Murrieta City Council
March 17, 2026

No, agencies can choose to join the Regional VMT Mitigation Program, and there is no cost to join the voluntary Program.

Can I include XYZ for funding through the Program?
What can I submit as a credit-generating item?
Credit-generating items should be active transportation or transit infrastructure projects (such as bike lanes and bus shelters) or programs (such as bus passes or carpool matching) that can demonstrate through substantial evidence that they reduce VMT.

Affordable housing projects and other strategies can be considered. Credit generators need to provide an estimated cost and project details for each item. WRCOG is available to meet with Credit Generators to discuss which credit-generating items might be included in the program.

How much is a VMT credit going to cost?
The cost of VMT credits will depends on which credit generating items are available on the exchange at the time of purchase. This will change over time based on what credit generating items are submitted and available.

Who’s going to calculate the VMT reduction associated
with the credit-generating items?
Credit users need to identify and calculate their VMT impacts. Credit generators will submit the cost estimate and project information for credit-generating items, and WRCOG will calculate the VMT reduction.

The program includes an appeal process for any participating agency that disagrees with WRCOG’s decisions on whether to include a credit generating item, or the VMT reduction calculation.
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CONT ACT US
Chris Gray
Deputy Executive Director
[email protected]
Phone: 951-405-6710

CONT ACT US
Chris Tzeng
Program Manager
[email protected]

FREQUENT ASKED QUESTIONS

How does this program differ from TUMF, local City programs/fees, or other regional or statewide programs?
TUMF will continue as-is and will fund local transportation infrastructure improvements through fair-share contributions from new development projects. Credit-generating items cannot be fully funded through TUMF to be eligible for inclusion in the program.

Cities can continue to fund VMT mitigation locally, either on an ad-hoc basis on individual projects or through a local fee program, bank or exchange. Cities with a local program can still participate in WRCOG’s regional VMT mitigation program.

There are no other regional or statewide VMT mitigation programs currently in existence.

AB 130 recently passed and directed the state to form a statewide VMT mitigation program, however even once that program is established it will not preclude local and regional agencies from having their own programs.
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CITY OF MURRIETA
City Council Meeting Agenda
Report
3/17/2026
Agenda Item No. 11.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David Chantarangsu, AICP, Development Services Director PREPARED BY: Carl Stiehl, City Planner
SUBJECT:

Murrieta Housing Authority Revolving Loan Fund

ABSTRACT
The Revolving Loan Fund will provide short-term loans to affordable housing projects in the City. The program is designed to provide construction financing in the form of low-interest, short-term loans providing early-stage and gap financing for qualifying projects in the City. Loan repayments are reinvested into future projects, creating a sustainable, ongoing funding source for affordable housing in Murrieta. Staff is returning to the City Council for authorization to approve loans utilizing the approved RLF program.

RECOMMENDATION
Adopt Resolution No. 26-4914 entitled: A Resolution of the City Council of the City of Murrieta Authorizing the City’s Housing Authority to Establish a Revolving Loan Fund; Approve the establishment of the RLF Program for the Authority to be managed by Authority staff and the Executive Director;
Authorize staff and the Executive Director to approve loans consistent with program requirements and execute all necessary documents for the RLF program; and
Direct staff to report annually to the City Council on the Revolving Loan Fund Program as part of the City’s annual housing reporting to the State.

PRIOR ACTION/VOTE
On May 6, 2025, the City Council authorized the City Manager to sign a Memorandum of Understanding (MOU) with the Southern California Association of Governments (SCAG) to develop a revolving loan fund (RLF) for the City’sHousing Authority (Authority) in order to receive program grant funds and directed staff to develop a RLF to receive the grant award (Vote: 5-0).

CITY COUNCIL GOAL
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Plan, program and create infrastructure development.

DISCUSSION
Background
Following confirmation in the 2024 State Budget that the $4.1 million SCAG grant awarded to the City would not be reduced, staff worked with the Authority consultant team from RSG during the second half of 2025 to develop the RLF. In May 2025, the City Council adopted a resolution to accept the grant funds, authorizing the City Manager to sign an MOU with SCAG and directing staff to prepare the RLF in May 2025.

Revolving Loan Fund Program
Working with SCAG and the Authority’s consultant team, staff developed a Project Management Plan consistent with the MOU and advanced the RLF's development. A Public Outreach Plan was prepared, and staff created a program website with an FAQ and survey to gather stakeholder input. Stakeholder outreach focused on the affordable housing community, including developers, service providers, property managers, residents, Community Land Trusts, and other government entities. Staff conducted one-on-one interviews with prospective loan applicants with projects in the City and other SCAG grant recipients with established revolving loan funds. Staff also hosted two virtual workshops and solicited input from the Development Advisory Group, as well as through the program website and online survey.

Using stakeholder input and the general direction of the RLF program, staff developed an RLF Application (Application) and RLF Guidelines (Guidelines) for loans utilizing the RLF (Attachments 2 and 3). Once funding becomes available, eligible applicants with qualifying projects may submit an application that will be reviewed for compliance with the Guidelines and qualifying criteria. Loans will be provided on a first-come, first-serve basis via an over-the-counter application process. Loans will be short-term with a five percent (5%) interest rate, due and payable upon the earlier of conversion to construction/permanent financing or loan maturity, not to exceed 60 months. The anticipated loan awards range from $500,000 to $1 million, depending on the project. The Authority may exercise discretion to adjust loan amounts based on project-specific considerations, for example, allocating a smaller amount for a smaller project. The initial approach is to distribute available funds across multiple projects to maximize the number of units supported.

Authority staff has also prepared an RLF Fundraising Strategy, consisting of Strategic Goals and Strategy and an Implementation Plan (Attachment 4), to support the City’s continued delivery of high-quality affordable homes and the advancement of the RLF. The intent is not only to establish the fund and make initial loans using SCAG seed funding, but also to grow the RLF over time. In addition to funds generated from RLF loan interest payments, the City will continue to pursue additional funding sources as they become available.

Staff is conducting an application and loan origination fee study to determine the appropriate fee levels to recover staff time associated with review, award, and closing of the RLF award. Any proposed fees will be presented for consideration in a future staff report. Staff anticipates releasing a Notice of Funding Availability (NOFA) for the first round of RLF funding shortly after SCAG grant funds are received and once the application and loan origination fees have been established.

Working with SCAG, staff developed, reviewed, and received approval for several required RLF components, including the Public Outreach Plan and Fundraising Strategy, consistent with the MOU. Staff met monthly with SCAG to draft the RLF program in alignment with the City’sLasting Affordability Grant Program application and applicable REAP 2.0 performance metrics. Monthly progress reports on RLF development have also been submitted to SCAG.

SCAG has requested that staff obtain City Council approval of the RLF, including the Application, Guidelines, and Fundraising Strategy, prior to releasing grant funds to the City. SCAG is required to disburse the $4.1 million in grant funding to the City before June 2026; otherwise, the funds must be returned to the State as CITY OF MURRIETA Printed on 3/12/2026Page 2 of 3
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million in grant funding to the City before June 2026; otherwise, the funds must be returned to the State as unspent REAP 2.0 funds. Staff anticipate receipt of the full grant award upon City Council approval of the RLF as requested in this report.

General Plan Conformance
The City’sHousing Element supports innovative programs, such as an RLF managed by the Authority, to provide additional funding sources and a direct investment by the City in affordable housing projects. The establishment of the RLF by the Authority for direct investments in affordable housing projects in the City is a financial incentive that implements the following Housing Element policies:

Policy 1.2 Encourage the development of affordable housing in the City through use of financial and/or regulatory incentives.

Policy 1.3 Encourage development of senior and low-income housing through use of financial and/or regulatory incentives.

Next Steps
Direct staff to proceed with the establishment of the RLF, it is anticipated that SCAG will provide the entire grant amount of $4.1 million in the next month, as SCAG has already provided general approval of the program, pending the City Council’s approval.

Staff anticipates the release of a NOFA and potential acceptance of the over-the-counter applications for loans soon after receiving the grant funds from SCAG, with the anticipation of a future fee to be established to cover staff time on RLF applications and loans.

FISCAL IMPACT
There is no fiscal impact to the Authority to receive the grant funds from SCAG. There will be administrative costs associated with the establishment of a Revolving Loan Fund. The Authority and Finance staff will establish the appropriate special revenue fund to account for the grant fund and the revolving loan fund operations.

Ongoing costs are anticipated for the Authority to administer the RLF. In the near term, these costs are expected to be primarily covered through the existing consultant contract with RSG, which is already allocated in the current fiscal year budget. Potential future staffing costs would be primarily paid for by the Authority budget, including the RLF and any future RLF application and loan origination fees. The administration of the RLF will become part of the Authority's ongoing activities. As the RLF grows, the RLF may support a portion of the cost of a permanent Authority staff position, in combination with other Authority funding sources. Staff is already analyzing a position for the Authority called a Housing Specialist, who would, in part, manage the RLF.

A portion of the funding sources to cover the new position may include existing Authority funds currently allocated to RSG for housing services. The creation of a Housing Specialist position for the Authority is anticipated to be considered in a future budget cycle.

ATTACHMENTS
ATT 1 - Resolution No. 26-4914
ATT 2 - RLF Guidelines
ATT 3 - RLF Application
ATT 4 - RLF Memo for Funding and Implementation
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RESOLUTION NO. 26-4914

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MURRIETA AUTHORIZING THE CITY’S HOUSING AUTHORITY TO ESTABLISH A

REVOLVING LOAN FUND

WHEREAS, the State Legislature and the Governor approved the Budget Act of 2024 , which restored $560 million for the Regional Early Action Planning Grants (REAP 2.0) Program, with $480 million specifically for metropolitan planning organizations; and

WHEREAS, the Southern California Association of Governments (SCAG) has received a final award allocation from the California Department of Housing and Community Development (HCD) of $231.5 million to fund competitive and formula-based grant awards as approved by the Regional Council; and

WHEREAS, on November 2, 2023, the SCAG Regional Council approved grant awards of approximately $45 million to 14 organizations and jurisdictions throughout the region, including a $4.1 million award to the City of Murrieta Housing Authority (Authority) for the establishment of a revolving loan fund; and

WHEREAS, the grant awards by SCAG are supportive of innovative finance strategies for projects that support existing and establish new housing trusts, land trusts, and catalyst funds; and

WHEREAS, the City’s Housing Element adopted by the City Council and approved by HCD in 2023 includes Policy 1.2 to encourage the development of affordable housing in the City through the use of financial and/or regulatory incentives and Policy 1.3 to encourage the development of senior and low -income housing through the use of financial and/or regulatory incentives; and

WHEREAS, the Authority has a history of providing loans to affordable housing projects, including the recent loans to National CORE of $6.14 million for phase 1 and $1.5 million for phase 2 of the Oak View Ranch Project in the City; and

WHEREAS, the City Council on May 6, 2025, authorized the Housing Authority to enter into an MOU with SCAG in order to develop a Revolving Loan Fund (RLF) and directed staff to prepare the RLF program; and
WHEREAS, the City Council has considered and by this Resolution desires to approve the RLF as prepared by staff, and directs staff to proceed with providing loans to eligible affordable housing projects on an ongoing basis as funds revolve; and WHEREAS, the City Council, by this Resolution, authorizes the Executive Director of the Authority to approve and execute loans under the RLF program for projects that meet the City’s Guidelines for the RLF.
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Resolution No. 26-4914

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Murrieta, as follows:

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

Section 2. That the City Council approves the establishment of the RLF Program for the City of Murrieta Housing Authority to be managed by Authority staff and the Executive Director.

Section 3. That the City Council finds, determines, and declares that the establishment of an RLF by the Authority is in conformance with the City’s adopted General Plan and more specifically the City’s Housing Element.

Section 4. That the $4.1 million grant funds are to be received by the City and allocated to the Authority for the RLF, to be loaned to eligible projects in accordance with the RLF Guidelines, as approved by staff and the Executive Director.

Section 5. That the Executive Director is hereby authorized to execute all documents, instruments, and agreements, for loans required by and for the implementat ion of the RLF on behalf of the Authority, subject to the approval as to the form by the Authority’s General Counsel.

Section 6. That the Authority authorizes and directs the Executive Director, or designee, of the Authority to make any amendments, change or revisio ns to any document, instrument or agreement, such as a loan document , required by and for the implementation of the RLF program for the Authority on behalf of the City, as approved by the Executive Director and General Counsel, to execute any such other do cuments and that such other actions as are necessary or desirable and appropriate to carry out and implement this award and program and to effectuate the intent of this Resolution on behalf of the Authority including, without limitation, approving any nece ssary extensions of deadlines any documents (or any portion thereof) as determined necessary by the Executive Director, or designee, to effectuate the purposes of the RLF program , and to administer the City’s obligations, responsibilities, and duties to be performed under the RLF program and all documents, instruments, and agreements required by and for the implementation of the RLF program on behalf of the Authority.

PASSED, APPROVED, AND ADOPTED this 17th day of March, 2026.

_____________________________
Jon Levell, Mayor

ATTEST:

_________________________________
Cristal McDonald, City Clerk
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Resolution No. 26-4914

APPROVED AS TO FORM:

__________________________________
Tiffany Israel, City Attorney

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )§

CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, California, do hereby certify that the foregoing Resolution No. 26-4914 was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the 17th day of March, 2026, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
Cristal McDonald, City Clerk

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Revolving Loan Fund Guidelines
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Table of Contents
I. INTRODUCTION AND BACKGROUND ........................................................................................................................... 3 BACKGROUND ............................................................................................................................................................................. 3 PROGRAM PURPOSE ..................................................................................................................................................................... 3 ABOUT THE GUIDELINES ................................................................................................................................................................ 3 II. THRESHOLD CRITERIA ................................................................................................................................................. 4 APPLICANT QUALIFICATIONS .......................................................................................................................................................... 4 GEOGRAPHIC ELIGIBILITY ............................................................................................................................................................... 4 PROJECT ELIGIBILITY ..................................................................................................................................................................... 5 ELIGIBLE USES ............................................................................................................................................................................. 5 EXPENDITURE ELIGIBILITY ............................................................................................................................................................... 5 AFFORDABILITY REQUIREMENTS ....................................................................................................................................................... 6 III. APPLICATION SUBMITTAL AND REVIEW PROCEDURES ................................................................................................ 7 DEVELOPMENT APPLICATION .......................................................................................................................................................... 7 APPLICATION REVIEW .................................................................................................................................................................... 7 IV. FUNDING PRIORITIES .............................................................................................................................................. 8 V. UNDERWRITING CRITERIA AND GENERAL LOAN TERMS AND CONDITIONS ................................................................... 9 LOAN TERM................................................................................................................................................................................. 9 LOAN AMOUNT ............................................................................................................................................................................ 9 LOAN TO VALUE RATIO .................................................................................................................................................................. 9 INTEREST RATE ............................................................................................................................................................................ 9 LOAN REPAYMENT ..................................................................................................................................................................... 10 DEVELOPER FEES ........................................................................................................................................................................ 10 PREDEVELOPMENT AND DEVELOPMENT BUDGETS.............................................................................................................................. 11 CASH FLOW AND DEBT COVERAGE RATIO ........................................................................................................................................ 11 OPERATING EXPENSES ................................................................................................................................................................. 11 RESERVES ................................................................................................................................................................................. 11 COLLATERAL/SECURITY ................................................................................................................................................................ 12 LOAN DOCUMENTS .................................................................................................................................................................... 12 FAIR HOUSING AND EQUAL OPPORTUNITY ...................................................................................................................................... 12 PREVAILING WAGES AND RELOCATION ........................................................................................................................................... 12

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I. INTRODUCTION AND BACKGROUND
Background
The City of Mu rrieta (“City”) secured an award of $4 .1 million in seed funding from the Southern California Association of Governments (“SCAG”) under the REAP 2.0 – Lasting Affordability Program to fund a Revolving Loan Fund program (“RLF”). The purpose of the RLF is to expand long-term affordable housing opportunities within city -limits. The program is designed to accelerate the development and preservation of affordable housing in Murrieta by providing low -interest, short-term loans, early-stage and gap financing. The fund is “revolving” meaning loan repayments are reinvested into future projects, creating a sustainable, ongoing funding source for affordable housing. Additional funds may be added to the RLF as grants are received, and loan repayments are made.

Program Purpose
In February 2026, the City established the RLF to provide financial assistance to preserve and increase affordable housing opportunities. The RLF is primarily designed to provide predevelopment funds fill funding gaps and to provide predevelopment loans (i.e., early-stage loans that make it easier for affordable housing developers to overcome initial hurdles while they determine the details of a project and secure permanent financing). More specifically, loan funds can be used for land acquisition, predevelopment expenses, construction loans, bridge loans, acquisition and rehabilitation expenses, and mini permanent loans. Loans provided by the RLF will typically be structured as short-term, below market loans to be repaid from constructi on or permanent financing. Once repaid, the loans and their accrued interest will revolve back into the RLF.

Projects funded by repayments of loans that originated from the REAP 2.0 grant also have this requirement. Payments of principal on REAP 2.0 loans will go towards infill development in perpetuity.

About the Guidelines
The purpose of the Revolving Loan Fund Guidelines (“Guidelines”) is to inform potential Applicants of how to apply for funding and describe the criteria and process the City will use to evaluate applications for funding and to provide transparency in the RLF operations. The Guidelines include an overview of threshold criteria, application submittal and review procedures, potential funding priorities, underwriting criteria, and general loan terms and conditions.

Generally, proposed projects must meet five requirements to be considered eligible for funding (“Threshold Criteria”):
 Applicant experience
 Eligible uses
 Geographic requirements
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 Expenditure eligibility
 Affordability requirements

Applications that meet the threshold requirements will be evaluated and awarded funding on a first come-first serve basis. The City reserves the right to prioritize select applications depending on one or multiple of the City’s funding priorities or preferences. In following years, the City may adopt a ranking system.

These Guidelines should be interpreted in conjunction with applicable statutes and regulations governing use of RLF funds; in the event of a conflict between these Guidelines and such statutes and regulations, the requirements of those statutes and regulations shall prevail.

II. THRESHOLD CRITERIA
Applicant Qualifications
 Faith-based and other community group
 For-profit affordable housing developers
 Nonprofit affordable housing deve

 Other nonprofit organizations
 Public entities
 Social service agencies
RLF loans may be issued for projects sponsored by nonprofits, for-profit affordable housing developers, public agencies, social service agencies, or community groups or to a partnership between two or more of these entities.

Applicants must demonstrate the capacity to develop the proposed project successfully. The City shall evaluate capacity based on the Applicant’s experience in developing and managing affordable housing or inclusion of development team members with a successful record in developing such housing. In addition, Applicants must demonstrate the financial and legal capacity to undertake the proposed project. Emerging developers or applicants without experience developing affordable housing are encouraged to partner with experienced affordable housing developer. Developers must have prior experience owning and/or operating a Project located within areas served by the Southern California Association of Governments (“SCAG”) or San Diego Association of Governments (“SANDAG”).

Geographic Eligibility
Projects must be located within infill areas of Murrieta. Infill development is defined as an area that consists of unused or underutilized lands, is within existing development patterns, and is accessible to destinations and services by transit, walking, or bicycling. Projects funded by repayments of loans that originated from the REAP 2.0 grant also have this requirement. Payments of principal on REAP 2.0 loans will go towards i nfill development in perpetuity. For any loans to affordable components of mixed-use 305
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developments, the development must allocate at least 65% of its floor area to residential use.

Project Eligibility
Housing types may include but are not limited to the following:
• New construction of affordable rental housing
• Conversion of non-residential buildings to affordable rental housing • Acquisition and/or rehabilitation of existing affordable rental housing • New construction of ownership housing, including condominiums, for first-time homebuyers • An affordable housing component of a mixed-use development Housing tenure may be rental or ownership.

Eligible Uses
RLF funds may be used for the following eligible purposes:
 Site acquisition and preparation
 Predevelopment expenses, including but not limited to:
- Carrying charges and financing fees
- Preliminary title reports
- Architect design and engineering/soils work
- Environmental analysis and reports
- Legal and financial consultants
- Planning and permitting fees
- Appraisal and market study costs
- Applicant and consultant fees to secure additional project financing - Short-term construction loans or down payment assistance for first time homebuyers for ownership housing when RLF loan repayment can be reasonably expected within 5 years, following home sales and issuance of income restricted
Funds may not be used for developer fees, agency operating expenses, support, or social services.

Expenditure Eligibility
The RLF will be used to issue short-term loans that shall be due and payable upon the earlier of conversion to construction/permanent financing or loan maturity, not to exceed 60 months. Loans may 306
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be extended by the City for up to two 6-month extension options or longer if approved by the City. When necessary, to meet the requirements for other project funding or to enhance project feasibility, the City may approve a different loan term. Requests for exceptions to loan terms must be identified at the time of application.

Affordability Requirements
Eligible rental housing projects shall be limited to those that serve households with incomes up to 80% of Area Median Income (“AMI”) , adjusted for household size. Income limits are set and periodically revised by the U.S. Department of Housing and Urban Development (“HUD”) Eligible ownership housing projects shall be limited to those that serve households with incomes up to 120% of AMI, adjusted for household size.

Eligible projects are not required to have all project details determined at the time of application, but Applicants should plan to initiate the development of a site or the redevelopment of a property within 1 year of receiving RLF funding and should plan for the following long-term affordability provisions:
 Rental housing shall be income and rent restricted for not less than 55-years.  Ownership housing shall comply with California Health and Safety Code, Section 50843.5(d)(3).

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III. APPLICATION SUBMITTAL AND REVIEW PROCEDURES
The City will accept and approve RLF applications on a rolling basis until funding is exhausted. The City is seeking additional private and government capital for the RLF and will maintain a pipeline of eligible projects. The City may provide time frames for future rounds of applications, subject to available funding.

Applicants are encouraged to visit the City’s website for the latest information regarding available funds.

A one-time non-refundable application fee of $500 and $750 underwriting fee apply to all applications.

Development Application
Interested Applicants must submit a completed full application with supporting documents out outlined in the Application.

The City will conduct an initial review of the Application’s threshold criteria. Applications deemed to have met initial threshold requirements shall be further analyzed and underwritten.

Application Review
In reviewing applications, the City shall consider the following factors, including but not limited to:

1. Threshold Criteria

2. Project budgets and financing

3. Site control

4. Development approvals

5. Environmental assessment

6. Sources of repayment

7. Loan collateral

8. Appraisals or indicators of value

9. Letters of support

The City recognizes that some of these factors may not be fully known at the time of the application, may consider these factors at their level of certainty, and will coordinate with the Applicant to achieve greater clarification as needed.

For more detailed information regarding evaluation criteria, please refer to the Underwriting Criteria and General Loan Terms and Conditions section of these Guidelines.

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IV. FUNDING PRIORITIES
Applications that meet the Threshold Criteria will be evaluated and awarded funding on a first come, first served basis until current funding is exhausted. The City reserves the right to prioritize select applications depending on one or multiple of the City and Program funding priorities. In future rounds, the City may adopt ranking criteria based on these funding priorities, the Underwriting Criteria, or other factors.

City priorities include but are not limited to:
o Proposed development is located on City-owned land
o Proposed development is located on a site located in City Housing Element o Proposed development creates or constructs new affordable units: new units may include new construction developments, rehabilitation of existing unrestricted housing that will be converted to affordable, or conversion of existing facilities to affordable housing units o Development has site control and has begun entitlement process or has received entitlements 309
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V. UNDERWRITING CRITERIA AND GENERAL LOAN TERMS AND

CONDITIONS
The general loan terms for RLF loans are outlined below. The City reserves the right to amend these terms on a project-by-project basis.

Loan Term
The RLF will be used to issue short-term loans that shall be due and payable upon the earlier of conversion to permanent financing or loan maturity after no more than 60 months. Loans may be extended for two 6- month extension options or longer if approved by the City. When necessary to meet the requirements for other project funding or to enhance project feasibility, the City may approve a different loan term.

Loan Amount
The maximum loan amount shall initially be set at $1,000,000 per project and shall not exceed the following:

Table 4. Maximum Per-Unit Loan Amounts
New Construction
Studio and 1-bedroom $20,000
2-bedroom $25,000
3-bedroom $ 30,000
4-bedroom $35,000

Loan to Value Ratio
If requesting acquisition financing, the City will issue RLF loans of up to 100% of the appraised property value, plus predevelopment and/or site improvements costs. All budgeted expenses are subject to review and approval by the City. The maximum allowable purchase price shall not exceed the appraised value as evidenced by an appraisal prepared by a California State Certified General Appraiser and approved by the City that is dated no more than 6 months prior to the date of the application. The appraisal may not determine property value based solely on sales of properties financed by public agencies.

Interest Rate
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Corporation for the average conventional commitment of a fixed-rate, 30-year mortgage, compounded annually.

The interest rate for affordable multi-family rental projects shall be a fixed 5% simple.

Loan Repayment
A take-out source must be identified for predevelopment loans. Under some circumstances, the City may rely on a Loan Guaranty from an Applicant that can demonstrate significant financial strength in lieu of an identified take-out source.

Loan payments shall be made as follows:

A. Loans will have monthly payments of interest only, unless otherwise approved by the City.

Payment of principal is deferred until conversion to construction/permanent financing or maturity. If a loan interest payment is more than 10 days late, Borrowers must pay a 5% penalty of the loan interest payment.

B. The Borrower may elect to prepay the loan or any part thereof prior to the end of the term.

However, the Memorandum of Agreement or recorded Covenants shall remain in full force and effect for its term regardless of any prepayment.

C. If the Borrower violates the terms of the Memorandum of Agreement or recorded the loan in default, the entire amount of unpaid principal plus accrued interest at the rate established at the time of closing shall be due.

Developer Fees
The total budgeted developer fee shall not exceed the following:

A. For projects not utilizing low-income housing tax credits, the developer fee shall not exceed the amount calculated in accordance with subsections (1), (2), or (3) below. The per -unit amounts will be adjusted in thousand dollar increments in accordance with changes in the Consumer Price Index (“CPI”) when, following the year 2016, the CPI has indicated the next full thousand-dollar increment has been reached.

1. For new construction projects and projects where the contract for the rehabilitation work equals or exceeds $35,000 per unit:
a) For the first 30 units, $26,000 per unit.
b) For each unit in excess of 30, $10,500 per unit.

2. For other projects involving acquisition and rehabilitation where the contract amount for the rehabilitation work, excluding contractor profit and overhead, equals or exceeds $10,500 per unit and is less than $35,000 per unit:
a) For the first 30 units, $12,000 per unit.
b) For each unit in excess of 30, $5,500 per unit.

3. For all other projects, $2,000 per unit.
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B. For projects 4% or 9% tax credits, the developer fee shall not exceed the amount that may be included in project costs pursuant to California Code of Regulations, Title 4, Section 10327.

RLF dollars may not be used for developer fees.

The City may use different limits on Developer Fees, to the extent it deems the different limits necessary to attract sufficient applications to utilize available funding.

Predevelopment and Development Budgets
The City will evaluate the predevelopment and development budgets in comparison to construction cost estimates; costs for other, similar projects; costs for other projects with adjustments for differences; industry resources of building cost data; and other resources available to the City.

Cash Flow and Debt Coverage Ratio
The Applicant shall submit a 55-year cash flow. The cash flow should show a Year 1 debt service coverage ratio of 1.15 or higher and positive net cash flow through at least Year 15.

Operating Expenses
Total operating expenses shall not be less than those specifically listed in CCR, Title 4, Section 10327, as minimum operating expenses unless the Applicant can provide sufficient evidence that lower expenses will be sufficient. Projects that will use tax credits must satisfy the operating cost minimums published by the California Tax Credit Allocation Committee (“TCAC”) for Riverside County and the applicable project type and year. The City may require higher operating expenses w here warranted by the experience of comparable properties and particular building characteristics, such as the nature of the tenant population or the level of rehabilitation. The City may approve total operating expenses that are less than those specified in Section 10327 if the project has an extraordinary design feature that results in a quantifiable operating cost savings or if the City determines that lesser total operating expenses are sufficient for the effective operation of the project.

Reserves
The development budget should include the following reserves, to be funded in the permanent financing phase and/or from operating income.

A. Replacement Reserves – An account to fund new building materials and systems as older materials and systems wear out.

1. For projects utilizing tax credits, the total replacement reserves shall not be less than those specifically listed in CCR, Title 4, Section 10327 (7)(A), as amended.

2. For projects not utilizing tax credits, the minimum reserve shall be:
 No less than $300 per unit per year for rehabilitation projects  Not less than $250 per unit per year for new construction or senior projects B. Operating Reserves – An account to cover a deficit in the property’s operation. 312
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1. For projects utilizing tax credits, the total operating reserve shall not be less than those specifically listed in CCR, Title 4, Section 10327(7)(B), as amended.

2. For projects not utilizing tax credits, the minimum reserve shall be:
 Equivalent to three months of estimated operating expenses and debt services under stabilized occupancy.

Collateral/Security
The loan shall be secured by a Deed of Trust, secured by real property or other security as approved by the City. The City may consider a Loan Guaranty from an entity that can demonstrate significant financial strength. The City may consider subordinating its lien position to other lenders.

Loan Documents
Prior to receiving funding, Applicants must execute the following “Loan Documents,” except the City may choose to exclude one or more of the documents:
• Loan Agreement
• Promissory Note
• Deed of Trust
• Assignment of Contracts and Plans
• Memorandum of Agreement
• Option and Purchase Agreement
• Loan Guaranty, if applicable
• Other documents as determined by the City
Fair Housing and Equal Opportunity
All projects receiving RLF funding must comply with applicable State and Federal fair housing and equal opportunity laws.

Prevailing Wages and Relocation
Projects funded through the RLF are public works within the meaning of Labor Code Section 1720 and it will be the applicant, developer’s, and owner’s responsibility to ensure compliance with California’s Prevailing Wage Laws, Labor Code Section 1770 et seq., where applicable.

Applicants shall comply with all regulations of applicable local, state, and federal relocation law.

Table 5 summarizes the underwriting standards and loan terms, as detailed above.

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Table 5: Underwriting Standards
Murrieta Revolving Loan Fund Underwriting Standards
Loan Term 60 months, with up to two 6-month extension options.

Loan Amount The maximum loan amount is $1,000,000 per project, with the following per- unit limits:

New Construction: Studio & 1-bedroom: $20,000; 2-bedroom: $25,000; 3-bedroom: $30,000; 4-bedroom: $35,000
Loan to Value Ratio Up to 100% of appraised property value, plus predevelopment and/or site improvements costs. Appraisal is required within the last 6 months.

Interest Rate Either:
 For-Sale Projects: The rate established by the Federal Home Loan Mortgage Corporation for the average conventional commitment of a fixed-rate, 30-year mortgage, compounded annually
 Multi-family affordable rental: 5% simple interest
Loan Repayment A take-out source must be identified. Under some circumstances, the City may rely on a Loan Guaranty from an Applicant that can demonstrate significant financial strength in lieu of an identified take-out source.

Interest only, paid monthly. Principal will be due at the earlier of conversion to construction/permanent financing or the maturity date. Borrowers must pay a 5% penalty of the loan interest payment if an interest payment is more than 10 days late. If there is not sufficient cash flow to make regular payments, an interest reserve may be considered.

Developer Fees The total budgeted developer fee shall be limited based on the project type, scope of work, and/or whether the project will pursue tax credit financing.

Predevelopment and
Development Budgets
The City will evaluate the predevelopment and development budgets in comparison to construction cost estimates; costs for other, similar projects; costs for other projects with adjustments for scope differences; industry resources for building cost data; and other resources available to the City.

Cash Flow and Debt Coverage
Ratio
The Applicant shall submit a 55 - year cash flow. The cash flow should show a Year 1 debt service coverage ratio of 1.1 or higher and positive net cash flow through at least Year

15. Operating Expenses Total operating expenses shall not be less than those specifically listed in California Code of Regulations, Title 4, Section 10327, as minimum operating expenses. The City may require higher operating expenses or approve lower operating expenses under certain circumstances.
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Murrieta Revolving Loan Fund Underwriting Standards
Reserves The development budget should include replacement reserves and operating reserves.

Collateral/Security Loans will be secured by a Deed of Trust, secured by real property or other security as approved by the City. The City may consider a Loan Guaranty.

Fees One time application fee of $500 , underwriting fee of $ 500, and a loan origination fee of 1%.

Loan Documents All loans will require a Loan Agreement, Promissory Note, Deed of Trust, Assignment of Contracts and Plans, Memorandum of Agreement, and/or other documents as determined by the City.

Fair Housing and Equal
Housing Opportunity
All projects receiving RLF funding must comply with applicable State and Federal fair housing and equal housing opportunity laws.

Prevailing Wages and
Relocation
It is the Applicants responsibility to determine prevailing wage requirements under the REAP 2.0 funding and to follow all applicable local, state, and federal relocation laws, as applicable.

REAP 2.0 Funded Project
Requirements
For projects funded under REAP 2.0, projects must be located within an infill area and meet the REAP 2.0 Infill Definition. For projects funded under REAP 2.0 that have a mixed-use component, REAP 2.0 requires that mixed-use affordable housing developments allocate at least 65% of their total floor area to residential use.

Projects funded by repayments of loans that originated from the REAP 2.0 grant also have this requirement. Payments of principal on REAP 2.0 loans will go towards infill development in perpetuity

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Release Date:

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TABLE OF CONTENTS
APPLICATION OVERVIEW ............................................................................................ 0 APPLICATION SUBMITTAL INSTRUCTIONS .............................................................. 0 APPLICATION TIMELINE .............................................................................................. 3 TECHNICAL ASSISTANCE ........................................................................................... 4 ELIGIBLE APPLICANTS .................................................... Error! Bookmark not defined.

PREFERENCES ............................................................................................................. 4 TERMS ............................................................................................................................ 4 FEES ............................................................................................................................... 5 REVOLVING LOAN FUND APPLICATION .................................................................... 6 Applicant Information ................................ ................................ ................................ .......... 7 Applicant Type ................................ ................................ ................................ ..................... 7 Development Team ................................ ................................ ................................ .............. 7 Project Information ................................ ................................ ................................ .............. 8 Loan Request ................................ ................................ ................................ ....................... 8 Additional Documents .................................................................................................. 9 Attachment A ............................................................................................................... 12 Attachment B ............................................................................................................... 13

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0 APPLICATION OVERVIEW
The Murrieta Housing Authority Revolving Loan Fund (“RLF”) is a new revolving loan program funded by a Lasting Affordability Grant from Southern California Association of Governments (“SCAG”). These grant funds serve as seed funding, intended to be recycled over time as loans are repaid and reinvested into future projects. The long-term goal is to sustain a self-replenishing source of financing that supports the development and preservation of af fordable housing in Murrieta for years to come.

The RLF program will be operated by the City of Murrieta (“City”) and will provide low -interest financing to developers, helping to make affordable housing projects in Murrieta more feasible and better posit ioned to secure funding for construction. By offering small, low -interest loans, the RFL will support early -stage project financing, bridging gaps that often delay or derail affordable housing development.

The City is issuing this Revolving Loan Fund Prog ram Application (“Application”) with the objective of supporting the construction, acquisition, and/or rehabilitation of affordable housing units within City limits. The units will serve households earning up to 80 percent of the Area Median Income (“AMI”) for multi-family rentals and up to 120 percent AMI for homeownership programs.

Applicants who submit a complete application that meets the threshold criteria as outlined in this Application and the Program Guidelines (attached hereto) will be evaluated and awarded funding on a first-come, first-served basis until available funding is exhausted. However, the City reserves the right to prioritize select applications depending on one or multiple of the City’s funding priorities or preferences. In subsequent years, the City may adopt a ranking criterion.

The City reserves the right to allocate funding at its sole discretion.

APPLICATION SUBMITTAL INSTRUCTIONS
All materials and information related to this Application can be found within the Application.

Submit completed and signed Application responses via email.

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1 Deliverable to:

City of Murrieta
Housing Authority
1 Town Square
Murrieta, CA 92562

Electronic applications shall be submitted via a secured electronic document management and storage system (SharePoint , OneDrive, Dropbox, etc.) with email notification to [email protected].

An applic ation fee $500 and underwriting fee of $500 is required. Failure to pay required application and underwriting fee will result in the application to be deemed non-responsive.

Submitted Applications must be complete and executed to be considered for review. When a section of the application does not apply or is to be determined, the Applicant should note “N/A” or “TBD” within the Application. Any submission that is not complete will be deemed non - responsive. Any attachments to the Application must be clearly named and labeled.

The City, at its discretion, reserves the right to change the requirements and policies described in the Application. The City is responsible only for what is expressly stated in the Application documents. Any additional Application i nformation shall be made available to each person or organization via an Application distribution list and the City’s website. It is the applicant’s responsibility to confirm, prior to submission, that the application reflects the most recent requirements and policies. By submitting an Application, the applicant acknowledges receipt of all supplemental information, if applicable, that was emailed or posted on the City’s website. The City is not responsible for and shall not be bound by any representations otherwise made by any individual acting or purporting to act on its behalf if those representations conflict with the Application requirements.

The City retains the right to disqualify any application that is incomplete, disorganized, lacks required attachments, or includes inaccurate, inconsistent, misrepresented information, or other deficiencies. Forms provided in the Application must be used, and information provided otherwise may be disregarded at the discretion of the City. The City reserves the right to waive disparities in the Application response if the sum and substance of the Application is present. The City also reserves the right to terminate this Application at any time without prior notice. 319

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2 THRESHOLD CRITERIA
In addition to submitting a complete application, Applicants must ensure their proposed projects meet the minimum threshold criteria as outlined in this Application and within the Program Guidelines (attached hereto).

Applicant Experience
Eligible Applicants include nonprofit, public, and private affordable housing developers’, non - profit organizations, public entities, social service agencies, faith -based groups, and other community groups with or partnering with an experienced affordable housing developer.

Developers must have prior experience owning and/or operating a Project located within areas served by the Southern California Association of Governments or San Diego Association of Governments.

Applicants must demonstrate the ability to:
1) Construct, acquire and/or rehabilitate affordable housing developments. 2) Operate and maintain affordable housing development throughout the Project’s life cycle.
3) Adhere to all programs’ regulatory, statutory, and funding requirements and guidelines. 4) Leverage other funding sources or present plan to leverage other funding sources.

Project Eligibility and housing types may include but are not limited to the following:
 New construction of affordable multi-family rental housing  Conversion of non-residential buildings to affordable rental housing  Acquisition and rehabilitation of affordable rental housing  New construction of affordable ownership housing, including condominiums, for first - time homebuyers
 An affordable housing component of a mixed-use development Eligible Uses
RLF funds may be used for the following eligible purposes:
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3  Site acquisition and preparation
 Predevelopment expenses, including but not limited to:
- Carrying charges and financing fees
- Preliminary title reports
- Architect design and engineering/soils work
- Environmental analysis and reports
- Legal and financial consultants
- Planning and permitting fees
- Appraisal and market study costs
- Applicant and consultant fees to secure additional project financing - Short-term construction loans or down paym ent assistance for first time homebuyers for ownership housing when RLF loan repayment can be reasonably expected within 5 years, following home sales and issuance of income restricted Funds may not be used for agency operating expenses, support or social services, or development reserves.

Geographic Requirements
Projects must be located within infill areas of Murrieta. Infill development is defined as an area that consists of unused or underutilized lands, is within existing development patterns, and is accessible to destinations and services by transit, walking, or bicycling. Projects funded by repayments of loans that originated from the REAP 2.0 grant also have this requirement.

Payments of principal on REAP 2.0 loans will go towards infill development in perpetuity. For any loans to affordable components of mixed-use developments, the development must allocate at least 65% of its floor area to residential use.

APPLICATION TIMELINE
Below is the timeline for the Application. The City reserves the right to modify any of the dates in the schedule as necessary.

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4 Date Event
March/April 2026 Release of Application
+60-90 days from submission Threshold Review and Underwriting 90-120 days from submission Negotiation and conditional award

TECHNICAL ASSISTANCE
All communications regarding this Application and any requests for clarification must be submitted to the City via email at [email protected].

PREFERENCES
Preferential consideration will be provided for affordable housing developments that meet the following conditions:

A. Proposed development is located on City-owned land
B. Proposed development is located on a housing sites identified in City Housing Element C. The development creates or constructs new affordable units: New units may include new construction developments, rehabilitation of existing unrestricted housing that will be converted to affordable, or conversion of existing facilities to affordable housing units.

D. Proposed development has site control and has begun the entitlement process (with a Pre-Application and/or Development Plan Permit) or has received entitlements (such as approval of a Development Plan Permit).

TERMS
Interest: 5 percents simple
Terms: 60 months with two six (6) month extension
Selected applications will be underwritten per guidelines outlined in the Revolving Loan Fund Guidelines (Attachment B).
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5 FEES
The Owner of any development funded through this Application will be required t o pay any and all relevant fees that may be imposed by the City, and such fees may be enacted or amended from time to time, per the City’s fee schedule and Program Guidelines . These costs should be factored into the proposal’s operating pro forma.

Application fee: $500
Underwriting fee: $500
Loan Origination fee: One percent (1%) of total RLF loan award

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6 REVOLVING LOAN FUND APPLICATION

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7 Applicant Information
Name of Applicant:

Street Address:

City, State, Zip Code:

Phone/Email:

Applicant Primary Contact:

Phone/Email:

Applicant Type
Select one of the following.

Nonprofit developer For-profit developer
Other nonprofit organization Public entity
Social service agency Faith-based group
Other community group Other (please describe)_________________ A Limited or General Partnership
Development Team
Provide the name and contact information of your proposed development team. If a role has not been selected at the time of application, note “TBD.”
Role Contact Name/Title Phone/Email Address
Developer
Architect
General Contractor
Development Consultant

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8 Project Information
Project Type (select all that apply):

Multi-family rental For-sale homeownership New construction Acquisition/ rehab of existing rental housing Conversion of market rate to affordable rental
Conversion of non-residential building to rental housing Other (please describe): ________________________________________________

Project Name:

Street Address:

City, State, Zip Code:

Parcel Number(s):

Project Zoning:

Evidence of Site Control? Yes No
If no, what is the plan and timing to obtain site control?

Loan Request
Total Requested Loan Amount:

Purpose of Loan (Check all that apply):

Site Acquisition and preparation
Predevelopment Expenses
Loan Repayment
Engineering and Design
For-sale ownership housing
Other (please describe): ____________________

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9 ADDITIONAL DOCUMENTS
As part of the complete Application, the following supplemental documents must be submitted.

If a listed document is not available at the time of submission, the Applicant must provide a written timeline indicating when the document will be available.

1. Applicant Experience: Provide a one-page resume summarizing the Applicant’s development experience, organizational background, and relevant past experience , including experience developing, owning, and operating affordable projects located in are as served by the Southern California Association of Governments or the San Diego Association of Governments. Include an organizational chart showing the ownership and management structure (excluded from one page limit). Optional resumes for key development staff assigned to the project may be included and will not count toward the Applicant resume limit.

2. Applicant/Sponsor Feasibility: Submit the two most recent years of audited financial statements for the Applicant. If audited financials are not available, provide year to date (“YTD”) financial statements accompanied by a signed certification attesting to their accuracy and completeness.

3. Appraisal: Provide an appraisal establishing the value of the property. If an appraisal is not yet available, indicate the expected completion date of the appraisal.

4. Development Forms:
 Multifamily Rental Projects: Submit a detailed development budget, sources and uses statement, first year operating budget, and a 55- year pro forma.  Homeownership Projects: Submit a detailed development budget, sources and uses statement, affordability and sales assumptions, and a project pro forma ref lecting anticipated home prices and buyer income ranges.

5. Development Narrative: Provide a narrative (no more than 2 pages) that provides the following:
 Project description: location, access to community amenities and services, site characteristics, and existing uses
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10  Development details: proposed design, number and mix of units, income targeting, population to be served, proposed amenities or sustainability features , any known site, environmental, entitlement, or market challenges and strategy to address them.  Financing plan: proposed financial sources , use of City’s RLF dollars, strategy for repayment of City’s RLF dollars.
 Alignment with City’s housing goals

6. Design and Implementation: Provide preliminary site plan(s) and floor plans

7. Enforceable Commitments: Provide status of enforceable commitments and evidence of any enforceable commitments secured.

8. Evidence of Site Control: Provide evidence of site control (e.g. purchase and sale agreement, option agreement, or deed). If site control has not been esta blished, provide a plan to establish site control and anticipated date of site control.

9. Environmental Review and Related Reports : Provide a Phase I environmental assessment and any related environmental or engineering studies (e.g. soils report, lead and asbestos survey, termite report, residual pesticides, water damage, noise and traffic study, etc.) If any reports are not yet available, specify the estimated completion date and identify any known or suspected environmental issues.

10. Market Study: Submit a market study demonstrating demand for the proposed housing type within the project’s market area. If unavailable, provide an estimated completion date and a written justification demonstrating the market need for the project.

11. Preliminary Title Report : Provide a current Preliminary Title Report identifying all liens, easements, or other encumbrances affecting the property.

12. Project schedule: Complete Attachment A- Project Schedule, detailing key milestones.

13. Rehabilitation Estimate: For rehabilitation projects, provide a Physical Needs Assessment or equivalent report conducted by an independent third-party assessor.

14. Relocation Plan (if applicable). If temporary or permanent relocation is anticipated, submit a Relocation Plan consistent with applicable r elocation laws. If not yet available, provide the projected completion date.
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11 15. Supportive Services: For projects that include supportive services, provide a support services plan and letter of intent (“LOI”) from service providers. If unavailable, provide a narrative of services to be provided and proposed service providers.

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12 ATTACHMENT A
Project Schedule
Applicant Name: ________________________ Development Name: ____________________ Milestone Date
Site Control
Site Acquired
Permitting and Entitlements
Site Plan Review
Grading Permit
Building Permit
Project Financing
Construction Financing: Enforceable Commitment
Permanent Financing: Enforceable Commitment
Other Loans and Grants
Type/Source ____________________________________________ Application Submission

Type/Source ____________________________________________ Application Submission

Type/Source ____________________________________________ Application Submission

Type/Source ____________________________________________ Application Submission

Type/Source ____________________________________________ Application Submission

Project Closing
Construction Start
Placed in Service

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13 ATTACHMENT B
GUIDELINES FEBRUARY 2026

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CITY OF MURRIETA

Date: March 11, 2026

Address: 1 Town Square, Murrieta, CA 92562

Subject: Revolving Loan Fund Fundraising Plan

INTRODUCTION
The City of Murrieta (“City”) is working proactively to expand its housing options and meet the needs identified in its current Housing Element, which highlights the strongest demand among very low- and low-income households. With more than 1,600 units needed across these income groups alone, the City has already taken meaningful steps through zoning updates, increased residential capacity, and supportive policies aimed at creating opportunities across all affordability levels. As the City continues building momentum toward it s overall Regional Housing Needs Assessment (“RHNA”) allocation of 3,043 units, this memo introduces fundraising strategic goals and strategy designed to strengthen the City’s ability to deliver high-quality affordable homes and advance is Revolving Loan Fund (“RLF”) program as its next phase of its long-term housing goals.

BACKGROUND
Between 2000 and 2020, the City added approximately 22,442 residential units, representing one of the highest growth rates in Riverside County. For the 2021–2029 planning period, the Housing Element identifies a remaining need for 3,043 units, more than half of which are required to serve very low-income and low-income households. In response to these conditions, the City adopted a housing plan focused on expanding opportuniti es for a range of housing types through new construction, reducing regulatory constraints, and designating suitable sites for future development. The City also committed to the preservation of existing affordable housing, which currently consists of five deed-restricted projects totaling 245 units, including forty units with covenants scheduled to expire within the next decade. Implementation of the Housing Element has resulted in measurable progress, including issuance of permits that have enabled above - moderate income production to exceed RHNA targets and the construction of 258 units for low - 332

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income households as of April 2025. To support continued progress in lower-income categories, the City sought additional resources to accelerate development and, as a result, obtained $4.1 million in REAP 2.0 Lasting Affordability Grant funding from the Southern California Association of Governments to establish a Revolving Loan Fund for affordable housing.

REVOLVING LOAN FUND STRATEGIC GOALS AND STRATEGY
The City’s Revolving Loan Fund (“RLF”) was created to address early -state financing gaps for affordable housing development, with a focus on flexibility, responsiveness, and long -term sustainability. The RLF Strategic Goals (“Strategic Goals”) are designed to ensure the RLF structure reflects on -the-ground needs and that the RLF is sustainable for the long -term. The primary strategic goals include:
 Increase the RLF’s capitalization through external funding partnerships.  Ensure long-term fund performance through intentional reinvestment.

INCREASE THE RLF’S CAPITALIZATION THROUGH EXTERNAL FUNDING PARTNERSHIPS To ensure the long -term sustainability and effectiveness of the RFL the City will implement a strategy that draws on local, regional, state, federal, and phi lanthropic resources. The City will collaborate with potential regional partners, including Riverside County, the Western Riverside Council of Governments, and the Southern California Association of Governments, to identify joint funding initiatives and explore opportunities to layer resources. At the state and federal levels, the City will actively pursue funding streams that support affordable housing development, including competitive grants, loan-loss reserves, and flexible financing tools that can be b raided with the existing REAP 2.0 allocation. The City will also seek to expand capitalization through private philanthropy by engaging foundations and mission -aligned financial institutions that provide program-related investments or impact investment cap ital designed to support long -term affordability.

In addition to external partnerships, the City will evaluate opportunities to leverage available municipal resources, including interest earned on RLF repayments, surplus or underutilized housing element sites.

Following the initial RLF award cycle, the City will conduct an evaluation of the program’s performance and funding strategy, assessing trends observed in the first round of applications to identify additional sources of capital and refine the fundraising approach. This evaluation process 333

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will occur at the conclusion of each future funding cycle to ensure the RLF remains responsive to market conditions, development patterns, and emerging opportunities for partnership.

ENSURE LONG TERM FUND PERFORMANCE THROUGH INTENTIONAL REINVESTMENT Long-term sustainability of the RLF depends on a thoughtful reinvestment approach that keeps the fund active and available for future development cycles. The City will reinvest loan repayments, interest earnings, and other program income back into the RLF to mainstay a steady pool of capital that can support ongoing early-stage financing needs. As part of this effort, the City will monitor repayment activity, review the performance of funded projects, and make periodic adjustments to program guidelines to ensure that the RLF continues to operate effectively and in alignment with broader housing goals.

CONCLUSION
The City has established a strong foundation for meeting its long -term housing objectives, and the RLF represents an important next step in advancing early -stage affordable housing development. By pursuing a diversified fundraising strategy, strengthening regional partnerships, and implementing reinvestment practices that reinforce the fund’s sustainability , the City is positioning the RLF to serve as a reliable and flexible tool that supports multiple generations of housing production. As the program evolves, the City will continue to monitor performance, evaluate funding opportunities, and adjust its approach to ensure the RLF remains responsive to community needs and aligned with the broader goals of the City.

Carl Stiehl
City Planner

Attachments: Fundraising Implementation Plan

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Fundraising Implementation Plan
Strategic Goals:

1. Increase capitalization through external funding partnerships

2. Ensure long-term fund performance through intentional reinvestment.

PHASE I – FOUNDATION BUILDING

PROCESS TIMING
 Prepare internal guidelines & metrics
 Partner landscape mapping
- Regional, State, Federal, Philanthropic
 Continuous program advertisement
- Create marketing material
- City website and social media
- Partner agencies
YEAR 1
PHASE II – OPPORTUNITY DRIVEN FUNDRAISING
 Monitor regional, state, federal, and philanthropic funding available - Regional: Riverside County, WRCOG, SCAG
- State/Federal: Grants, flexible financing tools
- Philanthropic: Foundations, CDFIs, mission-based lenders, large-scale corporations
 Support developers in application for financing to leverage RLF dollars  Apply for available funding, when available

ONGOING
PHASE III – EVALUATION CYCLE
 Year 2 – review first year of program, adjust strategies and program as needed  Year 5 – review first 5 years of program, adjust strategies and program as needed
 Ongoing – assess leverage achieved and emerging opportunities  Ongoing - adjust strategies based on funding availability and YEAR 2
YEAR 5

ONGOING
PHASE IV – LONG TERM SUSTAINABILITY
 Reinvest repayments and interest earnings ONGOING
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 Update RLF guidelines as needed
 Monitor project performance and repayment patterns
 Review internal process and adjust as needed

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City Council Meeting Agenda
Report
3/17/2026
Agenda Item No. 12.

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

Declaring Intention to Form Community Facilities District No. 2026-1 (Gierson Ranch) of the City of Murrieta and to Annex into Community Facilities District No. 2025-2 (Maintenance Services) and Community Facilities District No. 2025-S (Safety Services)

ABSTRACT
The Resolutions initiating the formation of Community Facilities District (CFD) No. 2026-1 (Gierson Ranch), authorize up to $8 million in bonded indebtedness, and declare its intent to annex the Gierson Ranch project into CFD No. 2025-2 (Maintenance Services) and CFD No. 2025-S (Safety Services).

The proposed 107-unit single-family residential development, located between Washington Avenue and Adams Avenue, will finance public infrastructure, Development Impact Fees (DIF), and eligible maintenance and safety services through the levy of special taxes under the Mello-Roos Act. The recommended actions set public hearings for April 21, 2026, and initiate landowner voting proceedings required to establish the district and approve the proposed special taxes and bonded indebtedness.

RECOMMENDATION
Adopt Resolution No. 26-4915 entitled: Resolution of Intention of the City Council of the City of Murrieta to Establish Community Facilities District No. 2026-1 (Gierson Ranch) 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;
Adopt Resolution No. 26-4916 entitled: Resolution of Intention of the City Council of the City of Murrieta to Incur Bonded Indebtedness in an Amount Not To Exceed $8 Million Within Proposed Community Facilities District No. 2026-1 (Gierson Ranch) of the City of Murrieta; Adopt Resolution No. 26-4917 entitled: 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 (Annexation No. 3-Gierson Ranch); Adopt Resolution No. 26-4918 entitled: Resolution of the City Council of the City of Murrieta Acting as the Legislative Body of Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta, Declaring Its Intention to Consider Annexing Territory to Community Facilities District No. 2025-S (Safety CITY OF MURRIETA Printed on 3/12/2026Page 1 of 6
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Agenda Item No. 12.

Declaring Its Intention to Consider Annexing Territory to Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta (Annexation No. 1-Gierson Ranch); and Approve a Reimbursement Agreement regarding the Community Facilities District No 2026-1 (Gierson Ranch) and authorize the City Manager to execute the agreement.

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 and adopted the proposed Amendment to the Community Facilities District Goals and Policies (Non-Action Item).

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

On May 6, 2025, the City formed Community Facilities District No. 2025-2 (Maintenance Services) (Vote 5-0).

On July 15, 2025, the City formed Community Facilities District No. 2025-S (Safety Services).

STRATEGIC ALIGNMENT
The City Council’s goal of maintaining a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency is associated with this administrative priority.

DISCUSSION
The Gierson Ranch Project and Community Facilities District No. 2026-1 The property owner of the proposed Gierson Ranch project within the City is Century Communities of California, LLC, a Delaware Limited Liability Company (the “Property Owner”), and the Property Owner has submitted a petition requesting that the City form Community Facilities District No. 2026-1 (Gierson Ranch) of the City of Murrieta (CFD No. 2026-1). The property to be included in the proposed CFD No. 2026-1 (Property) is located between Washington Avenue and Adams Avenue, near the corner of Washington Avenue and Ivy Street. The Gierson Ranch project is proposed to include approximately 107 single-family homes at full buildout and will be developed by the Property Owner.

The Property Owner has requested that the City form CFD No. 2026-1 to encompass the Property, in accordance with the Mello-Roos Act, to finance the costs of certain public improvements through the levy of a special tax and the issuance of bonds. The maximum amount of bonded indebtedness proposed is $8 million.

The proceeds of bonds issued by CFD No. 2026-1 are expected to be used to finance public facilities to be owned and operated by the City, as well as financing the payment of DIF owed by the Property Owner to the City, and to finance fees and public facilities to be owned and operated by the Murrieta Valley Unified School District and Western Municipal Water District.

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The Property Owner has requested that the boundaries of CFD No. 2026-1 include the area described in Attachment A of the Resolution of Intention to Establish CFD No. 2026-1 presented at this meeting (CFD No. 2026-1 Resolution of Intention), and that special taxes be levied within the boundaries of CFD No. 2026-1 in accordance with the Rate and Method of Apportionment for CFD No. 2026-1 (CFD No. 2026-1 RMA) described in Attachment C to the Resolution of Intention. The proposed rates of the special tax range from $3,956 per unit for single family homes less than 1,950 square feet to $4,179 per unit for single family homes greater than 2,150 square feet, and also include tax rates of $51,476 per acre of multi-family property and non -residential property. The special tax rates within CFD No. 2026-1 will increase two percent (2.00%) annually on July 1 of each year, commencing July 1, 2026.

The CFD No. 2026-1 Resolution of Intention is the first step in the process of forming CFD No. 2026-1. The attached resolutions declare the City’sintention to establish CFD No. 2026-1, its intention to incur bonded indebtedness by CFD No. 2026-1, and call for a public hearing. A public hearing on the matter of the formation of CFD No. 2026-1 will take place on April 21, 2026, and at that time, the City Council will formally consider the establishment of CFD No. 2026-1; and hold elections on the approval of the special taxes and the need to incur bonded indebtedness within CFD No. 2026-1. It is expected that there are no registered voters residing within the boundaries of the proposed CFD No. 2026-1, and accordingly, the election will be a landowner voting election.

Annexation to CFD No. 2025-2 (Maintenance Services) and CFD No. 2025-S (Safety Services) New development projects (such as the Gierson Ranch Project) meeting certain design criteria are required by the City’s Community Facilities District Goals and Policies, as amended in December 2023, to annex to Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta and Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta. Accordingly, the Property Owner has also submitted petitions requiring that the Property be annexed to CFD No. 2025-2 (Maintenance Services) and Community Facilities District No. 2025-S (Safety 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 CFD No. 2025-2 is authorized 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. At the time of formation, a “Potential Annexation Area” was designated for CFD No. 2025-2, which consisted of all areas of the City not originally included in CFD No. 2025-2. If approved by the City Council and the Property Owner, the property within the Gierson Ranch Project would be annexed to CFD No. 2025-2 as “TaxZone 3.”The special taxes within Tax Zone 3 of CFD No. 2025-2 are $376 per residential unit and 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.

On July 15, 2025, the City Council approved the formation of Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta, and CFD No. 2025-S is authorized to levy a special tax in accordance with the Mello-Roos Act on parcels of residential property to finance public safety services. At the time of formation, a “PotentialAnnexation Area”was designated for CFD No. 2025-S, which consisted of all areas of the City not originally included in CFD No. 2025-S. 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. 2025-1 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 CITY OF MURRIETA Printed on 3/12/2026Page 3 of 6
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family property, and the special taxes for each category of property will increase annually each July 1 by four percent (4%), commencing July 1, 2026.

The resolutions of consideration for CFD No. 2025-2 and CFD No. 2025-S presented at this meeting are the first step in the process of annexing the Property to CFD No. 2025-2 and CFD No. 2025-S, respectively. The attached resolutions declare the City’sintention to annex property to CFD No. 2025-2 and CFD No. 2025-S and call for public hearings on the matters of the proposed annexations to take place on April 21, 2026, and at that time the City Council will formally consider the proposed annexations to CFD No. 2025-2 and CFD No. 2025-S and hold elections on the proposed annexations. Similar to the election for CFD No. 2026-1. It is expected that there are no registered voters residing within the boundaries of the property proposed to be annexed to CFD No. 2025-2 and CFD No. 2025-S, and accordingly, the elections will be landowner voting elections.

BACKGROUND
Community Facilities Districts
Community Facility Districts (CFDs) are formed pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (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 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; and
· 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.

Community Facilities District Goals and Policies
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 DIF to be financed; and
· Increasing the maximum cap on the assessed value of a property from 1.8% to 2%.

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 include the following:
· Police protection services, including, but not limited to, criminal justice (limited to providing services for jails, detention facilities, and juvenile halls).

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· 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).

PUBLIC NOTICING
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).

CEQA AND REGULATORY OVERVIEW
This action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly.

FISCAL IMPACT
The Property Owner has made a deposit of $65,000 to pay for the costs of the formation proceedings which may be reimbursed to the Property Owner from proceeds of a future bond issuance in accordance with the reimbursement agreement with the Property Owner. If established and subject to necessary 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 rate and method of apportionment. 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. 2026-1, debt service on bonds. Any bonds issued by CFD No. 2026-1 are not obligations of the City and will be secured solely by the Special Taxes levied within CFD No. 2026-1. 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.

Additionally, the Property Owner provided additional deposits of $30,000 to cover the annexation costs associated with the property annexing into CFD No. 2025-2 (Maintenance Services) and CFD No. 2025-S (Safety Services).

ATTACHMENTS
ATT 1 - Landowner Petition to Form Community Facilities District No. 2026-1 (Gierson Ranch) ATT 2 - Resolution No. 26-4915
ATT 3 - Resolution No. 26-4916
ATT 4 - Reimbursement Agreement regarding Community Facilities District No. 2026-1 (Gierson Ranch) ATT 5 - Landowner Petition to Annex to Community Facilities District No. 2025-2 (Maintenance Services) (Annexation No. 3-Gierson Ranch)
ATT 6 - Resolution No. 26- 4917
ATT 7 - Landowner Petition to Annex to Community Facilities District No. 2025-S (Safety Services) (Annexation No. 1-Gierson Ranch)
ATT 8 - Resolution No. 26-4918
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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. 2026-1
(GIERSON RANCH) 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 c ommunity facilities district to be known as “Community Facilities District No. 2026-1 (Gierson Ranch) 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 t he 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”), (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 f ields, 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 infrastructu re 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 (iii) water and sewer facilities to be owned and operated by Western Municipal Water District including the acquisition of capacity in the sewer system and/or water system of Western Municipal Water District (the “Water Facilities” and tog ether, with the City Facilities and the School 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, c onstruction 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 prop erty 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
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c. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.

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. The Owner 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 amo unts is expected to be governed by the terms of that certain Reimbursement Agreement to be entered into by and between the City and the Owner relating to the District. If bonds are not sold, the City will have no obligation to reimburse amounts expended f or costs incurred, but will reimburse any unexpended amounts advanced by the Owner as set forth in the Reimbursement Agreement.

Dated: February __, 2026

CENTURY COMMUNITIES OF

CALIFORNIA, LLC,
a Delaware limited liability company

By:___________________________
___________________________
___________________________

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EXHIBIT A

BOUNDARY MAP

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A-1
RESOLUTION NO. 26-4915

RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY

OF MURRIETA TO ESTABLISH COMMUNITY FACILITIES DISTRICT
NO. 2026-1 (GIERSON RANCH ) 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 w ithin 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 Co uncil of the City (the “City Council”) desires to adopt this resolution of intention as provided in Section 53321 of the Government Code of the State of California to establish a community facilities district consisting of the territory described in Exhibit “A” hereto and incorporated herein by this reference, which the City Council hereby determines shall be known as “Community Facilities District No. 2026-1 (Gierson Ranch) of the City of Murrieta” (“Community Facilities District No. 2026-1” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code (the “Act”) to finance (1) the purchase, construction, modification, expansion, improvement or rehabilitation of certa in real or other tangible property desc ribed in Exhibit “B” hereto and incorporated herein by this reference, including all furnishings, equipment and supplies related thereto (collectively, the “Facilities”), which Facilities have a useful life of five ye ars 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 co sts of the Facilities and the Incidental Expenses for Community Facilities District No. 2026-1; and WHEREAS, it is the intention of the City Council to consider financing the Facilities and the Incidental Expenses through the formation of Community Facilit ies District No. 2026-1 and the issuance of bonded indebtedness in one or more series in an aggregate maximum principal amount of $8,000,000 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. 2026-1;
WHEREAS, the City desires to enter into a reimbursement agreement with Century Communities of California, LLC , a Delaware limited liabil ity company (the “Developer”), the form of which is on file with the City Clerk (the “Reimbursement Agreement”), to provide for the reimbursement of certain amounts advanced by the Developer in connection with the formation of the District;
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WHEREAS, the Di strict and the Developer propose to enter into a joint community facilities agreement (the “School District 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 School District JCFA prior to the approval of the issuance of bonds pursuant to the Act; WHEREAS, the District and the Developer propose to enter into a joint community facilities agreement (the “Water District JCFA”) with Western Municipal Water District (the “Water District”) relating to certain facilities proposed to be financed by the Distri ct and owned and operated by the Water District, and the District expects to enter into the Water District 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 Exhibit “A” hereto, which boundaries shall, upon recordation of the boundary map for the District, include the entirety of any parcel subject to taxation by the District, and as depicted on the map of the proposed Commu nity Facilities District No. 2026-1 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. 2026-1 (Gierson Ranch) of the City of Murrieta.” Section 4. The Facilities proposed to be provided within Community Facilities District No. 2026-1 are public facilities as defined in the Act, which the City, the School District, and the Water District, with respect to certain school facilities and water facilities, respectively, 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 sufficientl y 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 form ing 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 w ith District funds pursuant to Section 53316.2 of the Act. Any portion of the Facilities may be financed through a lease or lease -purchase 347
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arrangement if the District hereafter determines that such arrangement is of benefit to the District.

Section 5. Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with the procedures contained in the Act the Special Tax, secured by recordation of a continuing lien against all nonexempt real property in the District, sufficient to pay for: (i) the Facilities and Incidental Expenses; and (ii) the principal and interest and other periodic costs on bonds or other indebtedness issued to finance the Facilities and Incidental Expenses, including the establishment and replenishment of any reserve funds deemed necessary by the District, and any remarketing, credit enhancement and liquidity facility fees (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash).

The rate and method of apportionment and manner of collection of the Special Tax are described in detail in Exhibit “C” attached hereto, which Exhibit “C” is incorporated herein by this reference. Exhibit “C” allows each landowner within the District to estimate the max imum 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 b e increased over time, except as set forth in Exhibit “C” hereto, (ii) such Special Tax shall not be levied after fiscal year 2067-2068, as described in Exhibit “C” hereto, and (iii) under no circumstances will the Special Tax levied in any fiscal year aga inst 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. 2026-1 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 exis ting infrastructure in the City as a result of the development of the land proposed for inclusion in the District. The City Council hereby determines the rate and method of apportionment of the special tax with respect to the Special Tax set forth in Exhibit “C” to be reasonable. The Special Tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and such special tax is not on or based upon the value or ownership of real property. In the event that a portion of the property within Community Facilities District No. 2026-1 shall become for any reason exempt, wholly or partially, from the levy of the Special Tax specified on Exhibit “C,” the City Council shall, on behalf of Community Facilities District No. 2026-1, cause the levy to be increased, subject to the limitation of the maximum Special Tax for a parcel as set forth in Exhibit “C,” to the extent necessary upon the remaining property within proposed Community Facilities District No. 2026-1 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 Exhibit “C” hereto. 348
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Section 6. A public hearing (the “Hearing”) on the es tablishment of the proposed Community Facilities District No. 2026-1, the proposed rate and method of apportionment of the Special Tax and the proposed issuance of bonds to finance the Facilities and the Incidental Expenses shall be held at 6:00 p.m., or as soon thereafter as practicable, on April 21, 2026, at the City of Murrieta Council Chambers , 1 Town Square , Murrieta, California. Should the City Council determine to form the District, a special election will be held to authorize the issuance of the bonds and the levy of the special tax in accordance with the procedures contained in Government Code Section 53326. If held, the proposed voting procedure at the election will be a landowner vote with each landowner who is the owner of record of land within the District at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within the proposed District. Ballots for the special election may be distributed by mail or by personal service.

Section 7. At the time and place set forth above for the Hearing, the City Council will receive testimony as to whether the proposed Community Facilities District No. 2026-1 shall be established and as to the method of apportionment of the special tax and shall consider:
(a) if an ad valorem property tax is currently being levied on property within proposed Community Facilities District No. 2026-1 for the exclusive purpose of paying principal of or interest on bonds, lease payments or other indebtedness incurred to finance construction of capital facilities; and
(b) if the capital facilities to be financed and constructed by Community Facilities District No. 2026-1 will provide the same serv ices 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 v alorem property tax revenue due from parcels within Community Facilities District No. 2026-1, for purposes of paying principal and interest on the debt identified in subsection (a) above, shall not be increased after the date on which Community Facilities District No. 2026-1 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 8. At the time and place set forth above for the Hearing, any intereste d person, including all persons owning lands or registered to vote within proposed Community Facilities District No. 2026-1, may appear and be heard.

Section 9. Each City officer who is or will be responsible for providing the Facilities within proposed Community Facilities District No. 2026-1, if it is established, is hereby directed to study the proposed District and, at or before the time of the above -mentioned Hearing, file a report with the City Council containing a brief description of the public faci lities by type which will in his or her opinion be required to meet adequately the needs of Community Facilities District No. 2026-1 and an estimate of the cost of providing those public facilities, including the cost of environmental evaluations of such f acilities and an estimate of the fair and reasonable cost of any Incidental Expenses to be incurred.
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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. 2026-1. The District may enter into an agreement with the person or entity advancing the funds or work -in-kind, to repay al l 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 publi sh a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of proposed Community Facilities District No. 2026-1. The City Clerk is further directed to mail a copy o f 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 Eight Million Dollars ($8,000,000).

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 su ch agreement, said execution being conclusive evidence of such approval.

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

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

PASSED AND ADOPTED by the City Council at a regular meeting held on the 17th day of March, 2026.

_____________________________
Jon Levell, Mayor
ATTEST:

350
Resolution No. 26-4915

4922-8315-5084v4/022972-0051
____________________________
Cristal McDonald, City Clerk

APPROVED AS TO FORM:

_____________________________
Tiffany Israel, City Attorney

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )§

CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, California, do hereby certify that the foregoing Resolution No. 26-4915 was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the 17th day of March, 2026, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
Cristal McDonald, City Clerk

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EXHIBIT A

BOUNDARY MAP

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EXHIBIT B
Types of Facilities
to Be Financed by
Community Facilities District No. 2026-1 (Gierson Ranch) 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”) , (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 (iii) water and sewer facilities to be owned and operated by Western Municipal Water Distri ct including the acquisition of capacity in the sewer system and/or water system of Western Municipal Water District (the “Water Facilities” and together, with the City Facilities and the School 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 inciden tal 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 t he bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and
c. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.

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

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EXHIBIT C

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2026-1 (GIERSON RANCH)

OF THE CITY OF MURRIETA
A Special Tax (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to each Assessor’s Parcel of Taxable Property located within the boundaries Community Facilities District No. 2026 -1 (Gierson Ranch) of the City of Murrieta ("CFD No. 2026-1"). 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 Murri eta, acting in its capacity as the legislative body of CFD No. 2026 -1, by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exempt Property as set forth below. All of the real property, unless exempted by law or by the provisions hereof in Section F, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS

The terms hereinafter set forth have the following meanings:

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

"Acre” or “Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County parcel map or instrument. The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560.

"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Gov ernment Code of the State of California.

"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2026 -1: the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both ); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2026 -1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2026-1 or any designee thereof of complying with disclosure requirements of the City, CFD No. 2026 -1 and any major pro perty owner associated with applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2026-1 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 354

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party expenses. Administrati ve Expenses shall also include amount s estimated by the CFD Administrator or advanced by the City or CFD No. 2026 -1 for any other administrative purposes of CFD No. 2026 -1, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.

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

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

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

"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.

"Assigned Special Tax" means the Special Tax of that name described in Section D below.

"Backup Special Tax" means the Special Tax of that name described in Section D below.

"Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, notes, 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 Special Tax of CFD No. 2026-1 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 a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include 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 as necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such determination the Maximum Special Tax that may be levied in each Fiscal Year on all Assessor’s Parcels of Taxable Property will be at least

1.1 times annual debt service on all outstanding CFD No. 2026 -1 Bonds plus the estimated annual Administrative Expenses for such Fiscal Year.

"Building Square Footage" or "BSF" means the square footage of assessable internal living space, including the square footage of any Accessory Dwelling Unit, exclusive of garages or other structures not used as living space, as determined by reference to the Building Permit for such Assessor’s Parcel.

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

“CFD” or "CFD No. 2026 -1" means Community Facilities Di strict No. 2026 -1 (Gierson Ranch) of the City of Murrieta established by the City under the Act.

“CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes.

“City” means the City of Murrieta.

"City Council" means the City Council of the City of Murrieta, acting as the Legislative Body of CFD No. 2026-1.

“Condominium Plan" means a condominium plan as set forth in Californ ia Civil Code, Section 4285.

"County" means the County of Riverside.

"Developed Property" means all Assessor’s Parcels: (i) that are included in a Final Map that was recorded prior to the January 1 st preceding the Fiscal Year in which the Special Tax is being levied, (ii) that have an Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) for which a Building Permit for new construction was issued on or before May 1 st 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 m ap, 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 4285 that creates individual lots for which Buildi ng Permits may be issued without further subdivision.

"Fiscal Year" means the period commencing on July 1 st of any year and ending the following June 30th.

“Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant t o which CFD No. 2026 -1 Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same.

“Land Use Category” means any of the categories listed in Table 1 of Section D.

"Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2026 -1 in any Fiscal Year on such Assessor’s Parcel.
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“Multifamily Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator.

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

"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2.

"Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1.

“Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property, or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Assessor’s Parcels of Undeveloped Property, or Provisional Undeveloped Property, as applicable.

"Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be 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 " means this Rate and Method of Apportionment of Special Tax for CFD No. 2026-1.

"Residential Property" means all A ssessor’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 o r more persons, as determined by the CFD Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this Rate and Method of Apportionment.

“Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than Multifamily Property.

"Special Tax" or “Special Taxes” means any of the special taxes authorized to be levied within CFD No. 2026-1 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 357

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in such Fiscal Year, (ii) Admin istrative 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, (v) an amount equal to any anticipated shortfall due to Special Tax delinquencies, (vi) for debt service on Bonds anticipated to be issued, and (vii) for the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2026-1, provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Steps Two or Three of Section E., less (vii) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to the Indenture.

"Taxable Property" means all Assessor’s Parcels within CFD No. 2026 -1 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 Cit y 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 As sessor’s Parcel within CFD No. 2026 -1 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 Single Family Residential Property or Multifamily Property. Each Assessor’s Parcel of Single Family Residential Property shall be further categorized into Land Use Categories based on its Building Square Footage and assigned to its appropriate Assigned Special Tax rate.

In the event that an Assessor’s Parcel for which one or more Building Permits have been issued and the County has not yet assigned final Assessor’s Parcel Number(s) to the Residential Unit(s) (in accordance with the Final Map or Condominium Plan) on such Assessor’ s Parcel, 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 levy for such Assessor’s Parcel, based on the c lassification of such Assessor’s Parcel as Undeveloped Property; (2) the amount of the Special Tax levy 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 shall be taxed as Developed Property in 358

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accordance with Step 1 of Section E below; and (3) the amount of the Special Tax levy on the Acreage of 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 all other Undeveloped Property pursuant to Step 3 of Section E below, multiplied by the total of the amount determined in clause (1), less (B) the amount determined in clause (2).

D. MAXIMUM SPECIAL TAX

1. Developed Property

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

The Maximum Special Tax for each Assessor’s Parcel of Non -Residential or Multifamily Residential Property shall be the applicable Assigned Special Tax described in Table 1 of Section D.

a. Assigned Special Tax

Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multifamily Property or Non -Residential shall be subject to an Assigned Special Tax. The Assigned Special Tax 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 1,950 sq. ft $3,956.00

2. Single Family Residential
Property RU
1,950 sq. ft to 2,150 sq.
ft $4,067.00

3. Single Family Residential
Property RU Greater than 2,150 sq. ft $4,179.00

4. Multifamily Property Acre N/A $51,476.00

5. Non-Residential Property Acre N/A $51,476.00
On each July 1, commencing July 1, 2026, the Assigned Special Tax rate for Developed Property in shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

b. Multiple Land Use Categories

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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 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

When a Final Map is recorded, the Administrator shall determine which Tax Zone the Final Map area lies within and the Backup Special Tax for an Assessor’s Parcel wi thin the Final Map classified or to be classified as Single Family Property shall calculated according to the following formula.

B = (U x A) / L

The terms above have the following meanings:

B = Backup Special Tax per per Assessor’s Parcel within the Final Map

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

A = Acreage of Single Family Residential Property expected to exist in such Final Map at the time of calculation, as determined by the Administrator

L = Number of Residential Units expected to exist in such Final Map at the time of calculation, as determined by the Administrator.

In the event any portion of the Final Map is changed or modified, the Backup Special Tax for all Assessor’s Parcels withi n such changed or modified area shall be determined by Table 3 below:

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

In the ev ent any superseding Final Map is recorded as a Final Map within the boundaries of the CFD, the Backup Special Tax for all Assessor’s Parcels within such Final Map shall be $51,476 per Acre. The Backup Special Tax shall not apply to Multifamily Residential Property or Non-Residential Property.

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.

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The Maximum Special Tax for each Assessor’s Parcel of Approved Property not ex pected to be classified as Single Family Residential Property shall be $51,476 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 that is not Exempt Property pursuant to the provisions of Section F

The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property and Provisional Undeveloped Property that is not Exempt Property shall be equal to the product of $51,476 per Acre multiplied by the Acreage of such Assessor’s Parcel.

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 rate 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 Proportionately from the Assigned Special Tax up to 100% of the Backup Special Tax as needed to satisfy the Special Tax Requirement.

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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 Taxe s 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 wou ld have been levied in that Fiscal Year had there never been any such delinquency or default.

F. EXEMPTIONS

The City shall classify as Exempt Property, in the following order of priority, (i) Assessor’s Parcels which are owned by, irrevocably offered fo r dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses, (vi) Assessor’s Parcels which are classified as Non -Residential P roperty or (vii) Assessor’s Parcels restricted to other types of public uses determined by the City Council, provided that no such classification would reduce the sum of all Taxable Property to less than 8.48 Acres.

Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than 8.48 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 8.48 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E.

G. PREPAYMENT OF SPECIAL TAX

The following additional definitions apply to this Section G:
“CFD Public Facilities” means $6,000,000 expressed in 2026 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 public facilities under the authorized bonding program for CFD No. 2026 -1, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more CFD No. 2026 -1 Bonds to be supported by Special Tax levied under this Rate and Method of Apportionment.

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“Construction Fund” means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are currently available for expenditure to acquire or construct public facilities eligible to be financed by CFD No. 2026-1.

“Construction Inflation Index” means 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 pr evious 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 Public Facilities minus (i) public facility costs previously funded from the Construction Fund, (ii) public facility costs available to be funded through existing construction or escrow accounts funded by the O utstanding Bonds, and minus (iii) public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment.

“Outstanding Bonds” means all previously issued CFD No. 2026 -1 Bonds issued and secured by the levy of Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding CFD No. 2026 -1 Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax.

1. Prepayment in Full
The Maximum 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 is sued, (iii) Approved Property or Undeveloped Property for which a Building Permit has not been issued and (iv) Assessor’s Parcels of Public Property or Property Owner’s Association Property, or Provisional Undeveloped Property that are not Exempt Propert y pursuant to Section F. The Maximum 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 Maximum Special Tax obligation for such Assessor’s Parcel shall provide th e CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-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 Outstanding Bonds to be redeemed with the proceeds of such prepaid Special Taxes.
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The Prepayment Amount (defined below) shall be calculated as follows (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 to be prepaid compute the Maximum Special Tax for the Assessor’s Parcel.

3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Special Taxes that could be levied at the Maximum Special Tax at 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 Outstandin g Bonds can be redeemed from Special Tax prepayments.
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9. Determine the Special Taxes levied on the Assessor’s Parcel in the current Fiscal Year which have not yet been paid.

10. Determine the amount the CFD Administrator reasonably expects to derive from t he 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, including the cost of computation of the Prepayment Amount, the cost to invest the Prepayment Amount, the cost of r edeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Maximum Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).

13. The reserve f und 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 amo unt derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.

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

15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by CFD No. 2026-1.

The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Outstanding Bonds. In suc h 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 Maximum 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 Maximum 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. 365

C-13
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Tax that may be levied each Fiscal Year on all Assessor’s Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times annual debt service for such Fiscal Year on the Outstanding Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses.

Tenders of Outstanding Bonds in prepayment of the Maximum 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 Maximum Special Tax obligation for an Assessor’s Parcel of Developed Property, Approved Property or Undeveloped Property may be partially prepaid. For purposes of determining the partial prepayment amount, the provisions of Section G.1 shall be modified as provided by the following formula:

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

PP = Partial Prepayment Amount
PE = the Prepayment Amount calculated according to Section G.1 F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Maximum 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 Maximum Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum 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 prope rty owner of the amount of the non -refundable deposit determined to cover the cost to be incurred by the CFD in calculating the amount of a partial prepayment. 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 Parti al Prepayment Amount.

With respect to any Assessor’s Parcel for which the Maximum 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) ind icate in the records of the CFD that there has been a Partial Prepayment for the Assessor’s Parcel and that a portion of the Maximum Special Tax obligation equal to the remaining percentage (1.00 - F) of the Maximum Special Tax obligation will continue to be levied on the Assessor’s Parcel pursuant to Section E.

H. TERMINATION OF SPECIAL TAX
366

C-14

For each Fiscal Year that any CFD No. 2026 -1 Bonds are outstanding the Special Tax shall be levied on all Assessor’s Parcels subject to the Special Tax. The Special T ax shall cease not later than the 2067-2068 Fiscal Year, however, Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all the required interest and principal payments on the CFD No. 2026-1 Bonds have been paid; (ii) all authorized facilities of CFD No. 2026-1 have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Special Taxes remain uncollected and (iv) all other obligations of CFD No. 2026 -1 have been satisfied.

I. MANNER OF COLLECTION

The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2026 -1 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 on his/her Assessor’s Parcel(s) with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Admi nistrator 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.

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.

367

RESOLUTION NO. 26-4916

RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY

OF MURRIETA TO INCUR BONDED INDEBTEDNESS IN AN AMOUNT
NOT TO EXCEED $8,000,000 WITHIN PROPOSED COMMUNITY
FACILITIES DISTRICT NO. 2026-1 (GIERSON RANCH) 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. 2026-1 (Gierson Ranch) of the City of Murrieta (“Community Facilities District No. 2026-1” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), as amended, pursuant to Resolution No. 26-4915 (the “Resolution of Intention to Establish”) adopted by the City Council on the date hereof to finance (1) the purchase, construction, modification, expansion, im provement and/or rehabilitation of public facilities identified in Exhibit “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 $8,000,000; 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 $8,000,000, the repayment of which is to be sec ured by special taxes levied in accordance with Section 53328 of the Act on all property in the proposed Community Facilities District No. 2026-1, other than those properties exempted from taxation in the rate and method of apportionment set forth in Exhibit “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 th e boundaries of proposed Community Facilities District No. 2026-1 in an aggregate maximum principal amount of $8,000,000 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 expens es necessary to finance the Facilities which are permitted to be financed pursuant to the Act.
368
Resolution No. 26-4916

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 $8,000,000 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 April 21, 2026, at the City of Murrieta Council Chambers, 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. 2026-1, 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 Facili ties District No. 2026-1. 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 Faci lities District No. 2026-1 at least 15 days prior to the Hearing.

PASSED AND ADOPTED by the City Council at a regular meeting held on the 17th day of March, 2026.

_____________________________
Jon Levell, Mayor
ATTEST:

____________________________
Cristal McDonald, City Clerk

APPROVED AS TO FORM:

_____________________________
Tiffany Israel, City Attorney
369
Resolution No. 26-4916

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )§

CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, California, do hereby certify that the foregoing Resolution No. 26-4916 was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the 17th day of March, 2026, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
Cristal McDonald, City Clerk

370

EXHIBIT A
Types of Facilities
to Be Financed by
Community Facilities District No. 2026-1 (Gierson Ranch) 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, includi ng 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”), (ii) interim and permanent school facilities of Murrieta Valley Unified Sc hool 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 Murrie ta Valley Unified School District which are included in Murrieta Valley Unified School District’s school fee program (the “School Facilities”) and (iii) water and sewer facilities to be owned and operated by Western Municipal Water District including the a cquisition of capacity in the sewer system and/or water system of Western Municipal Water District (the “Water Facilities” and together, with the City Facilities and the School Facilities, the “Facilities”), and all appurtenances and appurtenant work in co nnection 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 dete rmination 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. 371

REIMBURSEMENT AGREEMENT

RE PROPOSED
COMMUNITY FACILITIES DISTRICT NO. 2026-1 (GIERSON RANCH)

OF THE CITY OF MURRIETA

THIS REIMBURSEMENT AGREEMENT RE PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2026-1 (GIERSON RANCH) OF THE CITY OF MURRIETA (the “Agreement”) dated March 17, 2026, 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 16 acres of land described in Exhibit A attached hereto (the “Property”) for which the Developer desires to include within proposed Community Facilities District No. 2026-1 (Gierson Ranch) 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, includi ng 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 $65,000. 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 372

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 Cit y 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 wa ived 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 a ssumes 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 t hey 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, th e 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:
373

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 execute d 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. 374

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.

375

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

376

A-1

EXHIBIT A

DESCRIPTION OF PROPERTY

377

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)
(ANNEXATION NO. 3—GIERSON RANCH)

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 t he 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.

Dated: February __, 2026

CENTURY COMMUNITIES OF

CALIFORNIA, LLC,
a Delaware limited liability company

By:___________________________
___________________________
___________________________

378

A-1

EXHIBIT A

ANNEXATION BOUNDARY MAP

379
RESOLUTION NO. 26-4917

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MURRIETA

ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES
DISTRICT NO. 20 25-2 (MAINTENANCE SERVICES) OF THE CITY OF

MURRIETA, DECLARING ITS INTENTION TO CONSIDER ANNEXING
TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 20 25-2
(MAINTENANCE SERVICES) OF THE CITY OF MURRIETA
(ANNEXATION NO. 3—GIERSON RANCH)

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. 20 25-2 of the City of Murrieta (Maintenance Services) (“C ommunity 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 Exhibit “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 Century Communities of California, LLC, a Delaware limited liability company (the “Owner”), requesting (i) the annexation of the territory within the boundaries set forth in Exhibit “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 Exhibit “B,” hereto (the “Rate and Method”), which Rate and Method is identical to the Original Rate an d 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, A CTING 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. 380
Resolution No. 26-4917

Section 3. The map showing the original boundaries of the District designated “Proposed Boundary Map Community Facilit ies 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 o f 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 Exhibit “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 Sectio n 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.

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 Annexation Territory, sufficient to pay for the Services and the Administrative Expenses. The rate and method of apportionment and manner of collection of the special taxes set forth in Exhibit “A” allows each landowner within the Annexation Territory to estimate the maximum amount that may be levied against each parcel.

The special taxes for Services may be increased on each Jul y 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 381
Resolution No. 26-4917

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 Exhibit “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 Exhibit “B” to be reasonable. The special tax is apportioned to each p arcel 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 April 21, 2026, 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 S ection 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 h ereby 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 t estimony 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. 382
Resolution No. 26-4917

PASSED AND ADOPTED by the City Council at a regular meeting held on the 17th day of March, 2026.

_____________________________
Jon Levell, Mayor
ATTEST:

____________________________
Cristal McDonald, City Clerk

APPROVED AS TO FORM:

_____________________________
Tiffany Israel, City Attorney

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )§

CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, California, do hereby certify that the foregoing Resolution No. 26-4917 was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the 17th day of March, 2026, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
Cristal McDonald, City Clerk
383

EXHIBIT “A”

BOUNDARY MAP OF ANNEXATION TERRITORY
384

EXHIBIT “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 t he 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 re sponding 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 proporti onal 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. 385

“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 as signed 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 an y Building Square Footage subsequently added to a building of such Non - Residential Property after issuance of a building permit for expansion or renovation of such building.

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

“CFD” or “CFD No. 2025 -2” means the Community Facilities District No. 2025 -2 (Maintenance Services) of the City of Murrieta.

“City” means the City of Murrieta.

“Contingent Services” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2025-2 as set forth in the documents adopted by the City Council at the time the CFD was formed to be provided by the City in the event the Ad ministrator 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 p ursuant to California Civil Code 6624 that creates individual lots for which building permits may be issued without further subdivision.

386

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

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

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

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

“Multi-Family Residential Property” or “MFR” means any Assessor’s Parcel of Residential Property upon which a building or buildings comprised of attached Residential Units sharing at least one common wall with another unit are constructed or are intended to be constructed that share a single Assessor’s Parcel Number, as determined by the Administrator.

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

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

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

“Rate and Method of Apportionment” or “RMA" means this Rate and Method of Apportionment of Special Taxes.

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

“Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. An Accessory Dwelling 387

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 servi ces 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 c osts 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 operatin g reserve for the costs of Contingent Services as determined by the Administrator; less a credit for funds available to reduce the annual Special Tax B (Contingent) levy for the subsequent Fiscal Year as determined by the Administrator.

"Taxable Property" means all Assessor’s Parcels within CFD No. 2025 -2, which are not Exempt Property.

“Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre. "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may be levied following annexation of additional property to the CFD and pursuant to an amended Rate and Method of Apportionment of Special Tax. Appendix C identifies the Tax 388

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 id entified by a particular tract number on a Final Map, ii) identified within a Parcel Map; or iii) identified within lot line adjustment approved for subdivision.

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

B. ASSIGNMENT TO LAND USE CATEGORIES

For each Fiscal Year, all Assessor’s Parcels of Taxable Property within CFD No. 2025-2 shall be classified as Developed Property, Approved Property, or Undeveloped Property, and shall be subject to the levy of Special Taxes as determined pursuant to Sectio ns C and D below.

Assessor’s Parcels of Developed Property and Approved Property shall be classified as either Residential Property or Non -Residential Property. Residential Property shall be further 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.

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 389

into CFD No. 2025 -2, the rate and method adopted for the annexed property shall reflect th e 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:
390

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 com parable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

2. Special Tax B (Contingent)
The City Council shall levy Special Tax B (Contingent) only in the event the POA defaults in its obligation to maintain the Contingent Services, which default shall be deemed to have occurred, as determined by the Administrator, in each of the following circumstances:
(a) The POA files for bankruptcy;
(b) The POA is dissolved;
391

(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 prec eding 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 Acreag e 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 392

approved for such Assessor's Parcel. The Administrator's allocation to each typ e 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 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 393

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;

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. 394

E. FUTURE ANNEXATIONS
It is anticipated that additiona l 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 util ization 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 Ass essor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).

I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2025-2 may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.

395

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.

396

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 3 (SERVICES)
TR 39271
Item Description Estimated Cost
1 Landscaping $2,030
2 Streetlights $936
3 Street & Pavement $4,161
4 Drainage $1,688
5 Parks $24,996
6 Graffiti Abatement $483
7 Reserves $4,034
8 Administration $1,904
Total $40,232
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 Distric t No. 2025-2 Tax Zone 3.

TAX ZONE 3 (CONTINGENT SERVICES)
TR 39271
Item Description Estimated Cost
1 Drainage $9,042
2 Reserves $1,808
3 Administration $885
Total $11,735

TAX ZONE 3
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 $376 $110
Multi-Family Residential Property RU $376 $110
Non-Residential Property Acre $3,203 $934

397

TAX ZONE 3
FY 2025-26 MAXIMUM SPECIAL TAX RATES

UNDEVELOPED PROPERTY
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Acre $3,203 $934

TAX ZONE SUMMARY

Tax
Zone
Fiscal
Year
Include
d

Tract/AP
N
No. of
Taxabl
e Units
Land
Use
Category
Taxabl
e
Unit
Maximu
m
Special
Tax A
Maximum
Special Tax
B
(Contingent) Subdivider
Origina
l 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
Pacific West
Communities, Inc
3 2025-26 39271 107 SFR RU $376 $110
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.
398

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 o f 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; gr affiti 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 an d 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 facil ities.

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 an d 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 annex ed to CFD No. 2025-2 before the territory was annexed, as applicable.
399

APPENDIX C

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

PROPOSED BOUNDARIES AND POTENTIAL ANNEXATION AREA

BOUNDARIES

400

401

402

PETITION TO THE CITY COUNCIL OF THE CITY OF MURRIETA

REQUESTING INSTITUTION OF PROCEEDINGS TO ANNEX
CERTAIN PROPERTY TO COMMUNITY FACILITIES DISTRICT NO.
2025-S OF THE CITY OF MURRIETA (MAINTENANCE SERVICES)
(ANNEXATION NO. 1—GIERSON RANCH)

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. 20 25-S of the City of Murrieta (Safety 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 public safety services described in Resolution No. 25-4838 adopted by the City Council on June 3, 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.

Dated: February __, 2026

CENTURY COMMUNITIES OF

CALIFORNIA, LLC,
a Delaware limited liability company

By:___________________________
___________________________
___________________________

403

A-1

EXHIBIT A

ANNEXATION BOUNDARY MAP

404
RESOLUTION NO. 26-4918

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MURRIETA

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

MURRIETA, DECLARING ITS INTENTION TO CONSIDER ANNEXING
TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 2025-S
(SAFETY SERVICES) OF THE CITY OF MURRIETA (ANNEXATION NO. 1—GIERSON RANCH)

WHEREAS, on June 3, 2025 , the City Council (the “City Council”) of the City of Murrieta adopted Resolution No. 25-4838 (the “Resolution of Intention”), declaring its intention to establish Community Facilities District No. 2025-S of the City of Murrieta (Safety Services) (“Community Facilities District No. 2025-S” 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. 25-4874 (the “Resolution of Formation”) establishing Community Facilities District No. 2025-S and the Po tential 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 Exhibit “A” attached to the Resolution of Formation (the “Origina l Rate and Method”), and (ii) the establishment of an appropriations limit for Community Facilities District No. 2025-S; and
WHEREAS, the City Council has received a signed petition from Century Communities of California, LLC, a Delaware limited liability company (the “Owner”), requesting (i) the annexation of the territory within the boundaries set forth in Exhibit “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 Exhibit “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-S (SAFETY 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. 405
Resolution No. 26-4918

Section 3. The map showing the original boundaries of the District designated “Proposed Boundary Map Community Facilit ies District No. 2025-S (Safety 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 Cou nty 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. 96 Page No. 51, on June 10, 2025 as Instrument No. 2025-0175991.

In addition, the map showing the Pote ntial Annexation Area designated “Boundaries — Potential Annexation Area Community Facilities District No. 2025-S (Safety 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. 96 Page No. 52, on June 10, 2025 as Instrument No. 2025-0175992.

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 Exhibit “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 a s 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 th is 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 Ex penses (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.

Section 5. Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance wit h the procedures contained in the Act a separate special tax, secured by recordation of a continuing lien against all nonexempt real property in the Annexation Territory, sufficient to pay for the Services and the Administrative Expenses. The rate and met hod of apportionment and manner of collection of the special taxes set forth in Exhibit “A” allows each landowner within the Annexation Territory to estimate the maximum amount that may be levied against each parcel.

The maximum special tax for Services shall increase by four percent (4%) per year to the extent permitted in the Rate and Method, as further described in Exhibit “B” hereto. 406
Resolution No. 26-4918

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 Exhibit “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 April 21, 2026, 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 t he 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-S. 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.

407
Resolution No. 26-4918

PASSED AND ADOPTED by the City Council at a regular meeting held on the 17th day of March, 2026.

_____________________________
Jon Levell, Mayor
ATTEST:

____________________________
Cristal McDonald, City Clerk

APPROVED AS TO FORM:

_____________________________
Tiffany Israel, City Attorney

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )§

CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, California, do hereby certify that the foregoing Resolution No. 26-4918 was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the 17th day of March, 2026, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
Cristal McDonald, City Clerk

408

EXHIBIT “A”

BOUNDARY MAP OF ANNEXATION TERRITORY
409

B-1
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 be low), 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 resi dential 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 o ther 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.

410

B-2
“Assessor’s Parcel Map” means an official map of the A ssessor 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 constructi on has been issued on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.

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

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

“Maximum Special Tax” means the Maximum Special Tax, as applicable, levied within the CFD for any Fiscal Year.

“Multi-Family Property” means all Assessor's Parc els 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 Admi nistrator. 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. 411

B-3

“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 Assess or’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 Adm inistrator, 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, Multi - Family Property, and Affordable Housing Property are shown below in Table 1. 412

B-4
TABLE 1

MAXIMUM SPECIAL TAX RATES
FISCAL YEAR 2025-2026

Description
Taxable
Unit
Maximum
Special Tax
Single Family Property RU $580
Multi-Family Property RU $468
Affordable Housing Property RU $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 pr ivately 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 Prope rty, Multi-Family Property, or an Affordable Housing Property; (vi) any Assessor’s Parcel that qualifies for a welfare exemption under applicable state or local law; or (vii) any Assessor’s Parcel that is owned by a property owner association and used for common area purposes.

E. APPEALS

Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. The Administrator shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the Administrator’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s). 413

B-5

F. MANNER OF COLLECTION

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

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 cea ses 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. 414

B-6

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 Speci al 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
Developme
nt Name
No. of
Taxable
Units
Land Use
Category
Maximum
Special Tax Subdivider
Origina
l 2025-26 TR
38199
Rustic
Meadows 153 Single Family
Property $580 Century
Communities
Origina
l 2025-26 906-780-
004
Kensington
Apartments 126
Affordable
Housing
Property
$150 Murrieta Pacific
Associates
1 2025-26 TR
39271
Gierson
Ranch 107 Single Family
Property $580 Century
Communities

415

B-7

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 (includin g 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 C FD 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 CF D No. 2025 -S before CFD No. 2025 -S was created.

416

CITY OF MURRIETA
City Council Meeting Agenda
Report
3/17/2026
Agenda Item No. 13.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Bernard Molloy, Fire Chief
PREPARED BY: Dave Perez, Fire Division Chief
SUBJECT:

Fire Station 3 Emergency Generator Replacement Construction Contract Amendment

RECOMMENDATION
Authorize the City Manager, or their designee, to execute a First Amendment to the construction contract with Capital Construction, Inc., increasing the contract amount by $11,058.73; Authorize an additional fifteen percent (15%) construction contingency of $18,476.06 for a total contract sum of $141,649.79;
Authorize the City Manager, or their designee, to approve Contract Change Orders not to exceed fifteen percent (15%) of the contract amount; and
Extend the contract term for eight (8) months.

PRIOR ACTION/VOTE
On June 17, 2025, City Council approved a contract with Capital Construction, Inc. for replacement of the emergency generator at Fire Station 3 in the amount of $112,115 (Vote 5-0); On June 3, 2025, City Council approved Resolution No. 25-4836, approving the Capital Improvement Plan Budget for Fiscal Year 2025/26, and the Fiscal Years 2025/26 to 2029/30 Capital Improvement Plan (Vote 5-0).

STRATEGIC ALIGNMENT
Plan, program and create infrastructure development.

DISCUSSION
The construction contract to replace the emergency generator at Murrieta Fire Station 3 was originally awarded to Capital Construction on June 17, 2025, to ensure compliance with Assembly Bill 944 and current regulatory standards, including California Air Resources Board (CARB) requirements. The contract recognized CITY OF MURRIETA Printed on 3/12/2026Page 1 of 2
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417
3/17/2026
Agenda Item No. 13.
regulatory standards, including California Air Resources Board (CARB) requirements. The contract recognized that Air Quality Management District (AQMD) fees and permit costs would be addressed once that amount was known. Additionally, during construction, unforeseen costs arose for removal of the existing generator foundation. The cost for these items totals $11,058.73. In addition to approving funding for these costs, staff also recommends adding a 15% construction contingency on top of the new contract amount to allow staff to administratively address any further unforeseen conditions and help ensure the project is completed on time and within budget.

The contract amendment also includes an eight (8) month extension to the contract term due to the generator fabrication timeline and installation period.

Replacing the emergency generator is critical to maintaining Fire Station 3’soperational readiness, supporting essential systems such as communications, emergency alerts, and security features. This contract amendment will ensure the station remains fully operational and the City’sprimary response area continues to be effectively served.

FISCAL IMPACT
The construction contract with Capital Construction, Inc. will increase by $11,058.73 to $123,173.73, with an allowance for an additional 15% contingency of $18,476.06 for a total project amount of $141,649.79.

Funding for the additional $29,534.79 is available in the Fiscal Year 2025/26 Operating Budget in General Ledger Account 1113520-71030 to be allocated for this Project.

ATTACHMENTS
ATT 1 - Capital Construction Contract
ATT 2 - Capital Construction First Amendment
CITY OF MURRIETA Printed on 3/12/2026Page 2 of 2
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AMENDMENT TO THE AGREEMENT WITH

THE CITY OF MURRIETA AND CONTRACTOR

Amendment No.: 1
Original Agreement Title (“Agreement”): Public Works Construction Contract with the City of Murrieta
Original Agreement Project Name: Fire Station 3 Generator Replacement Original Agreement Effective Date: May 30, 2025
Current Agreement Termination Date (after any existing Amendments): May 30, 2026 Contractor Name: Capital Construction, Inc.

Brief Description of Scope of Services (“Services”): Replace existing emergency generator with California compliant model.

Prior Amendments, if any (no. and effective date): None

This Amendment to the Agreement, made effective on the date executed by the City by and between the City of Murrieta, a Municipal Corporation, duly organized and existing under and by virtue of the laws of the State of California ("City"), and the above referenced Contractor with reference to the following facts which are acknowledged by each party as true and correct:

RECITALS

Whereas, City is a general law city, formed and existing pursuant to the provisions of the California Government Code.

Whereas, City and Contractor entered into an Agreement on the Effective Date set forth above for the Services.

Whereas, City and Contractor wish to amend the Agreement as further set forth herein.

AMENDMENT

NOW, THEREFORE, it is agreed by and between the parties as follows:

1. The above recitals are true and correct.

2. The following terms of the Agreement are hereby amended to read as follows:

Contract Amount: Increase the total compensation by Eleven Thousand Fifty-Eight Dollars and Seventy-Three Cents ($11,058.73), for a total contract amount of One Hundred Twenty-Three Thousand One Hundred Seventy-Three Dollars and Seventy-Three Cents ($123,173.73).

Construction Contingency: A construction contingency in the amount of Eighteen Thousand Four Hundred Seventy-Six Dollars and Six Cents ($18,476.06), equal to fifteen percent (15%) of the contract amount, for unforeseen conditions.
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Term Extension: Extend the contract term by eight (8) months.

3. All other conditions of the Agreement shall continue in full force and effect.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to the Agreement to be executed on the dates set forth below.

Signature Page to Follow.

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date and year first-above written.

CITY OF MURRIETA ATTEST:

By:_____________________________ By:_____________________________ Justin Clifton, City Manager Cristal McDonald, City Clerk Date: ___________________________ Date: ___________________________

APPROVED AS TO FORM

ALESHIRE & WYNDER, LLP
By: ____________________________
Tiffany Israel, City Attorney

CONTRACTOR: Capital Construction, Inc.

By:_____________________________ By:_____________________________ Name: Nathan Jones Name: Lori Jones
Title: Owner Title: Secretary
Date: ___________________________ Date: ___________________________ Two corporate officer signatures required when Contractor is a corporation, with one signature required from each of the following groups: 1) Chairperson of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. (Cal. Corp. Code § 313.) Appropriate attestations shall be included as may be required by the bylaws, articles of incorporation or other rules or regulations applicable to Contractor’s business City. 420

CITY OF MURRIETA
City Council Meeting Agenda
Report
3/17/2026
Agenda Item No. 14.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Brian Crawford, Municipal Services Director
PREPARED BY: Bryce Wilson, Management Analyst - Municipal Services SUBJECT:

Purchase of Temporary Modular Living Quarters for Fire Station 1 Living Quarters Improvement Project

RECOMMENDATION
Award the construction contract for the Temporary Modular Living Quarters Fire Station 1 in association with CIP No. 21037, to CSLM Construction Inc. in the amount of $217,822.74; Authorize a fifteen percent (15%) construction contingency of $32,673.41; Authorize the Director of Municipal Services and/or designee to approve contract change orders not to exceed fifteen percent (15%) of the contract amount; and
Authorize the City Manager to execute the construction contract and other documents necessary to facilitate the purchase of the Temporary Modular Living Quarters for Fire Station 1.

PRIOR ACTION/VOTE
On June 3, 2025, the City Council approved Resolution No. 25-4836, approving the Capital Improvement Plan Budget for Fiscal Year 2025/26, and the Fiscal Years 2025/26 to 2029/30 Capital Improvement Plan, which included the Fire Station 1 Living Quarters Improvement Project, CIP No. 21037 (Vote 5-0).

On July 1, 2025, the City Council approved a purchase order with TR Design Group, Inc., in the amount of $174,129, plus a 15% contingency, to perform architectural and consultant design services related to the Fire Station 1 Living Quarters Improvement Project, CIP No. 21037 (Vote 4-0-1).

CITY COUNCIL GOAL
Plan, program and create infrastructure development.

DISCUSSION
Murrieta Fire & Rescue (MFR) Station 1 requires renovations to address aging infrastructure and deferred CITY OF MURRIETA Printed on 3/12/2026Page 1 of 2
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3/17/2026
Agenda Item No. 14.

Murrieta Fire & Rescue (MFR) Station 1 requires renovations to address aging infrastructure and deferred maintenance impacting both the interior and exterior of the living quarters section of the facility. The existing layout does not maximize utilization of the current space and must be made ready to accommodate female personnel by having private showers and sleeping quarters.

The station will soon undergo an extensive remodel of the living quarters, requiring the need for temporary accommodation and relocation of assigned MFR personnel during construction. After evaluating available alternatives, staff has deemed that the most efficient and cost-effective solution is the purchase of temporary modular housing. The proposed modular unit provides an economical, architecturally appropriate, and fully functional solution that meets operational needs. Additionally, the unit is portable and is intended to be redeployed in a similar capacity when other fire stations are renovated in the coming years, thereby maximizing long-term value to MFR and the City of Murrieta (City).

To maintain uninterrupted fire protection services during the renovation, the temporary modular living quarters will be installed at a designated secure location on the Fire Station No. 1 site. The modular unit will provide essential sleeping, kitchen, restroom, and support facilities, allowing assigned firefighters to remain housed at the station throughout construction. Utilizing temporary modular housing ensures that emergency response times and service coverage will not be impacted during the renovation period while critical infrastructure improvements are completed safely and efficiently.

The City received four proposals in response to its solicitation for temporary modular living quarters. Following a comprehensive evaluation, staff recommends awarding the construction contract to CSLM Construction, Inc.

CSLM demonstrated the ability to provide a high-quality modular unit that meets the City’sfunctional and operational needs at a significantly lower cost than competing proposals, representing the best overall value to the City.

CSLM has extensive experience providing modular living facilities to numerous public agencies throughout Southern California, statewide, and across the Southwest.

FISCAL IMPACT
The construction contract amount to be awarded is $217,822, plus an additional 15% construction contingency of $32,673.30, for a total of $250,495.30. All necessary funding is currently available in CIP No. 21037.

ATTACHMENTS
ATT 1 - Proposal from CSLM Construction, Inc.

ATT 2 - Public Works Contract between the City of Murrieta and CSLM Construction, Inc.

CITY OF MURRIETA Printed on 3/12/2026Page 2 of 2
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CSLM Construction Inc.
27472 Portola Pkwy #205-301
Foothill Ranch, CA 92610
Phone: (866) 764-9091
Owner Information:

City of Murrieta
Department of Municipal Services
1 Town Square
Murrieta, CA 92562
Attn: Bryce Wilson
(951) 461-6429
Project Address:

Fire Station No. 1
41825 Juniper St.

Murrieta, CA 92362
Date: February 13, 2026
Estimate No.: 9825-42 (A1002 Appliances Not Included)
Title of Bid: Fire Station No. 1 Remodel / Temporary Modular Dwelling Quarters Bid Description:

CSLM Construction Inc. will provide and install a fully remodeled, like-new 24’ x 40’ modular dwelling quarters per the designated custom layout provided by the City of Murrieta. CSLM scope of work to include provision, delivery, and installation of the modular dwelling quarters along with provision of two new galvanized steel step with step attachment for both exterior doors, as identified in finish and material selections section. All work will be performed under prevailing wage requirements and delivered turnkey, excluding utilities and site prep. 423
Estimated Lead Times:
• 24’ x 40’ Modular Living Quarters: 4–6 weeks – Ready to deliver • Delivery and Installation: 3-5 business days, from NTP. • Total Project Timeline including Delivery and Installation: 5–7 weeks *** Note, CSLM operates on a first come first serve basis and thus, lead times are subject to change in accordance with when the project moves forward. Lead time based on current schedule and order queue.
24’ x 40’ Modular Living Quarters – Cost Breakdown:
• Building Price (Fully Refurbished): $159,806.66
• (Upgrade) New 4.0 Ton Bard HVAC System: $14,062.50
• Addition (12.10.2025),
Add Three Ceiling Fans into Bedroom and One to Living Room: $4,800.00 • Transport to Site (Q1): $6,000.00 – Total: $6,000.00
• Install Modular Living Quarters Temp Foundation (Q1): $11,020.00 – Total: $11,020.00 *Tiedowns not included.
• Foundation Materials (Q1): $1,847.56 – Total: $1,847.56 • Close-Up Materials (Q1): $650.00 – Total: $650.00
Modular Subtotal with New HVAC Upgrade Optioned: $197,366.72 New Galvanized Steel Step and Ramp – Cost Breakdown:
• Deliver & Install New Galv. Step and Step Attachment (Q2): $5,000.00 *** Note: Used and/or refurbished options can be provided upon request; subject to inventory availability. Pricing reductions to apply accordingly.

Subtotal: $5,000.00
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Administration & Logistics Coordination (Prevailing Wage Project):

Includes certified payroll processing, labor compliance, project coordination, crew scheduling, and document control.

Total: $2,250.00

Project Summary:
• Project Subtotal: $205,436.72
• Sales Tax (7.75%) : $12,385.02
Total Project Estimate: $217,821.74
Sales tax has been included in this estimate under the assumption this project does not qualify for a government exemption. If this assessment is incorrect and sales tax exemption is applicable, please advise right away.

Site must be level within 6" for optimal installation. If the site requires grading, rolling, or if high/low set conditions are present, additional charges may apply.

Payment Schedule
In coordination with City of Murrieta fiscal regulations and standards, all payments to be set on NET 30 payment terms from receipt of invoice and approval of work completed by an agency authorized representative. The contractor, CSLM Construction Inc, suggests the following payment schedule to be implemented:

(50%) Initial Deposit to Secure Lead Time and Initiate Fabrication: $108,910.87 (35%) Progress Billing Due Upon Delivery: $76,237.61
(15%) Retention/Final Billing Due Upon Notice of Completion: $32,673.26 425

Exclusions & Clarifications
The following items are expressly excluded from CSLM Construction Inc.’s scope of work unless otherwise stated in writing:

1. Permitting & Approvals
• All city, county, or state permits, entitlement fees, plan check fees, inspections, registrations, and approvals.
• Any requirements by local jurisdictions for design changes, foundation systems, accessibility compliance, fire/life-safety, grading, drainage, or utility upgrades. • Title 24, structural calculations, civil plans, or architectural drawings beyond the modular manufacturer’s standard plans (unless contracted separately). • Customer has opted for temporary foundation plan to enable ease of relocation. CSLM not responsible for provision of engineered foundation plan or calculations. Should this be required at a later date, applicable fees shall apply to be paid by the owner.

2. Site Preparation & Foundation Work
• Grading, leveling, compaction, demolition, clearing, or removal of existing structures or utilities.
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• Foundation systems, concrete work, piers, pads, anchorage, soil engineering, or geotechnical reports unless explicitly included.
• Any site conditions requiring repairs or remediation prior to installation.

3. Utility Connections
• Electrical, sewer/septic, water, gas, fire sprinkler, low-voltage, telecom/data, or any on- site utility tie-ins or extensions.
• Trenching, conduit, piping, backfilling, or utility relocation. • Temporary power or temporary facilities.

4. Transportation & Access Requirements
• Road improvements, traffic control, flaggers, police escorts, shutdowns, off-hour deliveries, or transportation permits.
• Access modifications such as tree trimming, widening, or removal of obstructions.

5. On-Site Construction Beyond Modular Scope
• Decks, porches, landings, ramps (unless included), steps, awnings, skirting, underpinning, or exterior finishes.
• Fences, gates, hardscape, landscape, irrigation, and site lighting. • Interior furnishings, appliances, décor, or customer-provided equipment.

6. HVAC, Mechanical, & Specialty Systems
• HVAC start-up, ducting modifications, exhaust systems, gas lines, or specialty mechanical engineering beyond the modular unit’s factory installation. • Fire alarm systems, fire sprinklers, extinguishers, monitoring, or fire department fees. • Security, access control, cameras, or low-voltage systems.

7. Compliance-Driven Changes After Contract Execution
• Any additional work required due to changes in code interpretation, inspector-driven revisions, unforeseen jurisdictional requirements, or new mandates imposed after contract signing.
• Relocation, reinstallation, or rework required due to owner or jurisdictional requests.

8. Unforeseen Conditions
• Latent site conditions, hazardous materials (asbestos, contaminated soil, mold, etc.), underground obstructions, or unknown utilities.
• Any delays or costs arising from conditions outside CSLM’s control (weather, site access, third-party contractors, etc.).

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9. Warranty Limitations
• Damage caused by improper site prep, utility failures, external contractors, misuse, vandalism, or acts of God.
• Warranty does not cover owner-performed repairs or modifications performed without CSLM approval.

Additional Notes
• Lead time begins only after signed proposal, signed floor plan approval, and deposit are received. Purchase order will be required prior to fabrication start date. • Pricing is based on information provided at the time of the bid; changes in site conditions, scope, or jurisdictional requirements may affect cost.
• Any additional work requested by the client will require a written change order.

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CSLM Construction Inc.

Standard Modular Building Finishes & Selections
Purpose: This document outlines the standard finishes, materials, and selections used in CSLM modular buildings. Sections are intentionally formatted to allow insertion of photos, product cut sheets, or project-specific notes. Final selections may vary by project, jurisdiction, and client requirements.

Date: _____________________2/6/2026
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1. Exterior Construction
Exterior Wall System
- Wall Construction: _____________________________________________________________ - Insulation (R-Value): ____________________________
Exterior Finish (Standard)
- Material: ______________________________________
- Color: _________________________________________
Roof System
- Roof Type: _____________________________________
- Roofing Material: ______________________________
- Insulation: ____________________________________
Exterior Doors & Windows
- Door Type: _________________________________________
- Window Type (dual pane, tempered, etc.): ____________________________________ - Finish / Color: ________________________________

2. Interior Wall & Ceiling Finishes
Interior Wall Finish (Standard)
- Wall Type: _____________________________________
- Finish (e.g., vinyl wrapped gypsum, painted drywall): ______________________________________ - Color: _________________________________________
Hampton Grey
Commercial Metal Door 36"x84" Standard
Door (Trim Color) / Window (White)
Plygem 24"x48" Vinly Cased Window
EPDM
R-39
R-19
T1-11 Smart Siding
Body Color / Dunn Edwards Whisper Gray
T1-11 Siding, House Wrap, 2x6 Studs, R-19 Insulation, 5/8 Dry Wall 4'x8' Luan Wall Panel; Vinyl Wrapped Gypsum
Dry Wall
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Ceiling System
- Ceiling Type: _____________________________________________________________ - Height (AFF): _________________________________
- Finish / Color: _______________________________

3. Flooring
Standard Flooring
- Material (e.g., VCT, LVT, carpet tile): ____________________________________________ - Size
: _________________________________
- Color / Pattern: _______________________________________________ Optional Flooring Upgrades
- Notes / Cost Impact: __________________________
- Notes / Cost Impact: __________________________
Black/Grey Patterned Carpet Tile AND Stone Tan VCT
Carpet Tile 2'x2' AND VCT 1'x1'
Carpet Tile Location: _________________________
VCT Location: _________________________
Vinyl Location: _________________________
Carpet Tile, VCT, and Vinyl Flooring Combination
$2,396.80
$0.00 Substitution
Kitchen
Bathroom/Restroom
Living Room and Bedrooms
8' Interior Drop Ceiling
2'x4' Random Fissured Vinyl Faced Fiberglass Ceiling Tile (Insulated) White
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4. Millwork, Cabinets & Countertops
Cabinetry (Bathroom)
- Material: _____________________________________
- Finish / Color: _______________________________
- Hardware: ____________________________________
Cabinetry (Kitchen)
- Material: _____________________________________
- Finish / Color: _______________________________
- Hardware: ____________________________________
Countertops (Standard)
- Material (e.g., plastic laminate, solid surface): ______________________________ - Edge Profile: _________________________________
Optional Upgrades
* Customer can choose granite or marble countertop of their choice. Additional pricing to apply. - Notes / Cost Impact: __________________________
Pricing TBD Upon Customer Request
Formica Laminate Countertop
Framed, Non-Rounded
Soft Grey or White Available Standard; (Additional Option: Navy and Sand) Black
Plywood Cabinet
Plywood Cabinet
Grey or Black
White
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5. Electrical & Lighting
Lighting (Standard)
- Fixture Type: _________________________________
- Color Temperature: ___________________________

6. Plumbing Fixtures (If Applicable)
Standard Fixtures
- Sink Type: ___________________________________
- Faucet Type: _________________________________
- ADA Compliance: ☐ Yes ☐ No

7. HVAC System
HVAC (Standard)
- System Type:
- Tonnage / Capacity: __________________________
Refurbsihed Bard 4 Ton Wall Hung R410A Air Conditioning Unit with Heat Strip Factory Installed

4.0 Ton
Standard Widespread 2-Handle Bathroom Faucet in Chrome
Kraus Loften Kitchen Combination Sink
AT3 2'x4' Troffer Straight Floating LED Center
3000K
x
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Optional Upgrades
- System Type: ______________________________________
- Tonnage / Capacity: __________________________
- Notes / Cost Impact: __________________________

8. Appliances
Standard Included Appliances
Ceiling Fan: ________________________________
Water Heater: __________________________________
Other: ______________________________________
Rheem Performance 40 Gal. Medium 4500-Watt Electric Water Heater Clarkson 44 in. LED Indoor Bronze Ceiling Fan
Bard 4 Ton Wall Hung R410A Air Conditioning Unit with Heat Strip Factory Installed

4.0 Ton
$14,062.50
Option Selected 2.12.2026
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Optional / Add-On Appliances (Additional Cost)
Refrigerator: ________________________________
Cost Impact: __________________________
Microwave: __________________________________
Cost Impact: __________________________
Range / Cooktop: _____________________________
Cost Impact: __________________________
Whirlpool 36" Full-Depth Refrigerator in Fingerprint Resistant Stainless Finish $2,855.75
$386.25
Whirlpool 1.9 cu. Over-the-Range Microwave in Stainless Steel $2,976.12
Whirlpool 4 Burner Element Single Oven Electric Range in Stainless Finish No Additional Appliances Selected
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Dishwasher: _________________________________
Cost Impact: __________________________
Water Heater Upgrade: ________________________
Other: ______________________________________

9. Notes & Project-Specific Selections
General Scope Clarification
The finishes, selections, and specifications outlined herein represent CSLM Construction Inc.’s standard modular building package unless otherwise noted. Any deviations, upgrades, or project- specific requirements shall be identified in writing and may result in adjustments to pricing, lead time, or scope.

Turnkey Definition
Unless explicitly excluded, CSLM’s turnkey scope generally includes the fabrication or refurbishment of the modular building(s), delivery to site, set and installation, and completion of the modular building shell and interior per the agreed-upon scope. Site preparation, utilities, and civil work are excluded unless specifically listed.

Site Work & Utilities (Excluded Unless Noted)
Site preparation, grading, foundations, utility connections (including but not limited to electrical, plumbing, data, sewer, water, gas), and any associated trenching or civil work are by others unless specifically included in the proposal or agreement.

Code Compliance & Jurisdictional Requirements
All modular buildings are manufactured in accordance with applicable California Building Code (CBC) requirements at the time of production. Local jurisdictional requirements, agency-specific standards (including DSA where applicable), and plan check comments may require modifications that could impact cost or schedule.

Whirlpool 24" Built-In Tall Tub Dishwasher in Fingerprint Resistant Stainless Finish $2,306.87
Rheem Performance 55 Gal. Medium 4500-Watt Electric Water Heater Cost Impact: __________________________ $2,925.44
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Finish Availability & Substitutions
Finish materials, fixtures, and appliances are subject to availability at the time of procurement.

CSLM reserves the right to substitute materials of equal or greater quality if original selections become unavailable, discontinued, or subject to extended lead times, with client notification.

Refurbished Units (If Applicable)
For refurbished modular buildings, finishes and components are selected to achieve a high- quality appearance and performance standard. Minor cosmetic variations may occur due to the nature of refurbishment, though all systems are fully inspected and brought to operational standards.

On-Site Installed Components
Certain components—such as flooring, cabinetry, countertops, appliances, or specialty finishes—may be installed on site depending on project requirements, logistics, or jurisdictional constraints. These items may not be present in factory progress photos.

Lead Times & Scheduling
Production lead times and installation durations are estimates based on current workloads, material availability, and project readiness. Final scheduling is contingent upon receipt of a signed agreement, required deposits, approved drawings, and Notice to Proceed (NTP).

Plans & Engineering
Modular drawings and engineering are prepared only upon request at additional cost for permitting and construction purposes. Not standard included.

Photos & Marketing Use
Any photos provided or taken during fabrication or installation may be used by CSLM for marketing purposes unless otherwise requested in writing by the client.

Final Scope Governs
The final executed agreement, along with its exhibits and approved plans, shall govern the complete scope of work. Verbal discussions or preliminary documents are non-binding unless incorporated into the final contract.

Disclaimer: Final finishes and selections are subject to availability, code requirements, and project-specific approvals. CSLM Construction Inc. reserves the right to substitute equal or better materials as required.

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Client Acknowledgment & Approval
By signing in the spaces provided above, the undersigned acknowledges and approves the listed finish selections as indicated within this document. For any finishes noted as “pending,” the client understands there is still an opportunity to finalize these selections.

All approved finishes may be revised at the client’s request up until rough electrical and rough plumbing are completed and have passed inspection. After that point, materials will be ordered, and fabrication/installation will proceed accordingly.

Any changes requested following that stage of construction may result in additional charges for labor, materials, and/or schedule impacts.

Client Approval for Exterior and Interior Selections:

Authorized Personnel Name/Title: _____________________________________________ Signature: ______________________________________________ Date: _______________

______________________________________________________________________________ FOR CSLM CONSTRUCTION INC. USE ONLY
The following signature confirms that the above-listed selections have been reviewed and are approved by CSLM for use in the project, based on the customer’s approval and current project status.

CSLM Representative Name: ______________________________________ Title: __________________________________________________________ Signature: _____________________________________________________ Date: _______________________

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PRODUCT MODEL NUMBERS
Because Whirlpool Corporation includes a continuous commitment to improve our products, we reserve the right to change materials and specifications without notice.

Dimensions are for planning purposes only. For complete details, see Installation Instructions packed with product. Specifications subject to change without notice.

Ref. W11508843A
04/19/2021
WEE515S0LWEC310S0L
Front Control Electric Ranges

ELECTRICAL CONNECTION
To properly install your range, you must determine the type of electrical connection you will be using and follow the instructions provided for it here.
■ Range must be connected to the proper electrical voltage and frequency as specified on the model/serial/rating plate. The model/ serial/rating plate is located behind the oven door on the top right- hand side of the oven frame.
■ This range is manufactured with the neutral terminal connected to the cabinet. Use a 3-wire, UL listed, 40- or 50-amp power supply cord (pigtail). See the following Range Rating chart. If local codes do not permit ground through the neutral, use a 4-wire power supply cord rated at 250 volts, 40- or 50-amps and investigated for use with ranges.

Range Rating* Specified Rating of
Power Supply Cord Kit
and Circuit Protection
120/240 Volts 120/208 Volts Amps

8.8 - 16.5 KW 7.8 - 12.5 KW 40 or 50**

16.6 - 22.5 KW 12.6 - 18.5 KW 50
* The NEC calculated load is less than the total connected load listed on the model/serial/rating plate.
** If connecting to a 50-amp circuit, use a 50-amp rated cord with kit. For 50-amp rated cord kits, use kits that specify use with a nominal 13/8" (3.5 cm) diameter connection opening.
■ A circuit breaker is recommended.

PRODUCT DIMENSIONS
This manual covers several models. Your model may appear different from the models depicted. Dimensions given are maximum dimensions across all models.

A B
D
E
F
C
A. 1³⁄16" (3.0 cm) height from cooktop to top of vent
B. 297⁄8" (75.9 cm)
C. Model/serial/rating plate (located behind the oven door on the top right-hand side of the oven frame)
D. WEE515SAL: 34" (86.4 cm) height to top of cooktop edge with leveling legs screwed all the way in*
Other models: 36" (91.4 cm) height to top of cooktop edge with leveling legs screwed all the way in*
E. 2825⁄64” (72.1 cm) max. depth from front of console to back of range F. 291⁄64” (73.7 cm) max. depth from handle to back of range IMPORTANT: Range must be level after installation. Follow the instructions in the “Level Range” section
of the Owner's Manual.

Using the cooktop as a reference for leveling the range is not recommended.
* Range can be raised approximately 1" (2.5 cm) by adjusting the leveling legs.

WEE515SAL YWEE515S0L
439
Because Whirlpool Corporation includes a continuous commitment to improve our products, we reserve the right to change materials and specifications without notice.

Dimensions are for planning purposes only. For complete details, see Installation Instructions packed with product. Specifications subject to change without notice.

Ref. W11508843A
04/19/2021

CABINET DIMENSIONS
Cabinet opening dimensions shown are for 25" (64.0 cm) countertop depth, 24" (61.0 cm) base cabinet depth and 36" (91.4 cm) countertop height.

IMPORTANT: If installing a range hood or microwave hood combination above the range, follow the range hood or microwave hood combination installation instructions for dimensional clearances above the cooktop surface.

Range may be installed next to combustible walls with zero clearance.

A. 18" (45.7 cm) upper side cabinet to countertop
B. 13" (33 cm) max. upper cabinet depth
C. 30" (76.2 cm) min. opening width
D. For minimum clearance to top of cooktop, see NOTE*.

E. 30" (76.2 cm) min. opening width
F. The shaded ar ea is recommended for installation of grounded outlet.

G. 131/8" (33.3 cm)
H. 711/16" (19.5 cm)
I. 413/16" (12.2 cm)
J. 311/16" (9.4 cm)
K. Cabinet door or hinges should not extend into the cutout. * NOTE: 24" (61.0 cm) minimum when bottom of wood or metal cabinet is shielded by not less than 1/4" (0.64 cm) flame retardant millboard covered with not less than No. 28 MSG sheet steel, 0.015" (0.4 mm) stainless steel, 0.024" (0.6 mm) aluminum or 0.020" (0.5 mm) copper. 30" (76.2 cm) minimum clearance between the top of the cooking platform and the bottom of an uncovered wood or metal cabinet.

K
A
B
C
D
E
G
H
I
J
F
I
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12/24 FORM NO. THD-PE06 N Rev. 9

PERFORMANCE
20 to 50-Gallon Capacities
240 Volt AC/Single Phase
Double and Single Element Models
See specifications chart on back.

PERFORMANCE® electric water heaters
feature dual copper heating elements
and a six-year warranty
Efficiency
n .90 - .93 UEF
n Isolated tank design reduces
conductive heat loss
n Dual 3800W or 4500W copper
heating elements depending on unit
Performance
n FHR: 33 - 61 gallons, based on
gallon capacity
n Recovery: Up to 21 GPH at a
90° F rise, depending on model†
Longer Life
n Premium grade anode rod provides
long-lasting tank protection
Features
n Electric junction box located above
heating elements for easy installation
n Over-temperature protector cuts
off power in excess temperature
situations
Plus…
n Temperature and pressure relief valve
included
n Models are compliant to HUD
Standards for manufactured housing
and modular construction
n Low lead compliant
Warranty
n 6-Year limited warranty for tank
and parts, 1-year full in-home labor
warranty*
*See written warranty for complete details
Units meet or exceed ANSI requirements and have
been tested according to D.O.E. procedures. Units
meet or exceed the energy efficiency requirements
of NAECA, ASHRAE standard 90, ICC Code and all
state energy efficiency performance criteria.

PERFORMANCE
®
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Fuel Type Description
Nominal
Gallon
Capacity
Rated
Gallon
Capacity
Model
Number
Recovery
in G.P .H.
90° F Rise
First Hour
Rating
(Gallons)
Tank
Height
A
Height to
Water Conn.

B
Diameter
C
Ship
Weight
(LBS.)
Uniform
Energy Factor
(UEF)
Electric Tall 50 45 XE50T06ST45U1 21 61 58-7/8 61-5/8 20-1/4 121 0.93 Electric Medium 50 45 XE50M06ST45U1 21 61 48 50-1/2 23 132 0.93 Electric Short 47 43 XE47S06ST45U1 21 54 32 34 26-1/4 148 0.93 Electric Tall 40 36 XE40T06ST45U1 21 54 60-3/4 63-5/8 19-1/4 109 0.93 Electric Medium 40 36 XE40M06ST45U1 21 53 48-1/4 50-1/2 20-1/4 106 0.93 Electric Medium 40 36 XE40M06ST38U1 17 52 48-1/4 50-1/2 20-1/4 106 0.93 Electric Short 38 35 XE38S06ST45U1* 21 51 31-1/2 34 23 108 0.92 Electric Short 38 35 XE38S06ST38U1* 17 49 31-1/2 34 23 108 0.91 Electric Short 36 33 XE36S06ST45U0 21 46 31-1/2 33 24-1/4 118 0.92 Electric Short 36 33 XE36S06ST38U0 17 34 31-1/2 33 24-1/4 118 0.92 Electric Tall 30 27 XE30T06ST45U1 21 46 47-1/2 50-3/8 19 92 0.92 Electric Tall 30 27 XE30T06ST38U1 17 44 47-1/2 50-3/8 19 92 0.92 Electric Medium 30 27 XE30M06ST45U1 21 45 37-1/2 40-1/2 20-1/4 92 0.90 Electric Short 30 27 XE30S06ST45U1** 21 46 30 32 19-3/4 110 0.92 Electric Short 30 27 XE30S06ST38U1** 17 33 30 32 19-3/4 110 0.92 Electric Short 28 25 XE28S06ST45U0 21 45 30 31-1/8 23 95 0.92 Electric Short 28 25 XE28S06ST38U0 17 45 30 31-1/8 23 95 0.92 Electric Short 20 N/A XE20S06ST38U0 17 N/A 31-1/2 31-1/2 17 62 N/A * Insulation blanket(s) required to achieve UEF value. Water heater dimensions prior to installing insulation blanket(s). Blanket(s) will be included with water heater. The blanket(s) add 2 inches to the tank height and 4 inches to tank diameter. ** Insulation blanket(s) required to achieve UEF value. Water heater dimensions prior to installing insulation blanket(s). Blanket(s) will be included with water heater. The blanket(s) add 2-1/2 inches to the tank height and 10 inches to tank diameter.

Uniform Energy Factor and rated gallon capacity based on Department of Energy (DOE) requirements. • Heaters furnished with standard 240 volt AC, single phase non-simultaneous wiring, and 4500 watt upper and lower heating elements. • All models equipped with heat traps.
†Recovery calculations used are based on 4500 watt elements used in non-simultaneous operation.

C

DIAMETER
A
B
HOT
WATER

CONNECTION COLD
WATER

CONNECTION
ANODE
ROD

RELIEF VALVE

CONNECTION
8"
WATER CONNECTIONS ALL 3/4" N.P.T.

PERFORMANCE
®
Electric Specifications
12/24 FORM NO. THD-PE06 N Rev. 9
In keeping with its policy of continuous progress and product improvement, Rheem reserves the right to make changes without notice.

Rheem Water Heating • 1115 Northmeadow Parkway, Suite 100 Roswell, Georgia 30076 • www.rheem.com
† Recovery = wattage/2.42 x temp. rise °F.

Example: 4500W = 21 GPH

2.42 x 90°
† Recovery = wattage/2.42 x temp. rise °F.

Example: 3800W = 17 GPH

2.42 x 90°
442
443
444
ORDERING EXAMPLE : AT3 - 2 4 - L70/835 - D - OPTIONS - CONTROL/DIM - UNV SERIES WIDTH LENGTH LUMENS [1] CRI CCT SHIELDING
AT3 1 1′ [2]
2 2′
2 2′
4 4′
1x4
L30 3,000lm
L50 5,000lm
L63 6,300lm
2x2
L30 3,000lm
L40 4,000lm
L50 5,000lm
2x4
L40 4,000lm
L55 5,500lm
L70 7,000lm
L100 10,000lm
8 80
9 90
27 2700K
30 3000K
35 3500K
40 4000K
50 5000K
D Diffuse matte acrylic center
P Perforated center [3]
OPTIONS CONTROL [4]
EM/10W 10-watt emergency battery [5]
EM/10WLP Low-profile 10-watt emergency battery [6]
EM/12W 12-watt emergency battery [7]
EQCLIPS Earthquake clips [8]
(L__) Additional lower lumen packages available [9]
Example: 5,000 nominal lumens =
AT3-24-L55/835-D- (L50).

HE High efficacy lumen package [10]
SS Sani-shield acrylic cover with double gasket [11]
SS/PC Sani-shield polycarbonate cover with double gasket [12] AMW Anti-microbial white finish
NEMA F Flange kit, factory installed [13]
CP Chicago Plenum (CCEA)
See page 5 for ADDITIONAL CONTROL OPTIONS.
– None
AVI-LVFA Avi-on wireless fixture control [14]
AVI-LVFA-CS2-PIR Avi-on wireless fixture control with
PIR motion and daylight sensor [15]
AWNR Lutron Athena wireless node integral
fixture control, RF only [16]
AWNS Lutron Athena wireless node integral
fixture control, RF with daylight and
occupancy sensing [17]

DRIVER VOLTAGE
See page 5 for ADDITIONAL DRIVER OPTIONS.

DIM Driver with external 0-10V dimming wires
DRV Driver without external dimming wires
DA Driver with 12V auxiliary power, without
external dimming wires [18]
DSR Sensor-ready driver without external
dimming wires (D4i DALI-2) [19]
120 120V
277 277V
UNV 120-277V
347 347V [20]
NOTES
1 Lumen output based on D Shielding, 80 CRI/3500K CCT. Actual performance may vary +/-5%, see page 2 for FIXTURE
PERFORMANCE DATA . Additional lumen package available, see Options.
2 4′ length only.
3 Decreases lumen output by 15%
4 See page 4 for AVI-ON BLUETOOTH WIRELESS CONTROL
DETAILS. See page 3 for SENSOR & NODE PLACEMENT
DETAILS.
5 2x2, 2x4 only.
6 1x4 only.
7 2x2, 2x4 only. Not available when CEC regulations are required. 8 4 per fixture. Optional for 1″ grid installations. Required for 9/16″ grid mounting. Not available with NEMA F Option.
9 Specify in increments of 100 nominal lumens. Option must be specified with next higher lumen package.
10 Not available with 2x4 L40 lumen package. See page 2 for FIXTURE PERFORMANCE DATA.
11 Reduces lumen output by 10%. See page 3 for FIXTURE DETAILS.
12 Reduces lumen output by 10%. See page 3 for FIXTURE DETAILS.
13 See page 3 for CROSS SECTIONS.
14 DA Driver only.
15 DA Driver only.
16 DA and DSR Drivers only.
17 DA and DSR Drivers only.
18 Avi-on and Lutron Athena Controls only.
19 Lutron Vive and Athena Controls only.
20 Not available with EM batteries, DA, or DSR drivers.

CATALOG #: ���������������������������������������������� TYPE : ���������������������������������������������������� PROJECT: �������������������������������������������������

FEATURES
■ Backlit curved lens provides uniform
illumination for visual comfort
■ Distinct straight floating center detail
creates a highly-aesthetic presence
■ Sleek, extruded center complements MX4
continuous light series
■ HE option delivers superior efficacies up
to 146 lm/W
■ Hinged door frame with optical assembly
swings down to allow easy access from
room side of fixture
■ Diffuse or perforated lens options
enhance the space
■ Optional gasketed acrylic lens helps
protect against contaminants
■ Anti-microbial finish option suppresses
the spread of dangerous micro-
organisms, mold, and bacterial growth
■ Wireless in-fixture control solutions
available
■ Made Right Here® in the USA

SPECIFICATIONS
■ HOUSING– Precision die-formed
22-gauge C.R.S.
■ DOOR FRAME – Hinged, flat, extruded
aluminum door frame with optical
assembly.
■ SHIELDING – Diffuse molded acrylic lens
with center detail.
■ FINISH – 95% reflective white polyester
powder coat bonded to phosphate-free,
multi-stage pretreated metal. All parts
painted after fabrication to facilitate
installation, increase efficiency, and
inhibit corrosion.
■ ELECTRICAL – High-quality mid-power
LED boards. L70 >60,000 hours per IES
TM-21. L80 > 102,000 hours with HE
option. 50/60 Hz constant current driver.
■ MOUNTING – NEMA Type “G” 15/16″ or
1″ grid standard. For NEMA Type “NFG”
and “SG” 9/16″ grid installations, specify
EQCLIPS option. Drywall flange kit
available, see options.
■ LISTINGS –
■ cCSAus certified as luminaire suitable for
dry or damp locations.
■ IC-rated for direct contact with insulation.
■ City of Chicago Environmental Air
approved when specified with CP option.
■ Build America, Buy America (BABA)
and Buy American Act (BAA) compliant.

Request certification at
hew.com/buy-american
■ WARRANTY – 5-year limited warranty, see
hew.com/warranty
2x2 | 2x4
4-3/8/uni2033
23-5/8/uni2033
H.E. Williams, Inc. Carthage, Missouri www.hew.com 417-358-4065 Designed and Manufactured in the USA Information contained herein is subject to change without notice. Recessed