 2025-3 which, together, approve the formation of the CFD No. 2025-3, the levy of the special taxes in CFD No. 2025-3 in accordance with the CFD No. 2025-3 RMA and determines the necessity for the Facilities CFD to issue bonds in an amount not to exceed $27,500,000. Such resolutions call for an election to submit to the qualified voters of the CFD No. 2025-3 ballot measures on the approval of the special taxes, the issuance of bonds, and an appropriations limit for the CFD No. 2025-3.

The CFD No. 2025-3 Resolution of Formation also approves the execution and delivery of an Acquisition CITY OF MURRIETA Page 3 of 6 Printed on 5/1/2025
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Agenda Item No. 19.

The CFD No. 2025-3 Resolution of Formation also approves the execution and delivery of a Joint Community Facilities Agreement (Water District JCFA) with Eastern Municipal Water District (Water District) and the Developer, relating to certain facilities proposed to be financed by the District and owned and operated by the Water District. The form of the Water District JCFA is on file with the City Clerk.

On file with the City Clerk is a Certificate of the Registrar of Voters of Riverside County certifying that there are no registered voters residing within the boundaries of CFD No. 2025-3. Accordingly, under the Mello-Roos Act, only property owners owning land in CFD No. 2025-3 are eligible to vote in the election for CFD No. 2025-3, with each owner having one vote for each acre (or portion thereof) that they own within CFD No. 2025-3. The Property Owner has executed a consent and waiver of certain election procedures with respect to the election, including certain timing requirements with respect to the election, in accordance with the Mello-Roos Act. This allows the special election to be held on the same day as the formation. Accordingly, if the City Council approves the Resolution of Formation and the Resolution Determining Necessity to Incur Bonded Indebtedness, the City Clerk will conduct the election. The Property Owner will have delivered their ballot to the City Clerk in advance of the public hearing, and the City Clerk will announce the election results, and the City Council will be asked to adopt the Resolution Certifying the Election Results. Upon certification that twothirds of the votes cast are in favor of the propositions voted upon in CFD No. 2025-3, the Resolution Certifying the Election Results will direct the City Clerk to record a notice of special tax lien on the property within CFD No. 2025-3. The City Council will then be asked to introduce the ordinance authorizing the levy of the special tax within CFD No. 2025-3, in accordance with the CFD No. 2025-3 RMA.

Although the Project was not conditioned to form CFD 2025-1, the request to form the Public Safety Services CFD will allow the project to mitigate its cost of public safety services brought on by the new residential units CITY OF MURRIETA Page 4 of 6 Printed on 5/1/2025
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Agenda Item No. 19.

CFD will allow the project to mitigate its cost of public safety services brought on by the new residential units within the Project. The Property Owner has agreed to include these additional service costs.

The Maintenance Services CFD will provide funding for enhanced public maintenance services to include landscape maintenance, lighting, street sweeping and pavement management, park and trails maintenance, drainage and stormwater maintenance, and graffiti abatement. The ability to finance these Project-specific costs will alleviate the General Fund from subsidizing those services created by the new development of the Project and eliminate the additional costs incurred from the general benefit portion of those costs identified with each LLD formed, provided, however, that the costs must be additional services under the Act which has generally been determined to be the impact of the project on these services. The Property Owner has agreed to include these additional Maintenance Service costs.

On file with the City Clerk is a Certificate of the Registrar of Voters of Riverside County for both CFD No. 2025- 1 and CFD No. 2025-2, certifying that there are no registered voters residing within the boundaries of each CFD. Accordingly, under the Mello-Roos Act, only property owners owning land are eligible to vote at the elections, with each owner having one vote for each acre (or portion thereof) that they own within CFD No. 2025-1 and CFD No. 2025-2. The Property Owner has executed a consent and waiver of certain election procedures for each of CFD No. 2025-1 and CFD No. 2025-2 with respect to the elections, including certain timing requirements with respect to the elections, in accordance with the Mello-Roos Act. Accordingly, if the City Council approves Resolutions of Formation, the City Clerk will conduct the elections. The Property Owner will have delivered its ballots for CFD No. 2025-1 and CFD No. 2025-2 to the City Clerk in advance of the public hearings, the City Clerk will announce the election results, and the City Council will be asked to adopt Resolutions Certifying the Election Results for each of CFD No. 2025-1 and CFD No. 2025-2. Upon certification that two-thirds of the votes cast are in favor of the propositions voted upon, the Resolutions Certifying the Election Results will direct the City Clerk to record notices of special tax lien on the property CITY OF MURRIETA Page 5 of 6 Printed on 5/1/2025
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Agenda Item No. 19.

Certifying the Election Results will direct the City Clerk to record notices of special tax lien on the property within CFD No. 2025-1 and CFD No. 2025-2. The City Council will then be asked to introduce ordinances authorizing the levy of the special tax within CFD No. 2025-1 and CFD No. 2025-2, in accordance with their respective RMAs.

Future Actions
If the three ordinances authorizing the levy of special taxes within each CFD are introduced, a second reading of each ordinance will be scheduled for the next City Council meeting.

Such special taxes will be used to pay for the costs of services or facilities, administration of the CFDs, and, in the case of CFD No. 2025-3, debt service on bonds. Any bonds issued by CFD No. 2025-3 are not obligations of the City and will be secured solely by the Special Taxes levied within CFD No. 2025-3. The levying of special taxes for services is expected to alleviate some of the financial impact of the new development on the costs of providing such services to the Property by the City’s General Fund.

ATTACHMENTS

1. Landowner Waiver (CFD No. 2025-3)

2. Public Hearing Report (CFD No. 2025-3)

3. Resolution No. 25-4824 (CFD No. 2025-3)

4. Resolution No. 25-4825 (CFD No. 2025-3)

5. Resolution No. 25-4826 (CFD No. 2025-3)

6. Ordinance No. 616-25 (CFD No. 2025-3)

7. Certificate of the Registrar of Voters (CFD No. 2025-3)

8. Acquisition Agreement for Murrieta CFD 2025-3 (Discovery Village)

9. Joint Community Facilities Agreement with Eastern Municipal Water District CITY OF MURRIETA Page 6 of 6 Printed on 5/1/2025
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WAIVER OF CERTAIN ELECTION PROCEDURES

WITH RESPECT TO LANDOWNER ELECTION FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-3 (DISCOVERY VILLAGE)

OF THE CITY OF MURRIETA
The undersigned, Stephan Z. Elieff, acting on behalf of Discovery Village LLC, a Delaware limited liability company (the “Owner”), hereby certifies to the City of Murrieta (the “City”), with respect to the proposed formation of Community Facilities District No. 2025-3 (Discovery Village) of the City of Murrieta (the “District”), as follows:

1. The undersigned has been duly authorized by the Owner and possesses all authority necessary to execute this Waiver on behalf of the Owner in connection with the election to be called by the City Council of the City with respect to the District. The Owner hereby appoints Stephen Z. Elieff to act as its authorized representative to vote in the election referred to herein and certifies that his true and exact signature is set forth below:

Signature of Stephen Z. Elieff: __________________________________

3. The Owner has received notice of the May 6, 2025 public hearing to be held by the City Council of the City regarding the levy of a special tax in the District and the incurring of bonded indebtedness by the District. The Owner agrees that it received adequate notice of the May 6, 2025 hearing.

4. The Owner has received from the City and the City has made available to the Owner necessary and relevant information regarding the proposed formation of the District and the imposition of the special tax and the issuance of bonded indebtedness, as set forth in Resolution Nos. 25-4807 and 25-4808 adopted by the City Council on February 4, 2025 (together, the “Resolutions”) to finance the facilities as set forth in the Resolutions.

5. The undersigned understands that if the District is formed on or after May 6, 2025, an election will be held by the District on the propositions set forth in the sample ballot attached hereto as Exhibit “A” less than 90 days after the close of the May 6, 2025 public hearing as in accordance with Section 53326 of the Government Code, without the preparation of an impartial analysis, arguments or rebuttals concerning the election as provided for by Elections Code Sections 9160 to 9167, inclusive, and 9190 and without preparation of a tax rate statement as provided in Section 9401 of the Elections Code and without further notice of such election as required pursuant to the Elections Code or the Government Code. Having been fully advised with respect to the election, in accordance with the authority contained in Government Code Sections 53326 and 53327, the Owner waives compliance with the foregoing provisions of the Elections Code and Government Code, with any time limits or other procedural requirements pertaining to the conduct of the election which are not being complied with and consents to having the election on any date on or after the close of the May 6, 2025 public hearing and 1960
2 4899-8123-2931v5/022972-0049
consents to the closing of the election as soon as all ballots are received by the City Clerk or Deputy City Clerk.

6. The undersigned hereby represents that compliance with the procedural requirements for conducting the election, including the receipt of any ballot arguments and impartial analysis and the time limitations which apply in connection with scheduling, mailing and publishing notices for such an election, are unnecessary in light of the fact that the undersigned has received sufficient information regarding the imposition of the special tax and the issuance of bonded indebtedness as set forth in the Resolutions to allow it to properly complete the attached ballot. The Owner further waives its right to make any protest or complaint or undertake any legal action challenging the validity of the election, the validity of any bonded indebtedness issued by the District as approved at the election, or the validity of the authorization of the special tax to finance facilities for the benefit of the District or to repay bonded indebtedness issued by the District in accordance with the rate and method of apportionment of special taxes provided in Resolution No. 25-4807 of the City Council of the City.

Dated: April__, 2025

DISCOVERY VILLAGE LLC,
a Delaware limited liability company
By:___________________________
Name: ________________________
Its: Authorized Signatory
1961
A-1
4899-8123-2931v5/022972-0049

EXHIBIT A
SAMPLE

OFFICIAL BALLOT
COMMUNITY FACILITIES DISTRICT NO. 2025-3 (DISCOVERY VILLAGE)

OF THE CITY OF MURRIETA

SPECIAL TAX AND SPECIAL BOND ELECTION
May 6, 2025
PROPOSITION A: Shall Community Facilities District
No. 2025-3 (Discovery Village) of the City of Murrieta
(the “District”) incur an indebtedness and issue bonds in one or more series in the maximum aggregate principal
amount of $27,500,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and the Incidental Expenses
described in Resolution No. 25-4807 of the City Council of the City of Murrieta?
PROPOSITION B: Shall a special tax with a rate and
method of apportionment as provided in Resolution No.
25-4807 of the City Council of the City of Murrieta be
levied to pay for the Facilities, Incidental Expenses and other purposes described in Resolution No. 25-4807,
including the payment of the principal of and interest on bonds issued to finance the Facilities and Incidental
Expenses?
YES______
NO_______
YES______
NO_______
PROPOSITION C: For each year commencing with
Fiscal Year 2025-26, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for the District be an
amount equal to $10,000,000?
YES______
NO_______
1962
Public Hearing Report
Community Facilities District No. 2025-3
(Discovery Village)
April 1, 2025
1963
Table of Contents
Sections Page ____________________________________________ 1 Introduction ______________________________________________________ 1 2 Description of Facilities ___________________________________________________ 2 3 Cost Estimate ______________________________________________________ 3 4 Proposed Development ___________________________________________________ 5 5 Rate and Method of Apportionment _________________________________________ 6 6 Certifications ______________________________________________________ 7 Tables Page
3-1 Cost Estimate ______________________________________________________ 3 5-1 Assigned Special Tax for Developed Property _________________________________ 6 Appendices Page ____________________________________________ A Rate and Method of Apportionment ____________________________________ B Proposed Boundary Map _________________________________________ C Resolution of Intention
1964
1 Introduction Page | 1
City of Murrieta
CFD No. 2025-3 (Discovery Village)
Public Hearing Report
Background
On February 4, 2025 the City Council (the “City Council”) of the City of Murrieta (the “City”), adopted a Resolution of Intention to form Community Facilities District No. 2025-3 (Discovery Village) of the City of Murrieta (“CFD No. 2025-3” or “District”), Resolution No. 2025-4807, pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter

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

CFD No. 2025-3 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. 2025-3 please see Appendix B.

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

1. A brief description of CFD No. 2025-3;

2. A brief description of the Facilities required at the time of formation to meet the needs of CFD No. 2025-3.

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

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

For particulars, reference is made to the Resolution of Intention as previously approved and adopted and is included in Appendix C.
1965
2 Description of Facilities Page | 2
City of Murrieta
CFD No. 2025-3 (Discovery Village)
Public Hearing Report
NOW, THEREFORE, the undersigned, authorized representative of Spicer Consulting Group, LLC, the appointed responsible officer, or person directed to prepare this Report, does hereby submit the following data:

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

The types of facilities that are proposed by CFD No. 2025-3 and financed with the proceeds of special taxes and bonds issued by CFD No. 2025-3 consist of the construction, purchase, modification, expansion, rehabilitation and/or improvement of (i) storm drainage, library, park, law enforcement, fire, streets and bridges, traffic, administration and community center facilities, and other public facilities of the City, including the foregoing public facilities which are included in the City’s fee programs with respect to such facilities and authorized to be financed under the Act (the “City Facilities”) and (ii) water and sewer facilities including the acquisition of capacity in the sewer system and/or water system of the Eastern Municipal Water District which are included in Eastern Municipal Water District’s water and sewer capacity and connection fee programs (the “Water District Facilities” and, together with the City Facilities, the “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities.

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

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

All costs associated with the creation of CFD No. 2025-3, the issuance of bonds, the determination of the amount of special taxes to be levied, costs incurred in order to carry out the authorized purposes of CFD No. 2025-3, including legal fees, fees of consultants, engineering, planning, designing and the annual costs to administer CFD No. 2025-3 and any obligations.

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

The final plans and specifications approved by the applicable public agency may show substitutes or modifications in order to accomplish the work or serve the new development and any such substitution or modification shall not constitute a change or modification in the proceedings relating to CFD No. 2025-3. 1966
3 Cost Estimate Page | 3
City of Murrieta
CFD No. 2025-3 (Discovery Village)
Public Hearing Report
Below is the estimated cost of facilities to be provided to the District. a) The cost estimate of facilities, including incidental expenses, to be financed through the issuance of CFD No. 2025- 3 Bonds is estimated to be $23,195,000 based upon current dollars (Fiscal Year 2025-26). b) For further particulars please reference Table 3-1 below and incorporated herein by reference. c) Pursuant to Section 53340 of the Act, the proceeds of any special tax levied and collected by CFD No. 2025-3 may be used only to pay for the cost of providing public facilities, services, and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the annual costs associated with determination of the amount of special taxes, collection of special taxes, payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the District. The incidental expenses associated with the annual administration of CFD No. 2025-3 are estimated to be $35,000 in the initial Fiscal Year. However, it is anticipated that the incidental expenses will vary due to inflation and other factors that may not be foreseen today, and the actual incidental expenses may exceed these amounts accordingly.

Table 3-1
Cost Estimate
City Fees Total Bond Allocation(1)
Law Enforcement $152,205 $152,205
Fire Facilities $162,060 $162,060
Streets & Bridges $1,390,285 $1,390,285
Traffic Signals $266,450 $266,450
Storm Drainage $110,960 $110,960
General Facilities $61,320 $61,320
Park Land Facilities $1,112,885 $1,112,885
Community Center $194,545 $194,545
Public Library $98,550 $98,550
Total City Fees $3,549,260 $3,549,260

City Facilities Total Bond Allocation(1)
Storm Drainage $3,379,819 $3,379,819
Street Improvements $2,499,533 $2,499,533
Landscaping / Fencing / Signage $1,460,625 $1,460,625
Design & Permit Fees @ 15% $1,100,997 $1,100,997
Total City Facilities $8,440,974 $8,440,974

Eastern Municipal Water District Fees Total Bond Allocation(1) Sewer Treatment Plant Capacity Charge $2,404,985 $2,404,985 Water Financial Participation Charge $2,706,840 $2,706,840 Water Supply Development Fee $147,095 $147,095
(MARS) Area B $2,505,725 $2,505,725
Total Eastern Municipal Water District Fees $7,764,645 $7,764,645

Eastern Municipal Water District Facilities Total Bond Allocation(1) Sanitary Sewer $509,940 $187,175
Domestic Water $1,148,820 $0
Design & Permit Fees $248,814 $0
Total Eastern Municipal Water District Facilities $1,907,574 $187,175 1967
3 Cost Estimate Page | 4
City of Murrieta
CFD No. 2025-3 (Discovery Village)
Public Hearing Report
Table 3-1
Cost Estimate (Continued)
Total Eligible Fees/Improvements $21,662,453 $19,942,054 Incidental Financing Costs $3,252,946
Total Funded by Bond Proceeds $23,195,000

Total Fees/Improvements to be Funded by Developer $1,720,398 (1) Amounts are allocated based upon estimated bond sizing and may change based upon market conditions at the time of bond issuance. Allocation of bond proceeds between facility types to be determined at the time of bond issuance. 1968
4 Proposed Development Page | 5
City of Murrieta
CFD No. 2025-3 (Discovery Village)
Public Hearing Report
The CFD No. 2025-3 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. 2025-3 includes the following Assessor's Parcel Number: 392-290-049.

A map showing the boundaries of CFD No. 2025-3 is included in Appendix B. 1969
5 Rate and Method of Apportionment Page | 6
City of Murrieta
CFD No. 2025-3 (Discovery Village)
Public Hearing Report
The Rate and Method of Apportionment allows each property owner within CFD No. 2025-3 to estimate the annual Special Tax amount that would be required for payment. The Rate and Method of Apportionment of the Special Tax established pursuant to these proceedings, is attached hereto as Appendix A (the “Rate and Method”). The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the CFD Administrator may directly bill the Special Taxes, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 2025-3, and provided further that CFD No. 2025-3 may covenant to foreclose and may actually foreclose on parcels having delinquent Special Taxes as permitted by the Act.

All of the property located within CFD No. 2025-3, unless exempted by law or by the Rate and Method proposed for CFD No. 2025-3, shall be taxed for the purpose of providing necessary facilities to serve the District. The Boundary Map for CFD No. 2025-3 is attached hereto as Appendix B. Pursuant to Section 53325.3 of the Act, the tax imposed “is a Special Tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property.” The Special Tax may be based on the benefit received by property, the cost of making facilities or authorized services available or other reasonable basis as determined by the City, although the Special Tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Constitution. A property owner within the District may choose to prepay in whole or in part the Special Tax. The available method for so doing is described in Section G of the Rate and Method (“Prepayment of Special Tax”).

For each year that any Bonds are outstanding the Special Tax shall be levied on all parcels subject to the Special Tax. If any delinquent Special Taxes remain uncollected prior to or after all Bonds are retired, the Special Tax may be levied to the extent necessary to reimburse CFD No. 2025-3 for uncollected Special Taxes associated with the levy of such Special Taxes, but the Special Tax shall not be levied after 2066-67 Fiscal Year.

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

1. Single Family Residential Property RU Less than 1,350 sq. ft $3,086.76

2. Single Family Residential Property RU 1,350 sq. ft to 1,500 sq. ft $3,247.45

3. Single Family Residential Property RU 1,501 sq. ft to 1,650 sq. ft $3,408.15

4. Single Family Residential Property RU 1,651 sq. ft to 1,800 sq. ft $3,700.00

5. Single Family Residential Property RU 1,801 sq. ft to 1,950 sq. ft $3,825.09

6. Single Family Residential Property RU 1,951 sq. ft to 2,100 sq. ft $3,920.63

7. Single Family Residential Property RU 2,001 sq. ft to 2,250 sq. ft $3,990.12

8. Single Family Residential Property RU 2,251 sq. ft to 2,400 sq. ft $4,537.35

9. Single Family Residential Property RU Greater than 2,400 sq. ft $4,772.00

10. Multifamily Property Acre N/A $69,954.00

11. Non-Residential Property Acre N/A $69,954.00
Escalation of Special Taxes
On each July 1, commencing on July 1, 2026 the Assigned Special Tax shall increase by two percent (2.0%), of the amount in effect in the prior Fiscal Year.

For particulars as to the Rate and Method for CFD No. 2025-3, see the attached and incorporated in Appendix A. 1970
6 Certifications Page | 7
City of Murrieta
CFD No. 2025-3 (Discovery Village)
Public Hearing Report
Based on the information provided herein, it is my opinion that the described services herein are those that are necessary to meet increased demands placed upon the City of Murrieta as a result of development occurring within the CFD No. 2025- 3 and benefits the lands within said CFD No. 2025-3. Further, it is my opinion that the special tax rates and method of apportionment, as set forth herein, are fair and equitable, uniformly applied and not discriminating or arbitrary.

Date: April 1, 2025 SPICER CONSULTING GROUP, LLC
__________________________

SHANE SPICER

SPECIAL TAX CONSULTANT FOR

CITY OF MURRIETA

RIVERSIDE COUNTY

STATE OF CALIFORNIA
1971
Appendix A:

Rate and Method of Apportionment
1972
City of Murrieta
Community Facilities District No. 2025‐3 (Discovery Village) Page 1

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2025‐3 (DISCOVERY VILLAGE)

The amount of Special Tax to be levied in each Fiscal Year on an Assessor’s Parcel shall be determined by the City Council of the City of Murrieta, acting in its capacity as the legislative body of CFD No. 2025‐3, by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exempt Property as set forth below. All of the real property, unless exempted by law or by the provisions hereof in Section F,shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Accessory Dwelling Unit” means a residential unit of limited size including smaller secondary unit(s) that shares an Assessor’s Parcel as a Single Family Residential Property with a stand‐alone Residential Unit. "Acre” or “Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County parcel map or instrument.  The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello‐Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2025‐3:  the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2025‐3 or any designee thereof in complying with arbitrage rebate requirements; the costs to the City, CFD No. 2025‐3 or any designee thereof in complying with continuing disclosure requirements of the City, CFD No. 2025‐3 and any major property owner associated with applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2025‐3 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses related to CFD No. 2025‐3.  Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2025‐3 for any other administrative purposes of CFD No. 2025‐3, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that wasrecorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, 1973
City of Murrieta
Community Facilities District No. 2025‐3 (Discovery Village)   Page 2 (ii) that have an assigned Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) that have not been issued a building permit on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied. "Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax of that name described in Section D below. "Backup Special Tax" means the Special Tax of that name described in Section D below. "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, certificates of participation, long‐term leases, loansfrom government agencies, orloansfrom banks, other financial institutions, private businesses, or individuals, or long‐term contracts, or any refunding thereof, to which the Special Tax of CFD No. 2025‐3 have been pledged. "Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD. "Building Permit" means the first legal document issued by the City giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include expired or cancelled building permits, or any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses. "Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the Building Permit for such Assessor’s Parcel.
"Calendar Year" meansthe period commencing January 1 of any year and ending the following December

31. "CFD” or “CFD No. 2025‐3" means Community Facilities District No. 2025‐3 (Discovery Village) of the City of Murrieta established by the City under the Act.
“CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes. “City” means the City of Murrieta, State of California. "City Council" means the City Council of the City of Murrieta, acting as the legislative body of CFD No. 2025‐3.
1974
City of Murrieta
Community Facilities District No. 2025‐3 (Discovery Village) Page 3 “Condominium Plan" means a condominium plan purusant to California Civil Code, Section 6624. "County" means the County of Riverside, State of California. "Developed Property" means all Assessor’s Parcels that: (i) are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, (ii) have an Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) for which a Building Permit for new construction was issued on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied. "Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a Condominium Plan pursuant to California Civil Code Section 6624 that creates individual lots for which Building Permits may be issued without further subdivision. "Fiscal Year" means the period commencing on July 1st of any year and ending the following June 30th. “Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same.
“Land Use Category” means any of the categories listed in Table 1 of Section D. "Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2025‐3 on such Assessor’s Parcel. “Multifamily Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator.

"Non‐Residential Property" means all Assessor's Parcels of Developed Property for which a Building Permit(s) was issued for a non‐residential use.  The CFD Administrator shall make the determination if an Assessor’s Parcel is Non‐Residential Property.
"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1.
“Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax isthe same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax 1975
City of Murrieta
Community Facilities District No. 2025‐3 (Discovery Village)   Page 4 per Acre is the same for all Assessor’s Parcels of Undeveloped Property or Provisional Undeveloped Property, as applicable.
"Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be classified as Exempt Property because to do so would be reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section F. "Rate and Method of Apportionment" or “RMA” means this Rate and Method of Apportionment of Special Tax for CFD No. 2025‐3.
"Residential Property" means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more Residential Units. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the CFD Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this RMA.
“Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than Multifamily Property.
"Special Tax" or “Special Taxes” means any of the special taxes authorized to be levied within CFD No. 2025‐3 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to replenish any reserve funds established in association with the Bonds (provided that the same amount was not previously levied), (v) an amount up to any anticipated shortfall due to Special Tax delinquencies and (vi) for the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2025‐3 or the payment of debt service on Bonds anticipated to be issued, provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Steps Two or Three of Section E., less (vii) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to the Indenture.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2025‐3, which are not Exempt Property. “Taxable Unit” means either a Residential Unit or an Acre. “Trustee” means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property, or Provisional Undeveloped Property. 1976
City of Murrieta
Community Facilities District No. 2025‐3 (Discovery Village)   Page 5 B. SPECIAL TAX
Commencing Fiscal Year 2025‐2026 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property, up to the applicable Maximum Special Tax, to fund the Special Tax Requirement.

C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2025‐2026, each Assessor’s Parcel within CFD No. 2025‐3 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property.

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

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

D. MAXIMUM SPECIAL TAX

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

The Maximum Special Tax for each Assessor’s Parcel of Multifamily Property and Non‐Residential Property shall be the applicable Assigned Special Tax described in Table 1 of Section D. a.     Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multifamily Property or Non‐Residential Property shall be subject to an Assigned Special Tax.  The Assigned Special Tax for 1977
City of Murrieta
Community Facilities District No. 2025‐3 (Discovery Village)   Page 6 Fiscal Year 2025‐2026 applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 below.

TABLE 1

ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2025‐2026
Land Use Category
Taxable
Unit Building Square Footage
Assigned
Special Tax Per
Taxable Unit

1. Single Family Residential Property RU Less than 1,350 sq. ft $3,086.76

2. Single Family Residential Property RU 1,350 sq. ft to 1,500 sq. ft $3,247.45

3. Single Family Residential Property RU 1,501 sq. ft to 1,650 sq. ft $3,408.15

4. Single Family Residential Property RU 1,651 sq. ft to 1,800 sq. ft $3,700.00

5. Single Family Residential Property RU 1,801 sq. ft to 1,950 sq. ft $3,825.09

6. Single Family Residential Property RU 1,951 sq. ft to 2,100 sq. ft $3,920.63

7. Single Family Residential Property RU 2,101 sq. ft to 2,250 sq. ft $3,990.12

8. Single Family Residential Property RU 2,251 sq. ft to 2,400 sq. ft $4,537.35

9. Single Family Residential Property RU Greater than 2,400 sq. ft $4,772.00

10. Multifamily Property Acre N/A $69,954.00

11. Non‐Residential Property Acre N/A $69,954.00
On each July 1, commencing July 1, 2026, the Assigned Special Tax rate for Developed Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. b. Multiple Land Use Categories
In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax for each Taxable Unit for all Land Use Categories located on the Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final. c. Backup Special Tax
The Backup Special Tax for an Assessor’s Parcel within a Final Map classified as Single Family Residential Property shall be $3,712 per Residential Unit.

Notwithstanding the foregoing, if all or any portion of the applicable Final Maps and/or condominium plan contained within the boundaries of CFD No. 2025‐3 is subsequently changed or modified, then the Backup Special Tax for Single Family Residential Property or Approved Property in such Final Map or condominium plan area that is changed or modified shall be recalculated as follows:

1. Determine the total Backup Special Taxes anticipated to apply to the changed or modified Final Map or condominium plan area prior to the change or modification.

2. The result of paragraph 1 above shall be divided by the total number of Residential Units constructed and/or anticipated to be constructed within such changed or modified Final Map or condominium plan area, as reasonably determined by the CFD Administrator. 1978
City of Murrieta
Community Facilities District No. 2025‐3 (Discovery Village) Page 7 The result of paragraph 2 is the Backup Special Tax per Residential Unit which shall be applicable to Assessor’s Parcels of Single Family Residential Property or Approved Property in such changed or modified Final Map or condominium plan area contained within the boundaries of CFD No. 2025‐3.

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

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

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

The Maximum Special Tax for each Assessor’s Parcel of Approved Property not expected to be classified as Single Family Residential Property shall be $69,954 per Acre.

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

3. Undeveloped Property and Provisional Undeveloped Property The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property and Provisional Undeveloped Property shall be $69,954 per Acre.

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

E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing Fiscal Year 2025‐2026 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property in accordance with the following steps:

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

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

Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax 1979
City of Murrieta
Community Facilities District No. 2025‐3 (Discovery Village) Page 8 applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

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

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

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

F. EXEMPTIONS
The City shall classify Assessor’s Parcels as Exempt Property, in the following order of priority, (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses or (vi) Assessor’s Parcels restricted to other types of public uses determined by the City Council, provided that no such classification would reduce the total Acreage of all Taxable Property to less than 21.52 Acres.

Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 21.52 Acres will be classified as Provisional Undeveloped Property, and will be subject to the Special Tax pursuant to Step Five in Section E.

G. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section G:
“CFD Facilities” means $22,500,000 expressed in 2025 dollars, which shall increase by the Construction Inflation Index on July 1, 2026, and on each July 1 thereafter, or such lower amount (i) determined by the City Council as sufficient to provide the facilities under the authorized bonding program for CFD No. 2025‐ 3, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds 1980
City of Murrieta
Community Facilities District No. 2025‐3 (Discovery Village) Page 9 to finance additional facilities to be supported by Special Tax levied under this Rate and Method of Apportionment.
“Construction Fund” means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are available for expenditure to acquire or construct facilities eligible to be financed by CFD No. 2025‐3.
“Construction Inflation Index” means the greater of (i) 2% and (ii) the annual percentage change in the Engineering News‐Record Building Cost Index for the city of Los Angeles, measured as of the Calendar Year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News‐Record Building Cost Index for the City of Los Angeles. “Future Facilities Costs” means the CFD Facilities minus (i) amounts deposited in the Construction Fund, (ii) amounts deposited in any escrow accounts funded by the Outstanding Bonds and anticipated to fund public facilities costs, and (iii) public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment, but in no event shall such amount be less than zero. “Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax.

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

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

The Prepayment Amount shall be calculated as follows (some capitalized terms are defined below):
1981
City of Murrieta
Community Facilities District No. 2025‐3 (Discovery Village) Page 10 Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:

1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.

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

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

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

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

6. Determine the Future Facilities Costs.

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

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

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

10. Determine the amount the CFD Administratorreasonably expectsto derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount. 1982
City of Murrieta
Community Facilities District No. 2025‐3 (Discovery Village) Page 11

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

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

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

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

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

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

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

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

Tenders of Bonds in prepayment of the Special Tax obligation may be accepted upon the terms and conditions established by the City Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case‐by‐case basis as specifically approved by the City Council. 1983
City of Murrieta
Community Facilities District No. 2025‐3 (Discovery Village) Page 12

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

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

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

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

H. TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax shall be levied on all Assessor’s Parcels subject to the Special Tax pursuant to Section E. The Special Tax shall cease not later than the 2066‐2067 Fiscal Year, however, Special Taxes will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all the required interest and principal payments on the CFD No. 2025‐3 Bonds have been paid; (ii) all authorized facilities of CFD No. 2025‐3 have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Special Taxes remain uncollected and (iv) all other obligations of CFD No. 2025‐3 have been satisfied.

1984
City of Murrieta
Community Facilities District No. 2025‐3 (Discovery Village) Page 13 I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2025‐3 may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.

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

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

K. 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. 1985
Appendix B:

Proposed Boundary Map
1986
1987
Appendix C:

Resolution of Intention
1988
4877-7613-4831v6/022972-0049
RESOLUTION NO. 25-4807

RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE

CITY OF MURRIETA TO ESTABLISH COMMUNITY FACILITIES
DISTRICT NO. 2025-3 (DISCOVERY VILLAGE) OF THE CITY

OF MURRIETA, TO AUTHORIZE THE LEVY OF A SPECIAL

TAX TO PAY THE COSTS OF ACQUIRING OR

CONSTRUCTING CERTAIN FACILITIES AND TO PAY DEBT

SERVICE ON BONDED INDEBTEDNESS
WHEREAS, the City of Murrieta (the “City”) received a petition signed by the owners of all of the land within the boundaries of the territory which is proposed for inclusion in a proposed community facilities district, which petition meets the requirements of Sections 53318 and 53319 of the Government Code of the State of California; and
WHEREAS, the City Council of the City (the “City Council”) desires to adopt this resolution of intention as provided in Section 53321 of the Government Code of the State of California to establish a community facilities district consisting of the territory described in Attachment “A” hereto and incorporated herein by this reference, which the City Council hereby determines shall be known as “Community Facilities District No. 2025-3 (Discovery Village) of the City of Murrieta” (“Community Facilities District No. 2025-3” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code (the “Act”) to finance (1) the purchase, construction, modification, expansion, improvement or rehabilitation of certain real or other tangible property described in Attachment “B” hereto and incorporated herein by this reference, including all furnishings, equipment and supplies related thereto (collectively, the “Facilities”), which Facilities have a useful life of five years or longer, and (2) the incidental expenses to be incurred in connection with financing the Facilities and forming and administering the District (the “Incidental Expenses”); and
WHEREAS, the City Council further intends to approve an estimate of the costs of the Facilities and the Incidental Expenses for Community Facilities District No. 2025-3; and WHEREAS, it is the intention of the City Council to consider financing the Facilities and the Incidental Expenses through the formation of Community Facilities District No. 2025-3 and the issuance of bonded indebtedness in one or more series in an aggregate maximum principal amount of $27,500,000 with respect to the Facilities and the Incidental Expenses and the levy of a special tax to pay for the Facilities and the Incidental Expenses (the “Special Tax”) and to pay debt service on the bonded indebtedness, provided that the bond sale and such Special Tax levy are approved at an election to be held within the boundaries of Community Facilities District No. 2025-3;
WHEREAS, the City desires to enter into a reimbursement agreement with Discovery Village LLC, a Delaware limited liability company (the “Developer”), the form of which is on file with the City Clerk (the “Reimbursement Agreement”), to provide for the reimbursement of certain amounts advanced by the Developer in connection with the formation of the District; WHEREAS, the District and the Developer propose to enter into a joint community facilities agreement (the “JCFA”) with Eastern Municipal Water District (the “Water District”) relating to certain facilities proposed to be financed by the District and owned and operated by Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59 1989
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the Water District, and the District expects to enter into the JCFA prior to the approval of the issuance of bonds pursuant to the Act;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY 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 boundaries of the community facilities district shall be the legal boundaries as described in Attachment “A” hereto, which boundaries shall, upon recordation of the boundary map for the District, include the entirety of any parcel subject to taxation by the District, and as depicted on the map of the proposed Community Facilities District No. 2025-3 which is on file with the City Clerk. The City Clerk is hereby directed to sign the original map of the District and record it with all proper endorsements thereon with the Assessor-County Clerk-Recorder of the County of Riverside within 15 days after the adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California.

Section 3. The name of the proposed community facilities district shall be “Community Facilities District No. 2025-3 (Discovery Village) of the City of Murrieta.” Section 4. The Facilities proposed to be provided within Community Facilities District No. 2025-3 are public facilities as defined in the Act, which the City, and the Water District, with respect to certain water and sewer facilities. The City Council hereby finds and determines that the description of the Facilities herein is sufficiently informative to allow taxpayers within the proposed District to understand what the funds of the District may be used to finance. The Incidental Expenses expected to be incurred include the cost of planning and designing the Facilities, the costs of forming the District, issuing bonds and levying and collecting the Special Tax within the proposed District. The Facilities may be acquired from one or more of the property owners within the District as completed public improvements or may be constructed from bond or Special Tax proceeds.

All or a portion of the Facilities may be purchased with District funds as completed public facilities pursuant to Section 53314.9 or as discrete portions or phases pursuant to Section 53313.51 of the Act and/or constructed with District funds pursuant to Section 53316.2 of the Act. Any portion of the Facilities may be financed through a lease or lease-purchase arrangement if the District hereafter determines that such arrangement is of benefit to the District.

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 the Special Tax, secured by recordation of a continuing lien against all nonexempt real property in the District, sufficient to pay for: (i) the Facilities and Incidental Expenses; and (ii) the principal and interest and other periodic costs on bonds or other indebtedness issued to finance the Facilities and Incidental Expenses, including the establishment and replenishment of any reserve funds deemed necessary by the District, and any remarketing, credit enhancement and liquidity facility fees (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash). The rate and method of apportionment and manner of collection of the Special Tax are described in detail in Attachment “C” attached hereto, which Attachment “C” is incorporated herein by this reference. Attachment “C” allows each landowner within the District to estimate Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59 1990
3 4877-7613-4831v6/022972-0049
the maximum amount of the Special Tax that may be levied against each parcel. In the first year in which such Special Tax is levied, the levy shall include an amount sufficient to repay to the District all amounts, if any, transferred to the District pursuant to Section 53314 of the Act and interest thereon.

If the Special Tax is levied against any parcel used for private residential purposes, (i) the maximum Special Tax rate shall be specified as a dollar amount which shall be calculated and established not later than the date on which the parcel is first subject to the Special Tax because of its use for private residential purposes and shall not be increased over time, except as set forth in Attachment “C” hereto, (ii) such Special Tax not shall be levied after fiscal year 2065-66, as described in Attachment “C” hereto, and (iii) under no circumstances will the Special Tax levied in any fiscal year against any such parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the District by more than ten percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults.

The Special Tax is based on the expected demand that each parcel of real property within proposed Community Facilities District No. 2025-3 will place on the Facilities and on the benefit that each parcel derives from the right to access the Facilities. The City Council hereby determines that the proposed Facilities are necessary to meet the increased demand placed upon the City and the existing infrastructure in the City as a result of the development of the land proposed for inclusion in the District. The City Council hereby determines the rate and method of apportionment of the special tax with respect to the Special Tax set forth in 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 tax is not on or based upon the value or ownership of real property. In the event that a portion of the property within Community Facilities District No. 2025-3 shall become for any reason exempt, wholly or partially, from the levy of the Special Tax specified on Attachment “C,” the City Council shall, on behalf of Community Facilities District No. 2025-3, cause the levy to be increased, subject to the limitation of the maximum Special Tax for a parcel as set forth in Attachment “C,” to the extent necessary upon the remaining property within proposed Community Facilities District No. 2025- 3 which is not exempt in order to yield the Special Tax revenues required for the purposes described in this Section 5. The obligation to pay the Special Tax may be prepaid only as set forth in Section G of Attachment “C” hereto.

Section 6. A public hearing (the “Hearing”) on the establishment of the proposed Community Facilities District No. 2025-3, the proposed rate and method of apportionment of the Special Tax and the proposed issuance of bonds to finance the Facilities and the Incidental Expenses shall be held at 6:00 p.m., or as soon thereafter as practicable, on May 6, 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 issuance of the bonds and the levy of the special tax 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 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.

Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59 1991
4 4877-7613-4831v6/022972-0049
Section 7. At the time and place set forth above for the Hearing, the City Council will receive testimony as to whether the proposed Community Facilities District No. 2025-3 shall be established and as to the method of apportionment of the special tax and shall consider:
(a) if an ad valorem property tax is currently being levied on property within proposed Community Facilities District No. 2025-3 for the exclusive purpose of paying principal of or interest on bonds, lease payments or other indebtedness incurred to finance construction of capital facilities; and
(b) if the capital facilities to be financed and constructed by Community Facilities District No. 2025-3 will provide the same services as were provided by the capital facilities mentioned in subsection (a); and
(c) if the City Council makes the findings specified in subsections (a) and (b) above, it will consider appropriate action to determine whether the total annual amount of ad valorem property tax revenue due from parcels within Community Facilities District No. 2025-3, for purposes of paying principal and interest on the debt identified in subsection (a) above, shall not be increased after the date on which Community Facilities District No. 2025-3 is established, or after a later date determined by the City Council with the concurrence of the legislative body which levied the property tax in question.

Section 9. Each City officer who is or will be responsible for providing the Facilities within proposed Community Facilities District No. 2025-3, if it is established, is hereby directed to study the proposed District and, at or before the time of the above-mentioned Hearing, file a report with the City Council containing a brief description of the public facilities by type which will in his or her opinion be required to meet adequately the needs of Community Facilities District No. 2025-3 and an estimate of the cost of providing those public facilities, including the cost of environmental evaluations of such facilities and an estimate of the fair and reasonable cost of any Incidental Expenses to be incurred.

Section 10. The District may accept advances of funds or work-in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred in creating Community Facilities District No. 2025-3. 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. 2025-3. The City Clerk is further directed to mail a copy of the Notice to each of the landowners within the boundaries of the District at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the proposed district and a description of the Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59 1992
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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.

Section 12. The reasonably expected aggregate maximum principal amount of the bonded indebtedness to be incurred by the District for the Facilities and Incidental Expenses is Twenty-Seven Million Five Hundred Thousand Dollars ($27,500,000).

Section 13. The form of the Reimbursement Agreement is hereby approved. The Mayor, the City Manager, the Assistant City Manager, or their written designees are hereby authorized and directed to execute and deliver the Reimbursement Agreement in the form on file with the City Clerk with such changes, insertions and omissions as may be approved by the officer or officers executing such agreement, said execution being conclusive evidence of such approval.

Section 14. Except to the extent limited in any bond resolution or trust indenture related to the issuance of bonds, the City Council hereby reserves to itself all rights and powers set forth in Section 53344.1 of the Act (relating to tenders in full or partial payment).

Section 15. 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 APPROVED AS TO FORM:
____________________________
Tiffany Israel, City Attorney
1993
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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. 25-4807 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
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DeForest, Holliday, Levell, Warren
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ATTACHMENT A

BOUNDARY MAP
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ATTACHMENT B
Types of Facilities
to Be Financed by
Community Facilities District No. 2025-3 (Discovery Village) of the City of Murrieta The proposed types of public facilities and expenses to be financed by the District include:

The construction, purchase, modification, expansion, rehabilitation and/or improvement of (i) storm drainage, library, park, law enforcement, fire, streets and bridges, traffic, administration and community center facilities, and other public facilities of the City, including the foregoing public facilities which are included in the City’s fee programs with respect to such facilities and authorized to be financed under the Act (the “City Facilities”) and (ii) water and sewer facilities including the acquisition of capacity in the sewer system and/or water system of the Eastern Municipal Water District which are included in Eastern Municipal Water District’s water and sewer capacity and connection fee programs (the “Water District Facilities” and, together with the City Facilities, the “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities, and to finance the incidental expenses to be incurred, including:
a. The cost of engineering, planning and designing the Facilities; b. All costs, including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and
c. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.

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

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ATTACHMENT C

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-3 (DISCOVERY VILLAGE)

OF THE CITY OF MURRIETA
A Special Tax (all capitalized terms not otherwise defined herein are defined in Section A, “Definitions”, below) shall be applicable to each Assessor’s Parcel of Taxable Property located within the boundaries of Community Facilities District No. 2025-3 (Discovery Village), of the City of Murrieta ("CFD No. 2025-3"). The amount of Special Tax to be levied in each Fiscal Year on an Assessor’s Parcel shall be determined by the City Council of the City of Murrieta, acting in its capacity as the legislative body of CFD No. 2025-3, by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exempt Property as set forth below. All of the real property, unless exempted by law or by the provisions hereof in Section F, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Accessory Dwelling Unit” means a residential unit of limited size including smaller secondary unit(s) that shares an Assessor’s Parcel as a Single Family Residential Property with a standalone Residential Unit. "Acre” or “Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County parcel map or instrument. The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2025-3: the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2025-3 or any designee thereof in complying with arbitrage rebate requirements; the costs to the City, CFD No. 2025-3 or any designee thereof in complying with continuing disclosure requirements of the City, CFD No. 2025-3 and any major property owner associated with applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2025-3 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses related to CFD No. 2025-3. Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2025-3 for any other administrative purposes of CFD No. 2025-3, including Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59 1997
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attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
"Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a building permit on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied. "Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax of that name described in Section D below. "Backup Special Tax" means the Special Tax of that name described in Section D below. "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which the Special Tax of CFD No. 2025-3 have been pledged. "Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD.
"Building Permit" means the first legal document issued by the City giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include expired or cancelled building permits, or any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses.
"Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the Building Permit for such Assessor’s Parcel. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31.
"CFD” or “CFD No. 2025-3" means Community Facilities District No. 2025-3 (Discovery Village) of the City of Murrieta established by the City under the Act. “CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes.

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“City” means the City of Murrieta, State of California. "City Council" means the City Council of the City of Murrieta, acting as the legislative body of CFD No. 2025-3.
“Condominium Plan" means a condominium plan pursuant to California Civil Code, Section 6624.
"County" means the County of Riverside, State of California. "Developed Property" means all Assessor’s Parcels that: (i) are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) for which a Building Permit for new construction was issued on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied. "Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a Condominium Plan pursuant to California Civil Code Section 6624 that creates individual lots for which Building Permits may be issued without further subdivision.
"Fiscal Year" means the period commencing on July 1st of any year and ending the following June 30th.
“Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1 of Section D. "Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2025-3 on such Assessor’s Parcel.
“Multifamily Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a Building Permit(s) was issued for a non-residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property. "Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1.

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“Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Assessor’s Parcels of Undeveloped Property or Provisional Undeveloped Property, as applicable. "Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be classified as Exempt Property because to do so would be reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section F. "Rate and Method of Apportionment" or “RMA” means this Rate and Method of Apportionment of Special Tax for CFD No. 2025-3.
"Residential Property" means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more Residential Units. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the CFD Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this RMA. “Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than Multifamily Property.
"Special Tax" or “Special Taxes” means any of the special taxes authorized to be levied within CFD No. 2025-3 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to replenish any reserve funds established in association with the Bonds (provided that the same amount was not previously levied), (v) an amount up to any anticipated shortfall due to Special Tax delinquencies and (vi) for the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2025-3 or the payment of debt service on Bonds anticipated to be issued, provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Steps Two or Three of Section E., less (vii) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to the Indenture.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2025-3, which are not Exempt Property.
“Taxable Unit” means either a Residential Unit or an Acre. “Trustee” means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property, or Provisional Undeveloped Property.

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B. SPECIAL TAX
Commencing Fiscal Year 2025-2026 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property, up to the applicable Maximum Special Tax, to fund the Special Tax Requirement.

C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2025-2026, each Assessor’s Parcel within CFD No. 2025-3 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property.

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

D. MAXIMUM SPECIAL TAX

The Maximum Special Tax for each Assessor’s Parcel of Multifamily Property and NonResidential Property shall be the applicable Assigned Special Tax described in Table 1 of Section D.
a. Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multifamily Property or Non-Residential Property shall be subject to an Assigned Special Tax. The Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59 2001
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Assigned Special Tax for Fiscal Year 2025-2026 applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 below.

TABLE 1

ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2025-2026
Land Use Category
Taxable
Unit
Building Square
Footage
Assigned
Special Tax
Per Taxable
Unit

1. Single Family Residential
Property RU Less than 1,350 sq. ft $3,086.76

2. Single Family Residential
Property RU
1,350 sq. ft to 1,500 sq.
ft $3,247.45

3. Single Family Residential
Property RU
1,501 sq. ft to 1,650 sq.
ft $3,408.15

4. Single Family Residential
Property RU
1,651 sq. ft to 1,800 sq.
ft $3,700.00

5. Single Family Residential
Property RU
1,801 sq. ft to 1,950 sq.
ft $3,825.09

6. Single Family Residential
Property RU
1,951 sq. ft to 2,100 sq.
ft $3,920.63

7. Single Family Residential
Property RU
2,101 sq. ft to 2,250 sq.
ft $3,990.12

8. Single Family Residential
Property RU
2,251 sq. ft to 2,400 sq.
ft $4,537.35

9. Single Family Residential
Property RU
Greater than 2,400 sq.
ft $4,772.00

10. Multifamily Property Acre N/A $69,954.00

11. Non-Residential Property Acre N/A $69,954.00
On each July 1, commencing July 1, 2026, the Assigned Special Tax rate for Developed Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
b. Multiple Land Use Categories
In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax for each Taxable Unit for all Land Use Categories located on the Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final.
c. Backup Special Tax
The Backup Special Tax for an Assessor’s Parcel within a Final Map classified as Single Family Residential Property shall be $3,712 per Residential Unit.

Notwithstanding the foregoing, if all or any portion of the applicable Final Maps and/or condominium plan contained within the boundaries of CFD No. 2025-3 is subsequently Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59 2002
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changed or modified, then the Backup Special Tax for Single Family Residential Property or Approved Property in such Final Map or condominium plan area that is changed or modified shall be recalculated as follows:

1. Determine the total Backup Special Taxes anticipated to apply to the changed or modified Final Map or condominium plan area prior to the change or modification.

The result of paragraph 2 is the Backup Special Tax per Residential Unit, which shall be applicable to the Assessor’s Parcels of Single Family Residential Property or Approved Property in such changed or modified Final Map or condominium plan area contained within the boundaries of CFD No. 2025-3.

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

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

The Maximum Special Tax for each Assessor’s Parcel of Approved Property not expected to be classified as Single Family Residential Property shall be $69,954 per Acre.

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

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

E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing Fiscal Year 2025-2026 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property in accordance with the following steps:

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

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

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

F. EXEMPTIONS
The City shall classify Assessor’s Parcels as Exempt Property, in the following order of priority, (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59 2004
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use by a homeowners' association, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses or (vi) Assessor’s Parcels restricted to other types of public uses determined by the City Council, provided that no such classification would reduce the total Acreage of all Taxable Property to less than 21.52 Acres.

Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt Property if such classification would reduce the total Acreage of all Taxable Property to less than 21.52 Acres. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 21.52 Acres will be classified as Provisional Undeveloped Property, and will be subject to the Special Tax pursuant to Step Five in Section E.

G. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section G:
“CFD Facilities” means $22,500,000 expressed in 2025 dollars, which shall increase by the Construction Inflation Index on July 1, 2026, and on each July 1 thereafter, or such lower amount (i) determined by the City Council as sufficient to provide the facilities under the authorized bonding program for CFD No. 2025-3, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to finance additional facilities to be supported by Special Tax levied under this Rate and Method of Apportionment. “Construction Fund” means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are available for expenditure to acquire or construct facilities eligible to be financed by CFD No. 2025-3.
“Construction Inflation Index” means the greater of (i) 2% and (ii) the annual percentage change in the Engineering News-Record Building Cost Index for the city of Los Angeles, measured as of the Calendar Year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles.
“Future Facilities Costs” means the CFD Facilities minus (i) amounts deposited in the Construction Fund, (ii) amounts deposited in any escrow accounts funded by the Outstanding Bonds and anticipated to fund public facilities costs, and (iii) public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment, but in no event shall such amount be less than zero.
“Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax.

1. Prepayment in Full
The Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Approved Property or Undeveloped Property Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59 2005
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for which a Building Permit has been issued, (iii) Assessor’s Parcels of Approved Property or Undeveloped Property for which a Building Permit has not been issued and (iv) Assessor’s Parcels of Provisional Undeveloped Property. The Special Tax obligation applicable to an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel. Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel.

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

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

Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:

1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.

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

6. Determine the Future Facilities Costs.

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

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

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

The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds.

In such event, the increment above $5,000 or an integral multiple thereof will be retained in the Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59 2007
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appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments.

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

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

Within 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Partial Prepayment Amount. Within 15 business days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial Prepayment Amount for the Assessor’s Parcel. A Partial Prepayment Amount must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment Amount.

Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59 2008
C-13
4877-7613-4831v6/022972-0049
With respect to any Assessor’s Parcel for which the Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 15 of Section G.1, and (ii) indicate in the records of the CFD that there has been a partial prepayment for the Assessor’s Parcel and that a portion of the Special Tax obligation equal to the remaining percentage (1.00 - F) of the applicable Special Tax will continue to be levied on the Assessor’s Parcel pursuant to Section E.

H. TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding, the Special Tax shall be levied on all Assessor’s Parcels subject to the Special Tax pursuant to Section E. The Special Tax shall cease not later than the 2066-2067 Fiscal Year, however, Special Taxes will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all the required interest and principal payments on the CFD No. 2025-3 Bonds have been paid; (ii) all authorized facilities of CFD No. 2025-3 have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Special Taxes remain uncollected and (iv) all other obligations of CFD No. 2025-3 have been satisfied.

I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2025-3 may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.

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

K. 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.

Docusign Envelope ID: 6310337A-4AAE-4EE5-9CF9-495F72EA9F59 2009
2010
RESOLUTION NO. 25-4824

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MURRIETA,

CALIFORNIA, ESTABLISHING COMMUNITY FACILITIES DISTRICT
NO. 2025-3 (DISCOVERY VILLAGE) OF THE CITY OF MURRIETA,

AUTHORIZING THE LEVY OF A SPECIAL TAX THEREIN, CALLING

AN ELECTION AND APPROVING AND AUTHORIZING CERTAIN

ACTIONS RELATED THERETO
WHEREAS, the City Council (the “City Council”) of the City of Murrieta (the “City”) has heretofore adopted Resolution No. 25-4807 stating its intention to form Community Facilities District No. 2025-3 (Discovery Village) of the City of Murrieta (“Community Facilities District No. 2025-3” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”); and WHEREAS, a copy of Resolution No. 25-4807 setting forth a description of the proposed boundaries of Community Facilities District No. 2025-3, the facilities and incidental expenses to be financed by the District and the rate and method of apportionment of the special tax proposed to be levied within the District is on file with the City Clerk; and WHEREAS, notice was published and mailed to all landowners of the land proposed to be included within the District as required by law relative to the intention of this City Council to form proposed Community Facilities District No. 2025-3 and to levy a special tax (the “Special Tax”) and to incur bonded indebtedness in one or more series in the maximum aggregate principal amount of $27,500,000 therein to finance the facilities and incidental expenses described in Resolution No. 25-4807; and
WHEREAS, on April 1, 2025, the public hearing called for such date on the proposed formation of Community Facilities District No. 2025-3, the levy of the Special Tax therein and the issuance of bonded indebtedness by the District was continued to May 6, 2025; and WHEREAS, on May 6, 2025, this City Council conducted a noticed public hearing as required by law relative to the proposed formation of Community Facilities District No. 2025-3, the levy of the Special Tax therein and the issuance of bonded indebtedness by the District; and WHEREAS, at the May 6, 2025, public hearing there was filed with this City Council a report containing a description of the facilities necessary to meet the needs of the District and an estimate of the cost of such facilities as required by Section 53321.5 of the Act (the “Engineer’s Report”); and
WHEREAS, at the May 6, 2025, public hearing all persons desiring to be heard on all matters pertaining to the formation of Community Facilities District No. 2025-3, the levy of the Special Tax and the issuance of bonded indebtedness were heard and full and fair hearings were held; and
2011
2 WHEREAS, following the public hearing, this City Council has determined to authorize the formation of the District to finance the types of facilities (the “Facilities”) and the incidental expenses (the “Incidental Expenses”) set forth in Exhibit A hereto, which are described in more detail in the Engineer’s Report; and
WHEREAS, at the public hearing evidence was presented to this City Council on the matters before it, and the proposed Special Tax to be levied within the District was not precluded by a majority protest of the type described in Section 53324 of the Act, and this City Council at the conclusion of the hearing was fully advised as to all matters relating to the formation of the District, the levy of the Special Tax and the issuance of bonded indebtedness therein; and WHEREAS, this City Council has determined, based on a Certificate of Registrar of Voters of the County of Riverside on file in the office of the City Clerk, that no registered voters have been residing in the proposed boundaries of Community Facilities District No. 2025-3 for each of the 90 days prior to May 6, 2025, and that the qualified electors in Community Facilities District No. 2025-3 are the landowners within the District; and WHEREAS, on the basis of all of the foregoing, this City Council has determined to proceed with the establishment of Community Facilities District No. 2025-3 and to call an election therein to authorize (i) the levy of Special Tax pursuant to the rate and method of apportionment of the special tax, as set forth in Attachment C to Resolution No. 25-4807 (the “Rate and Method”), (ii) the issuance of bonds to finance the Facilities and Incidental Expenses, and (iii) the establishment of an appropriations limit for Community Facilities District No. 2025- 3; and
WHEREAS, in order to facilitate the funding of the Facilities, the legislative body of the District desires to enter into an Acquisition Agreement (the “Acquisition Agreement”) with Discovery Village LLC, a Delaware limited liability company (the “Developer”) and the form of the Acquisition Agreement is on file with the City Clerk; and WHEREAS, in connection with the proposed formation of the District, the City proposes to enter into a Joint Community Facilities Agreement (the “Water District JCFA”) with Eastern Municipal Water District (the “Water District”) and the Developer, relating to certain facilities proposed to be financed by the District and owned and operated by the Water District and the form of the Water District JCFA is on file with the City Clerk;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MURRIETA AS FOLLOWS:

Section 1. The above recitals are true and correct.

Section 2. A community facilities district to be designated “Community Facilities District No. 2025-3 (Discovery Village) of the City of Murrieta” is hereby established pursuant to the Act. The City Council hereby finds and determines that all prior proceedings taken with respect to the establishment of the District were valid and in conformity with the requirements of law, including the Act. This finding is made in accordance with the provisions of Section 53325.1(b) of the Act.
2012
3 Section 3. The boundaries of Community Facilities District No. 2025-3 are established as shown on the map designated “Proposed Boundary Map Community Facilities District No. 2025-3 (Discovery Village) of the City of Murrieta, County of Riverside, State of California”, which map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the County Book of Maps of Assessment and Community Facilities Districts in the Assessor-County Clerk-Recorder’s office of the County of Riverside in Book No. 95 Page No. 30 on February 20, 2025 as Instrument No. 2025-0050554.

Section 4. The types of Facilities and Incidental Expenses authorized to be provided for Community Facilities District No. 2025-3 are those set forth in Exhibit A attached hereto.

The estimated cost of the Facilities and Incidental Expenses to be financed is set forth in the Engineer’s Report, which estimates may change as the Facilities are designed and bid for construction and acquisition, as applicable.

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

Section 5. Except where funds are otherwise available, it is the intention of this City Council, subject to the approval of the eligible voters of the District, to levy annually a Special Tax at the rates set forth in the Rate and Method on all non-exempt property within the District sufficient to pay for (i) the Facilities, (ii) the principal and interest and other periodic costs on the bonds proposed to be issued to finance the Facilities and Incidental Expenses, including the establishment and replenishment of reserve funds, any remarketing, credit enhancement and liquidity facility fees and other expenses of the type permitted by Section 53345.3 of the Act; and (iii) the Incidental Expenses. The District expects to incur, and in certain cases has already incurred, Incidental Expenses in connection with the creation of the District, the issuance of bonds, the levying and collecting of the Special Tax, the completion and inspection of the Facilities and the annual administration of the bonds and the District. The Rate and Method is described in detail in Attachment C to Resolution No. 25-4807 and incorporated herein by this reference, and the City Council hereby finds that the Rate and Method contains sufficient detail to allow each landowner within the District to estimate the maximum amount that may be levied against each parcel. As described in greater detail in the Engineer’s Report, which is incorporated by reference herein, the Special Tax is based on the expected demand that each parcel of real property within Community Facilities District No. 2025-3 will place on the Facilities and on the benefit that each parcel will derive from the right to access the Facilities and, accordingly, is hereby determined to be reasonable. The Special Tax shall be levied on each assessor’s parcel in accordance with the Rate and Method provided, however, that the Special Tax shall not be levied after Fiscal Year 2065-66. The Special Tax is apportioned to each parcel on the foregoing bases pursuant to Section 53325.3 of the Act and such Special Tax is not on or based upon the ownership of real property or the assessed value of real property. 2013
4 If Special Taxes of the District are levied against any parcel used for private residential purposes, (i) the maximum Special Tax rate shall be specified as a dollar amount which shall be calculated and established not later than the date on which the parcel is first subject to the Special Tax because of its use for private residential purposes and shall not be increased over time except as authorized under the Rate and Method, (ii) the Special Tax shall not be levied after Fiscal Year 2065-66, and (iii) under no circumstances will the Special Tax levied against any such parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the District by more than ten percent above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults.

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

Section 6. In the event that a portion of the property within Community Facilities District No. 2025-3 shall become for any reason exempt, wholly or partially, from the levy of the Special Tax specified in the Rate and Method, or in the event of delinquencies in the payment of Special Taxes levied, the City Council shall, on behalf of Community Facilities District No. 2025-3, increase the levy to the extent necessary and permitted by law and these proceedings (including the maximum special tax set forth in the Rate and Method) upon the remaining property within Community Facilities District No. 2025-3 which is not exempt or delinquent in order to yield the required debt service payments on any outstanding bonds of the District, or to prevent the District from defaulting on any of its other obligations or liabilities; provided, however, under no circumstances will the Special Tax levied against any parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the District by more than ten percent above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. The amount of the Special Tax will be set in accordance with the Rate and Method.

The obligation to pay Special Taxes may be prepaid only as set forth in Section G of the Rate and Method.

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

Section 8. Consistent with Section 53325.6 of the Act, the City Council finds and determines that the land within Community Facilities District No. 2025-3, if any, devoted primarily to agricultural, timber, or livestock uses and being used for the commercial production of agricultural, timber or livestock products is contiguous to other land within Community Facilities District No. 2025-3 and will be benefited by the Facilities proposed to be provided within Community Facilities District No. 2025-3.
2014
5 Section 9. It is hereby further determined that there is no ad valorem property tax currently being levied on property within proposed Community Facilities District No. 2025-3 for the exclusive purpose of paying the principal of or interest on bonds or other indebtedness incurred to finance the construction of capital facilities which provide the same services to the territory of Community Facilities District No. 2025-3 as are proposed to be provided by the Facilities to be financed by Community Facilities District No. 2025-3.

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

Section 11. An election is hereby called for Community Facilities District No. 2025-3 on the propositions of levying the Special Tax on the property within Community Facilities District No. 2025-3 and establishing an appropriations limit for the District pursuant to Section 53325.7 of the Act and shall be consolidated with the election on the proposition of incurring bonded indebtedness, pursuant to Sections 53351 and 53353.5 of the Act. The language of the propositions to be placed on the ballot is attached hereto as Exhibit B.

Section 12. The date of the election for Community Facilities District No. 2025-3 on the propositions of incurring the bonded indebtedness, authorizing the levy of the Special Tax and establishing an appropriations limit for the District shall be May 6, 2025, or such later date as is consented to by the City Clerk or Deputy City Clerk (referred to herein as the “City Clerk”) of the City of Murrieta; provided that, if the election is to take place sooner than 90 days after May 6, 2025, then the unanimous written consent of each qualified elector within the District to such election date must be obtained. The polls shall be open for said election immediately following the close of the public hearing on May 6, 2025. The election shall be conducted by the City Clerk. Except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City of Murrieta insofar as such provisions are determined by the City Clerk to be applicable. The City Clerk is authorized to conduct the election following the adoption of this resolution, and all ballots shall be received by, and the City Clerk shall close the election by, 11:00 p.m. on the election day; provided the election shall be closed at such earlier time as all qualified electors have voted as provided in Section 53326(d) of the Act. Pursuant to Section 53326 of the Act, the ballots for the special election shall be distributed in person, or by mail with return postage prepaid, to the qualified electors within Community Facilities District No. 2025-3. The City Clerk has secured a certificate from the Registrar of Voters of the County of Riverside certifying that there were no registered voters within the District. Accordingly, since there were fewer than 12 registered voters within the District for each of the 90 days preceding May 6, 2025, the qualified electors shall be the landowners within the District and each landowner, or the authorized representative thereof, shall have one vote for each acre or portion thereof that such landowner owns within Community Facilities District No. 2025-3, as provided in Section 53326 of the Act. Each landowner within the District has executed and delivered a waiver of certain election law requirements and consented to the holding of the election on May 6, 2025, which waiver is on file with the City Clerk.
2015
6 Section 13. The preparation of the Engineer’s Report is hereby ratified. The Engineer’s Report, as submitted, is hereby approved and was made a part of the record of the public hearing regarding the formation of Community Facilities District No. 2025-3. The Engineer’s Report is ordered to be kept on file with the transcript of these proceedings and open for public inspection.

Section 14. The District may accept advances of funds or work-in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred in creating Community Facilities District No. 2025-3. 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 15. The form of the Acquisition Agreement on file with the City Clerk is approved as to form, and each of the Mayor, the City Manager, the Assistant City Manager, or their written designees, are authorized to execute the Acquisition Agreement in substantially the form on file with the City Clerk, together with such changes as are approved by the officer executing the same, with the approval of such changes to be conclusively evidenced by the execution and delivery thereof.

Section 16. The form of the Water District JCFA on file with the City Clerk is approved as to form, and each of each of the Mayor, the City Manager, the Assistant City Manager, or their written designees, are authorized to execute the Water District JCFA in substantially the form on file with the City Clerk, together with such changes as are approved by the officer executing the same, with the approval of such changes to be conclusively evidenced by the execution and delivery thereof.

Section 17. This Resolution shall be effective upon its adoption.

PASSED AND ADOPTED this 6th day of May, 2025.
____________________________
Cindy Warren, Mayor
ATTEST:
_____________________________
Cristal McDonald, City Clerk
2016
7 APPROVED AS TO FORM:
_____________________________
Tiffany Israel, City Attorney

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )§

CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, California, do hereby certify that the foregoing Resolution No. 25-4824 was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the 6th day of May, 2025, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
Cristal McDonald, City Clerk
2017
A-1

EXHIBIT A

TYPES OF FACILITIES TO BE FINANCED BY
COMMUNITY FACILITIES DISTRICT NO. 2025-3 (DISCOVERY VILLAGE)

OF THE CITY OF MURRIETA
The proposed types of public facilities and expenses to be financed by the District include:

Capitalized terms used and not defined herein shall have the meaning set forth in the Rate and Method of Apportionment of Special Taxes for the District. 2018
B-1

EXHIBIT B

BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2025-3 (DISCOVERY VILLAGE)

OF THE CITY OF MURRIETA

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MURRIETA,

CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 2025-3 (DISCOVERY

VILLAGE) OF THE CITY OF MURRIETA DETERMINING THE

NECESSITY TO INCUR BONDED INDEBTEDNESS IN AN AMOUNT
NOT TO EXCEED $27,500,000 WITHIN COMMUNITY FACILITIES
DISTRICT NO. 2025-3 (DISCOVERY VILLAGE) OF THE CITY OF

MURRIETA AND CALLING AN ELECTION THEREIN
WHEREAS, on February 4, 2025, the City Council of the City of Murrieta (the “City Council”) adopted Resolution No. 25-4807 stating its intention to form Community Facilities District No. 2025-3 (Discovery Village) of the City of Murrieta (“Community Facilities District No. 2025-3” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”); and
WHEREAS, on February 4, 2025, the City Council also adopted Resolution No. 25-4808 stating its intention to incur bonded indebtedness in the maximum aggregate principal amount of $27,500,000 within proposed Community Facilities District No. 2025-3 to finance (1) the purchase, construction, modification, expansion, improvement or rehabilitation of public facilities identified in Exhibit B to Resolution No. 25-4807, and (2) the incidental expenses to be incurred in financing such public facilities and services and forming and administering the District, as identified in Exhibit B to Resolution No. 25-4807; and
WHEREAS, notice was published as required by law relative to the intention of the City Council to form proposed Community Facilities District No. 2025-3 and to incur bonded indebtedness in the maximum aggregate principal amount of $27,500,000 within the boundaries of proposed Community Facilities District No. 2025-3; and WHEREAS, on April 1, 2025, the public hearing called for such date to determine whether the City Council should proceed with the formation of Community Facilities District No. 2025-3, issue bonds to pay for the facilities and incidental expenses described in Resolution No. 25-4807 and authorize the rate and method of apportionment of a special tax to be levied within Community Facilities District No. 2025-3 for the purposes described in Resolution No. 25-4807 was continued to May 6, 2025; and
WHEREAS, on May 6, 2025, this City Council conducted a noticed public hearing to determine whether it should proceed with the formation of Community Facilities District No. 2025-3, issue bonds to pay for the facilities and incidental expenses described in Resolution No. 25-4807 and authorize the rate and method of apportionment of a special tax to be levied within Community Facilities District No. 2025-3 for the purposes described in Resolution No. 25- 4807; and
WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of Community Facilities District No. 2025-3, the levy of a special tax and the issuance of bonds to pay for the cost of the proposed facilities and incidental expenses were heard and a full and fair hearing was held; and
2020
2 WHEREAS, the City Council subsequent to such hearing adopted Resolution No. 25-4824 establishing Community Facilities District No. 2025-3 (the “Resolution of Formation”) and authorizing the financing of the public facilities (the “Facilities”) and the incidental expenses (the “Incidental Expenses”) described in Exhibit A thereto; and WHEREAS, the City Council desires to make the necessary findings to incur bonded indebtedness within the District, to declare the purpose for said debt, and to authorize the submittal of a proposition to issue bonded indebtedness to the voters of the District, being the landowners within the proposed District, all as authorized and required by law;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MURRIETA AS FOLLOWS:

Section 1. It is necessary to incur bonded indebtedness in one or more series in a maximum aggregate principal amount of $27,500,000 within Community Facilities District No. 2025-3.

Section 2. The indebtedness is to be incurred for the purpose of financing the costs of purchasing, constructing, modifying, expanding, improving, or rehabilitating the Facilities and financing the Incidental Expenses, as described in the Resolution of Formation, and carrying out the powers and purposes of Community Facilities District No. 2025-3, including, but not limited to, financing the costs of selling the bonds, establishing and replenishing bond reserve funds and paying remarketing, credit enhancement and liquidity facility fees and other expenses of the type authorized by Section 53345.3 of the Act.

Section 3. The whole of the property within Community Facilities District No. 2025- 3, other than property exempted from the special tax pursuant to the provisions of the rate and method of apportionment attached to Resolution No. 25-4807 as Exhibit C, shall pay for the bonded indebtedness pursuant to the levy of the special tax authorized by the Resolution of Formation.

Section 4. The maximum term of the bonds to be issued shall in no event exceed 35 years or such longer term as is then permitted by law.

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

Section 6. The bonds may bear a variable or fixed interest rate, provided that such variable rate or fixed rate shall not exceed the maximum rate permitted by Section 53531 of the Act, or any other applicable provision of law limiting the maximum interest rate on the bonds. 2021
3 Section 7. Pursuant to Section 53351 of the Act, a special election is hereby called for Community Facilities District No. 2025-3 on the proposition of incurring the bonded indebtedness.

The proposition relative to incurring bonded indebtedness in the maximum aggregate principal amount of $27,500,000 shall be in the form of Proposition A set forth in Exhibit A hereto. In accordance with Sections 53351(h) and 53353.5 of the Act, the election shall be consolidated with the special election called on the proposition of levying a special tax within the District as described in the Resolution of Formation, which proposition shall be in the form of Proposition B set forth in Exhibit A, and on the proposition of establishing an appropriations limit for the District, which proposition shall be in the form of Proposition C set forth in Exhibit A.

Section 8. The date of the special election for Community Facilities District No. 2025- 3 on the propositions of incurring the bonded indebtedness, authorizing the levy of the special tax and setting an appropriations limit shall be May 6, 2025, or such later date as is consented to by the City Clerk, or a Deputy City Clerk of the City (referred to herein as the “City Clerk”); provided that, if the election is to take place sooner than 90 days after May 6, 2025, then the unanimous written consent of each qualified elector within the District to such election date must be obtained.

The polls shall be open for said election immediately following the public hearing on May 6, 2025.

The election shall be conducted by the City Clerk. Except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City of Murrieta insofar as such provisions are determined by the City Clerk to be applicable. The City Clerk is authorized to conduct the election following the adoption of the Resolution of Formation, and this resolution and all ballots shall be received by and the City Clerk shall close the election by 11:00 p.m. on the election day; provided the election shall be closed at such earlier time as all qualified electors have voted as provided in Section 53326(d) of the Act. Pursuant to Section 53326 of the Act, the ballots for the special election shall be distributed in person, or by mail with return postage prepaid, to the qualified electors within Community Facilities District No. 2025-3. The City Clerk has secured a certificate of the Registrar of Voters of the County of Riverside certifying that there were no registered voters within the District. Accordingly, since there were fewer than 12 registered voters within the District for each of the 90 days preceding May 6, 2025, the qualified electors shall be the landowners within the District and each landowner, or the authorized representative thereof, shall have one vote for each acre or portion thereof that such landowner owns within Community Facilities District No. 2025-3, as provided in Section 53326 of the Act. Each landowner within the District has executed and delivered a waiver of certain election law requirements and consenting to the holding of the election on May 6, 2025, which waiver is on file with the City Clerk.

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

PASSED AND ADOPTED this 6th day of May, 2025.
____________________________
Cindy Warren, Mayor
2022
4 ATTEST:
_____________________________
Cristal McDonald, City Clerk
APPROVED AS TO FORM:
_____________________________
Tiffany Israel, City Attorney

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )§

CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, California, do hereby certify that the foregoing Resolution No. 25-4825 was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the 6th day of May, 2025, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
Cristal McDonald, City Clerk
2023

EXHIBIT A

BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2025-3 (DISCOVERY VILLAGE)

OF THE CITY OF MURRIETA

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MURRIETA,

CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE
BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-3
(DISCOVERY VILLAGE) OF THE CITY OF MURRIETA CERTIFYING

ELECTION RESULTS
WHEREAS, the City Council of the City of Murrieta called and duly held an election on May 6, 2025 within the boundaries of Community Facilities District No. 2025-3 (Discovery Village) of the City of Murrieta (“Community Facilities District No. 2025-3” or the “District”) pursuant to Resolution Nos. 25-4824 and 25-4825 for the purpose of presenting to the qualified electors within the District Propositions A, B and C, attached hereto as Exhibit A; and WHEREAS, there has been presented to this City Council a certificate of the City Clerk or Deputy City Clerk (referred to herein as the “City Clerk”) canvassing the results of the election, a copy of which is attached hereto as Exhibit B;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MURRIETA AS FOLLOWS:

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

Section 2. Propositions A, B, and C presented to the qualified electors of the District on May 6, 2025, were approved by more than two-thirds of the votes cast at said election and Propositions A, B, and C each has carried. The City Council, acting as the legislative body of the District, is hereby authorized to levy on the land within the District the special tax described in Proposition B for the purposes described therein and to take the necessary steps to levy the special tax authorized by Proposition B and to issue bonds in one or more series in the maximum aggregate principal amount of $27,500,000 specified in Proposition A.

Section 4. This Resolution shall be effective upon its adoption.

PASSED AND ADOPTED this 6th day of May, 2025.
____________________________
Cindy Warren, Mayor
2025
2 ATTEST:
_____________________________
Cristal McDonald, City Clerk
APPROVED AS TO FORM:
_____________________________
Tiffany Israel, City Attorney

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )§

CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, California, do hereby certify that the foregoing Resolution No. 25-4826 was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the 6th day of May, 2025, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
Cristal McDonald, City Clerk
2026
A-1

EXHIBIT A

BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2025-3 (DISCOVERY VILLAGE)

OF THE CITY OF MURRIETA

EXHIBIT B

CERTIFICATE OF CITY CLERK

AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS I, Cristal McDonald, City Clerk of the City of Murrieta, do hereby certify that I have examined the returns of the Special Tax and Bond Election for Community Facilities District No. 2025-3 (Discovery Village) of the City of Murrieta. The election was held in the City of Murrieta Council Chambers, 1 Town Square, Murrieta, California, on May 6, 2025. I caused to be delivered ballots to each qualified elector. One (1) ballot was returned.

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

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

NO: NO: NO:

TOTAL: TOTAL: TOTAL:

Dated this 6th day of May, 2025.

CRISTAL MCDONALD, CITY CLERK
2028
ORDINANCE NO. 616-25

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

MURRIETA, CALIFORNIA, ACTING IN ITS CAPACITY AS THE
LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO.
2025-3 (DISCOVERY VILLAGE) OF THE CITY OF MURRIETA

AUTHORIZING THE LEVY OF SPECIAL TAXES
WHEREAS, on February 4, 2025, the City Council (the “City Council”) of the City of Murrieta (the “City”) adopted Resolution No. 25-4807 declaring its intention to form Community Facilities District No. 2025-3 of the City of Murrieta (Discovery Village) (the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, comprising Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”), and its Resolution No. 25-4808 declaring its intention to incur bonded indebtedness for the District; and WHEREAS, on April 1, 2025, the City Council continued the public hearing called for such date to May 6, 2025; and
WHEREAS, on May 6, 2025, after providing all notice required by the Act, the City Council conducted a noticed public hearing required by the Act relative to the proposed formation of the District, the proposed levy of a special tax therein to finance certain public facilities described in Resolution No. 25-4807 and to secure the payment of any bonded indebtedness of the District, and the proposed issuance of bonded indebtedness in one or more series in the maximum aggregate principal amount of $27,500,000, as described in Resolution No. 25-4808; and WHEREAS, at the May 6, 2025, public hearing, all persons desiring to be heard on all matters pertaining to the formation of the District and the proposed levy of the special tax to finance the facilities described in Resolution No. 25-4807 and to secure the payment of bonded indebtedness in the maximum aggregate principal amount of $27,500,000 of the District as described in Resolution No. 25-4807 (the “Bonds”) were heard and a full and fair hearing was held; and
WHEREAS, on May 6, 2025, the City Council adopted Resolution Nos. 25-4824 and 25- 4825 which formed the District and called a special election within the District on May 6, 2025 on three propositions relating to the levy of a special tax within the District, the issuance of the Bonds and the establishment of an appropriations limit within the District; and WHEREAS, on May 6, 2025, a special election was held within the District at which the qualified electors approved by more than a two thirds vote Propositions A, B, and C authorizing the levy of a special tax within the District for the purposes described in Resolution 25-4824, the issuance of the Bonds as described in Resolution No. 25-4825 and establishing an appropriations limit for the District; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MURRIETA,

CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-3 (DISCOVERY VILLAGE) OF THE CITY OF MURRIETA DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. The above recitals are all true and correct. 2029
2 Section 2. By the passage of this Ordinance, the City Council authorizes and levies special taxes within the District pursuant to Sections 53328 and 53340 of the Act at the rates and in accordance with the rate and method of apportionment set forth in Attachment C to Resolution No. 25-4807, which is incorporated by reference herein (the “Rate and Method”). The special taxes are hereby levied commencing in the fiscal year specified in the Rate and Method and in each fiscal year thereafter until payment in full of the Bonds (including any bonds issued to refund the Bonds), payment of all costs of the public facilities and services authorized to be financed by the District, and payment of all costs of administering the District.

Section 4. Properties or entities of the state, federal or other local governments shall be exempt from the special tax, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act and Section F of the Rate and Method. No other properties or entities are exempt from the special tax unless the properties or entities are expressly exempted in Resolution No. 25-4824 or in a resolution of consideration to levy a new special tax or special taxes or to alter the rate or method of apportionment or an existing special tax as provided in Section 53334 of the Act.

Section 5. All of the collections of the special tax shall be used as provided for in the Act, the Rate and Method and Resolution No. 25-4824.

Section 7. As a cumulative remedy, if any amount levied as a special tax for payment of the interest or principal of the Bonds (including any bonds issued to refund the Bonds), together with any penalties and other charges accruing under this Ordinance, are not paid when due, the City Council may, not later than four years after the due date of the last installment of principal on the Bonds (including any bonds issued to refund the Bonds), order that the same be collected by an action brought in the superior court to foreclose the lien of such special tax, as authorized by the Act.
2030
3 Section 8. The Mayor of the City shall sign this Ordinance and the City Clerk or Deputy City Clerk (referred to herein as the “City Clerk”) shall attest to the Mayor’s signature and then cause the same to be published within fifteen (15) days after its passage at least once in The Press Enterprise, a newspaper of general circulation published and circulated in the City of Murrieta.

Section 9. The specific authorization for adoption of this Ordinance is pursuant to the provisions of Section 53340 of the Act.

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

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

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

PASSED AND ADOPTED this ___ day of ________, 202__.

Cindy Warren, Mayor
ATTEST:

Cristal McDonald, City Clerk
APPROVED AS TO FORM:

Tiffany J. Israel, City Attorney
2031
4 STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )§

CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, California, do hereby certify that the foregoing Ordinance No. 616-25 was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the ___th day of _______, 202__, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following
vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Cristal McDonald, City Clerk
I, Cristal McDonald, City Clerk of the City of Murrieta, California further certify that Ordinance No. 616-25 was duly published according to law and the order of the City Council of said City and the same was so published in Press Enterprise, a newspaper of general circulation on the following date(s):

Adopted Ordinance: , 2025.

In witness whereof, I have hereunto subscribed my name this __ day of ______________, 2025.

Cristal McDonald, City Clerk
2032
2033
Stradling Yocca Carlson & Rauth
Draft of March 6, 2025
4900-5221-9670v4/022972-0049

ACQUISITION AGREEMENT
among

CITY OF MURRIETA
and

CITY OF MURRIETA
COMMUNITY FACILITIES DISTRICT NO. 2025-3 (DISCOVERY VILLAGE), and

DISCOVERY VILLAGE LLC
2034
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TABLE OF CONTENTS
ARTICLE I. DEFINITIONS......................................................................................................1 Section 1.01 Definitions ...........................................................................................................1 ARTICLE II. RECITALS ...........................................................................................................5 Section 2.01 The CFD ..............................................................................................................5 Section 2.02 The Development.................................................................................................5 Section 2.03 The Facilities........................................................................................................5 Section 2.04 The Financing ......................................................................................................5 Section 2.05 The Bonds............................................................................................................5 Section 2.06 No Advantage to City Construction.....................................................................5 Section 2.07 Agreements..........................................................................................................6 ARTICLE III. FUNDING.............................................................................................................6 Section 3.01 District Proceedings.............................................................................................6 Section 3.02 Bonds...................................................................................................................6 Section 3.03 Bond Proceeds .....................................................................................................7 Section 3.04 No “Pay Go” Taxes Following the Issuance of Bonds........................................8 Section 3.05 Prepayments.........................................................................................................8 Section 3.06 Limitation.............................................................................................................9 ARTICLE IV. CONSTRUCTION OF CITY FACILITIES.........................................................9 Section 4.01 Plans.....................................................................................................................9 Section 4.02 Construction.........................................................................................................9 Section 4.03 Independent Contractor......................................................................................10 Section 4.04 Performance and Payment Bonds......................................................................10 Section 4.05 Contracts and Change Orders............................................................................10 Section 4.06 Time for Completion .........................................................................................11 Section 5.01 Inspection...........................................................................................................11 Section 5.02 Acquisition of City Facilities.............................................................................11 Section 5.03 Payment Requests..............................................................................................12 Section 5.04 Processing Payment Requests............................................................................12 Section 5.05 Payment .............................................................................................................13 Section 5.06 Restrictions on Payments...................................................................................13 Section 5.07 Allocation of Costs ............................................................................................15 Section 5.08 Expectations of the Parties.................................................................................15 Section 5.09 Defective or Nonconforming Work...................................................................16 Section 5.10 Modification of Discrete Components...............................................................16 ARTICLE VI. OWNERSHIP AND TRANSFER OF CITY FACILITIES ...............................16 Section 6.01 Facilities to be Owned by the City - Conveyance of Land and Easements to City.....................................................................................................................16 Section 6.02 Facilities to be Owned by the City - Title Evidence..........................................16 Section 6.03 Facilities Constructed on Private Lands ............................................................17 Section 6.04 Facilities Constructed on City Land ..................................................................17 Section 6.05 Maintenance and Warranties .............................................................................17 2035
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ARTICLE VII. PAYMENT OF CITY FEES ..............................................................................18 Section 7.01 Request for Payment of City Fees .....................................................................18 Section 7.02 Payment of City Fees in Advance of Availability of Funding Sources.............18 Section 7.03 Return of Deposits.............................................................................................18 Section 7.04 Deposits Allocated First.....................................................................................19 Section 7.05 Application of Deposits.....................................................................................19 Section 7.06 Expectations.......................................................................................................19 Section 7.07 Return of Funds Following DIF Fee Credits.....................................................19 ARTICLE VIII. INSURANCE......................................................................................................20 Section 8.01 Insurance Requirements.....................................................................................20 Section 8.02 Standards Applicable .........................................................................................21 ARTICLE IX. INDEMNIFICATION.........................................................................................21 Section 9.01 Indemnification and Hold Harmless..................................................................21 Section 9.02 Disclosure of Special Tax..................................................................................22 ARTICLE X. EVENT OF DEFAULT; TERMINATION ........................................................22 Section 10.01 Event of Default.................................................................................................22 Section 10.02 Owner Termination............................................................................................23 ARTICLE XI. EMWD FACILITIES..........................................................................................23 Section 11.01 EMWD Acquisition Facilities ...........................................................................23 Section 11.02 EMWD Fees ......................................................................................................24 ARTICLE XII. MISCELLANEOUS ...........................................................................................25 Section 12.01 Limited Liability of City....................................................................................25 Section 12.02 Audit ..................................................................................................................25 Section 12.03 Attorney’s Fees..................................................................................................25 Section 12.04 Notices...............................................................................................................25 Section 12.05 Severability ........................................................................................................26 Section 12.06 Successors and Assigns .....................................................................................26 Section 12.07 Other Agreements..............................................................................................26 Section 12.08 Waiver................................................................................................................26 Section 12.09 Merger................................................................................................................26 Section 12.10 Binding on CFD.................................................................................................26 Section 12.11 Amendment........................................................................................................26 Section 12.12 Counterparts.......................................................................................................26 Section 12.13 Governing Law ..................................................................................................27

EXHIBIT A DESCRIPTION OF ELIGIBLE PUBLIC FACILITIES AND DISCRETE

COMPONENTS

EXHIBIT B DESCRIPTION OF PROPERTY

EXHIBIT C FORM OF PAYMENT REQUEST
2036
1 4900-5221-9670v4/022972-0049

ACQUISITION AGREEMENT
THIS ACQUISITION AGREEMENT (the “Acquisition Agreement”), dated as of _______________, 2025, is by and among the CITY OF MURRIETA, a municipal corporation and a political subdivision of the State of California (the “City”), the CITY OF MURRIETA COMMUNITY FACILITIES DISTRICT NO. 2025-3 (DISCOVERY VILLAGE) (the “CFD”), and DISCOVERY VILLAGE LLC, a Delaware limited liability company (the “Owner”).

ARTICLE I.

DEFINITIONS
Section 1.01 Definitions. Except for terms defined herein, the following terms shall have the meanings ascribed to them in this Section 1.01 for purposes of this Acquisition Agreement.
“Acceptable Title” means title to land or interest therein, in form acceptable to the Director, free and clear of all liens, taxes, assessments, leases, easements and encumbrances, whether or not recorded, but subject to any exceptions determined by the Director as not interfering with the actual or intended use of the land or interest therein. Notwithstanding the foregoing, an irrevocable offer of dedication may constitute land with an “Acceptable Title” if:
(i) such offer is necessary to satisfy a condition to a tentative or final parcel map, (ii) such offer is in a form acceptable to the Director, (iii) the Director has no reason to believe that such offer of dedication will not be accepted by the applicable public agency, and (iv) the Owner commits in writing not to allow any liens to be imposed on such property prior to its acceptance.

Notwithstanding the foregoing, if the land is within the boundaries of any existing community facilities district (including the CFD), an assessment district, or other financing district, then the lien of the special taxes or assessments shall be a permitted exception to title so long as the land, while owned by the City or other public agency, is exempt from the special tax or assessments to be levied by the community facilities district, assessment district, or other financing district. “Acceptance Date” means the date the City Council (or other public entity which is to own a Facility) takes final action to accept dedication of or transfer of title to a Facility. “Acquisition Agreement” means this Acquisition Agreement, together with any Supplement hereto.
“Act” means the Mello-Roos Community Facilities Act of 1982, Section 53311 et seq. of the California Government Code, as amended.
“Actual Cost” means the substantiated cost of a Facility or a Discrete Component, which costs may include all hard and soft costs associated with the Facility or a Discrete Component, including, but not limited to: (i) the costs for the design, engineering, and construction (including grading) of such Facility or Discrete Component, (ii) the costs incurred by the Owner in preparing the Plans for such Facility or Discrete Component and the related costs of environmental evaluations of the Facility or Discrete Component, (iii) the fees paid to governmental agencies for, and all other costs incurred in connection with obtaining permits, licenses or other governmental approvals for such Facility or Discrete Component, 2037
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(iv) professional costs incurred by the Owner or the City associated with such Facility or Discrete Component, such as engineering, legal, accounting, inspection, construction staking, materials testing and similar professional services; and (v) costs directly related to the construction and/or acquisition of a Facility or Discrete Component, such as costs of payment, performance and/or maintenance bonds, and insurance costs (including costs of any title insurance required hereunder).
“Affiliate” means any entity with respect to which fifty percent (50%) or more of the ownership or voting power is held individually or collectively by the Owner and any other entity owned, controlled or under common ownership or control by or with, as applicable, the Owner, and includes all general partners of any entity which is a partnership. Control shall mean ownership of fifty percent (50%) or more of the voting power of or ownership interest in the respective entity. A title or escrow company that is an affiliate of the Owner shall not be considered an Affiliate for purposes of this Acquisition Agreement. “Authorized Fees” means, collectively, the City Fees and the EMWD Fees. “Bonds” means the bonds to be issued by the City for the CFD, in one or more series, secured by the levy of special taxes of the CFD.
“Business Day” means a day other than a Saturday, Sunday or a day that Murrieta City Hall is not open for business and serving the public.
“CFD” means the City of Murrieta Community Facilities District No. 2025-3 (Discovery Village), created by the City under the Act.
“City” means the City of Murrieta, a municipal corporation and a political subdivision of the State.
“City Facilities” means the streets, storm drainage, and landscaping improvements to be owned, operated or maintained by the City; and City Fees as set forth in Exhibit “A.” “City Facilities Account” means the subaccount of the Improvement Fund by that name from which the City Facilities may be funded.
“City Fees” means the City-imposed development impact fees described in Exhibit “A” attached hereto.
“County” means the County of Riverside, California.
“Director” means the City Manager of the City or his or her written designee acting as such under this Acquisition Agreement.
“Disbursement Request Form” means the request form attached to the EMWD JCFA as Exhibit D (for EMWD Fees) or Exhibit E (for EMWD Acquisition Facilities), which shall be used to requisition Funding Sources to pay for EMWD Facilities and EMWD Fees. 2038
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“Discrete Component” means a segment or component of a Facility that the Director has agreed can be separately identified, inspected and completed consistent with the provisions of Section 53313.51 of the Act, and be the subject of a Payment Request hereunder. The Discrete Components are shown on Exhibit A hereto with each lettered description of work constituting a Discrete Component of the corresponding Facility.
“EMWD” means Eastern Municipal Water District.
“EMWD Acquisition Facilities” means the sewer and water facilities described in Exhibit “A” which are constructed by Owner and acquired by EMWD. “EMWD Facilities” means (i) EMWD Acquisition Facilities and (ii) EMWD Fees. “EMWD Fees” means water connection fees, sewer connection fees, annexation fees, sewer treatment capacity charges, sewer surcharge fees, and all components thereof imposed by EMWD with respect to development of the property within the CFD. “EMWD JCFA” means the Joint Community Facilities Agreement entered into by and among City, EMWD and Owner, dated as of _____, 2025, as it may be amended. “Event of Default” is defined in Section 10.01 herein.
“Facility” or “Facilities” means the public facility or facilities described in Exhibit “A” hereto which are eligible to be financed by the CFD consisting of City Facilities and EMWD Facilities. The descriptions of the Facilities in Exhibit “A” are preliminary in some cases. The final Plans may show substitutes or modifications approved by the applicable public agency to the proposed Facilities in order to accomplish the work or serve the new development within the CFD.
“Fiscal Agent” means the agent named to such position as fiscal agent or trustee under the Fiscal Agent Agreement, or any successor thereto acting as fiscal agent under the Fiscal Agent Agreement.
“Fiscal Agent Agreement” means the fiscal agent agreement, indenture of trust or other agreement providing for, among other matters, the issuance of the Bonds and the establishment of the Improvement Fund, as it may be amended or supplemented from time to time. “Funding Sources” shall mean, collectively, the proceeds of Bonds, any special taxes collected to directly finance Facilities (as set forth in but subject to the limitations of Section 3.04) and prepayments of special taxes applied to the costs of Facilities (as set forth in Section 3.05), as further described in Section 3 herein. “Goals and Policies” means the Community Facilities District Goals and Policies, dated October 3, 2023. Any future amendments to the Goals and Policies shall not be applicable to the CFD.
“Improvement Fund” means the Improvement Fund, and the following two subaccounts thereof: City Facilities Account; and the Other Facilities Account. 2039
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“Other Facilities Account” means the subaccount of the Improvement Fund by that name from which the EMWD Facilities may be funded.
“Owner” means Discovery Village LLC, a Delaware limited liability company, and its successors and assigns to the extent permitted under Section 12.06 hereof. “Payment Request” means a document, substantially in the form of Exhibit “C” hereto, to be used by the Owner in requesting payment of a Purchase Price or funding with respect to one or more City Facilities or Discrete Components thereof or any City Fees. “Plans” means the plans, specifications, schedules and related construction contracts for the Facilities and/or any Discrete Components thereof approved pursuant to the applicable standards of the City or other entity that will own or operate the Facilities when completed and acquired.
“Price Point Study” means a report that consists of the following: (i) for homes that have been previously sold and closed, the actual sales prices of such homes, (ii) for homes that are in escrow but have not closed, the actual purchase price of the homes, and (iii) for all other homes and for all other lots, the estimated home sale prices prepared by an independent third party consultant chosen by the City.
“Principal Payment Date” shall mean, with respect to Bonds issued in the CFD, the semiannual payment date in which principal or sinking fund payments on such Bonds are, in any year, payable. For example, if the principal amount of Bonds are payable on September 1, the Principal Payment Date shall be September 1, regardless of whether principal payments are actually due in any particular year.
“Proof of Assignment” shall mean any of the following: (i) a letter from a merchant builder acknowledging that the Owner is entitled to all refunds of deposits; (ii) excerpts from the purchase and sale agreement with the Owner that the merchant builder has agreed that all refunds of deposits belong to the Owner; or (iii) other evidence that the merchant builder has agreed that the Owner is entitled to the return of all deposits.
“Purchase Price” means the amount paid by the City for a Facility and/or any Discrete Components thereof determined in accordance with Article V hereof, being an amount equal to the Actual Cost of such Facility or Discrete Component, but subject to any limitations and reductions provided for in Article V.
“Rate and Method” means the rate and method of apportionment of the special tax for the CFD.
“Substantially Complete(d)” with respect to a Facility or Discrete Component means that such Facility or Discrete Component is substantially complete in accordance with its Plans and is available for use by the public for its intended purpose, notwithstanding any final “punch list” items still required to be completed, unless such items are required for the safe operation of such Facility or Discrete Component, and shall be based upon approval of the City inspector, which shall not be unreasonably withheld.
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“Supplement” means a written document amending, supplementing or otherwise modifying this Acquisition Agreement and any exhibit hereto, or the list of Facilities to be financed by the Funding Sources.

ARTICLE II.

RECITALS
Section 2.01 The CFD. The City Council of the City is the legislative body of the CFD established under the Act for the financing of, among other things, the acquisition, construction and installation of public facilities identified in the proceedings to form the CFD, which include the Facilities listed in Exhibit “A” hereto.

Section 2.02 The Development. The real property in the CFD is described in Exhibit “B” hereto (the “Property”). The Owner proposes to develop the Property (by itself, through sales to merchant builders, or a combination thereof) as a residential community containing approximately 365 single-family residential dwelling units and other uses (the “Development”).

Section 2.03 The Facilities. The Owner will benefit from a coordinated plan of design, engineering and construction of the Facilities and the development of the land. The Owner acknowledges that the inclusion of Facilities in Exhibit “A” hereto in no way, in itself, obligates the City to issue any Bonds to acquire the Facilities from the Owner or implies that the City has in any way engaged the Owner to construct the Facilities. The City and CFD acknowledge that the inclusion of Facilities in Exhibit “A” hereto in no way, in itself, obligates the Owner to construct any such Facilities under the terms of this Acquisition Agreement.

Section 2.04 The Financing. The Owner and the City wish to finance the acquisition of the Facilities and the payment therefor by entering into this Acquisition Agreement for the acquisition of the Facilities and payment for Discrete Components thereof (as it may be amended and supplemented) from the Funding Sources.

Section 2.05 The Bonds. The CFD will be proceeding with the authorization and issuance of the Bonds under the Act and the Fiscal Agent Agreement, the proceeds of which Bonds shall be used, in part, to finance the acquisition of all or a portion of the Facilities. The execution by the City and the CFD of this Acquisition Agreement in no way obligates the City or the CFD to issue any Bonds, or to acquire any Facilities with proceeds of any Bonds issued, except the Facilities listed in Exhibit “A” hereto which are to be acquired subject to the terms and conditions set forth in this Acquisition Agreement.

Section 2.06 No Advantage to City Construction. The City, by its approval of this Acquisition Agreement, has determined that it will obtain no advantage from undertaking the construction by the City directly of the City Facilities, and that the provisions of this Acquisition Agreement require that the Facilities to be constructed by the Owner and acquired with the proceeds of the Bonds be constructed as if they had been constructed under the direction and supervision of the applicable Public Agency, as set forth in Section 4.02 below. Notwithstanding anything in this Acquisition Agreement to the contrary, upon the mutual agreement of the City 2041
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and the Owner and upon an Event of Default, the City and the Owner may allocate a portion of the Funding Sources to the construction of City Facilities that are constructed by the City.

Section 2.07 Agreements. In consideration of the mutual promises and covenants set forth herein, and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the City, the CFD, and the Owner agree that the foregoing recitals, as applicable to each, are true and correct and further make the agreements set forth herein.

ARTICLE III.

FUNDING
Section 3.01 District Proceedings. The CFD shall conduct all necessary proceedings under the Act for the issuance, sale and delivery of the Bonds; provided, however, that nothing herein shall be construed as requiring the CFD to issue the Bonds or any series thereof. The Owner and the City staff shall meet regarding the amount, timing and other material aspects of each series of the Bonds, but the legal proceedings and the series, principal amounts, rates, terms and conditions and timing of the sale of the Bonds shall be consistent with this Acquisition Agreement and in all respects subject to the approval of the City Council as legislative body of the CFD.

Section 3.02 Bonds. The CFD anticipates issuing one or more series of Bonds for the CFD when building permits have been issued on Property within the CFD that is projected to be responsible for at least 50% of the projected Special Tax levy (the “50% Threshold”). In each case, the Bonds will be sized to be secured by 100% of the assigned special tax rates on all taxable property (at buildout, and, at the CFD’s discretion, excluding any Property therein currently delinquent in payment of special taxes) as set forth in the Rate and Method. If requested by the Owner, the CFD may, however, in its sole discretion, agree to issue Bonds prior to the 50% Threshold being met for the CFD. If the CFD agrees to issue Bonds prior to the 50% Threshold being met, the CFD shall require one or more letters of credit or cash deposits from the Owner or other homebuilders within the CFD to secure the payment of Special Taxes on land owned by the Owner or such other homebuilders as the CFD shall determine until such time as the 50% Threshold is met in the CFD. The letter of credit or cash deposit shall be in an amount equal to two (2) years special taxes to be levied on property owned by the Owner or the homebuilders, as applicable. The issuance of Bonds within the CFD shall comply with the parameters set forth below, except as such parameters are required to be changed to comply with state law:
• Credit enhancement will not be required as condition precedent to the issuance of the Bonds unless the City agrees to issue the Bonds prior to the 50% Threshold being satisfied for the CFD.
• Debt service on the Bonds shall be sized based on the assumption that the maximum special taxes that may be levied on taxable property shall be 110% of the projected debt service on the Bonds in each year plus priority administrative expenses (subject to the application of capitalized interest in accordance with Section 3.03 hereof). While the actual coverage ratio may be in excess of 110%, 2042
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the City shall not, as a condition of issuing the Bonds, require a ratio in excess of 110%.
• The assessed or appraised value of the taxable property within CFD shall be at least three times the principal amount of the Bonds and any direct or overlapping community facilities district or assessment district debt. While the actual valueto-lien ratio may be in excess of 3:1, the City shall not, as a condition of issuing the Bonds, require a ratio in excess of 3:1.
• The Reserve Fund shall be funded in an amount equal to the least of the three federal tax safe harbor amounts.
• The proceeds of the Bonds for the CFD may be used to finance any of the Facilities set forth in Exhibit A, including the capital fees listed on Exhibit A. • The debt service on Bonds in the CFD may escalate in an annual amount equal to any escalation of the special taxes under the Rate and Method as provided in Section 2.01 hereof.
• The City in its sole discretion may require the Owner, or its assigns to prepay a portion of the special taxes on any parcel that has a tax rate in excess of 2% at the time such Bonds are issued, based upon a Price Point Study.

Any time after three years following the issuance of the Bonds, if the balances in the Improvement Fund or any subaccount therein for such the CFD is $0, the City may close such fund or account. If funds remain on deposit in the Improvement Fund for the CFD five years following the issuance of the Bonds, the City may elect to use such funds to defease Bonds or to pay directly for any authorized facility or facilities.

Section 3.03 Bond Proceeds. The proceeds of the Bonds shall be deposited, held, invested, reinvested and disbursed as provided in the Fiscal Agent Agreement and this Acquisition Agreement. A portion of the proceeds of the Bonds will be set aside under the Fiscal Agent Agreement in the Improvement Fund and upon the direction of the Owner used to finance City Facilities and EMWD Facilities. Moneys in the Improvement Fund shall be withdrawn therefrom in accordance with the provisions of the Fiscal Agent Agreement and the applicable provisions hereof for payment, without priority, of all or a portion of the costs of construction and/or acquisition of the Facilities (including payment of the Purchase Price of Discrete Components thereof), and payment or reimbursement of City Fees and EMWD Fees all as herein provided or as provided in the EMWD JCFA; provided, however, that, if tax-exempt Bonds are issued, City Fees shall be financed only if the City shall certify in connection with such financing of City Fees that it reasonably expects to spend Bond proceeds attributable to the financing of such City Fees on public capital improvements within three years from the date of issuance of the Bonds.

Unless otherwise requested in writing by the Owner prior to issuance of each series of Bonds, earnings on amounts in a subaccount of the Improvement Fund shall be retained in the respective subaccount of the Improvement Fund until all Facilities have been financed, as evidenced by a certificate provided by the Owner, or Owner provides a certificate to the CFD 2043
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indicating that the funds on deposit in the Improvement Fund are sufficient to finance the remaining Facilities for which the Owner expects to submit a payment request. For a period not to exceed three (3) years after issuance of the Bonds, earnings on amounts in the reserve fund(s) for the Bonds in excess of the applicable reserve requirement shall, prior to receipt of either certificate described in the preceding sentence, be deposited in the Improvement Fund, and after receipt of such certificate, shall be deposited in the fund established by the Fiscal Agent Agreement for payment of debt service on the Bonds.

The City agrees to include capitalized interest for eighteen (18) months in each series of Bonds, unless the Owner requests capitalized interest for a shorter period prior to issuance of each series of Bonds.

The Owner agrees that the City alone shall direct the investment of the funds on deposit in the funds and accounts established by or pursuant to the Fiscal Agent Agreement, including the Improvement Fund, and that the Owner has no right whatsoever to direct investments under the Fiscal Agent Agreement.

Neither the City nor the CFD shall have any responsibility whatsoever to the Owner with respect to any investment of funds made by the Fiscal Agent under the Fiscal Agent Agreement, including any loss of all or a portion of the principal invested or any penalty for liquidation of an investment. Any such loss may diminish the amounts available in the Improvement Fund to pay the Purchase Price of Facilities and Discrete Components hereunder. The Owner further acknowledges that the obligation of any owner of real property in the CFD, including the Owner to the extent it owns any real property in the CFD, to pay special taxes levied in the CFD is not in any way dependent on: (i) the availability of amounts in the Improvement Fund to pay for all or any portion of the Facilities or Discrete Components thereof, or (ii) the alleged or actual misconduct of the City or CFD in the performance of its obligations under this Acquisition Agreement, the Fiscal Agent Agreement, any Owner agreement or amendment thereto or any other agreement to which the Owner and the CFD and/or the City are signatories.

Section 3.04 No “Pay Go” Taxes Following the Issuance of Bonds. Following the issuance of Bonds, the CFD shall not levy taxes within the CFD directly to pay for the costs of acquiring Facilities. Prior to the issuance of any Bonds, the CFD shall levy special taxes on all parcels of Developed Property (as defined in the Rate and Method) at the assigned special tax rates and use such funds to pay for the costs of administering the CFD and for the costs of acquiring Facilities.

Section 3.05 Prepayments. To the extent authorized under the Rate and Method, any prepayments of special tax obligations that the Rate and Method requires to be used to pay for Facilities, whether before or after the issuance of the Bonds, shall be placed in a special fund to be held by the City (the “Prepayment Fund”). Moneys in the Prepayment Fund shall be a source for the payment of the costs of the acquisition of the Facilities and the Discrete Components thereof and the payment of Authorized Fees and shall be applied in the same manner as the proceeds of Bonds; provided that the amounts in the Prepayment Fund shall be used to redeem Bonds to the extent required to maintain debt service coverage from Special Taxes at least equal to 110% of debt service on the Bonds plus administrative expenses. Notwithstanding anything in this Section 3.05 to the contrary, the Owner and the City agree that if only one series of Bonds is 2044
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issued in the amount required by Section 3.02, then the City shall no longer collect any Future Facilities Costs (as defined in the Rate and Method) in connection with a prepayment of Special Taxes after such Bonds are issued.

Section 3.06 Limitation. The City shall not be obligated to pay the Purchase Price of the Facilities or any Discrete Components thereof or the Authorized Fees except from amounts on deposit in the Prepayment Fund, and the Improvement Fund in any combination. The City makes no warranty, express or implied, that amounts on deposit in the Prepayment Fund, and the Improvement Fund will be sufficient for payment of the Purchase Price of the Facilities or any Discrete Components thereof or the Authorized Fees. The Owner acknowledges that any lack of availability of amounts in the Prepayment Fund, and the Improvement Fund to pay the Purchase Price of Facilities or any Discrete Components thereof and the Authorized Fees shall in no way diminish any obligation of the Owner with respect to the construction of or contributions for public facilities or the payment of fees required by the conditions of approval for the project.

ARTICLE IV.

CONSTRUCTION OF CITY FACILITIES
Section 4.01 Plans. To the extent that it has not already done so, the Owner shall cause Plans to be prepared for the City Facilities to be constructed by Owner and funded with the Funding Sources. Upon completion of the Plans for each City Facility to the satisfaction of the City in accordance with applicable ordinances and regulations of the City, the City shall immediately notify Owner that the Plans are completed and acceptable to the City. Copies of all Plans shall be provided by the Owner to the Director upon request therefor, and, in any event, asbuilt drawings and a written assignment of the Plans for any City Facility shall be provided to the City prior to its acceptance of the City Facility.

Section 4.02 Construction. Subject to all of the provisions of this Agreement, the City agrees to acquire from the Owner those Facilities listed in Exhibit A which are constructed by the Owner and tendered for acquisition in accordance with the provisions of this Agreement.

The Owner agrees that any Facility being constructed by, or under the direction of, the Owner and to be acquired by the City shall be constructed in substantial compliance with the approved Plans and in compliance with the requirements of Government Code Section 53313.5, which requires those improvements to be constructed as if such improvements had been constructed under the direction and supervision, or under the authority, of the City. The Owner shall require its contractor or contractors to pay the prevailing rate of per diem wages for work of a similar character in the locality of the CFD and not less than the general prevailing rate of per diem wages for holiday and overtime work, as provided in Section 1771 et seq. of the California Labor Code, to all workers employed by each such contractor in the construction of the Facilities. As to each Facility, the Owner shall obtain from its contractor or contractors and furnish to the City payroll records for a minimum of one payroll period as to all such workers employed by the contractor or contractors demonstrating compliance with the requirements of Section 1771 et seq. of the California Labor Code. In addition to any other warranty or indemnification set forth in this Agreement, the Owner specifically warrants that it and its contractors, subcontractors, successor and assigns shall comply with the provisions of California Labor Code Section 1771 et seq. or any similar applicable state or federal laws relating to payment of the prevailing wage as set forth above. The Owner shall indemnify, defend and hold 2045
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harmless the City and the CFD in any action brought by any person, entity or state or federal governmental agency for any failure to pay the prevailing wage or to comply with the applicable law governing payment of the prevailing wage.

This Acquisition Agreement is for the acquisition by the City of the City Facilities to be constructed by Owner and funded with the Funding Sources and payment for City Facilities and Discrete Components and EMWD Facilities (in accordance with the EMWD JCFA) thereof from such Funding Sources and is not intended to be a public works contract. The City and the Owner agree that the Owner shall award all contracts for the construction of the City Facilities to be constructed by Owner, acquired by the City and funded with the Funding Sources and the Discrete Components thereof and that this Acquisition Agreement is necessary to assure the timely and satisfactory completion of such City Facilities. Notwithstanding the foregoing, the Owner shall award all contracts for construction of the City Facilities to be acquired by City with the Funding Sources by means of a bid process whereby at least three independent bids are obtained, and the contract is awarded to the lowest responsible bidder. The Director shall be entitled to discuss the bidding process with the Owner at any time and from time to time, and to require reasonable changes thereto for future contracts if, in the judgment of the Director, said process is not resulting in competitive bids for the City Facilities. Notwithstanding the foregoing, Owner may proceed with fewer than three bids if the City reasonably determines that three bids were not reasonably available at the time of the bid.

Murrieta City CouncilMay 6, 2025

Murrieta City Council
May 6, 2025