Agenda packet — Murrieta City Council, June 3, 2025 (part 6 of 6)

DEPARTMENT/DIVISION POSITION
FY 25

AUTHORIZED
POSITIONS as of
Q3 Update NOTES ADDITIONS/ DELETIONS PROPOSED FY 26

AUTHORIZED
POSITIONS NOTES ADDITIONS/ DELETIONS PROPOSED FY 27

AUTHORIZED

POSITIONS
COUNCIL MEMBER 5.00 5.00 5.00
1101000 COUNCIL MEMBER 5.00 5.00 5.00
CITY MANAGER 9.00 10.00 9.00
1101400 ADMINISTRATIVE MANAGER - - -
1101400 ASSISTANT CITY MANAGER 2.00 (1.00) 1.00 1.00
1101400 ASSISTANT TO CITY MANAGER 1.00 1.00 1.00
1101400 CITY MANAGER 1.00 1.00 1.00
1101400 COMMUNICATION SPECIALIST 1.00 1.00 1.00
1101400 MANAGEMENT ANALYST 3.00 3.00 3.00
1101400 P/T INTERN - - -
1101400 PUBLIC INFORMATION OFFICER 1.00 1.00 1.00
1101400 SENIOR EXECUTIVE ASSISTANT 1.00 1.00 1.00
CITY CLERK 6.00 6.00 6.00
1102400 ASSISTANT CITY CLERK - - -
1102400 CITY CLERK 1.00 1.00 1.00
1102400 DEPUTY CITY CLERK 1.00 1.00 2.00 2.00
1102400 EXECUTIVE ASSISTANT 1.00 1.00 1.00
1102400 OFFICE ASST I / II - - -
1102400 RECORDS CLERK - - -
1102400 RECORDS CLERK-LIMITED TERM 1.00 (1.00) - -
1102400 RECORDS MANAGEMENT COORDINATOR - - -
1102400 RECORDS MANAGER 1.00 1.00 1.00
1102400 SENIOR RECORDS COORDINATOR 1.00 1.00 1.00

ADMINISTRATIVE SERVICES

DEPARTMENT (ASD) /
ADMINISTRATION 5.00 5.00 5.00
1102100 ADMIN SERVICES DIRECTOR 1.00 1.00 1.00
1102100 EXECUTIVE ASSISTANT AT-WILL 1.00 1.00 1.00
1112100 MANAGEMENT ANALYST 1.00 1.00 1.00
1102100 OFFICE ASSISTANT I / II 2.00 2.00 2.00
Printed on: 5/19/2025 | 2:54 PM
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CITY OF MURRIETA FY 2025/26 & 2026/27 PROPOSED BUDGET UPDATE CHANGES SCHEDULE OF AUTHORIZED POSITIONS FOR FISCAL YEAR 2025/26 & 2026/27

DEPARTMENT/DIVISION POSITION
FY 25

AUTHORIZED
POSITIONS as of
Q3 Update NOTES ADDITIONS/ DELETIONS PROPOSED FY 26

AUTHORIZED
POSITIONS NOTES ADDITIONS/ DELETIONS PROPOSED FY 27

AUTHORIZED

POSITIONS

ASD/HUMAN RESOURCES &
RISK MANAGEMENT 8.00 8.00 8.00
1102200 HUMAN RESOURCES ANALYST 2.00 2.00 2.00
1102200 SR HUMAN RESOURCES ANALYST 1.00 1.00 1.00
1102200 HUMAN RESOURCES MANAGER 1.00 1.00 1.00
1102200 HUMAN RESOURCES OFFICE ASSISTANT 1.00 (1.00) - - 1102200 HUMAN RESOURCES TECHNICIAN - 1.00 1.00 1.00
1112200 HUMAN RESOURCES TECHNICIAN 1.00 1.00 1.00
7018100 RISK MANAGEMENT TECHNICIAN 1.00 1.00 1.00
7018100 HUMAN RESOURCES ANALYST 1.00 1.00 1.00
7018100 SR HUMAN RESOURCES ANALYST - - -

ASD/INFORMATION
TECHNOLOGY 13.00 13.00 13.00
7268340 AUDIO VISUAL TECHNICIAN 1.00 1.00 1.00
7268340 GIS ANALYST 1.00 1.00 1.00
7268340 GIS TECHNICIAN 1.00 1.00 1.00
7268340 IT ANALYST 2.00 2.00 2.00
1118340 IT ANALYST - - -
7268340 IT COORDINATOR - - -
7268340 IT MANAGER 1.00 1.00 1.00
7268340 IT PROGRAM ADMINISTRATOR 1.00 1.00 1.00
7268340 IT SYSTEMS ADMINISTRATOR 1.00 1.00 1.00
1118340 IT SYSTEMS ADMINISTRATOR 1.00 1.00 1.00
7268340 IT TECHNICIAN I / II 2.00 2.00 2.00
1118340 IT TECHNICIAN I / II 1.00 1.00 1.00
7268340 MANAGEMENT ANALYST 1.00 1.00 1.00
ECONOMIC DEVELOPMENT 4.00 4.00 4.00
1104100 BUSINESS DEVELOPMENT PROGR MGR 1.00 1.00 1.00
1104100 DEPUTY DIR DEV SERV ECON DEV. - - -
1104100 ECONOMIC DEVELOPMENT DIRECTOR 1.00 1.00 1.00
1104100 EXECUTIVE ASSISTANT 1.00 1.00 1.00
1104100 MANAGEMENT ANALYST 1.00 1.00 1.00

DEVELOPMENT SERVICES

DEPARTMENT
(DSD)/PLANNING 14.00 15.00 14.00
1104400 ASSISTANT PLANNER 2.00 - 2.00 2.00
1104400 ASSOCIATE PLANNER 2.00 1.00 3.00 3.00
3580040 ASSOCIATE PLANNER- LIMITED TERM - - -
1104400 CITY PLANNER 1.00 1.00 1.00
1104400 DEPUTY DIRECTOR OF DSD 1.00 1.00 1.00
1104400 DEVELOPMENT SERVICES DIRECTOR 1.00 1.00 1.00
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CITY OF MURRIETA FY 2025/26 & 2026/27 PROPOSED BUDGET UPDATE CHANGES SCHEDULE OF AUTHORIZED POSITIONS FOR FISCAL YEAR 2025/26 & 2026/27

DEPARTMENT/DIVISION POSITION
FY 25

AUTHORIZED
POSITIONS as of
Q3 Update NOTES ADDITIONS/ DELETIONS PROPOSED FY 26

AUTHORIZED
POSITIONS NOTES ADDITIONS/ DELETIONS PROPOSED FY 27

AUTHORIZED

POSITIONS
1104400 DEVELOPMENT SERVICES TECH 2.00 (1.00) 1.00 1.00 1104400 EXECUTIVE ASSISTANT 1.00 1.00 1.00
1104400 RECORDS CLERK - TEMPORARY 1.00 (1.00) - -
1114400 MANAGEMENT ANALYST 1.00 1.00 1.00
1104400 SR PLANNER 3.00 3.00 3.00
DSD/BUILDING & SAFETY 14.00 14.00 14.00
1104600 ADMINISTRATIVE ASSISTANT 1.00 1.00 1.00
1104600 BUILDING & SAFETY MANAGER - - -
1104600 BUILDING INSPECTION SUPERVISOR 1.00 1.00 1.00
1104600 BUILDING INSPECTOR I / II / III 3.00 3.00 3.00
1104600 BUILDING OFFICIAL 1.00 1.00 1.00
1104600 DEVELOPMENT SERVICES TECHNICHIAN 3.00 3.00 3.00 1104600 MANAGEMENT ANALYST - - -
1114600 OFFICE ASSISTANT I / II 1.00 1.00 1.00
1104600 OFFICE ASSISTANT I / II - - -
1104600 PLANS EXAMINER 1.00 1.00 1.00
1104600 P/T INTERN - - -
1104600 SR DEVELOPMENT SERVICES TECH 1.00 1.00 1.00
1104600 SR PLANS EXAMINER 2.00 2.00 2.00
DSD/CODE ENFORCEMENT 9.00 9.00 9.00
1104140 CODE ENFORCEMENT OFFICER I / II 4.00 4.00 4.00
1114140 CODE ENFORCEMENT OFFICER I / II 2.00 2.00 2.00
1104140 CODE ENFORCEMENT MANAGER 1.00 1.00 1.00
1104140 OFFICE ASSISTANT I / II 1.00 1.00 1.00
1114140 OFFICE ASSISTANT I / II 1.00 1.00 1.00

COMMUNITY
SERVICES/EVENT/PROMO 2.00 2.00 2.00
1105000 RECREATION COORDINATOR - - -
1105000 RECREATION SUPERVISOR 1.00 1.00 1.00
1105000 SENIOR RECREATION COORDINATOR 1.00 1.00 1.00

COMMUNITY
SERVICES/HOMELESS 1.00 1.00 1.00
1115100 HOMELESS PROGRAM MANAGER* 1.00 - 1.00 1.00
1115100 ASSISTANT MANGEMENT ANALYST 1.00 (1.00) - -

COMMUNITY
SERVICES/RECREATION 16.25 17.25 16.25
1715144 DIRECTOR OF COMMUNITY SERVICES 0.50 0.50 0.50
1715144 P/T RECREATION LEADER 6.50 6.50 6.50
1715144 P/T SENIOR RECREATION LEADER 1.50 1.50 1.50
1715144 PARKS & COMMUNITY SRVS MANAGER 0.50 0.50 0.50
1715144 RECREATION COORDINATOR 3.00 3.00 3.00
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CITY OF MURRIETA FY 2025/26 & 2026/27 PROPOSED BUDGET UPDATE CHANGES SCHEDULE OF AUTHORIZED POSITIONS FOR FISCAL YEAR 2025/26 & 2026/27

DEPARTMENT/DIVISION POSITION
FY 25

AUTHORIZED
POSITIONS as of
Q3 Update NOTES ADDITIONS/ DELETIONS PROPOSED FY 26

AUTHORIZED
POSITIONS NOTES ADDITIONS/ DELETIONS PROPOSED FY 27

AUTHORIZED

POSITIONS
1715144 RECREATION SUPERVISOR 3.00 (1.00) 2.00 2.00
1715144 SENIOR PROGRAM MANAGER 0.25 0.25 0.25
1715144 SENIOR RECREATION COORDINATOR 1.00 1.00 1.00
1715144 SENIOR RECREATION SUPERVISOR 1.00 1.00 1.00

COMMUNITY
SERVICES/SUPPORT SERV 17.75 17.75 17.75
1715120 ADMINISTRATIVE ASSISTANT 1.00 1.00 1.00
1715120 DIRECTOR OF COMMUNITY SERVICES 0.50 0.50 0.50
1715120 MAINTENANCE WORKER I / II 5.00 5.00 5.00
1715120 MANAGEMENT ANALYST 1.00 1.00 1.00
1715120 OFFICE ASSISTANT I / II 2.00 2.00 2.00
1715120 PARK RANGER 2.00 2.00 2.00
1115120 PARK RANGER 1.00 1.00 1.00
1715120 PARKS & COMMUNITY SRVS MANAGER 0.50 0.50 0.50
1715120 PARKS & LANDSCAPE INSPECTOR I 1.00 1.00 1.00
1715120 PARKS MAINTENANCE SUPERVISOR 1.00 1.00 1.00
1715120 SENIOR MAINTENANCE WORKER 2.00 2.00 2.00
1715120 SENIOR PROGRAM MANAGER 0.75 0.75 0.75
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CITY OF MURRIETA FY 2025/26 & 2026/27 PROPOSED BUDGET UPDATE CHANGES SCHEDULE OF AUTHORIZED POSITIONS FOR FISCAL YEAR 2025/26 & 2026/27

DEPARTMENT/DIVISION POSITION
FY 25

AUTHORIZED
POSITIONS as of
Q3 Update NOTES ADDITIONS/ DELETIONS PROPOSED FY 26

AUTHORIZED
POSITIONS NOTES ADDITIONS/ DELETIONS PROPOSED FY 27

AUTHORIZED

POSITIONS
FINANCE DEPARTMENT 18.00 18.00 18.00
1102600 ACCOUNTANT 3.00 3.00 3.00
1102600 ACCOUNTING ASSISTANT 2.00 2.00 2.00
1102600 ACCOUNTING SPECIALIST 3.00 3.00 3.00
1102600 ACCOUNTING SUPERVISOR 1.00 (1.00) - -
1112600 ACCOUNTING TECHNICIAN 2.00 2.00 2.00
1102600 ACCOUNTING MANAGER - 1.00 1.00 1.00
1102600 EXECUTIVE ASSISTANT 1.00 1.00 1.00
1102600 FINANCE DIRECTOR 1.00 1.00 1.00
1102600 FINANCE MANAGER 1.00 1.00 1.00
1102600 FINANCIAL ANALYST 1.00 1.00 1.00
1102600 MANAGEMENT ANALYST 1.00 1.00 1.00
1102600 PURCHASING & CONTRACTS COORD 1.00 1.00 1.00
1102600 SR. FINANCIAL ANALYST 1.00 1.00 1.00
FIRE ADMINISTRATION 9.00 10.00 9.00
1513520 ADMINISTRATIVE ASSISTANT 1.00 1.00 1.00
1513520 ASSISTANT MANAGEMENT ANALYST 1.00 (1.00) - -
1513520 DEPUTY FIRE CHIEF 1.00 1.00 1.00
1513520 EMERGENCY MED SRVS NURSE COORD 1.00 1.00 1.00
1513520 EMS COORDINATOR - - -
1113520 EXECUTIVE ASSISTANT 1.00 1.00 1.00
1513520 FIRE CHIEF 1.00 1.00 1.00
1513520 MANAGEMENT ANALYST 2.00 2.00 2.00
1513520 OFFICE SPECIALIST- TEMPORARY - - -
1513520 P/T TEMPORARY OFFICE SPECIALIST - - -
1513520 OFFICE ASSISTANT I / II 1.00 1.00 1.00
1513520 SR. MANAGEMENT ANALYST 1.00 1.00 1.00
FIRE FLEET MAINTENANCE 1.00 1.00 1.00
1513540 FIRE EQUIPMENT MECHANIC 1.00 (1.00) - -
1513540 SR. FIRE EQUIPMENT MECHANIC - 1.00 1.00 1.00
1513540 P/T FIRE MECHANIC - - -
FIRE OPERATIONS 63.00 64.00 66.00
1113580 DIVISION CHIEF 1.00 1.00 1.00
1513580 FIRE BATTALION CHIEF 56 3.00 3.00 3.00
(continued on next page)
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CITY OF MURRIETA FY 2025/26 & 2026/27 PROPOSED BUDGET UPDATE CHANGES SCHEDULE OF AUTHORIZED POSITIONS FOR FISCAL YEAR 2025/26 & 2026/27

DEPARTMENT/DIVISION POSITION
FY 25

AUTHORIZED
POSITIONS as of
Q3 Update NOTES ADDITIONS/ DELETIONS PROPOSED FY 26

AUTHORIZED
POSITIONS NOTES ADDITIONS/ DELETIONS PROPOSED FY 27

AUTHORIZED

POSITIONS
1513580 FIRE BATTALION CHIEF 56 (Temp.) 1.00 (1.00) - - 1513580 FIRE CAPTAIN (56 HR) 15.00 15.00 15.00
1513580 FIRE CAPTAIN 40 HOUR 1.00 1.00 1.00
1513580 FIRE ENGINEER (56 HR) 15.00 15.00 15.00
1113580 FIRE ENGINEER (56 HR) 3.00 3.00 3.00
1113580 FIRE ENGINEER (56 HR) 3.00 3.00 3.00
1113580 DIVISION CHIEF - - -
1513580 (FPS Grant) FIRE INVESTIGATOR CAPTAIN 1.00 1.00 1.00 1513580 PARAMEDIC/FIREFIGHTER (56 HR) 15.00 15.00 15.00 1113580 PARAMEDIC/FIREFIGHTER (56 HR) 3.00 3.00 3.00 6.00 1113580 PARAMEDIC/FIREFIGHTER (56 HR) 3.00 3.00 3.00
FIRE PREVENTION 8.00 7.00 8.00
1513590 DEPUTY FIRE MARSHAL - - -
1513590 DEVELOPMENT SERVICES TECHNICHIAN 1.00 1.00 1.00 1513590 DISASTER PREPAREDNESS COORDINATOR 1.00 1.00 1.00 1513590 FIRE INSPECTOR 3.00 3.00 3.00
1513590 FIRE INSPECTOR - Grant Funded - 1.00 1.00 1.00
1113590 FIRE INSPECTOR 1.00 1.00 1.00
1513590 FIRE MARSHAL - - -
1513590 FIRE PREVENTION BATTALION CHIEF 1.00 1.00 1.00
POLICE ADMINISTRATION 2.00 2.00 2.00
1103120 POLICE CHIEF 1.00 1.00 1.00
1103120 EXECUTIVE ASSISTANT AT-WILL 1.00 1.00 1.00
POLICE OPERATIONS 80.50 80.50 80.50
1103160 COMMUNITY SERVICES OFFICER I / II 4.00 4.00 4.00 1103160 POLICE AIDE 0.50 0.50 0.50
1103160 POLICE CAPTAIN 1.00 1.00 1.00
1103160 POLICE CORPORAL 6.00 6.00 6.00
1113160 POLICE CORPORAL 1.00 1.00 1.00
1103160 POLICE LIEUTENANT 2.00 2.00 2.00
1113160 POLICE LIEUTENANT 2.00 2.00 2.00
1103160 TRAFFIC INVESTIGATOR I 2.00 2.00 2.00
1103160 POLICE OFFICER 43.00 43.00 43.00
1113160 POLICE OFFICER 10.00 10.00 10.00
1103160 POLICE OFFICER DA TASK FORCE OFCR - - -
(continued on next page)
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CITY OF MURRIETA FY 2025/26 & 2026/27 PROPOSED BUDGET UPDATE CHANGES SCHEDULE OF AUTHORIZED POSITIONS FOR FISCAL YEAR 2025/26 & 2026/27

DEPARTMENT/DIVISION POSITION
FY 25

AUTHORIZED
POSITIONS as of
Q3 Update NOTES ADDITIONS/ DELETIONS PROPOSED FY 26

AUTHORIZED
POSITIONS NOTES ADDITIONS/ DELETIONS PROPOSED FY 27

AUTHORIZED

POSITIONS
1103160 POLICE SERGEANT 7.00 7.00 7.00
1103160 POLICE SERGEANT-BWC PROGRAM - - -
1113160 POLICE SERGEANT-BWC PROGRAM 1.00 1.00 1.00
1103160 POLICE SERVICES TECHNICIAN I / II 1.00 1.00 1.00 POLICE/SUPPORT 57.00 57.00 57.00
1103180 ACCOUNTING TECHNICIAN - - -
1103180 ADMINISTRATIVE ASISTANT 1.00 1.00 1.00
1103180 CAD/RMS ADMINISTRATOR 2.00 2.00 2.00
1103180 MANAGEMENT ANALYST 2.00 2.00 2.00
1103180 SR. MANAGEMENT ANALYST - - -
1113180 POLICE CADET 1.00 1.00 1.00
1103180 POLICE CAPTAIN 1.00 1.00 1.00
1103180 POLICE CORPORAL 3.00 3.00 3.00
1113180 POLICE DETECTIVE I / II / III 3.00 3.00 3.00
1113180 POLICE DETECTIVE III 1.00 1.00 1.00
1103180 POLICE DETECTIVE I / II / III 3.00 3.00 3.00
1103180 POLICE DETECTIVE III 1.00 1.00 1.00
1103180 POLICE LIEUTENANT 2.00 2.00 2.00
1103180 POLICE OFFICER 15.00 15.00 15.00
1113180 POLICE OFFICER 2.00 2.00 2.00
1103180 POLICE RECORDS SUPERVISOR 1.00 1.00 1.00
1103180 POLICE SERGEANT 6.00 6.00 6.00
1103180 POLICE SERGEANT-COMMUNITY POLICINGTM 1.00 1.00 1.00 1113180 POLICE SERGEANT-DETECTIVE - - -
1103180 POLICE SERVICES TECHNICIAN I / II 9.00 9.00 9.00 1103180 PROPERTY/EVIDENCE TECHNICIAN 2.00 (1.00) 1.00 1.00 1103180 SR. PROPERTY/EVIDENCE TECHNICIAN - 1.00 1.00 1.00 1103180 PUBLIC SAFETY RADIO SYSTEM ADMIN - - -
1103180 SR. CRIME AND INTELLIGENCE ANALYST 1.00 1.00 1.00 POLICE/COMMUNICATIONS 43.00 43.00 43.00
1103130 P/T DISPATCHER I / II 1.00 1.00 1.00
1103130 P/T DISPATCHER I / II - LIMITED TERM 2.00 2.00 2.00 1113130 PUBLIC SAFETY COMMUNICATIONS MGR 1.00 1.00 1.00 1103130 PUBLIC SAFETY DISPATCH SUPVR 4.00 4.00 4.00
(continued on next page)
1113130 PUBLIC SAFETY DISPATCH SUPVR 3.00 3.00 3.00
1103130 PUBLIC SAFETY DISPATCHER I / II 27.00 27.00 27.00 1113130 PUBLIC SAFETY DISPATCHER I / II 5.00 5.00 5.00
PUBLIC
WORKS/ENGINEERING 18.00 18.00 18.00
1106120 ADMINISTRATIVE ASSISTANT 1.00 1.00 1.00
1106120 ASSOCIATE CIVIL ENGINEER 2.00 2.00 2.00
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CITY OF MURRIETA FY 2025/26 & 2026/27 PROPOSED BUDGET UPDATE CHANGES SCHEDULE OF AUTHORIZED POSITIONS FOR FISCAL YEAR 2025/26 & 2026/27

DEPARTMENT/DIVISION POSITION
FY 25

AUTHORIZED
POSITIONS as of
Q3 Update NOTES ADDITIONS/ DELETIONS PROPOSED FY 26

AUTHORIZED
POSITIONS NOTES ADDITIONS/ DELETIONS PROPOSED FY 27

AUTHORIZED

POSITIONS
1116120 ASSOCIATE CIVIL ENGINEER 1.00 1.00 1.00
1106120 CITY ENGINEER 1.00 1.00 1.00
1106120 DEVELOPMENT SERVICES TECH 3.00 3.00 3.00
1106120 DIRECTOR OF PW/CITY ENGINEER 1.00 1.00 1.00
1106120 EXECUTIVE ASSISTANT 1.00 1.00 1.00
1106120 MANAGEMENT ANALYST 1.00 1.00 1.00
1106120 OFFICE ASSISTANT 1.00 1.00 1.00
1106120 PRINCIPAL CIVIL ENGINEER 1.00 1.00 1.00
1106120 PW INSPECTOR 1.00 1.00 1.00
1106120 SR CIVIL ENGINEER 1.00 1.00 1.00
1116120 SR CIVIL ENGINEER 1.00 1.00 1.00
1106120 SR DEVELOPMENT SERVICES TECH 1.00 1.00 1.00
1106120 SR PUBLIC WORKS INSPECTOR - - -
1116120 SR PUBLIC WORKS INSPECTOR 1.00 1.00 1.00
1116120 TRAFFIC ENGINEER - - -

PUBLIC WORKS
MAINTENANCE 18.00 18.00 18.00
1106145 ADMINISTRATIVE ASSISTANT 1.00 1.00 1.00
1106145 DIRECTOR OF MUNICIPAL SERVICES 1.00 1.00 1.00
1106120 EQUIPMENT OPERATOR - - -
1106155 MAINTENANCE WORKER I / II 6.00 6.00 6.00
1116155 MAINTENANCE WORKER I / II 4.00 4.00 4.00
1106145 PW MAINTENANCE MANAGER 1.00 1.00 1.00
1106145 PW MAINTENANCE SUPERVISOR 1.00 1.00 1.00
1106155 PW MAINTENANCE SUPERVISOR 1.00 1.00 1.00
1106155 SENIOR MAINTENANCE WORKER 2.00 2.00 2.00
1106145 TRAFFIC SIGNAL TECHNICIAN 1.00 1.00 1.00

PUBLIC WORKS FLEET
MAINTENANCE 1.00 1.00 1.00
1106160 FACILITIES & FLEET MANAGER 1.00 1.00 1.00
LIBRARY 22.59 22.59 22.59
3115900 ADMINISTRATIVE ASSISTANT 1.00 1.00 1.00
3115900 CIRCULATION SUPERVISOR - - -
3115900 DEPUTY DIRECTOR OF LIBRARY SERVICES - - -
3115900 LIBRARIAN I / II 4.00 4.00 4.00
3115900 LIBRARY ASSISTANT I / II 1.00 1.00 1.00
3115900 LIBRARY MANAGER 1.00 1.00 1.00
3115900 LIBRARY SERVICES SUPERVISOR 1.00 1.00 1.00
3115900 LIBRARY SPECIALIST 2.00 2.00 2.00
3115900 ASSISTANT MANAGEMENT ANALYST 1.00 1.00 1.00
3115900 OFFICE ASSISTANT II 1.00 1.00 1.00
3115900 P/T LIBRARY ASSISTANT I / II 4.71 4.71 4.71
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CITY OF MURRIETA FY 2025/26 & 2026/27 PROPOSED BUDGET UPDATE CHANGES SCHEDULE OF AUTHORIZED POSITIONS FOR FISCAL YEAR 2025/26 & 2026/27

DEPARTMENT/DIVISION POSITION
FY 25

AUTHORIZED
POSITIONS as of
Q3 Update NOTES ADDITIONS/ DELETIONS PROPOSED FY 26

AUTHORIZED
POSITIONS NOTES ADDITIONS/ DELETIONS PROPOSED FY 27

AUTHORIZED

POSITIONS
3115900 P/T LIBRARY PAGE 1.88 1.88 1.88
1115900 P/T LIBRARIAN 1.00 1.00 1.00
1115900 P/T LIBRARY SPECIALIST 1.00 1.00 1.00
1115900 PRINCIPAL LIBRARIAN - - -
3115900 SUPERVISING LIBRARIAN 2.00 2.00 2.00
Grand Total 469.09 (4.00) 465.09 3.00 468.09
Notes:
1 Newly created position
2 Repurposed position
3 Position removed due to a change in business needs
4 Delayed until funding is available
5 Separate classifications for budget purposes
6 Adjustments to titles for business needs
*Homeless Program Manager title is a work-in-progress
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Edits Made to the Proposed Operating Budget Since the
May 6, 2025, City Council Workshop
May 19, 2025 Page 1
Fiscal Year 2025/26 Citywide Revenue Changes
The Total Net Changes in Citywide Revenues from the workshop to proposed for adoption is a net reduction of $331,765.
 For General Fund, there was a net reduction of $1,015,490 in the City’s estimated Sales Tax Revenue.
 For Measure T, there was a net reduction of $1,254,740 in the City’s estimated Sales Tax Revenue.
 For the Fire District, there was an increase of $504 for the Fire Suppression Assessment Revenues.
 For the Fleet Replacement Fund, there was an increase of $1,937,961 in the City’s estimated Charges for Services. These revenues are from the Internal Service Charges for our Fleet Allocation, establishing the City’s Fleet Replacement Program.

Fiscal Year 2025/26 Citywide Expenditure Changes
For Fiscal Year 2025/26, changes resulted in a net increase of $4,242,922; the adjustments are as follows:
 Salary and Benefits saw a net decrease of $320,121 in Salary and Benefits resulting from final edits to the Personnel budgets, which includes the addition and reclassification of positions recommended by the City Manager.
 Operations & Maintenance (O&M) increased by $221,672 in Contract Services and Training & Development. These changes account for the Ongoing/Recurring expenses that were recommended by the City Manager as part of the Budget workshop.  Capital Outlay increased by $4,219,233 for the Fleet Replacement Program. These changes were recommended as part of the Budget workshop as a result of Council’s recommendation to move forward with the Fleet Replacement program through the transfer of Fleet Reserves.  One-Time Expenditures increased by $108,163. The proposed budget for the City Manager’s recommendations for the new One-Time budget requests were added after receiving Council Direction during the Budget Workshop.
 Fleet Allocation increased by $13,975 for the proposed budget. The increase represents the direction received from Council during the Budget Workshop to establish and maintain the Fleet Replacement Fund and Program.

Fiscal Year 2025/26 Citywide Transfers In/Out Changes
 Transfers In and Out decreased by $215,004 since the Budget Workshop. Measure T Transfers In and Out adjust as revenues and expenditures change in the Fire District, CSD, and the Library Fund. There was a net decrease in Expenses across Fire, CSD, and Library that lead to this decrease in Transfers.
1770
Edits Made to the Proposed Operating Budget Since the
May 6, 2025, City Council Workshop
May 19, 2025 Page 2
Fiscal Year 2026/27 Citywide Revenue Changes
The Total Net Changes in Citywide Revenues from the workshop to proposed for adoption is a net reduction of $342,229.
 For General Fund Fiscal Year 2026/27, there was a net reduction of $1,045,950 in the City’s estimated Sales Tax Revenue.
 For Fiscal Year 2026/27, there was a net reduction of $1,292,378 in the City’s estimated Sales Tax Revenue.
 For the Fleet Replacement Fund for Fiscal Year 2026/27, The was an increase of $1,996,099 in the City’s estimated Charges for Services. These revenues are from the Internal Service Charges for our Fleet Allocation, establishing the City’s Fleet Replacement Program.

Fiscal Year 2026/27 Citywide Expenditure Changes
For Fiscal Year 2026/27, changes resulted in a net increase of $6,426,465; the adjustments are as follows:
 Salary and Benefits saw a net increase of $562,881 in Salary and Benefits resulting from final edits to the Personnel budgets, which includes the addition and reclassification of positions recommended by the City Manager.
 Operations & Maintenance (O&M) increased by $94,992 in Contract Services and Training & Development. These changes account for the Ongoing/Recurring expenses that were recommended by the City Manager as part of the Budget workshop.  Capital Outlay increased by $5,443,199 for the Fleet Replacement Program. These changes were recommended as part of the Budget workshop as a result of Council’s recommendation to move forward with the Fleet Replacement program through the transfer of Fleet Reserves.  One-Time Expenditures increased by $311,000. The proposed budget for the City Manager’s recommendations for the new One-Time budget requests were added after receiving Council Direction during the Budget Workshop.
 Fleet Allocation increased by $14,393 for the proposed budget. The increase represents the direction received from Council during the Budget Workshop to establish and maintain the Fleet Replacement Fund and Program.

Fiscal Year 2025/26 Citywide Transfers In/Out Changes
 Transfers In and Out decreased by $211,174 since the Budget Workshop. Measure T Transfers In and Out adjust as revenues and expenditures change in the Fire District, CSD, and the Library Fund. There was a net decrease in Expenses across Fire, CSD, and Library that lead to this decrease in Transfers.
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Proposed Operating and Sustainability Reserves for Fiscal Year 2025/26 and 2026/27 *Budgeted Reserve Est. Reserve Recommended Recommended
Expenditures Balance Level Contribution Reserve Total
General Fund $ 75,384,784 $ 21,250,000 28.2% $ 1,365,435 $ 22,615,435 Measure T Fund 17,856,157 5,275,784 29.5% 81,063 5,356,847 Fire District Fund 28,001,386 7,425,024 26.5% 975,392 8,400,416 CSD Fund 5,442,064 1,631,039 30.0% 1,580 1,632,619
Library District Fund 3,430,856 1,016,788 29.6% 12,469 1,029,257 Total $ 130,115,247 $ 36,598,634 28.1% $ 2,435,940 $ 39,034,574 *Budgeted Reserve Est. Reserve Recommended Recommended
Expenditures Balance Level Contribution Reserve Total
General Fund $ 78,240,249 $ 22,615,435 28.9% $ 856,640 $ 23,472,075 Measure T Fund 19,304,500 5,356,847 27.7% 434,503 5,791,350 Fire District Fund 29,123,025 8,400,416 28.8% 336,492 8,736,908 CSD Fund 5,580,535 1,632,619 29.3% 41,541 1,674,160
Library District Fund 3,527,322 1,029,257 29.2% 28,940 1,058,196 Total $ 135,775,630 $ 39,034,573 28.7% $ 1,698,115 $ 40,732,688 Total Recommended Contributions $ 4,134,055
FY 2026/27
*Budgeted Expenditures do not include One-Time Expenditures for this calculation due to the proposed Use of Unassigned Fund Balance FY 2025/26
5/23/2025
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Proposed Operating and Sustainability Reserves for Fiscal Year 2025/26 and 2026/27 Estimated
Balances Planned Usage Purpose
Economic Contingency 8,382,884 $ 6,000,000 $
Fleet Replacement 4,319,815 (4,319,815) Fleet Replacement Program Fire Fleet Replacement 3,815,443 (3,815,443) Tiller Truck and Type 1 Engine Information Services 1,282,000
Citywide Facility Repairs 1,167,000
CSD Facility Repairs 7,605,850 (3,500,000) Library Expansion Loan Fire Facility Repairs 1,035,000
Pension Rate Stabilization* 9,000,000
Continuing Operations** 6,025,000
Total 42,632,992 $ (5,635,258) $ $36,997,734
*We are planning for a contribution to the Pension Trust Fund of $6m during the biennial budget. **Historically, we have set aside funding in Continuing Operations for increases in Labor Negotiations Sustainability Reserves
FY 2025/26
5/23/2025
2 1773
Proposed Operating and Sustainability Reserves for Fiscal Year 2025/26 and 2026/27 Estimated
Beginning Fund
Balance
Contribution to
Reserves
General Fund
Contribution to
Reserves
Measure T Fund
Use of Reserves
General Fund
Use of
Reserves
Measure T Fund
Estimated
Ending Fund
Balance
General Fund Operating Reserves $ 21,250,000 $ 1,365,435 $ - $ - $ 22,615,435 - $ Measure T Operating Reserves 5,275,784 - 81,063 - 5,356,847 - Fire District Operating Reserves - (FD) 3,787,453 - - - 3,787,453 - Fire District Operating Reserves - (MT) 3,637,571 - 975,392 - 4,612,963 - CSD Operating Reserves - (CSD) 1,039,015 - - - 1,039,015 - CSD Operating Reserves - (MT) 592,024 - 1,580 - - 593,604 Library District Operating Reserves - (LF) 747,833 - - - - 747,833 Library District Operating Reserves - (MT) 268,955 - 12,469 - - 281,424 Total Operating Reserves 36,598,634 1,365,435 1,070,504 - 39,034,573 - Economic Contingency (110) $ 4,555,716 $ 6,000,000 $ - $ - $ 10,555,716 - $ Economic Contingency (111) 3,827,168 - - 3,827,168
Fleet Replacement (111) $ 1,233,000 $ - $ - $ (1,233,000) - $ $ - Fleet Replacement (110) 2,000,000 - (2,000,000) - - -
Fire Fleet Replacement (111) 3,815,443 - - (3,815,443) - - Fleet Replacement (715) 1,086,815 - - (1,086,815) - -
Total Fleet Replacement $ 8,135,258 $ - $ (2,000,000) - $ $ (6,135,258) $ - Information Services (726) 282,000 - - - - 282,000
Total Information Services $ 282,000 $ - $ - $ - $ - $ 282,000 Facility Repair (111) $ 1,167,000 $ - $ - $ - $ 1,167,000 - $ CSD Facility Repair (111) 5,605,850 - - (3,500,000) - 2,105,850 CSD Facility Repair (110) 2,000,000 - - - 2,000,000 -
Fire Facility Repair (111) 35,000 - - - - 35,000
Fire Facility Repair (110) 1,000,000 - - - 1,000,000 -
Information Technology (110) 1,000,000 - - - 1,000,000 - Pension 115 Trust (PARS) (111) 5,000,000 - - - 5,000,000 - Pension 115 Trust (PARS) (110) 2,000,000 - - - 2,000,000 - OPEB 115 Trust (CERBT) [111] 1,000,000 - - - 1,000,000 - OPEB 115 Trust (CERBT) [110+111] 1,000,000 - - - 1,000,000 - Continuing Operations (110) 2,000,000 - - - 2,000,000 - Continuing Operations (111) 4,025,000 - - - 4,025,000 - Totals $ 79,231,626 $ 7,365,435 $ 1,070,504 $ (2,000,000) $ (9,635,258) $ 76,032,308 Sustainability Reserves Fiscal Year 2025/26
5/23/2025
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Proposed Operating and Sustainability Reserves for Fiscal Year 2025/26 and 2026/27 Estimated
Beginning Fund
Balance
Contribution to
Reserves
General Fund
Contribution to
Reserves
Measure T Fund
Use of Reserves
General Fund
Use of
Reserves
Measure T Fund
Estimated
Ending Fund
Balance
General Fund Operating Reserves $ 22,615,435 $ 856,640 $ - $ - $ 23,472,075 - $ Measure T Operating Reserves 5,356,847 - 434,503 - 5,791,350 - Fire District Operating Reserves - (FD) 3,787,453 - - - 3,787,453 - Fire District Operating Reserves - (MT) 4,612,963 - 336,492 - 4,949,455 - CSD Operating Reserves - (CSD) 1,039,015 - - - 1,039,015 - CSD Operating Reserves - (MT) 593,604 - 41,541 - - 635,145 Library District Operating Reserves - (LF) 747,833 - - - - 747,833 Library District Operating Reserves - (MT) 281,424 - 28,940 - - 310,364 Total Operating Reserves 39,034,573 856,640 841,476 - 40,732,689 - Economic Contingency (110) $ 10,555,716 $ - $ - $ - $ 10,555,716 - $ Economic Contingency (111) 3,827,168 - - - 3,827,168 -
Fleet Replacement (111) $ - $ - $ - $ - $ - $ -
Fleet Replacement (110) - - - - - -
Fire Fleet Replacement (111) - - - - - -
Fleet Replacement (715) - - - - - -
Total Fleet Replacement $ - $ - $ - $ - $ - $ -
Information Services (726) 282,000 - - - - 282,000
Total Information Services $ 282,000 $ - $ - $ - $ - $ 282,000 Facility Repair (111) $ 1,167,000 $ - $ - $ - $ 1,167,000 - $ CSD Facility Repair (111) 2,105,850 - - - 2,105,850 -
CSD Facility Repair (110) 2,000,000 - - - 2,000,000 -
Fire Facility Repair (111) 35,000 - - - - 35,000
Fire Facility Repair (110) 1,000,000 - - - 1,000,000 -
Information Technology (110) 1,000,000 - - - 1,000,000 - Pension 115 Trust (PARS) (111) 5,000,000 - - - 5,000,000 - Pension 115 Trust (PARS) (110) 2,000,000 - - - 2,000,000 - OPEB 115 Trust (CERBT) [111] 1,000,000 - - - 1,000,000 - OPEB 115 Trust (CERBT) [110+111] 1,000,000 - - - 1,000,000 - Continuing Operations (110) 2,000,000 - - - 2,000,000 - Continuing Operations (111) 4,025,000 - - - 4,025,000 - Totals $ 76,032,308 $ 856,640 $ 841,476 $ - $ 77,730,424 - $ Sustainability Reserves Fiscal Year 2026/27
5/23/2025
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CITY OF MURRIETA
City Council Meeting Agenda
Report
6/3/2025
Agenda Item No. 20.

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

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

RECOMMENDATION
Adopt Resolution No. 25-4838 entitled: A Resolution of the City Council of the City of Murrieta, Declaring its Intention to Establish Community Facilities District No. 2025-S (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.

PRIOR ACTION/VOTE
On January 21, 2003, the City Council adopted the Land Secured Financing Policy for Special Assessment and Mello-Roos Community Facilities District Financing (Vote: 5-0).

On April 5, 2016, the City Council adopted a Resolution amending the Land Secured Financing Policy (Vote: 5 -0).

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 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 Community Facilities District Goals and Policies (Vote 5-0).

On May 6, 2025, the City formed Community Facilities District No. 2025-1 (Safety Services), Community Facilities District No. 2025-2 (Maintenance Services) and Community Facilities District No. 2025-3 (Discovery Village) (Vote 5-0).

CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and CITY OF MURRIETA Page 1 of 4 Printed on 5/29/2025
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Agenda Item No. 20.
organizational efficiency.

BACKGROUND
Community Facilities Districts
Community Facility Districts (CFDs) are formed pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the Mello-Roos Act) and are a widely used financing mechanism, frequently used to fund infrastructure associated with new significant (large) development projects, such as water and sewer facilities, storm drain facilities, roads, and parks and to finance the provision of certain municipal services.

A simplified example of CFD implementation for bonded districts is as follows:
· A developer submits a petition to form the CFD to the City or Special District (water districts frequently form CFDs) to start formation proceedings.
· In the City’s case, staff presents the petition to the City Council for approval. · The District is formed by a vote of the property owners. · Once approved, the City approves the issuance of bonds, which are sold to investors. · Proceeds from the sale of the bonds are used to build the infrastructure associated with the project. · The bonds are paid off over time (typically 30 years) by the buyers of homes within the project as a part of their property tax bill.

The implementation of a maintenance CFD follows the first three steps above. Once approved, a special tax can be levied on the property tax bill in accordance with the RMA. Such special taxes will pay for the costs of maintenance services and administration of CFD No. 2025-S.

On December 5, 2023, the City Council adopted amendments to the Community Facilities District Goals and Policies. In addition to changes related to state law, other changes contained in the amended policy include:
· A list of eligible facilities that can be financed;
· Adding an escalator of up to 2% per year for facilities; · Adding an escalator for service or maintenance CFDs to cover increases in the cost of providing services;
· Allowing Development Impact Fees (DIF) to be financed; and · Increasing the maximum cap on the assessed value of a property from 1.8% to 2.0%.

Additional Authorized Services
The Mello-Roos Act also authorizes the City to establish a CFD to finance certain public services through the levy of a special tax. The services that can be funded through a CFD include the following:
· Police protection services, including, but not limited to, criminal justice (limited to providing services for CITY OF MURRIETA Page 2 of 4 Printed on 5/29/2025
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Agenda Item No. 20.
jails, detention facilities, and juvenile halls).
· Fire protection and suppression services, and ambulance and paramedic services. · Recreation program services, library services, maintenance services for elementary and secondary school sites and structures, and the operation and maintenance of museums and cultural facilities · Maintenance and lighting of parks, parkways, streets, roads, and open spaces. · Flood and storm protection services, including, but not limited to, the operation and maintenance of storm drainage systems, plowing and removal of snow, and sandstorm protection systems. · Maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years that is owned by the local agency or by another local agency (by agreement).

Community Facilities District No. 2025-1 (Safety Services) On May 6, 2025, the City Council and the landowner for the Discovery Village project approved the formation of Community Facilities District No. 2025-1 (Safety Services) in order to finance public safety services. CFD No. 2025-1 currently consists only of the property within the Discovery Village development project and designated the remainder of the City as a “Potential Annexation Area,” whereby new development projects meeting certain design criteria would be required by the City to annex to CFD No. 2025-1. However, the Rate and Method of Apportionment of Special Tax for CFD No. 2025-1, as approved by the City Council and the landowner within CFD No. 2025-1 on May 6, 2025, included special tax rates for multi-family residential property and single-family residential property, and the special taxes for each category of property will increase annually each July 1, by four percent (4.0%), commencing July 1, 2026, but does not include a special tax for affordable housing residential property. In approving the Rate and Method of Apportionment of Special Tax for CFD No. 2025-1, the City Council directed that a new public safety services safety CFD be formed for future development projects within the City which includes a special tax on affordable housing residential property, multi-family residential property and single-family residential property which includes an annual escalation of the special tax for each category of property. Therefore, it is not expected that future development projects within the City will be annexed into CFD No. 2025-1.

The Rustic Meadows Project, the Kensington Apartments Project and Community Facilities District No. 2025-S (Safety Services)
The owner of property within the proposed Rustic Meadows development project and the owner of property within the proposed Kensington Apartments development project (collectively, the “Property Owners”) are required by the City’s Community Facilities District Goals and Policies, as amended in December 2023, to either annex to or request the formation of a Public Safety Services CFD. Accordingly, the Property Owners have submitted petitions requesting that the City form a new public safety services CFD, which includes a special tax on affordable housing residential property, multi-family residential property and single-family residential property which includes an annual escalation of the special tax for each category of property. The new public safety services CFD is expected to be called Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta.

Similar to CFD No. 2025-1, CFD No. 2025-S will initially consist only of the property within the Rustic Meadows development project and the Kensington Apartments development 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-S.

If formed and approved by voters, CFD No. 2025-S will levy a special tax in accordance with the Mello-Roos CITY OF MURRIETA Page 3 of 4 Printed on 5/29/2025
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Agenda Item No. 20.

If formed and approved by voters, CFD No. 2025-S will 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-S 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-S are $150 per unit of affordable housing residential property, $468 per unit of multi-family residential property and $580 per unit of single-family property and the special taxes for each category of property will increase annually each July 1, by four percent (4.0%), commencing July 1, 2026.

The Resolution of Intention presented at this meeting is the first step in the process of forming CFD No. 2025- S. The attached resolution declares the City’s intention to establish CFD No. 2025-S and calls for a public hearing on the matter of the formation of CFD No. 2025-S to take place on July 15, 2025, and at that time the City Council will formally consider the establishment of CFD No. 2025-S and hold an election on the approval of the special taxes within CFD No. 2025-S. It is expected that there are no registered voters residing within the boundaries of the proposed CFD No. 2025-S, and accordingly, the election will be a landowner voting election.

The owner of the property within the proposed Rustic Meadows project within the City is Whitewood-Murrieta, L.P. The Rustic Meadows project is located at the Southeast corner of the intersection of Clinton Keith Road and Whitewood Road. At full build-out, the proposed Rustic Meadows project is proposed to include approximately 153 single-family homes and will be developed by Century Communities of California, LLC.

The owner of property within the proposed Kensington Apartments project is Murrieta Pacific Associates, Inc.

The Kensington Apartments is a proposed affordable housing project located near the corner of Washington Avenue and Magnolia Street and is proposed to include approximately 126 units.

FISCAL IMPACT
The Property Owners have made deposits to pay for the costs of the formation proceedings of CFD No. 2025- S. The deposit made by Century Communities may be reimbursed to Century Communities from proceeds of a future bond issuance by a separate facilities CFD being formed in connection with the Rustic Meadows development. If established and subject to necessary Council and voter approvals, CFD No. 2025-S will annually levy special taxes on all taxable property within the CFD No. 2025-S in accordance with the RMA (as attached to the Resolution of Intention). Such special taxes will be used to pay for the costs of safety services and administration of the CFD No. 2025-S. The levying of the 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.

ATTACHMENTS

1. Landowner Petition to Form Community Facilities District No. 2025-S (Safety Services) (Rustic Meadows)

2. Landowner Petition to Form Community Facilities District No. 2025-S (Safety Services) (Kensington)

3. Resolution No. 25-4838
CITY OF MURRIETA Page 4 of 4 Printed on 5/29/2025
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1 4935-9445-0243/022972-0046

PETITION TO THE CITY COUNCIL OF THE CITY OF

MURRIETA REQUESTING INSTITUTION OF PROCEEDINGS

FOR ESTABLISHMENT OF A COMMUNITY FACILITIES
DISTRICT (COMMUNITY FACILITIES DISTRICT NO. 2025-S
(SAFETY SERVICES) OF THE CITY OF MURRIETA)

1. The undersigned (the “Owner”) is the owner of more than 10% of the land described in Exhibit A hereto (the “Property”), which land is expected to included within the boundaries of a community facilities district hereby proposed to be established. The Property is located within the boundaries of the City of Murrieta (the “City”), County of Riverside.

2. The Owner requests that the City Council of the City of Murrieta (the “City Council”) institute proceedings to establish a community facilities district to be known as “Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta” (referred to herein as the “District”) pursuant to Chapter 2.5 (commencing with Section 53311), Part 1, Division 2, Title 5, of the Government Code of the State of California, commonly known as the “Mello-Roos Community Facilities Act of 1982” (the “Act”), to include all of the Property. The proposed rate and method of apportionment for the District is set forth in Exhibit C hereto.

3. The Owner further requests that the City Council designate the property described in Exhibit A hereto and designated thereon as “Potential Annexation Area” as territory proposed for annexation to the District in the future (the “Potential Annexation Area”), upon submittal of a unanimous consent and approval of the owner or owners of the parcel or parcels at the time of annexation and approval by the City Council as the legislative body of the District, or in compliance with other procedures established by the Act.

4. The boundaries of the territory which is proposed for inclusion in the District and the Potential Annexation Area are those depicted in Exhibit A hereto.

5. The Owner requests that the proposed District fund police protection services (including but not limited to criminal justice services), fire protection and suppression services and paramedic services (collectively, the “Services”). In addition, the District may fund actual or reasonably estimated costs directly related to the formation, annexation, and administration of the District 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, the District, or any designee thereof associated with fulfilling the District reporting requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, the District or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees and third party expenses.

Administrative Expenses shall also include amounts estimated or advanced by the City or the District for any other administrative purposes of the District, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.

6. The Owner further requests that, the City Council, as legislative body of the District, annually levy special taxes on the property within the District to provide for the Services, and for the payment of administrative expenses of the District and for such services as the City Council deems appropriate.
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2 4935-9445-0243/022972-0046
Dated: May __, 2025
WHITEWOOD—MURRIETA, L.P.,
a Delaware limited partnership
By: Cal Hearthstone PBLO GP, LLC,
a Delaware limited liability company
Its: General Partner
By:___________________________
Steven C. Porath
Authorized Representative
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EXHIBIT A

BOUNDARY MAP
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-2
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B-1
4935-9445-0243/022972-0046

EXHIBIT B

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

A. DEFINITIONS
“Accessory Dwelling Unit” means a residential unit of limited size including smaller secondary unit(s) that shares an Assessor’s Parcel with Single Family Property that has a stand-alone Residential Unit.
“Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation and administration of CFD No. 2025-S 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-S, or any designee thereof associated with fulfilling the CFD No. 2025-S reporting requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2025-S or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees, collection expenses, and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2025-S for any other administrative purposes of CFD No. 2025-S, 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. 1784
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“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means the identification number assigned to a parcel by the County Assessor of the County of Riverside.
“CFD” or “CFD No. 2025-S” means the City of Murrieta Community Facilities District No. 2025-S (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 Property shall not be considered a Residential Unit for purposes of this Rate and Method of Apportionment. 1785
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“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- S 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-S in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for (i) police protection services, (ii) fire protection services and suppression services, (iii) paramedic services, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax Requirement include funds for bonds. "Taxable Property" means all Assessor’s Parcels within CFD No. 2025-S, which are not Exempt Property.
“Taxable Unit” means a Residential Unit.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property.

B. RATE AND METHOD OF APPORTIONMENT OF MAXIMUM SPECIAL TAX RATES As of July 1 of each Fiscal Year, commencing July 1, 2025, the Council shall determine the Special Tax Requirement and shall levy the Special Tax upon each of the Assessor’s Parcels within the CFD which constitute a Developed Property of Residential Property, including Single Family Property, Multi-Family Property, or an Affordable Housing Property, until the aggregate amount of Special Tax equals the Special Tax Requirement. The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the 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 Affordable Housing Property are shown below in Table 1. 1786
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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 $150
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, Multi-Family Property, and Affordable Housing Property shall increase by four percent (4.0%).

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

D. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2025-S, 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.

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 1787
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adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).

F. MANNER OF COLLECTION
The Maximum Special Taxes levied in each Fiscal Year shall be collected in the same manner as ordinary ad valorem property taxes are collected 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.

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. 1788
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APPENDIX A

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

SUMMARY
Safety Services - It is estimated that the cost of providing police, fire protection and suppression services, and paramedic services being funded by the Special Tax for the Community Facilities District No. 2025-S (Safety Services) will be as follows for the Fiscal Year 2025-2026:
 $580 per residential unit for Single Family Property
 $468 per residential unit for Multi-Family Property
 $150 per residential unit for Affordable Housing Property Annual Escalation - On each July 1, commencing on July 1, 2026 the Maximum Special Tax for Developed Property of Single Family Property, Multi-Family Property, and Affordable Housing Property shall increase by four percent (4.0%).

Annex #
Fiscal
Year
Tract/
APN
Development
Name
No. of
Taxable
Units
Land Use
Category
Maximum
Special Tax Subdivider
Original 2025-
26 TR
38199 Rustic Meadows 153 Single Family Property $580 Century Communities Original 2025-
26 906-
780-
004
Kensington
Apartments 126
Affordable
Housing
Property
$150 Murrieta Pacific
Associates
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APPENDIX B

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

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

These services include police protection services (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-S for the benefit of the properties within the boundaries of CFD No. 2025-S and said services may be financed by proceeds of the special tax of CFD No. 2025-S only to the extent that they are in addition to those provided in the territory of CFD No. 2025-S before CFD No. 2025-S was created.
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1 4925-0412-8579/022972-0046

PETITION TO THE CITY COUNCIL OF THE CITY OF

MURRIETA REQUESTING INSTITUTION OF PROCEEDINGS

FOR ESTABLISHMENT OF A COMMUNITY FACILITIES
DISTRICT (COMMUNITY FACILITIES DISTRICT NO. 2025-S
(SAFETY SERVICES) OF THE CITY OF MURRIETA)

4. The boundaries of the territory which is proposed for inclusion in the District and the Potential Annexation Area are those depicted in Exhibit A hereto.

MURRIETA PACIFIC ASSOCIATES, A

CALIFORNIA LIMITED PARTNERSHIP,
a California limited partnership
By: TPC Holdings IX, LLC,
an Idaho limited liability company,
Its: Administrative General Partner
By: Pacific West Communities, Inc.,
an Idaho corporation
Its: Manager
By: ____________________
Name: Caleb Roope
Its: President and CEO
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EXHIBIT A

BOUNDARY MAP
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EXHIBIT B

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-S (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 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-S 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-S, or any designee thereof associated with fulfilling the CFD No. 2025-S reporting requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2025-S or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees, collection expenses, and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2025-S for any other administrative purposes of CFD No. 2025-S, 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. 1795
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“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means the identification number assigned to a parcel by the County Assessor of the County of Riverside.
“CFD” or “CFD No. 2025-S” means the City of Murrieta Community Facilities District No. 2025-S (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 Property shall not be considered a Residential Unit for purposes of this Rate and Method of Apportionment. 1796
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“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- S 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-S in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for (i) police protection services, (ii) fire protection services and suppression services, (iii) paramedic services, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax Requirement include funds for bonds. "Taxable Property" means all Assessor’s Parcels within CFD No. 2025-S, which are not Exempt Property.
“Taxable Unit” means a Residential Unit.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property.

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 Affordable Housing Property are shown below in Table 1. 1797
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TABLE 1

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-S.

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 1798
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adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).

APPENDIX A

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

APPENDIX B

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

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

A RESOLUTION OF CITY COUNCIL OF THE CITY OF

MURRIETA DECLARING ITS INTENTION TO ESTABLISH
COMMUNITY FACILITIES DISTRICT NO. 2025-S (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 petitions (the “Petitions”) signed by the owners 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-S (Safety Services) of the City of Murrieta” (“Community Facilities District No. 2025-S” 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”). The Administrative Services definition described in the Rate and Method of Apportionment is used interchangeably with 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 owners submitting the petitions, the City Council proposes to designate the property described in Attachment “A” hereto and incorporated herein by this references as territory proposed for annexation to Community Facilities District No. 2025-S 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-S 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-S; 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-S 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 tax levies are approved by the Unanimous Consent and Approval of the owner or owners of the parcel or parcels in accordance with 1802
2 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-S shall be those described in Attachment “A” hereto, which boundaries shall, upon recordation of the boundary map for proposed Community Facilities District No. 2025-S, 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-S 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-S (Safety Services) of the City of Murrieta.” Section 4. The Services proposed to be provided for the benefit of Community Facilities District No. 2025-S 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 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.
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3 The maximum special tax for Services shall increase by 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-S 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 protection and suppression services, 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-S, the proposed rate and method of apportionment of the special taxes to finance the Services and the Services Expenses shall be held 6:00 p.m., or as soon thereafter as practicable, on July 15, 2025, at the City of Murrieta Council Chamber, 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-S 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-S, 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-S 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-S. 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-S. The City Clerk is further 1804
4 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 3rd day of June, 2025.

CITY COUNCIL OF THE CITY OF MURRIETA
By:_______________________________
Cindy Warren
Mayor of the City of Murrieta
APPROVED AS TO FORM:
________________________________
Tiffany Israel
City Attorney of the City of Murrieta
ATTEST:
________________________________
Cristal McDonald
City Clerk of the City of Murrieta
1805
5 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 was duly adopted by the City Council of the City of Murrieta at a regular meeting held on the 3rd day of June, 2025, by the following votes:

AYES:

NOES:

ABSENT:

CRISTAL MCDONALD, CITY CLERK
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ATTACHMENT A
Proposed Boundaries
Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta,
Riverside County, California
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A
-2
1808
B-1

ATTACHMENT B
Types of Services
to be Financed by
Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta
The services which may be funded with proceeds of the special tax of CFD No. 2025-S, 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-S.

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-S and the Potential Annexation Area of CFD No. 2025-S for the benefit of the properties within the boundaries of CFD No. 2025-S and the Potential Annexation Area of CFD No. 2025-S, 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-S only to the extent that they are in addition to those provided in the territory of CFD No. 2025-S before CFD No. 2025-S was created. 1809
C-1

ATTACHMENT C

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

All of the real property in CFD No. 2025-S, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.

A. DEFINITIONS
“Accessory Dwelling Unit” means a residential unit of limited size including smaller secondary unit(s) that shares an Assessor’s Parcel with Single Family Property that has a stand-alone Residential Unit.
“Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation and administration of CFD No. 2025-S 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-S, or any designee thereof associated with fulfilling the CFD No. 2025-S reporting requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2025-S or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees, collection expenses, and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2025-S for any other administrative purposes of CFD No. 2025-S, 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-S” means the City of Murrieta Community Facilities District No. 2025-S (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 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-S as set forth in Appendix B.
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“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-S in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for (i) police protection services, (ii) fire protection services and suppression services, (iii) paramedic services, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax Requirement include funds for bonds. "Taxable Property" means all Assessor’s Parcels within CFD No. 2025-S, which are not Exempt Property.
“Taxable Unit” means a Residential Unit.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property.

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 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
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Multi-Family Property RU $468
Affordable Housing Property RU $150
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, Multi-Family Property, and Affordable Housing Property shall increase by four percent (4.0%).

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

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).

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

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. 1814
C-6

APPENDIX A

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

Annex #
Fiscal
Year
Tract/
APN
Development
Name
No. of
Taxable
Units
Land Use
Category
Maximum
Special Tax Subdivider
Original 2025-26 TR
38199 Rustic Meadows 153 Single Family Property $580 Century Communities Original 2025-26 906-
780-004
Kensington
Apartments 126
Affordable
Housing
Property
$150 Murrieta Pacific
Associates
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APPENDIX B

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

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

1816

CITY OF MURRIETA
City Council Meeting Agenda
Report
6/3/2025
Agenda Item No. 21.

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

Intent to Form Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta and Incur Bonded Indebtedness

RECOMMENDATION
Adopt Resolution No. 25-4839 entitled: Resolution of Intention of the City Council of the City of Murrieta, to Established Community Facilities District No. 2025-4 (Rustic Meadows) 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; and
Adopt Resolution No. 25-4840 entitled: Resolution of Intention of the City Council of the City of Murrieta, to Incur Bonded Indebtedness in an Amount Not to Exceed $5,000,000 within Proposed Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta.

PRIOR ACTION/VOTE
On April 5, 2016, the City Council adopted a Resolution amending the Land Secured Financing Policy (Vote: 5 -0).

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 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 Community Facilities District Goals and Policies (Vote 5-0).

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

A simplified example of CFD implementation for a bonded district is as follows:
· A developer submits a petition to form the CFD to the City or Special District (water districts frequently form CFDs) to start formation proceedings.
· In the City’s case, staff presents the petition to the City Council for approval. · The District is formed by a vote of the property owners. · Once approved, the City approves the issuance of bonds, which are sold to investors. · Proceeds from the sale of the bonds are used to build the infrastructure associated with the project. · The bonds are paid off over time (typically 30 years) by the buyers of homes within the project as a part of their property tax bill.

On December 5, 2023, the City Council adopted amendments to the Community Facilities District Goals and Policies. In addition to changes related to State law, other changes contained in the amended policy include:
· A list of eligible facilities that can be financed.
· Adding an escalator of up to two percent (2%) per year for facilities. · Adding an escalator for service or maintenance CFDs to cover increases in the cost of providing services.
· Allowing Development Impact Fees (DIF) to be financed. · Increasing the maximum cap on the assessed value of a property from one point eight percent (1.8%) to two percent (2.0%).

Additional Authorized Services
The Mello-Roos Act also authorizes the City to establish separate CFDs to finance certain public services through the levy of a special tax. The services that can be funded through a CFD include the following:
· Police protection services, including, but not limited to, criminal justice (limited to providing services for jails, detention facilities, and juvenile halls).

CITY OF MURRIETA Page 2 of 4 Printed on 5/29/2025
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Agenda Item No. 21.
· Fire protection and suppression services, and ambulance and paramedic services. · Recreation program services, library services, maintenance services for elementary and secondary school sites and structures, and the operation and maintenance of museums and cultural facilities. · Maintenance and lighting of parks, parkways, streets, roads, and open spaces. · Flood and storm protection services, including, but not limited to, the operation and maintenance of storm drainage systems, plowing and removal of snow, and sandstorm protection systems. · Maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years that is owned by the local agency or by another local agency (by agreement).

The Rustic Meadows Project and Community Facilities District No. 2025-4 The owner of the property within the proposed Rustic Meadows project within the City is Whitewood-Murrieta, L.P. (Property Owner), and the Property Owner has submitted a petition requesting that the City form Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta (CFD No. 2025-4). The property to be included in the proposed CFD No. 2025-4 (Property) is located at the Southeast corner of the intersection of Clinton Keith Road and Whitewood Road. The Rustic Meadows project is proposed to include approximately 153 single-family homes at full buildout and will be developed by Century Communities of California, LLC.

The Property Owner has requested that the City form CFD No. 2025-4 to encompass the Property in accordance with the Mello-Roos Act in order 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 $5 million. The proceeds of bonds issued by CFD No. 2025-4 are expected to be used to finance public facilities to be owned and operated by the City and by Murrieta Valley Unified School District, as well as financing the payment of DIF owed by the Property Owner to the City. The Property Owner has requested that the boundaries of CFD No. 2025-4 include the area described in Attachment A of the Resolution of Intention to Establish CFD No. 2025-4 presented at this meeting (the “CFD No. 2025-4 Resolution of Intention”), and that special taxes be levied within the boundaries of CFD No. 2025-4 in accordance with the Rate and Method of Apportionment for CFD No. 2025-4 (the “CFD No. 2025-4 RMA”) described in Attachment C to the Resolution of Intention. The proposed rates of the special tax range from $1,659 per unit for single family homes less than 1,500 square feet to $2,108 per unit for single family homes greater than 1,700 square feet and also include tax rates of $41,763 per acre of multi-family property and non-residential property. The special tax rates within CFD No. 2025-4 will increase two percent (2.0%) annually on July 1 of each year, commencing July 1, 2026.

The CFD No. 2025-4 Resolution of Intention is the first step in the process of forming CFD No. 2025-4. The attached resolutions declare the City’s intention to establish CFD No. 2025-4, its intention to incur bonded indebtedness by CFD No. 2025-4, and call for a public hearing. A public hearing on the matter of the formation of CFD No. 2025-4 will take place on July 15, 2025, and at that time the City Council will formally consider the establishment of CFD No. 2025-4 and hold elections on the approval of the special taxes and the need to incur bonded indebtedness within CFD No. 2025-4. It is expected that there are no registered voters residing within the boundaries of the proposed CFD No. 2025-4 and accordingly the election will be a landowner voting election.

The Rustic Meadows project is also required to either annex to or request the formation of a public safety services CFD and a maintenance services CFD. Accordingly, the Property Owner has also requested the formation for Community Facilities District No. 2025-S (Safety Services) and that the Property be annexed to Community Facilities District No. 2025-2 (Maintenance Services). There are two separate agenda items on CITY OF MURRIETA Page 3 of 4 Printed on 5/29/2025
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Agenda Item No. 21.

Community Facilities District No. 2025-2 (Maintenance Services). There are two separate agenda items on tonight’s City Council Agenda requesting formation of an annexation to the Safety Services and Maintenance Services CFDs.

FISCAL IMPACT
The Property Owner has made a deposit of $80,000 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 City Council and voter approvals, each of the CFDs will annually levy special taxes on all of the taxable property within the applicable District in accordance with the applicable RMA (as attached to the Resolutions of Intention). 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. 2025-4, debt service on bonds. Any bonds issued by CFD No. 2025-4 are not obligations of the City and will be secured solely by the Special Taxes levied within CFD No. 2025-4.

ATTACHMENTS

1. Landowner Petition to Form Community Facilities District No. 2025-4 (Rustic Meadows)

2. Resolution No. 25-4839

3. Resolution No. 25-4840

4. Reimbursement Agreement - Community Facilities District No. 2025-4 (Rustic Meadows) CITY OF MURRIETA Page 4 of 4 Printed on 5/29/2025
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1 PETITION TO THE CITY COUNCIL OF THE CITY OF

MURRIETA REQUESTING INSTITUTION OF PROCEEDINGS

FOR ESTABLISHMENT OF A COMMUNITY FACILITIES
DISTRICT (COMMUNITY FACILITIES DISTRICT NO. 2025-4
(RUSTIC MEADOWS) OF THE CITY OF MURRIETA)

1. The undersigned (the “Owner”) owns all of the land depicted and described in Exhibit A hereto (the “Property”), which land is expected to be all of the land included within the boundaries of a community facilities district hereby proposed to be established. The Property is located within the City of Murrieta (the “City”) in the County of Riverside.

2. The Owner requests that the City Council of the City (the “City Council”) institute proceedings to establish a community facilities district to be known as “Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta” (referred to herein as the “District”) pursuant to Chapter 2.5 (commencing with Section 53311), Part 1, Division 2, Title 5, of the Government Code of the State of California, commonly known as the “Mello-Roos Community Facilities Act of 1982” (the “Act”) to include all of the Property.

3. The boundaries of the territory which is proposed for inclusion in the District are those described and depicted in Exhibit A hereto.

4. The Owner requests that the proposed District be used to finance 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) interim and permanent school facilities of Murrieta Valley Unified School District, including classrooms, multi-purpose facilities, administration and auxiliary space at school facilities, athletic fields, playgrounds and recreational facilities and improvements thereto, landscaping, access roadways, drainage, sidewalks and gutters and utility lines, furniture, equipment and technology, including technology upgrades and mobile devices and infrastructure therefore, with a useful life of at least five (5) years at such school facilities, including such school facilities Murrieta Valley Unified School District which are included in Murrieta Valley Unified School District’s school fee program (the “School 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. 1821
2 5. The Owner further requests that the City Council authorize the levy of special taxes in the District to pay the costs of the Facilities and the incidental costs described in paragraph 4 above (the “Special Tax”) and to pay principal of, interest and premium, if any, on the bonds in order to contribute to the financing of the Facilities and costs described in paragraph 4 above.

6. The Owner further requests that, upon the sale of bonds, the City Council, as legislative body of the District, annually levy Special Taxes on the property within the District for the construction, acquisition and rehabilitation of the Facilities, for the payment of the aggregate amount of principal of and interest owing on the bonds in each fiscal year, including the maintenance of reserves therefor, and for the payment of administrative expenses of the District.

7. Century Communities of California, LLC has advanced to the City the amounts necessary to pay for the costs related to the formation of the District, which amounts will be reimbursed, without interest, from the proceeds of the first sale of the bonds, if any. The reimbursement of such amounts is expected to be governed by the terms of that certain Reimbursement Agreement to be entered into by and between the City and Century Communities of California, LLC relating to the District. If bonds are not sold, the City will have no obligation to reimburse amounts expended for costs incurred, but will reimburse any unexpended amounts advanced by Century Communities of California, LLC as set forth in the Reimbursement Agreement.

Dated: May __, 2025
WHITEWOOD—MURRIETA, L.P.,
a Delaware limited partnership
By: Cal Hearthstone PBLO GP, LLC,
a Delaware limited liability company
Its: General Partner
By:___________________________
Steven C. Porath
Authorized Representative
1822
A-1

EXHIBIT A

BOUNDARY MAP
1823
RESOLUTION NO. 25-4839

RESOLUTION OF INTENTION OF THE CITY COUNCIL

OF THE CITY OF MURRIETA TO ESTABLISH
COMMUNITY FACILITIES DISTRICT NO. 2025-4
(RUSTIC MEADOWS) 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. 2025-4 (Rustic Meadows) of the City of Murrieta” (“Community Facilities District No. 2025-4” 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. 2025-4; 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. 2025-4 and the issuance of bonded indebtedness in one or more series in an aggregate maximum principal amount of $5,000,000 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. 2025-4;
WHEREAS, the City desires to enter into a reimbursement agreement with Century Communities of California, 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 1824
2 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 Murrieta Valley Unified School District (the “School District”) relating to certain facilities proposed to be financed by the District and owned and operated by the School 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. 2025-4 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. 2025-4 (Rustic Meadows) of the City of Murrieta.” Section 4. The Facilities proposed to be provided within Community Facilities District No. 2025-4 are public facilities as defined in the Act, which the City, and the School District, with respect to certain school facilities, are authorized by law to construct, acquire, own and operate. The City Council hereby finds and determines that the description of the Facilities herein is sufficiently informative to allow taxpayers within the proposed District to understand what the funds of the District may be used to finance. The 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, 1825
3 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 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 2066-2067, 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. 2025-4 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. 2025-4 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. 2025-4, 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. 2025-4 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. 2025-4, the proposed rate and method of apportionment of the Special Tax and the proposed issuance of bonds to finance the Facilities and the Incidental 1826
4 Expenses shall be held at 6:00 p.m., or as soon thereafter as practicable, on July 15, 2025, at the City of Murrieta Council Chamber, 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.

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. 2025-4 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. 2025-4 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. 2025-4 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. 2025-4, 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. 2025-4 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. 2025-4, 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. 2025-4 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 1827
5 District No. 2025-4. 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. 2025-4. The City Clerk is further directed to mail a copy of the Notice to each of the landowners within the boundaries of the District at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the proposed district and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing.

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 Five Million Dollars ($5,000,000).

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. 1828
6 PASSED AND ADOPTED by the City Council at a regular meeting held on the 3rd day of June, 2025.

CITY COUNCIL OF THE CITY OF

MURRIETA
By:_______________________________
Cindy Warren
Mayor of the City of Murrieta
APPROVED AS TO FORM:
________________________________
Tiffany Israel
City Attorney of the City of Murrieta
ATTEST:
________________________________
Cristal McDonald
City Clerk of the City of Murrieta
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7 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. 25-4839 was duly adopted by the City Council of the City of Murrieta at a regular meeting held on the 3rd day of June, 2025, by the following votes:

AYES:

NOES:

ABSENT:

CRISTAL MCDONALD, CITY CLERK
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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. 2025-4 (Rustic Meadows) 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) interim and permanent school facilities of Murrieta Valley Unified School District, including classrooms, multi-purpose facilities, administration and auxiliary space at school facilities, athletic fields, playgrounds and recreational facilities and improvements thereto, landscaping, access roadways, drainage, sidewalks and gutters and utility lines, furniture, equipment and technology, including technology upgrades and mobile devices and infrastructure therefore, with a useful life of at least five (5) years at such school facilities, including such school facilities Murrieta Valley Unified School District which are included in Murrieta Valley Unified School District’s school fee program (the “School 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. 1832
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ATTACHMENT C

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-4 (RUSTIC MEADOWS)

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. 2025-4 (Rustic Meadows), of the City of Murrieta ("CFD No. 2025-4"). 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. 2025-4, 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. 2025-4: 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. 2025-4 or any designee thereof in complying with arbitrage rebate requirements; the costs to the City, CFD No. 2025-4 or any designee thereof in complying with continuing disclosure requirements of the City, CFD No. 2025-4 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. 2025-4 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. 2025-4. Administration 1833
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Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2025-4 for any other administrative purposes of CFD No. 2025-4, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
"Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a building permit on or before May 1 st preceding the Fiscal Year in which the Special Tax is being levied. "Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax of that name described in Section D below. "Backup Special Tax" means the Special Tax of that name described in Section D below. "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which the Special Tax of CFD No. 2025-4 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. 2025-4" means Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta established by the City under the Act. 1834
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“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. 2025-4.
“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, 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. 2025-4 on such Assessor’s Parcel.
“Multi-family Residential 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. 1835
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"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1.
“Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Assessor’s Parcels of Undeveloped Property or Provisional Undeveloped Property, as applicable. "Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be 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. 2025-4.
"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 Multi-family Residential Property.
"Special Tax" or “Special Taxes” means any of the special taxes authorized to be levied within CFD No. 2025-4 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. 2025-4 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.
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"Taxable Property" means all Assessor’s Parcels within CFD No. 2025-4, which are not Exempt Property.
“Taxable Unit” means either a Residential Unit or an Acre. “Trustee” means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property, or Provisional Undeveloped Property.

B. SPECIAL TAX
Commencing Fiscal Year 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. 2025-4 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 Multi-family Residential 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
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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 Multi-family Residential 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, Multi-family Residential Property or Non-Residential Property shall be subject to an Assigned Special Tax.

The Assigned Special Tax for Fiscal Year 2025-2026 applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 below.

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 1,500 sq. ft $1,659.00

2. Single Family Residential
Property RU
1,500 sq. ft to 1,700 sq.
ft $1,808.00

9. Single Family Residential
Property RU Greater than 1,700 sq. ft $2,108.00

10. Multi-family Residential
Property Acre N/A $41,763.00

11. Non-Residential Property Acre N/A $41,763.00
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
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The Backup Special Tax for an Assessor’s Parcel within a Final Map classified as Single Family Residential Property shall be $1,858 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. 2025-4 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.

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. 2025-4.

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 $41,763 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 $41,763 per Acre. 1839
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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 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 first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Approved Property at up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

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

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

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

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

F. EXEMPTIONS
The City shall classify 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 1840
C-9
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 7.56 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

7.56 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 7.56 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 $4,000,000 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. 2025-4, 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. 2025-4.
“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 1841
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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):

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

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

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

13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. 1843
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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.

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 1844
C-13
F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section G.1 The owner of an Assessor’s Parcel who desires to partially prepay the Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax obligation, (ii) the percentage of the Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any.

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

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

H. TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax shall be levied on all Assessor’s Parcels subject to the Special Tax pursuant to Section E. The Special Tax shall cease not later than the 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. 2025-4 Bonds have been paid; (ii) all authorized facilities of CFD No. 2025-4 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. 2025-4 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. 2025-4 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 1845
C-14
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. 1846
RESOLUTION No. 25-4840

A RESOLUTION OF INTENTION OF THE CITY COUNCIL

OF THE CITY OF MURRIETA TO INCUR BONDED

INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED
$5,000,000 WITHIN PROPOSED COMMUNITY FACILITIES
DISTRICT NO. 2025-4 (RUSTIC MEADOWS) OF THE CITY

OF MURRIETA
WHEREAS, the City Council of the City of Murrieta (the “City Council”) upon receipt of a petition as provided in Section 53318 of the Government Code of the State of California instituted proceedings to form Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta (“Community Facilities District No. 2025-4” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), as amended, pursuant to Resolution No. 25-___ (the “Resolution of Intention to Establish”) adopted by the City Council on the date hereof to finance (1) the purchase, construction, modification, expansion, improvement and/or rehabilitation of public facilities identified in Attachment “A” hereto and incorporated herein by this reference, including all furnishings, equipment and supplies related thereto (collectively, the “Facilities”) and (2) the incidental expenses to be incurred in financing the Facilities and forming and administering the District (the “Incidental Expenses”); and, WHEREAS, the City Council estimates that the amount required to finance the Facilities and Incidental Expenses is approximately $5,000,000; and, WHEREAS, in order to finance the Facilities and Incidental Expenses, the City Council intends to authorize the issuance of bonds in one or more series in the maximum aggregate principal amount of $5,000,000, the repayment of which is to be secured by special taxes levied in accordance with Section 53328 of the Act on all property in the proposed Community Facilities District No. 2025-4, other than those properties exempted from taxation in the rate and method of apportionment set forth in Attachment “C” to the Resolution of Intention to Establish.

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. It is necessary to incur bonded indebtedness within the boundaries of proposed Community Facilities District No. 2025-4 in an aggregate maximum principal amount of $5,000,000 to finance the costs of the Facilities and Incidental Expenses, as permitted by the Act.

Section 3. The indebtedness will be incurred for the purpose of financing the costs of the Facilities and the Incidental Expenses, including, but not limited to, the funding of reserve funds for the bonds, the financing of costs associated with the issuance of the bonds and all other costs and expenses necessary to finance the Facilities which are permitted to be financed pursuant to the Act.
1847
2 Section 4. It is the intent of the City Council to authorize the sale of bonds in one or more series, in the maximum aggregate principal amount of $5,000,000 and at a maximum interest rate not in excess of 12 percent per annum, or a higher rate not in excess of the maximum rate permitted by law at the time that the bonds are issued. The term of the bonds of each series shall be determined pursuant to a resolution of this City Council acting in its capacity as the legislative body of the District authorizing the issuance of the bonds of such series, but such term shall in no event exceed 35 years from the date of issuance of the bonds of such series, or such longer term as is then permitted by law.

Section 5. A public hearing (the “Hearing”) on the proposed issuance of bonded indebtedness shall be held at 6:00 p.m., or as soon thereafter as practicable, on July 15, 2025, at the City of Murrieta Council Chamber, 1 Town Square, Murrieta, California.

Section 6. At the time and place set forth in this Resolution for the Hearing, any interested persons, including all persons owning land or registered to vote within proposed Community Facilities District No. 2025-4, may appear and be heard.

Section 7. 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 the proposed Community Facilities District No. 2025-4. Such publication shall be completed at least seven days prior to the date of the Hearing. The City Clerk is further directed to mail a copy of the Notice to each of the landowners within the boundaries of proposed Community Facilities District No. 2025-4 at least 15 days prior to the Hearing.

PASSED AND ADOPTED by the City Council at a regular meeting held on the 3rd day of June, 2025.

CITY COUNCIL OF THE CITY OF

MURRIETA
By:_______________________________
Cindy Warren
Mayor of the City of Murrieta
APPROVED AS TO FORM:
________________________________
Tiffany Israel
City Attorney of the City of Murrieta
1848
3 ATTEST:
________________________________
Cristal McDonald
City Clerk of the City of Murrieta

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. 25-4840 was duly adopted by the City Council of the City of Murrieta at a regular meeting held on the 3rd day of June, 2025, by the following votes:

AYES:

NOES:

ABSENT:

CRISTAL MCDONALD, CITY CLERK
1849
A-1

ATTACHMENT A
Types of Facilities
to Be Financed by
Community Facilities District No. 2025-4 (Rustic Meadows) 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. 1850

REIMBURSEMENT AGREEMENT

RE PROPOSED
COMMUNITY FACILITIES DISTRICT NO. 2025-4 (RUSTIC MEADOWS)

OF THE CITY OF MURRIETA

THIS REIMBURSEMENT AGREEMENT RE PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2025-4 (RUSTIC MEADOWS) OF THE CITY OF MURRIETA (the “Agreement”) dated June 3, 2025, is entered into by and between the City of Murrieta, a general law city organized and existing under the laws and constitution of the State of California (the “City”), and Century Communities of California, LLC, a Delaware limited liability company (the “Developer”).

R E C I T A L S :

A. The Developer is under contract to purchase and expects to develop approximately 9.99 acres of land described in Exhibit A attached hereto (the “Property”) for which the Developer desires to include within proposed Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta (the “District”) to be established by the City pursuant to the Mello-Roos Community Facilities Act of 1982 (Government Code Section 53311 et seq.) (the “Act”).

B. The City and the Developer are desirous of entering into this Agreement in order to provide a mechanism by which the Developer may advance certain costs related to the cost of formation of the District, and to provide that such District, if formed, will reimburse the Developer for the amounts advanced hereunder.

AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, the parties hereto agree as follows:

1. Recitals. Each of the above recitals is incorporated herein and is true and correct.

2. Potential Formation of the District and Issuance of Bonds. (a) At the request of the Developer, the City will undertake to form the District. The City will retain, at the Developer’s expense, the necessary consultants to analyze the proposed formation of the District and issuance of bonds, including an engineer, special tax consultant, financial advisor, bond counsel, market absorption consultant, appraiser and other consultants deemed necessary by the City. In addition, City staff time spent in connection with the formation of the District and the issuance of bonds shall be at Developer’s expense. (b) In order to begin the process of analyzing the potential formation of the District, the Developer has advanced to the City a sum totaling $80,000. From time to time, the Developer shall make additional advances to the City within 15 days following receipt from the City of a request for an additional advance to cover the costs of forming the District and/or issuing bonds. In the event the Developer does not deliver the requested amount to the City within such 15-day period, the City will have no obligation to proceed with the analysis or bond issue unless and until such additional advance is received. The Developer shall have the right 1851
2 to notify the City at any time, in writing, of its intention to abandon the formation of the District or the issuance of bonds. Upon receipt of such notice, the City shall instruct its consultants to cease work as soon as practicable. The Developer shall be responsible to pay all costs and expenses incurred by the City or any City consultant or advisor prior to the date on which the City’s consultants are notified of the Developer’s notice of abandonment. Notwithstanding a decision of the Developer to abandon the formation of the District or the issuance of bonds, the City may, in its sole discretion, elect to proceed with formation of the District and/or the issuance of bonds with funds other than those of the Developer; provided, however, that, in executing this Agreement, the Developer shall not be deemed to have waived their right to object to the formation of the District or the issuance of bonds.
(c) The City will provide to the Developer on request a summary of how the advances have been spent and the unexpended balance remaining. The amounts advanced by the Developer will be reimbursable to the Developer, without interest, from the proceeds of bonds issued by the District when and if the District is formed. In the event that bonds are not issued to provide a source of reimbursement to the Developer, the City shall have no liability to the Developer to reimburse them for any of amounts previously advanced by the Developer and expended by the City in accordance with this Agreement.

3. Reimbursement Procedure. Whether the District is not formed or the District is abandoned, or for any other purpose, the City shall return any funds which have been advanced by the Developer which are not expended on the purposes set forth in Section 2 above. Such returned funds shall be without interest.

4. Abandonment of CFD Formation Process. The Developer understands that any formation of the District shall be in the sole discretion of the City. No provision of this Agreement shall be construed as a promise, warranty or agreement by the City to form the District, to annex the Property to any other district or improvement area of the City or to issue any bonds. The City shall have no liability to Developer for its decision not to form the District or issue bonds.

5. Indemnification and Hold Harmless. The Developer hereby assumes the defense of, and indemnifies and saves harmless, jointly and severally, the City and each of its officers, directors, employees and agents, from and against all actions, damages, claims, losses or expenses of every type and description to which they may be subjected or put, by reason of, or arising out of any acts or omissions taken by the Developer or any of the Developer’s officers, employees, contractors and agents with respect to the formation of the District. Notwithstanding the foregoing, the Developer shall not be liable for double indemnity nor for the negligence or willful misconduct of the City or any of its officers, directors, employees and agents.

6. Notices. Any notice to be provided pursuant to this Agreement shall be delivered to the following addresses:
1852
3 Developer Century Communities of California, LLC
4695 MacArthur Court, Suite 300
Newport Beach, CA 92660
Attn: Justin Brewer, Executive Vice President
Email: [email protected]
With a copy to: O’Neil LLP
Attn: John Yeager
19800 MacArthur Blvd., Suite 650
Irvine, California 92612
Telephone: 949-798-0722
City: City of Murrieta
1 Town Square
Murrieta, CA 92562
Attn: Director of Finance
Telephone: (951) 461-6090
Email: [email protected]
With a copy to: Stradling Yocca Carlson & Rauth LLP
660 Newport Center Drive, Suite 1600
Newport Beach, CA 92660
Attention: Brian Forbath, Esq.

Telephone: (949) 725-4193
Email: [email protected]
Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party.

7. Assignment. The Developer may assign its interest in this Agreement at any time provided, however, that the Developer shall provide written evidence of any assignment to the City.

8. Severability. If any part of this Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent permitted by law.

9. Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the matters provided for herein.

10. Amendments. This Agreement may be amended or modified only by written instrument signed by all parties.

11. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original.

12. Governing Law. This Agreement and any dispute arising hereunder shall be governed by and interpreted in accordance with the laws of the State of California. 1853
4 13. No Third Party Beneficiaries. No person or entity shall be deemed to be a third party beneficiary hereof, and nothing in this Agreement (either express or implied) is intended to confer upon any person or entity, other than the City and the Developer, any rights, remedies, obligations or liabilities under or by reason of this Agreement.

14. Singular and Plural; Gender. As used herein, the singular of any word includes the plural, and terms in the masculine gender shall include the feminine. 1854
S-1
IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above written.

CITY OF MURRIETA, a political subdivision of the
State of California
By:

Justin Clifton, City Manager
ATTEST:

By:

Cristal McDonald, City Clerk

CENTURY COMMUNITIES OF

CALIFORNIA, LLC,
A Delaware limited liability company
By:___________________________
Name: ________________________
Its: ___________________________

APPROVED AS TO FORM:

CITY ATTORNEY
By:

Tiffany Israel, City Attorney
1855
A-1

EXHIBIT A

DESCRIPTION OF PROPERTY
1856

CITY OF MURRIETA
City Council Meeting Agenda
Report
6/3/2025
Agenda Item No. 22.

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

Annexations No. 1 and No. 2 to Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta

RECOMMENDATION
Adopt Resolution No. 25-4841 entitled: A Resolution of the City Council of the City of Murrieta, Acting as the Legislative Body of Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta, Declaring Its Intention to Consider Annexing Territory to Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta (Rustic Meadows); and Adopt Resolution No. 25-4842 entitled: A Resolution of the City Council of the City of Murrieta, Acting as the Legislative Body of Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta, Declaring Its Intention to Consider Annexing Territory to Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta (Kensington Apartments).

PRIOR ACTION/VOTE
On April 5, 2016, the City Council adopted a Resolution amending the Land Secured Financing Policy (Vote: 5 -0).

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 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 Community Facilities District Goals and Policies (Vote 5-0).

On May 6, 2025, the City formed Community Facilities District No. 2025-1 (Safety Services), Community Facilities District No. 2025-2 (Maintenance Services), and Community Facilities District No. 2025-3 (Discovery Village) (Vote 5-0).

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Agenda Item No. 22.

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

The implementation of a maintenance CFD follows the first three (3) steps above. Once approved, a special tax can be levied on the property tax bill in accordance with the Rate and Method of Apportionment (RMA).

Such special taxes will pay for the costs of maintenance services and administration of CFD No. 2025-2.

On December 5, 2023, the City Council adopted amendments to the Community Facilities District Goals and Policies. In addition to changes related to state law, other changes contained in the amended policy include:
· A list of eligible facilities that can be financed.
· Adding an escalator of up to two percent (2%) per year for facilities. · Adding an escalator for service or maintenance CFDs to cover increases in the cost of providing services.
· Allowing Development Impact Fees (DIF) to be financed. · Increasing the maximum cap on the assessed value of a property from one point eight percent (1.8%) to two percent (2.0%).

Additional Authorized Services
The Mello-Roos Act also authorizes the City to establish a CFD to finance certain public services through the CITY OF MURRIETA Page 2 of 4 Printed on 5/29/2025
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Agenda Item No. 22.

The Mello-Roos Act also authorizes the City to establish a CFD to finance certain public services through the levy of a special tax. The services that can be funded through a CFD include the following:
· Police protection services, including, but not limited to, criminal justice (limited to providing services for jails, detention facilities, and juvenile halls).
· Fire protection and suppression services, and ambulance and paramedic services. · Recreation program services, library services, maintenance services for elementary and secondary school sites and structures, and the operation and maintenance of museums and cultural facilities. · Maintenance and lighting of parks, parkways, streets, roads, and open spaces. · Flood and storm protection services, including, but not limited to, the operation and maintenance of storm drainage systems, plowing and removal of snow, and sandstorm protection systems. · Maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years that is owned by the local agency or by another local agency (by agreement).

Community Facilities District No. 2025-2 (Maintenance Services) On May 6, 2025, the City Council approved the formation of Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta and authorized CFD No. 2025-2 to levy a 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, roads, and open space, maintenance and operation of water quality improvements, including storm drainage and flood protection facilities, and public street sweeping. CFD No. 2025-2 currently consists only of the property within the Discovery Village development project that formed the district. The remainder of the City was designated as a “Potential Annexation Area.”
New development projects meeting certain design criteria are required by the City’s Community Facilities District Goals and Policies, as amended in December 2023, to annex to CFDs. Accordingly, the owner of property within the proposed Rustic Meadows development project and the owner of property within the proposed Kensington Apartments development project (collectively, the “Property Owners”) submitted petitions requesting that the property within their respective development projects be annexed into CFD No. 2025-2. If approved by the City Council and the Property Owners, the property within the Rustic Meadows development project would be annexed to CFD No. 2025-2 as “Tax Zone 1,” and the property within the Kensington Apartments development project would be annexed to CFD No. 2025-2 as “Tax Zone 2.” The special taxes within Tax Zone 1 of CFD No. 2025-2 are $332 per residential unit, and the special taxes within Tax Zone 2 of CFD No. 2025-2 are $98 per residential unit. The special taxes in each of Tax Zone 1 and Tax Zone 2 will increase on each July 1, commencing on July 1, 2026 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 Resolutions of Consideration presented are the first step in the process of annexing property to CFD No. 2025-2. The attached resolutions declare the City’s intention to annex property to CFD No. 2025-2 and call for public hearings on the matters of the proposed annexations to CFD No. 2025-2 to take place on July 15, 2025, and at that time the City Council will formally consider the proposed annexations to CFD No. 2025-2 and hold elections on the proposed annexations to CFD No. 2025-2. It is expected that there are no registered voters CITY OF MURRIETA Page 3 of 4 Printed on 5/29/2025
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Agenda Item No. 22.
elections on the proposed annexations to CFD No. 2025-2. It is expected that there are no registered voters residing within the boundaries of the proposed property to be annexed to CFD No. 2025-2, and accordingly, the elections will be landowner voting elections.

The owner of the property within the proposed Rustic Meadows project within the City is Whitewood-Murrieta, L.P. The Rustic Meadows project is located at the southeast corner of the intersection of Clinton Keith Road and Whitewood Road. At full buildout, the proposed Rustic Meadows project is proposed to include approximately 153 single-family homes and will be developed by Century Communities of California, LLC.

The owner of property within the proposed Kensington Apartments project is Murrieta Pacific Associates, Inc.

The Kensington Apartments project is a proposed affordable housing project located near the corner of Washington Avenue and Magnolia Street, and is proposed to include approximately 126 units.

FISCAL IMPACT
The Property Owners have made deposits to pay for the costs of the annexation proceedings to CFD No. 2025-2. The deposit made by Century Communities may be reimbursed to Century Communities from proceeds of a future bond issuance by the separate facilities CFD being formed in connection with the Rustic Meadows development. If the proposed annexations are approved and subject to necessary Council and voter approvals, CFD No. 2025-2 will annually levy special taxes on all of the taxable property within the annexation property in accordance with the RMA (as attached to the Resolutions of Consideration). Such special taxes will be used to pay for the costs of maintenance services and administration of the CFD No. 2025-2. The levying of the 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.

ATTACHMENTS

1. Landowner Petition to Annex to Community Facilities District No. 2025-2 (Maintenance Services) (Rustic Meadows)

2. Resolution No. 25-4841

3. Landowner Petition to Annex to Community Facilities District No. 2025-2 (Maintenance Services) (Kensington Apartments)

4. Resolution No. 25-4842
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4927-0430-7775v2/022972-0050

PETITION TO THE CITY COUNCIL OF THE CITY OF MURRIETA

REQUESTING INSTITUTION OF PROCEEDINGS TO ANNEX
CERTAIN PROPERTY TO COMMUNITY FACILITIES DISTRICT NO.
2025-2 OF THE CITY OF MURRIETA (MAINTENANCE SERVICES)

1. The undersigned (the “Owner”) owns all of the land depicted and described in Exhibit A hereto (the “Property”), which Owner desires to be annexed to Community Facilities District No. 2025-2 of the City of Murrieta (Maintenance Services) (the “District”). The Property is located within the City of Murrieta (the “City”) in the County of Riverside.

2. The Owner requests that the City Council of the City (the “City Council”) institute proceedings to annex the Property to the District pursuant to Chapter 2.5 (commencing with Section 53311), Part 1, Division 2, Title 5, of the Government Code of the State of California, commonly known as the “Mello-Roos Community Facilities Act of 1982” (the “Act”).

3. The boundaries of the territory which is proposed for annexation to the District are those depicted and described in Exhibit A hereto.

4. The Owner requests that, upon annexation to the District, the District provide certain maintenance services described in Resolution No. 25-4822 adopted by the City Council on May 6, 2025 (collectively, the “Services”).

5. The Owner further requests that upon the approval at a special election to be held within the Property, the City Council, as legislative body of the District, annually levy Special Taxes (as defined in the Rate and Method of Apportionment for the District (the “Rate and Method”)) for the Services on the Property in accordance with the Rate and Method.

EXHIBIT A

ANNEXATION BOUNDARY MAP
1862
RESOLUTION NO. 25-4841

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MURRIETA ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 2025-2 OF THE

CITY OF MURRIETA (MAINTENANCE SERVICES),

DECLARING ITS INTENTION TO CONSIDER ANNEXING

TERRITORY TO COMMUNITY FACILITIES DISTRICT
NO. 2025-2 (MAINTENANCE SERVICES) OF THE CITY

OF MURRIETA (RUSTIC MEADOWS)
WHEREAS, on February 4, 2025, the City Council (the “City Council”) of the City of Murrieta adopted Resolution No. 25-4806 (the “Resolution of Intention”), declaring its intention to establish Community Facilities District No. 2025-2 of the City of Murrieta (Maintenance Services) (“Community Facilities District No. 2025-2” 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, after a duly noticed public hearing, the City Council adopted Resolution No. 25-4822 (the “Resolution of Formation”) establishing Community Facilities District No. 2025-2 and the Potential Annexation Area and calling a special 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 to the Resolution of Formation (the “Original Rate and Method”), and (ii) the establishment of an appropriations limit for Community Facilities District No. 2025-2; and
WHEREAS, the City Council has received a signed petition from Whitewood— Murrieta, L.P., a Delaware limited partnership (the “Owner”), requesting (i) the annexation of the territory within the boundaries set forth in Attachment “A,” hereto (the “Annexation Territory”) to the District, which Annexation Territory is located within the Potential Annexation Area; and (ii) the levy of the special tax within the Annexation Territory in accordance with the Rate and Method of Apportionment of Special Tax attached as Attachment “B,” hereto (the “Rate and Method”), which Rate and Method is identical to the Original Rate and Method in all respects except that Appendix A thereto has been updated in accordance with the terms of the Original Rate and Method to reflect the annexation described herein;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE

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

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

Section 2. The City Council declares its intention to conduct proceedings pursuant to the Act for the annexation to the District of the Annexation Territory. 1863
2 Section 3. The map showing the original boundaries of the District designated “Proposed Boundary Map Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta, County of Riverside, State of California,” 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 City of 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 map showing the Potential Annexation Area designated “Boundaries— Potential Annexation Area Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta, County of Riverside, State of California,” 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 City of 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.

The boundaries of the Annexation Territory proposed to be annexed to the District and be made subject to taxation are as shown on the annexation map set forth in Attachment “A” hereto (the “Boundary Map”). The City Clerk is hereby directed to sign the Boundary Map 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 4. The Services (as defined in the Rate and Method) proposed to be provided for the benefit of the Annexation Territory are public services as defined in the Act, and this City Council finds and determines that the Services to be financed, upon annexation to the District, will be in addition to those provided in the Annexation Territory, and do not supplant services already available within the Annexation Territory. The City Council hereby finds and determines that the description of the Services herein is sufficiently informative to allow taxpayers within the Annexation Territory, to understand what the funds of the District may be used to finance. The Administrative Expenses (as defined in the Rate and Method) expected to be incurred within the Annexation Territory are set forth in the Rate and Method. The amount and term of the special tax to be levied by the District within the Annexation Territory and the Services to be provided by the District within the Annexation Territory shall be identical to those within the original boundaries of the District.

The special taxes for Services may be increased on each July 1, commencing on July 1, 2026, 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 1864
3 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, as further described in Attachment “B” hereto.

The special taxes are based on the expected demand that each parcel of real property within the Annexation Territory 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 as a result of the development of the land proposed for annexation to the District. The City Council hereby determines the rate and method of apportionment of the special taxes set forth in Attachment “B” 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 annexation of the Annexation Territory to the District and the levy of the special tax within the Annexation Territory in accordance with the Rate and Method to finance the Services shall be held at 6:00 p.m., or as soon thereafter as practicable, on July 15, 2025, at the City of Murrieta Council Chambers, 1 Town Square, Murrieta, California. Should the City Council determine to annex the Annexation Territory to 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 Annexation Territory at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within the Annexation Territory. 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 the Annexation Territory, may appear and be heard.

Section 9. 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.

Section 10. This Resolution shall be effective upon its adoption. 1865
4 PASSED AND ADOPTED by the City Council at a regular meeting held on the 3rd day of June, 2025.

CITY COUNCIL OF THE CITY OF

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. 25-4841 was duly adopted by the City Council of the City of Murrieta at a regular meeting held on the 3rd day of June, 2025, by the following votes:

AYES:

NOES:

ABSENT:

Cristal McDonald, City Clerk
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A-1
ATTACHMENT “A”

BOUNDARY MAP OF ANNEXATION TERRITORY
1867
B-1
ATTACHMENT “B”

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. 1868
B-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.
1869
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“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.
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“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. 1871
B-5
"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
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. 1872
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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 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 1873
B-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)
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:
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(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 1875
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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 B (Contingent) for Developed Property shall increase by i) the year-over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. c. Undeveloped Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into 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 1876
B-10
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:

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:

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;
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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.

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).
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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. 1879
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APPENDIX A

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

COST ESTIMATE
Special Tax A Services - The estimate breaks down the costs of providing one year's maintenance services for Fiscal Year 2025-26. These services are being funded by the levy of Special Tax A for Community Facilities District No. 2025-2.

TAX ZONE 1 (SERVICES)
TRACT NO. 38199
Item Description Estimated Cost
1 Landscaping $3,729
2 Streetlights $1,372
3 Traffic Signals $7,008
4 Street & Pavement $6,533
5 Drainage $2,370
6 Parks $20,918
7 Graffiti Abatement $674
8 Reserves $1,564
9 Administration $6,629
Total $50,797
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 Tax Zone 1.

TAX ZONE 1
FY 2025-26 MAXIMUM SPECIAL TAX RATES

DEVELOPED PROPERTY AND APPROVED PROPERTY
Land Use
Category
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Single Family Residential Property RU $332 $0
Multi-Family Residential RU $332 $0
Non-Residential Property Acre $6,719 $0
TAX ZONE 1
FY 2025-26 MAXIMUM SPECIAL TAX RATES

UNDEVELOPED PROPERTY
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Acre $6,719 $0
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TAX ZONE SUMMARY
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
1 2025-26 38199 153 SFR RU $332 $0
Century
Communities

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. 1881
B-15

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.
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APPENDIX C

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

PROPOSED BOUNDARIES AND POTENTIAL ANNEXATION AREA

BOUNDARIES
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-18
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PETITION TO THE CITY COUNCIL OF THE CITY OF MURRIETA

REQUESTING INSTITUTION OF PROCEEDINGS TO ANNEX
CERTAIN PROPERTY TO COMMUNITY FACILITIES DISTRICT NO.
2025-2 OF THE CITY OF MURRIETA (MAINTENANCE SERVICES)

3. The boundaries of the territory which is proposed for annexation to the District are those depicted and described in Exhibit A hereto.

Dated: May __, 2025

MURRIETA PACIFIC ASSOCIATES, A

EXHIBIT A

ANNEXATION BOUNDARY MAP
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RESOLUTION NO. 25-4842

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MURRIETA ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 2025-2 OF THE

CITY OF MURRIETA (MAINTENANCE SERVICES),

DECLARING ITS INTENTION TO CONSIDER ANNEXING

TERRITORY TO COMMUNITY FACILITIES DISTRICT
NO. 2025-2 (MAINTENANCE SERVICES) OF THE CITY

OF MURRIETA (KENSINGTON APARTMENTS)
WHEREAS, on February 4, 2025, the City Council (the “City Council”) of the City of Murrieta adopted Resolution No. 25-4806 (the “Resolution of Intention”), declaring its intention to establish Community Facilities District No. 2025-2 of the City of Murrieta (Maintenance Services) (“Community Facilities District No. 2025-2” 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, after a duly noticed public hearing, the City Council adopted Resolution No. 25-4822 (the “Resolution of Formation”) establishing Community Facilities District No. 2025-2 and the Potential Annexation Area and calling a special 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 to the Resolution of Formation (the “Original Rate and Method”), and (ii) the establishment of an appropriations limit for Community Facilities District No. 2025-2; and
WHEREAS, the City Council has received a signed petition from Murrieta Pacific Associates, a California Limited Partnership, a California limited partnership (the “Owner”), requesting (a) the annexation of the territory within the boundaries set forth in Attachment “A,” hereto (the “Annexation Territory”) to the District, which Annexation Territory is located within the Potential Annexation Area; and (ii) the levy of the special tax within the Annexation Territory in accordance with the Rate and Method of Apportionment of Special Tax attached as Attachment “B,” hereto (the “Rate and Method”), which Rate and Method is identical to the Original Rate and Method in all respects except that Appendix A thereto has been updated in accordance with the terms of the Original Rate and Method to reflect the annexation described herein;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE

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

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

Section 2. The City Council declares its intention to conduct proceedings pursuant to the Act for the annexation to the District of the Annexation Territory. 1888
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Section 3. The map showing the original boundaries of the District designated “Proposed Boundary Map Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta, County of Riverside, State of California,” 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 City of 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.

The special taxes for Services may be increased on each July 1, commencing on July 1, 2026, 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 1889
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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, as further described in Attachment “B” hereto.

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 10. This Resolution shall be effective upon its adoption. 1890
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PASSED AND ADOPTED by the City Council at a regular meeting held on the 3rd day of June, 2025.

CITY COUNCIL OF THE CITY OF

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. 25-4842was duly adopted by the City Council of the City of Murrieta at a regular meeting held on the 3rd day of June, 2025, by the following votes:

AYES:

NOES:

ABSENT:

Cristal McDonald, City Clerk
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ATTACHMENT “A”

BOUNDARY MAP OF ANNEXATION TERRITORY
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ATTACHMENT “B”

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. 1893
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“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.
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“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.
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“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. 1896
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“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.

1. Special Tax A
a. Developed Property
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(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 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:
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TABLE 2

MAXIMUM SPECIAL TAX A RATES

TABLE 3

MAXIMUM SPECIAL TAX A RATES

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;
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(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.

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 1900
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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

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 1901
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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

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) 1902
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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.

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. 1903
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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. 1904
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APPENDIX A

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

TAX ZONE 2 (SERVICES)
APN: 906-780-004
Item Description Estimated Cost
1 Landscaping $1,431
2 Streetlights $343
3 Street & Pavement $755
4 Drainage $1,555
5 Parks $5,557
6 Graffiti Abatement $555
7 Reserves $403
8 Administration $1,664
Total $12,263
Special Tax B Contingent Services – The estimate breaks down the costs of providing one year’s contingent maintenance services for Fiscal Year 2025-26. If necessary, these services will be funded by the levy of Special Tax B (Contingent) for Community Facilities District No. 2025- 2 Tax Zone 2.

TAX ZONE 2 (CONTINGENT SERVICES)
APN: 906-780-004
Item Description Estimated Cost
1 Drainage $1,547
2 Reserves $309
3 Administration $885
Total $2,741
TAX ZONE 2
FY 2025-26 MAXIMUM SPECIAL TAX RATES

DEVELOPED PROPERTY AND APPROVED PROPERTY
Land Use
Category
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Single Family Residential Property RU $98 $22
Multi-Family Residential Property RU $98 $22
Non-Residential Property Acre $2,899 $649
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TAX ZONE 2
FY 2025-26 MAXIMUM SPECIAL TAX RATES

UNDEVELOPED PROPERTY
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Acre $2,899 $649

TAX ZONE SUMMARY
Tax
Zone
Fiscal
Year
Included Tract/APN
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 1 2025-26 38199 153 SFR RU $332 $0 Century Communities
2 2025-26
906-780-
004 126 MFR RU $98 $22
Murrieta Pacific
Associates

APPENDIX B

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

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.

APPENDIX C

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

PROPOSED BOUNDARIES AND POTENTIAL ANNEXATION AREA BOUNDARIES 1908
B
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1909
B
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1910

Murrieta City CouncilJune 3, 2025

Murrieta City Council
June 3, 2025