Agenda packet, regular meeting, second session — Palm Springs City Council, December 10, 2025 (part 6 of 8)

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RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS, CALIFORNIA, DETERMINING THE

NECESSITY FOR COMMUNITY FACILITIES DISTRICT
NO. 2025-1 (SERENA PARK) OF THE CITY OF PALM

SPRINGS TO INCUR BONDED INDEBTEDNESS IN AN

AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED
$12,500,000 FOR IMPROVEMENT AREA NO. 1,
$10,600,000 FOR IMPROVEMENT AREA NO. 2,
$15,000,000 FOR IMPROVEMENT AREA NO. 3, AND
$7,500,000 FOR IMPROVEMENT AREA NO. 4 FOR

PROVIDING PUBLIC FACILITIES WITHIN AND FOR THE

COMMUNITY FACILITIES DISTRICT AND IMPROVEMENT
AREA NOS. 1, 2, 3, AND 4 THEREOF, AND CALLING

SPECIAL ELECTIONS FOR THE IMPROVEMENT AREAS

OF THE COMMUNITY FACILITIES DISTRICT ON

PROPOSITIONS FOR INCURRING SUCH BONDED

INDEBTEDNESS
WHEREAS, on October 22, 2025, the City Council (the "City Council") of the City of Palm Springs (the "City"), pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code (the "Act"), adopted a resolution declaring the necessity (the “Resolution of Necessity”) for Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs, County of Riverside, State of California (the "District"), to incur a bonded indebtedness for the purpose of providing and financing public facilities that are necessary to meet increased demands placed upon the City (the “Authorized Facilities”) and as a result of development of the property therein; and
WHEREAS, on December 10, 2025, at the time and place of the hearing, as set forth in the Resolution of Necessity and the notice thereof, the City Council conducted the hearing and afforded all persons interested, including persons owning property within the District, an opportunity to be heard on the proposed authorization to incur bonded indebtedness, and no protests were received; and WHEREAS, pursuant to Section 53350 of the California Government Code, by adoption of the Resolution of Necessity, the City Council designated portions of the property within the District as Improvement Area No. 1, Improvement Area No. 2, Improvement Area No. 3, and Improvement Area No. 4 (each an “Improvement Area” and together the “Improvement Areas”), and approved proposed bonded indebtedness for each Improvement Area of the District, and the effect of such designation is that the property will be responsible only for the payment of special taxes which will be levied for the payment of principal of and interest on the bonds of the related Improvement Area of the District which will be issued and sold to finance the Authorized Facilities for such portion of the property; and

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WHEREAS, on December 10, 2025, at the conclusion of the hearing, the City Council adopted the resolution of formation pursuant to Section 53325.1 (a) of the California Government Code (the "Resolution of Formation"), establishing Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs, County of Riverside, State of California; and
WHEREAS, the City Council has determined that it is necessary for each Improvement Area of the District to incur a bonded indebtedness for the purpose of providing and financing the Authorized Facilities which are necessary to the development of the property therein; and
WHEREAS, the City Clerk has received a statement from the Registrar of Voters of the County of Riverside that there are no persons registered to vote in the territory of the Improvement Areas of the District.

THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, HEREBY RESOLVES AS FOLLOWS:

SECTION 1. Recitals. The forgoing recitals are true and correct and are incorporated herein by this reference.

SECTION 2. Necessity and Bonded Indebtedness. It is necessary that bonded indebtedness be incurred by and for the District in an aggregate principal amount not to exceed $12,500,000 for Improvement Area No. 1, $10,600,000 for Improvement Area No. 2, $15,000,000 for Improvement Area No. 3, and $7,500,000 for Improvement Area No. 4 for the purposes of financing the design, construction and acquisition of the Authorized Facilities for each Improvement Area of the District as described in the Resolution of Formation.

SECTION 3. Costs Included. The amount of the proposed bonded indebtedness shall include all costs and estimated costs incidental to, or connected with, the accomplishment of the purposes for which the proposed bonded indebtedness is to be incurred, including, but not limited to, the estimated costs of construction and acquisition of the Authorized Facilities which are proposed to be provided within each Improvement Area of the District, acquisition of land and rights-of-way, satisfaction of contractual obligations relating to expenses or the advancement of funds for expenses existing at the time the bonds are issued, architectural, engineering, inspection, legal, fiscal and financial consultant fees, bond and other reserve funds and interest on any bonds of the Improvement Areas of the District estimated to be due and payable within two years from the date of the issuance of such bonds, election costs, and all costs of issuance of the bonds, including, but not limited to, underwriter's discount, fees for bond counsel, disclosure counsel, appraisers, municipal advisors, market absorption consultants and other consultants, costs of obtaining credit ratings, bond insurance premiums, fees for letters of credit, and other credit enhancement costs, and printing costs.

SECTION 4. Amount of Debt; Terms of Bonds. The aggregate principal amount of the bonded indebtedness to be incurred by the District in one or more series shall not

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exceed an aggregate principal amount of $12,500,000 for Improvement Area No. 1, $10,600,000 for Improvement Area No. 2, $15,000,000 for Improvement Area No. 3, and $7,500,000 for Improvement Area No. 4. Each series of bonds issued in an Improvement Area shall have a maximum term of not to exceed 40 years. The maximum annual rate of interest to be paid semiannually on each series of bonds shall not exceed 12 percent per annum or such other rate as may be the maximum interest rate permitted by law.

SECTION 5. Propositions to be Submitted to Voters.
(a) The propositions to be submitted to the voters within each Improvement Area of the District with respect to the proposed bonded indebtedness shall be as follows:

Improvement Area No. 1: Shall a bonded indebtedness in
one or more series in an aggregate principal amount not to exceed $12,500,000 be incurred by and for Improvement
Area No. 1 of Community Facilities District No. 2025-1
(Serena Park) of the City of Palm Springs, County of
Riverside, State of California, with each series of bonds having a maximum term of not more than 40 years and with interest at a rate or rates not to exceed the maximum
interest rate permitted by law, for the purposes of financing and providing the authorized facilities for Community
Facilities District No. 2025-1 (Serena Park), including the design, construction and acquisition of public facilities authorized by the Mello-Roos Community Facilities Act of 1982 that are necessary for the development of the property within Community Facilities District No. 2025-1 (Serena Park), including, but not limited to the following facilities to be owned by the City: street and transportation improvements including rights of way, curb and gutters, paving, sidewalks, striping and signage, and other improvements related
thereto; park acquisition and improvements; storm drainage improvements; and sewer improvements of the City of Palm Springs, as provided in the Resolution of Formation adopted by the City Council of the City of Palm Springs on December 10, 2025?
Improvement Area No. 2: Shall a bonded indebtedness in
one or more series in an aggregate principal amount not to exceed $10,600,000 be incurred by and for Improvement
Area No. 2 of Community Facilities District No. 2025-1
(Serena Park) of the City of Palm Springs, County of
Riverside, State of California, with each bond issue having a maximum term of not more than 40 years and with interest at a rate or rates not to exceed the maximum interest rate

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permitted by law, for the purposes of financing and providing the authorized facilities for Community Facilities District No. 2025-1 (Serena Park), including the design, construction and acquisition of public facilities authorized by the Mello-Roos Community Facilities Act of 1982 that are necessary for the development of the property within Community Facilities District No. 2025-1 (Serena Park), including, but not limited to the following facilities to be owned by the City: street and transportation improvements including rights of way, curb and gutters, paving, sidewalks, striping and signage, and other improvements related thereto; park acquisition and improvements; storm drainage improvements; and sewer
improvements of the City of Palm Springs, as provided in the Resolution of Formation adopted by the City Council of the City of Palm Springs on December 10, 2025?
Improvement Area No. 3: Shall a bonded indebtedness in
one or more series in an aggregate principal amount not to exceed $15,000,000 be incurred by and for Improvement
Area No. 3 of Community Facilities District No. 2025-1
(Serena Park) of the City of Palm Springs, County of
Riverside, State of California, with each bond issue having a maximum term of not more than 40 years and with interest at a rate or rates not to exceed the maximum interest rate permitted by law, for the purposes of financing and providing the authorized facilities for Community Facilities District No. 2025-1 (Serena Park), including the design, construction and acquisition of public facilities authorized by the Mello-Roos Community Facilities Act of 1982 that are necessary for the development of the property within Community Facilities District No. 2025-1 (Serena Park), including, but not limited to the following facilities to be owned by the City: street and transportation improvements including rights of way, curb and gutters, paving, sidewalks, striping and signage, and other improvements related thereto; park acquisition and improvements; storm drainage improvements; and sewer
improvements of the City of Palm Springs, as provided in the Resolution of Formation adopted by the City Council of the City of Palm Springs on December 10, 2025?
Improvement Area No. 4: Shall a bonded indebtedness in
one or more series in an aggregate principal amount not to exceed $7,500,000 be incurred by and for Improvement
Area No. 4 of Community Facilities District No. 2025-1
(Serena Park) of the City of Palm Springs, County of
Riverside, State of California, with each bond issue having a maximum term of not more than 40 years and with interest at

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a rate or rates not to exceed the maximum interest rate permitted by law, for the purposes of financing and providing the authorized facilities for Community Facilities District No. 2025-1 (Serena Park), including the design, construction and acquisition of public facilities authorized by the Mello-Roos Community Facilities Act of 1982 that are necessary for the development of the property within Community Facilities District No. 2025-1 (Serena Park), including, but not limited to the following facilities to be owned by the City: street and transportation improvements including rights of way, curb and gutters, paving, sidewalks, striping and signage, and other improvements related thereto; park acquisition and improvements; storm drainage improvements; and sewer
improvements of the City of Palm Springs, as provided in the Resolution of Formation adopted by the City Council of the City of Palm Springs on December 10, 2025?
SECTION 6. Election. The date of the special elections with respect to the incurring of the aforementioned bonded indebtedness by the District, at which time the propositions set forth in Section 5 hereof shall be submitted to the voters of each Improvement Area of the District, is December 10, 2025, and that those special elections are hereby called for that date. Pursuant to Section 53326 of the California Government Code, since at the time of the close of the public hearing, and for at least the preceding 90 days, less than 12 persons have been registered to vote within the territory of the Improvement Areas, the vote in the special elections will be by the landowners of the Improvement Areas whose property would be subject to the special taxes if they were levied at the time of the elections, with each landowner of record at the close of the public hearing having one vote for each acre or portion of an acre of land that he or she owns within the applicable Improvement Area, and the special elections shall be conducted by the City Clerk (the "City Clerk"). The special elections shall be consolidated with the special elections with respect to the propositions regarding the levy of special taxes for the payment of the principal of and interest on the bonds of each Improvement Area of the District and establishing an appropriations limit for the Improvement Areas which has also been called for December 10, 2025. The consolidated special elections shall be conducted by the City Clerk pursuant to applicable provisions of the California Elections Code with respect to mail-ballot elections of cities and specifically Division 4 (commencing with Section 4000) of that Code, insofar as they may be applicable. The voted official ballots shall be received by the City Clerk by 5:00 p.m. on the date of the election; provided that if all qualified electors have voted, the election shall be closed with the concurrence of the City Clerk.

SECTION 7. Accountability Measures. Pursuant to Section 53410 of the California Government Code, if the voters approve the propositions contained in the official ballots for the consolidated special elections with respect to the Improvement Areas of the District incurring bonded indebtedness for the purposes for which such indebtedness is to be incurred and bonds of the Improvement Areas of the District are to be issued (the "Bond Propositions"), the incurring of such bonded indebtedness and

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the issuance of bonds of the Improvement Areas of the District shall be subject to the following accountability measures:
(a) The Bond Propositions shall identify the specific purposes for which the bonds are to be issued;
(b) The proceeds of the bonds shall be applied only for the specific purposes identified in the Bond Propositions;
(c) An account or accounts shall be created pursuant to the fiscal agent agreement for such bonds into which the proceeds of the sale of such bonds shall be deposited; and
(d) The City Manager, or his designee(s), shall file a report with the City Council no later than January 2 of the calendar year beginning after the year in which the bonds are issued and annually thereafter, which shall contain the information required by Section 53411 of the California Government Code.

The City Council finds that the Bond Propositions which will be set forth in the official ballots for the consolidated special elections, and which are set forth in Section 5 hereof, identifies the specific purposes for which the Improvement Areas of the District will incur bonded indebtedness and issue bonds.

SECTION 8. CEQA. The City Council finds this Resolution is not subject to the California Environmental Quality Act (“CEQA”) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

SECTION 9. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid by a court of competent jurisdiction, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable.

SECTION 10. Effective Date. This Resolution shall become effective immediately upon its adoption.

PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS 10TH DAY OF DECEMBER, 2025.

SCOTT STILES, CITY MANAGER
ATTEST:

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BRENDA PREE, CITY CLERK

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )
I, BRENDA PREE, City Clerk of the City of Palm Springs, hereby certify that Resolution No. _____ is a full, true and correct copy as was duly adopted at a regular meeting of the City Council of the City of Palm Springs on December 10, 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this 10th day of December, 2025.

BRENDA PREE, CITY CLERK

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ATTACHMENT C
Resolution
Calling Special Election

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RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS, CALIFORNIA, CALLING A SPECIAL

ELECTION AND SUBMITTING TO THE VOTERS OF EACH
OF THE IMPROVEMENT AREA NOS. 1, 2, 3, AND 4 OF
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA

PARK) OF THE CITY OF PALM SPRINGS PROPOSITIONS

WITH RESPECT TO THE ANNUAL LEVY OF SPECIAL

TAXES WITHIN SAID COMMUNITY FACILITIES DISTRICT

AND ESTABLISHING AN APPROPRIATIONS LIMIT FOR

SAID COMMUNITY FACILITIES DISTRICT
WHEREAS, pursuant to Section 53325.1 of the California Government Code, the City Council (the “City Council”) of the City of Palm Springs (“the City”) has adopted a resolution establishing Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs, County of Riverside, State of California (the “District”) and the boundaries thereof (the “Resolution of Formation”); and WHEREAS, the owners of the property to be included in the District (the “Owners”) have requested that in establishing the District, the City Council designate four separate improvement areas (each an “Improvement Area” and, collectively, the “Improvement Areas”) over portions of the property included therein so that separate series of the bonds of the District may be issued on behalf of each Improvement Area to finance the public facilities secured by the levy of special taxes within each applicable Improvement Area as further described in resolution of intention adopted by the City Council on October 22, 2025 (the “Resolution of Intention”); and WHEREAS, pursuant to Section 53351 of the California Government Code, the City Council has also adopted a resolution determining that it is necessary that the District incur bonded indebtedness in one or more series of bonds in the maximum aggregate principal amount as follows: (i) for Improvement Area No. 1, $12,500,000, (ii) for Improvement Area No. 2, $10,600,000, (iii) for Improvement Area No. 3, $15,000,000, and (iv) for Improvement Area No. 4, $7,500,000 for the purposes of financing the design, construction, and acquisition of certain public facilities for the District (the “Bond Resolution”); and
WHEREAS, by the Bond Resolution, the City Council called special elections on the propositions to be submitted to the voters of each of the Improvement Areas of the District with respect to each Improvement Area incurring bonded indebtedness for the purpose of financing such public facilities for the District and each Improvement Area therein; and
WHEREAS, pursuant to Sections 53326 and 53350 of the California Government Code, it is necessary that the City Council also submit to the voters of each Improvement Area the proposition relating to the annual levy of special taxes on the property within each Improvement Area to pay the principal of and interest on the bonds

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of each Improvement Area which may be issued and sold to finance the design, construction and acquisition of the public facilities, if such bonds are authorized and issued, or to pay or accumulate funds for paying the costs of public facilities; and WHEREAS, pursuant to Section 53325.7 of said Code, the City Council may also submit to the voters of the Improvement Areas of the District a proposition with respect to establishing an appropriations limit for each Improvement Area of the District.

THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, HEREBY RESOLVES, DETERMINES AND APPROVES AS FOLLOWS:

SECTION 1. Findings. The City Council finds that: (i) the foregoing recitals are true and correct and are incorporated herein by this reference; (ii) less than 12 persons have been registered to vote within the territory of the District (and each Improvement Area) during the 90 days preceding the close of the public hearing on December 10, 2025; (iii) pursuant to Section 53326 of the California Government Code, as a result of the findings set forth in clause (ii) above, the vote in the special election called by this Resolution shall be by the landowners of the Improvement Areas of the District whose property would be subject to the special taxes if they were levied at the time of the elections, and each landowner shall have one vote for each acre, or portion thereof, which he or she owns within Improvement Area of the District which would be subject to the proposed special taxes if they were levied at the time of the elections; (iv) the Owners of all of the land in the Improvement Areas of the District have by written consent (a) waived the time limits set forth in said Section 53326 for holding the elections called by this Resolution and the elections on the propositions of the Improvement Areas of the District incurring a bonded indebtedness, which pursuant to Section 4 hereof are consolidated with the elections called hereby, (b) consented to the holding of the consolidated special elections on December 10, 2025, (c) waived notice and mailed notice of the time and date of the consolidated special elections, and (d) waived an impartial analysis by the City Attorney of the ballot propositions pursuant to Section 9280 of the California Elections Code and arguments and rebuttals pursuant to Sections 9281 to 9287, inclusive, of said Code, and mailing of a statement pursuant to Section 9401 of that Code; and (v) the City Clerk of the City has consented to the holding of the consolidated special elections on December 10, 2025.

SECTION 2. Call of Elections. The City Council hereby calls and schedules special elections for December 10, 2025 within and for each of the Improvement Areas of the District on (i) the proposition with respect to the annual levy of special taxes within each Improvement Area for the provision of public facilities for the Improvement Area, and for the payment of principal of and interest on the bonds of the Improvement Area, or to pay or accumulate funds for paying the costs of the design, construction and acquisition of public facilities, and (ii) the proposition with respect to establishing an appropriations limit for the Improvement Areas of the District.

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SECTION 3. Propositions.
(a) The propositions to be submitted to the voters of Improvement Area No. 1 at such special elections shall be as follows:

Proposition A: Shall a bonded indebtedness in one or more series in an aggregate principal amount not to exceed
$12,500,000 be incurred by and for Improvement Area No. 1 of Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs, County of Riverside, State of California, with each series of bonds having a maximum
term of not more than 40 years and with interest at a rate or rates not to exceed the maximum interest rate permitted by law, for the purposes of financing and providing the
authorized facilities for Community Facilities District No. 2025-1 (Serena Park), including the design, construction and acquisition of public facilities authorized by the Mello-Roos Community Facilities Act of 1982 that are necessary for the development of the property within Community Facilities District No. 2025-1 (Serena Park), including, but not limited to the following facilities to be owned by the City: street and transportation improvements including rights of way, curb and gutters, paving, sidewalks, striping and signage, and other improvements related thereto; park acquisition and improvements; storm drainage improvements; and sewer
improvements of the City of Palm Springs, as provided in the Resolution of Formation adopted by the City Council of the City of Palm Springs on December 10, 2025?
Proposition B: Shall special taxes be levied annually on taxable property within Improvement Area No. 1 of
Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs, County of Riverside, State of California, to pay the principal of and interest on the bonds of the improvement area which may be issued and sold to
finance the design, construction and acquisition of the public facilities described in Proposition A of this ballot, and costs incidental thereto, to replenish the reserve fund for the bonds, or to accumulate funds for future bond payments, including any amount required by federal law to be rebated to the United States with regard to the bonds, to pay or accumulate funds for paying the costs of the design,
construction and acquisition of such facilities, and to pay expenses incidental thereto and to the levy and collection of the special taxes, so long as the special taxes are needed to pay the principal of and interest on the bonds and for such other purposes, at the special tax rates and pursuant to the

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method of apportioning the special taxes set forth in Exhibit “A” to the Resolution of Formation adopted by the City
Council of the City of Palm Springs on December 10, 2025? Proposition C: Shall an appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, be established for Improvement Area No. 1 of Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs, County of Riverside, State of California, in the amount of $12,500,000?
(b) The propositions to be submitted to the voters of Improvement Area No. 2 at such special elections shall be as follows:

Proposition A: Shall a bonded indebtedness in one or more series in an aggregate principal amount not to exceed
$10,600,000 be incurred by and for Improvement Area No. 2 of Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs, County of Riverside, State of California, with each bond issue having a maximum term of not more than 40 years and with interest at a rate or rates not to exceed the maximum interest rate permitted by law, for the purposes of financing and providing the authorized facilities for Community Facilities District No. 2025-1 (Serena Park), including the design, construction and acquisition of public facilities authorized by the Mello-Roos Community Facilities Act of 1982 that are necessary for the development of the property within Community Facilities District No. 2025- 1 (Serena Park), including, but not limited to the following facilities to be owned by the City: street and transportation improvements including rights of way, curb and gutters, paving, sidewalks, striping and signage, and other
improvements related thereto; park acquisition and
improvements; storm drainage improvements; and sewer
improvements of the City of Palm Springs, as provided in the Resolution of Formation adopted by the City Council of the City of Palm Springs on December 10, 2025?
Proposition B: Shall special taxes be levied annually on taxable property within Improvement Area No. 2 of
Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs, County of Riverside, State of California, to pay the principal of and interest on the bonds of the improvement area which may be issued and sold to
finance the design, construction and acquisition of the public facilities described in Proposition A of this ballot, and costs incidental thereto, to replenish the reserve fund for the

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bonds, or to accumulate funds for future bond payments, including any amount required by federal law to be rebated to the United States with regard to the bonds, to pay or accumulate funds for paying the costs of the design,
construction and acquisition of such facilities, and to pay expenses incidental thereto and to the levy and collection of the special taxes, so long as the special taxes are needed to pay the principal of and interest on the bonds and for such other purposes, at the special tax rates and pursuant to the method of apportioning the special taxes set forth in Exhibit “B” to the Resolution of Formation adopted by the City
Council of the City of Palm Springs on December 10, 2025? Proposition C: Shall an appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, be established for Improvement Area No. 2 of Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs, County of Riverside, State of California, in the amount of $10,600,000?
(c) The propositions to be submitted to the voters of Improvement Area No. 3 at such special elections shall be as follows:

Proposition A: Shall a bonded indebtedness in one or more series in an aggregate principal amount not to exceed
$15,000,000 be incurred by and for Improvement Area No. 3 of Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs, County of Riverside, State of California, with each bond issue having a maximum term of not more than 40 years and with interest at a rate or rates not to exceed the maximum interest rate permitted by law, for the purposes of financing and providing the authorized facilities for Community Facilities District No. 2025-1 (Serena Park), including the design, construction and acquisition of public facilities authorized by the Mello-Roos Community Facilities Act of 1982 that are necessary for the development of the property within Community Facilities District No. 2025- 1 (Serena Park), including, but not limited to the following facilities to be owned by the City: street and transportation improvements including rights of way, curb and gutters, paving, sidewalks, striping and signage, and other
improvements related thereto; park acquisition and
improvements; storm drainage improvements; and sewer
improvements of the City of Palm Springs, as provided in the Resolution of Formation adopted by the City Council of the City of Palm Springs on December 10, 2025?

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Proposition B: Shall special taxes be levied annually on taxable property within Improvement Area No. 3 of
Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs, County of Riverside, State of California, to pay the principal of and interest on the bonds of the improvement area which may be issued and sold to
finance the design, construction and acquisition of the public facilities described in Proposition A of this ballot, and costs incidental thereto, to replenish the reserve fund for the bonds, or to accumulate funds for future bond payments, including any amount required by federal law to be rebated to the United States with regard to the bonds, to pay or accumulate funds for paying the costs of the design,
construction and acquisition of such facilities, and to pay expenses incidental thereto and to the levy and collection of the special taxes, so long as the special taxes are needed to pay the principal of and interest on the bonds and for such other purposes, at the special tax rates and pursuant to the method of apportioning the special taxes set forth in Exhibit “C” to the Resolution of Formation adopted by the City
Council of the City of Palm Springs on December 10, 2025? Proposition C: Shall an appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, be established for Improvement Area No. 3 of Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs, County of Riverside, State of California, in the amount of $15,000,000?
(d) The propositions to be submitted to the voters of Improvement Area No. 4 at such special elections shall be as follows:

Proposition A: Shall a bonded indebtedness in one or more series in an aggregate principal amount not to exceed
$7,500,000 be incurred by and for Improvement Area No. 4 of Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs, County of Riverside, State of California, with each bond issue having a maximum term of not more than 40 years and with interest at a rate or rates not to exceed the maximum interest rate permitted by law, for the purposes of financing and providing the authorized facilities for Community Facilities District No. 2025-1 (Serena Park), including the design, construction and acquisition of public facilities authorized by the Mello-Roos Community Facilities Act of 1982 that are necessary for the development of the property within Community Facilities District No. 2025- 1 (Serena Park), including, but not limited to the following

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facilities to be owned by the City: street and transportation improvements including rights of way, curb and gutters, paving, sidewalks, striping and signage, and other
improvements related thereto; park acquisition and
improvements; storm drainage improvements; and sewer
improvements of the City of Palm Springs, as provided in the Resolution of Formation adopted by the City Council of the City of Palm Springs on December 10, 2025?
Proposition B: Shall special taxes be levied annually on taxable property within Improvement Area No. 4 of
Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs, County of Riverside, State of California, to pay the principal of and interest on the bonds of the improvement area which may be issued and sold to
finance the design, construction and acquisition of the public facilities described in Proposition A of this ballot, and costs incidental thereto, to replenish the reserve fund for the bonds, or to accumulate funds for future bond payments, including any amount required by federal law to be rebated to the United States with regard to the bonds, to pay or accumulate funds for paying the costs of the design,
construction and acquisition of such facilities, and to pay expenses incidental thereto and to the levy and collection of the special taxes, so long as the special taxes are needed to pay the principal of and interest on the bonds and for such other purposes, at the special tax rates and pursuant to the method of apportioning the special taxes set forth in Exhibit “D” to the Resolution of Formation adopted by the City
Council of the City of Palm Springs on December 10, 2025? Proposition C: Shall an appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, be established for Improvement Area No. 4 of Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs, County of Riverside, State of California, in the amount of $7,500,000?
SECTION 4. Consolidation of Elections. The special elections called hereby on the propositions to be submitted to the voters of the District and of the Improvement Areas, as set forth in Section 3 hereof, shall be consolidated with the elections on the propositions regarding the Improvement Areas of the District incurring bonded indebtedness. The ballots for said consolidated elections shall be in the form attached hereto as Exhibit “A.”

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SECTION 5. Conduct of Elections. Except as otherwise provided in Section 6 hereof, the consolidated special elections shall be conducted by the City Clerk of the City pursuant to the California Elections Code governing mail ballot elections of cities, and in particular, the provisions of Division 4 (commencing with Section 4000) of said Code, insofar as they may be applicable.

SECTION 6. Election Procedures. The procedures to be followed in conducting the consolidated special elections on (i) the proposition of each of the Improvement Areas of the District incurring bonded indebtedness in an aggregate principal amount not to exceed $12,500,000 for Improvement Area No. 1, $10,600,000 for Improvement Area No. 2, $15,000,000 for Improvement Area No. 3, and $7,500,000 for Improvement Area No. 4; (ii) the propositions with respect to the levy of special taxes on taxable property within each Improvement Area to pay the principal of and interest on the bonds of the respective Improvement Areas of the District or to pay or accumulate funds for paying the costs of the design, construction and acquisition of public facilities; and (iii) the propositions with respect to establishing an appropriations limit for each Improvement Area of the District in the amount set forth in the applicable ballot (the “Consolidated Special Elections”) shall be as follows:
(a) Pursuant to said Section 53326 of the California Government Code, ballots for the Consolidated Special Elections shall be distributed to the qualified electors by the City Clerk by mail with return postage prepaid, or by personal service. (b) Pursuant to applicable sections of the California Elections Code governing the conduct of mail ballot elections of cities, and specifically Division 4 (commencing with Section 4000) of the California Elections Code with respect to elections conducted by mail, the City Clerk shall mail or deliver to each qualified elector an official ballot in the form attached hereto as Exhibit “A”, as appropriate, and shall also mail or deliver to all such qualified electors a ballot pamphlet and instructions to voter, including a sample ballot identical in form to the official ballot but identified as a sample ballot, a return identification envelope with prepaid postage thereon addressed to the City Clerk for the return of voted official ballots, and a copy of the Resolution of Formation; provided, however, that such statement, analysis and arguments have been waived with the unanimous consent of all the landowners.
(c) The official ballot to be mailed or delivered by the City Clerk to each landowner-voter shall have printed or typed thereon the name of the landowner-voter and the number of votes to be voted by the landowner-voter and shall have appended to it a certification to be signed by the person voting the official ballot which shall certify that the person signing the certification is the person who voted the official ballot, and if the landowner-voter is other than a natural person, that he or she is an officer of or other person affiliated with the landowner-voter entitled to vote such official ballot, that he or she has been authorized to vote such official ballot on behalf of the landownervoter, that in voting such official ballot it was his or her intent, as well as the intent of the landowner-voter, to vote all votes to which the landowner-voter is entitled based on its land ownership on the propositions set forth in the official ballot as marked thereon in the voting square opposite each such proposition, and further certifying as to the

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acreage of the landowner-voter’s land ownership within the applicable Improvement Area.
(d) The return identification envelope mailed or delivered by the City Clerk to each landowner-voter shall have printed or typed thereon the following: (i) the name of the landowner, (ii) the address of the landowner, (iii) a declaration under penalty of perjury stating that the voter is the landowner or the authorized representative of the landowner entitled to vote the enclosed ballot and is the person whose name appears on the identification envelope, (iv) the printed name and signature of the voter, (v) the address of the voter, (vi) the date of signing and place of execution of said declaration, and (vii) a notice that the envelope contains an official ballot and is to be opened only by the City Clerk.
(e) The instruction to voter form to be mailed or delivered by the City Clerk to the landowner-voters shall inform them that the official ballots shall be returned to the City Clerk properly voted as provided thereon and with the certification appended thereto properly completed and signed in the sealed return identification envelope with the certification thereon completed and signed and all other information to be inserted thereon properly inserted by 5:00 p.m. on December 10, 2025. (f) Upon receipt of the return identification envelopes which are returned prior to the voting deadline on the date of the Consolidate Special Elections, the City Clerk shall canvass the votes cast in the Consolidate Special Elections, and shall file a statement with the City Council as to the results of such canvass and the election on each proposition set forth in the official ballot.

SECTION 7. Accountability Measures. Pursuant to Section 53410 of the California Government Code, if the landowner voters approve the propositions contained in the official ballot for the Consolidated Special Elections with respect to the Improvement Areas incurring bonded indebtedness for the purposes for which such indebtedness is to be incurred and bonds of the Improvement Areas are to be issued (the "Bond Propositions"), the incurring of such bonded indebtedness and the issuance of bonds of the Improvement Areas shall be subject to the following accountability measures:
(a) The Bond Propositions shall identify the specific purposes for which the bonds are to be issued;
(b) The proceeds of the bonds shall be applied only for the specific purposes identified in the Bond Propositions;
(c) An account or accounts shall be created pursuant to the fiscal agent agreement for such bonds into which the proceeds of the sale of such bonds shall be deposited; and
(d) The City Manager, or designee(s), shall file a report with the City Council no later than January 2 of the calendar year beginning after the year in which the bonds

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are issued and annually thereafter, which shall contain the information required by Section 53411 of the California Government Code.

The City Council finds that the Bond Propositions as set forth in the official ballots for the Consolidated Special Elections attached hereto as Exhibit “A,” identify the specific purposes for which the Improvement Areas will incur bonded indebtedness and issue bonds.

SECTION 10. Effective Date. This Resolution shall become effective immediately upon its adoption.

PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS 10TH DAY OF DECEMBER, 2025.

SCOTT STILES, CITY MANAGER
ATTEST:

BRENDA PREE, CITY CLERK

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CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this 10th day of December, 2025.

BRENDA PREE, CITY CLERK

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55575.70015\44351270.1
A-1
EXHIBIT “A”

OFFICIAL BALLOT

CONSOLIDATED SPECIAL ELECTIONS FOR
IMPROVEMENT AREA NO. 1 OF
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK)

OF THE CITY OF PALM SPRINGS

COUNTY OF RIVERSIDE

STATE OF CALIFORNIA
December 10, 2025
To vote, mark a cross (x or +) in the voting square after the word “YES” or after the word “NO”. All marks otherwise made are forbidden.

If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Palm Springs and obtain another.

PROPOSITION A: Shall a bonded
indebtedness in one or more series in an
aggregate principal amount not to exceed
$12,500,000 be incurred by and for
Improvement Area No. 1 of Community
Facilities District No. 2025-1 (Serena Park) of
the City of Palm Springs, County of
Riverside, State of California, with each bond
issue having a maximum term of not more
than 40 years and with interest at a rate or
rates not to exceed the maximum interest
rate permitted by law, for the purposes of
financing and providing the authorized
facilities for Community Facilities District No.
2025-1 (Serena Park), including the design,
construction and acquisition of public facilities
authorized by the Mello-Roos Community
Facilities Act of 1982 that are necessary for
the development of the property within
Community Facilities District No. 2025-1
(Serena Park), including, but not limited to
the following facilities to be owned by the
City: street and transportation improvements
including rights of way, curb and gutters,
paving, sidewalks, striping and signage, and
other improvements related thereto; park
acquisition and improvements; storm
drainage improvements; and sewer
improvements of the City of Palm
Springs, as provided in the Resolution
of Formation adopted by the City
Council of the City of Palm Springs on
December 10, 2025?
YES
NO

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A-2
PROPOSITION B Shall special taxes be
levied annually on taxable property within
Improvement Area No. 1 of Community
Facilities District No. 2025-1 (Serena Park) of
the City of Palm Springs, County of
Riverside, State of California, to pay the
principal of and interest on the bonds of the
improvement area which may be issued and
sold to finance the design, construction and
acquisition of the public facilities described in
Proposition A of this ballot, and costs
incidental thereto, to replenish the reserve
fund for the bonds, or to accumulate funds for
future bond payments, including any amount
required by federal law to be rebated to the
United States with regard to the bonds, to
pay or accumulate funds for paying the costs
of the design, construction and acquisition of
such facilities, and to pay expenses incidental
thereto and to the levy and collection of the
special taxes, so long as the special taxes
are needed to pay the principal of and
interest on the bonds and for such other
purposes, at the special tax rates and
pursuant to the method of apportioning the
special taxes set forth in Exhibit “A” to the
Resolution of Formation adopted by the City
Council of the City of Palm Springs on
December 10, 2025?
PROPOSITION C Shall an appropriations
limit, as defined by subdivision (h) of
Section 8 of Article XIII B of the California
Constitution, be established for Improvement
Area No. 1 of Community Facilities District
No. 2025-1 (Serena Park) of the City of Palm
Springs, County of Riverside, State of
California, in the amount of $12,500,000?

PROPOSITION A IS SUBJECT TO THE ACCOUNTABILITY MEASURES PRESCRIBED IN SECTION 53410 OF THE GOVERNMENT CODE OF THE STATE OF CALIFORNIA.

EXHIBIT “B”
YES
NO
YES
NO

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B-1

OFFICIAL BALLOT

CONSOLIDATED SPECIAL ELECTIONS FOR
IMPROVEMENT AREA NO. 2 OF
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK)

OF THE CITY OF PALM SPRINGS

COUNTY OF RIVERSIDE

STATE OF CALIFORNIA
December 10, 2025
To vote, mark a cross (x or +) in the voting square after the word “YES” or after the word “NO”. All marks otherwise made are forbidden.

If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Palm Springs and obtain another.

PROPOSITION A: Shall a bonded
indebtedness in one or more series in an
aggregate principal amount not to exceed
$10,600,000 be incurred by and for
Improvement Area No. 2 of Community
Facilities District No. 2025-1 (Serena Park) of
the City of Palm Springs, County of
Riverside, State of California, with each bond
issue having a maximum term of not more
than 40 years and with interest at a rate or
rates not to exceed the maximum interest
rate permitted by law, for the purposes of
financing and providing the authorized
facilities for Community Facilities District No.
2025-1 (Serena Park), including the design,
construction and acquisition of public facilities
authorized by the Mello-Roos Community
Facilities Act of 1982 that are necessary for
the development of the property within
Community Facilities District No. 2025-1
(Serena Park), including, but not limited to
the following facilities to be owned by the
City: street and transportation improvements
including rights of way, curb and gutters,
paving, sidewalks, striping and signage, and
other improvements related thereto; park
acquisition and improvements; storm
drainage improvements; and sewer
improvements of the City of Palm Springs, as
provided in the Resolution of Formation
adopted by the City Council of the City
of Palm Springs on December 10,
2025?
YES
NO

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B-2
PROPOSITION B Shall special taxes be
levied annually on taxable property within
Improvement Area No. 2 of Community
Facilities District No. 2025-1 (Serena Park) of
the City of Palm Springs, County of
Riverside, State of California, to pay the
principal of and interest on the bonds of the
improvement area which may be issued and
sold to finance the design, construction and
acquisition of the public facilities described in
Proposition A of this ballot, and costs
incidental thereto, to replenish the reserve
fund for the bonds, or to accumulate funds for
future bond payments, including any amount
required by federal law to be rebated to the
United States with regard to the bonds, to
pay or accumulate funds for paying the costs
of the design, construction and acquisition of
such facilities, and to pay expenses incidental
thereto and to the levy and collection of the
special taxes, so long as the special taxes
are needed to pay the principal of and
interest on the bonds and for such other
purposes, at the special tax rates and
pursuant to the method of apportioning the
special taxes set forth in Exhibit “B” to the
Resolution of Formation adopted by the City
Council of the City of Palm Springs on
December 10, 2025?
PROPOSITION C Shall an appropriations
limit, as defined by subdivision (h) of
Section 8 of Article XIII B of the California
Constitution, be established for Improvement
Area No. 2 of Community Facilities District
No. 2025-1 (Serena Park) of the City of Palm
Springs, County of Riverside, State of
California, in the amount of $10,600,000?

PROPOSITION A IS SUBJECT TO THE ACCOUNTABILITY MEASURES PRESCRIBED IN SECTION 53410 OF THE GOVERNMENT CODE OF THE STATE OF CALIFORNIA.

YES
NO
YES
NO

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C-1
EXHIBIT “C”

OFFICIAL BALLOT

CONSOLIDATED SPECIAL ELECTIONS FOR
IMPROVEMENT AREA NO. 3 OF
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK)

OF THE CITY OF PALM SPRINGS

COUNTY OF RIVERSIDE

STATE OF CALIFORNIA
December 10, 2025
To vote, mark a cross (x or +) in the voting square after the word “YES” or after the word “NO”. All marks otherwise made are forbidden.

If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Palm Springs and obtain another.

PROPOSITION A: Shall a bonded
indebtedness in one or more series in an
aggregate principal amount not to exceed
$15,000,000 be incurred by and for
Improvement Area No. 3 of Community
Facilities District No. 2025-1 (Serena Park) of
the City of Palm Springs, County of
Riverside, State of California, with each bond
issue having a maximum term of not more
than 40 years and with interest at a rate or
rates not to exceed the maximum interest
rate permitted by law, for the purposes of
financing and providing the authorized
facilities for Community Facilities District No.
2025-1 (Serena Park), including the design,
construction and acquisition of public facilities
authorized by the Mello-Roos Community
Facilities Act of 1982 that are necessary for
the development of the property within
Community Facilities District No. 2025-1
(Serena Park), including, but not limited to
the following facilities to be owned by the
City: street and transportation improvements
including rights of way, curb and gutters,
paving, sidewalks, striping and signage, and
other improvements related thereto; park
acquisition and improvements; storm
drainage improvements; and sewer
improvements of the City of Palm
Springs, as provided in the Resolution
of Formation adopted by the City
Council of the City of Palm Springs on
December 10, 2025?
YES
NO

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C-2
PROPOSITION B Shall special taxes be
levied annually on taxable property within
Improvement Area No. 3 of Community
Facilities District No. 2025-1 (Serena Park) of
the City of Palm Springs, County of
Riverside, State of California, to pay the
principal of and interest on the bonds of the
improvement area which may be issued and
sold to finance the design, construction and
acquisition of the public facilities described in
Proposition A of this ballot, and costs
incidental thereto, to replenish the reserve
fund for the bonds, or to accumulate funds for
future bond payments, including any amount
required by federal law to be rebated to the
United States with regard to the bonds, to
pay or accumulate funds for paying the costs
of the design, construction and acquisition of
such facilities, and to pay expenses incidental
thereto and to the levy and collection of the
special taxes, so long as the special taxes
are needed to pay the principal of and
interest on the bonds and for such other
purposes, at the special tax rates and
pursuant to the method of apportioning the
special taxes set forth in Exhibit “C” to the
Resolution of Formation adopted by the City
Council of the City of Palm Springs on
December 10, 2025?
PROPOSITION C Shall an appropriations
limit, as defined by subdivision (h) of
Section 8 of Article XIII B of the California
Constitution, be established for Improvement
Area No. 3 of Community Facilities District
No. 2025-1 (Serena Park) of the City of Palm
Springs, County of Riverside, State of
California, in the amount of $15,000,000?
YES
NO
YES
NO

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C-2

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PROPOSITION A IS SUBJECT TO THE ACCOUNTABILITY MEASURES PRESCRIBED IN SECTION 53410 OF THE GOVERNMENT CODE OF THE STATE OF CALIFORNIA.

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D-1
EXHIBIT “D”

OFFICIAL BALLOT

CONSOLIDATED SPECIAL ELECTIONS FOR
IMPROVEMENT AREA NO. 4 OF
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK)

OF THE CITY OF PALM SPRINGS

COUNTY OF RIVERSIDE

STATE OF CALIFORNIA
December 10, 2025
To vote, mark a cross (x or +) in the voting square after the word “YES” or after the word “NO”. All marks otherwise made are forbidden.

If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Palm Springs and obtain another.

PROPOSITION A: Shall a bonded
indebtedness in one or more series in an
aggregate principal amount not to exceed
$7,500,000 be incurred by and for
Improvement Area No. 4 of Community
Facilities District No. 2025-1 (Serena Park) of
the City of Palm Springs, County of
Riverside, State of California, with each bond
issue having a maximum term of not more
than 40 years and with interest at a rate or
rates not to exceed the maximum interest
rate permitted by law, for the purposes of
financing and providing the authorized
facilities for Community Facilities District No.
2025-1 (Serena Park), including the design,
construction and acquisition of public facilities
authorized by the Mello-Roos Community
Facilities Act of 1982 that are necessary for
the development of the property within
Community Facilities District No. 2025-1
(Serena Park), including, but not limited to
the following facilities to be owned by the
City: street and transportation improvements
including rights of way, curb and gutters,
paving, sidewalks, striping and signage, and
other improvements related thereto; park
acquisition and improvements; storm
drainage improvements; and sewer
improvements of the City of Palm
Springs, as provided in the Resolution
of Formation adopted by the City
Council of the City of Palm Springs on
December 10, 2025?
YES
NO

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D-2
PROPOSITION B Shall special taxes be
levied annually on taxable property within
Improvement Area No. 4 of Community
Facilities District No. 2025-1 (Serena Park) of
the City of Palm Springs, County of
Riverside, State of California, to pay the
principal of and interest on the bonds of the
improvement area which may be issued and
sold to finance the design, construction and
acquisition of the public facilities described in
Proposition A of this ballot, and costs
incidental thereto, to replenish the reserve
fund for the bonds, or to accumulate funds for
future bond payments, including any amount
required by federal law to be rebated to the
United States with regard to the bonds, to
pay or accumulate funds for paying the costs
of the design, construction and acquisition of
such facilities, and to pay expenses incidental
thereto and to the levy and collection of the
special taxes, so long as the special taxes
are needed to pay the principal of and
interest on the bonds and for such other
purposes, at the special tax rates and
pursuant to the method of apportioning the
special taxes set forth in Exhibit “D” to the
Resolution of Formation adopted by the City
Council of the City of Palm Springs on
December 10, 2025?
PROPOSITION C Shall an appropriations
limit, as defined by subdivision (h) of
Section 8 of Article XIII B of the California
Constitution, be established for Improvement
Area No. 4 of Community Facilities District
No. 2025-1 (Serena Park) of the City of Palm
Springs, County of Riverside, State of
California, in the amount of $7,500,000?
YES
NO
YES
NO

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PROPOSITION A IS SUBJECT TO THE ACCOUNTABILITY MEASURES PRESCRIBED IN SECTION 53410 OF THE GOVERNMENT CODE OF THE STATE OF CALIFORNIA.

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ATTACHMENT D
Resolution Declaring
Results of Special Election
RESOLUTION NO. ______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS, CALIFORNIA, DECLARING THE

RESULTS OF CONSOLIDATED SPECIAL ELECTIONS
WITHIN COMMUNITY FACILITIES DISTRICT NO. 2025-1
(SERENA PARK) OF THE CITY OF PALM SPRINGS,

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA AND
WITHIN IMPROVEMENT AREA NOS. 1, 2, 3, AND 4

THEREOF
WHEREAS, on December 10, 2025, the City Council (the “City Council”) of the City of Palm Springs (the “City”) adopted a resolution determining the necessity for Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs, County of Riverside, State of California (the “District”), to incur bonded indebtedness in one or more series in an aggregate principal amount not to exceed $12,500,000 for Improvement Area No. 1, $10,600,000 for Improvement Area No. 2, $15,000,000 for Improvement Area No. 3, and $7,500,000 for Improvement Area No. 4 for the purposes of providing certain public facilities for the District and each of Improvement Area No. 1, Improvement Area No. 2, Improvement Area No. 3, and Improvement Area No. 4 of the District (each an “Improvement Area” and together the “Improvement Areas”), and calling a special election for the Improvement Areas of the District on the propositions with respect to incurring such a bonded indebtedness for December 10, 2025, and providing for the consolidation of said elections with the elections on the propositions

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Resolution No. _____
Page No. 2
with respect to (i) the annual levy of special taxes on taxable property within the Improvement Area of the District to pay principal of and interest on such bonds or to pay or accumulate funds for paying the costs of the design, construction and acquisition of such facilities, and (ii) establishing an appropriations limit for each Improvement Area of the District; and
WHEREAS, on December 10, 2025, the City Council also adopted a resolution calling a special election for December 10, 2025, for submitting to the qualified electors of each Improvement Area of the District the propositions with respect to the annual levy of special taxes on taxable property within the Improvement Areas to pay the principal of and interest on the bonds of the related Improvement Areas of the District, or to pay or accumulate funds for paying the costs of the design, construction and acquisition of such facilities, the proposition with respect to establishing an appropriations limit for each Improvement Area of the District, and providing for the consolidation of the elections with the elections on the propositions of each Improvement Area of the District incurring a bonded indebtedness (the “Election Resolution”); and WHEREAS, the City Council has received a statement from the City Clerk (the “City Clerk”), who pursuant to the Election Resolution was authorized to conduct the consolidated special elections for each Improvement Area of the District and act as the election official therefor, with respect to the canvass of the ballots returned in and the results of the consolidated special elections, certifying that at least two-thirds of the votes cast upon the propositions submitted to the voters in the consolidated special elections in each Improvement Area of the District were cast in favor of all such propositions.

THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, HEREBY RESOLVES, DETERMINES AND APPROVES AS FOLLOWS:

SECTION 1. Findings. The City Council finds that: (i) the foregoing recitals are true and correct and are incorporated herein by this reference; (ii) there were no persons registered to vote within the boundaries of each Improvement Area of the District at the time of the close of the public hearing on December 10, 2025, and pursuant to Section 53326 of the California Government Code (“Section 53326”) the vote in the consolidated special elections was, therefore, to be by the landowners owning land within the Improvement Areas, with each landowner having one vote for each acre or portion of an acre of land that he or she owned within the Improvement Areas which would have been subject to the special tax if levied at the time of the consolidated special elections; (iii) pursuant to Section 53326 and the Election Resolution, the City Clerk distributed the ballots for the consolidated special elections of Improvement Area Nos. 1, 2, and 3 to Serena 386, LLC, a Delaware limited liability company, the owner of all of the taxable property included within the boundaries of Improvement Area Nos. 1, 2, and 3 (the “Improvement Area Nos. 1 – 3 Owner”) by overnight mail with return postage prepaid; (iv) pursuant to Section 53326 and the Election Resolution, the City Clerk distributed the ballots for the consolidated special elections of Improvement Area No. 4 to Casa Verona, LLC, a California limited liability company and Miragedunes Properties, LLC, a California limited liability company, the

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Resolution No. _____
Page No. 3
owners of all of the taxable property included within the boundaries of Improvement Area No. 4 (together, the “Improvement Area No. 4 Owners” and together with the Improvement Area Nos. 1 – 3 Owner and Improvement Area No. 4 Owners are the “Property Owners”) by overnight mail with return postage prepaid; (v) the Property Owners waived the time limits for holding the consolidated special elections and the election dates specified in Section 53326, and consented to the calling and holding of the consolidated special elections on December 10, 2025; (vi) the consolidated special elections have been properly conducted in accordance with all statutory requirements and the provisions of the Election Resolution; (viii) pursuant to Section 53326, based upon the acreage of its land ownership within the Improvement Areas of the District, the Property Owners were entitled to the following votes in the consolidated special elections for the Improvement Areas of the District: Improvement Area No. 1 – 18 votes, Improvement Area No. 2 – 19 votes, Improvement Area No. 3 – 27 votes, and Improvement Area No. 4 – 13 votes in the consolidated special elections; (vii) the ballots for the consolidated special elections were returned by the Property Owners to the City Clerk prior to the hour on the date of the election specified by the City Council for the return of voted ballots; (ix) the ballots returned to the City Clerk by the Property Owners voted all votes to which they were entitled in favor of all propositions set forth therein; (x) at least two-thirds of the votes cast in the consolidated special elections on each such proposition were cast in favor thereof, and pursuant to Sections 53328, 53329 and 53355 of the California Government Code, all such propositions carried; (xi) the City Council, as the legislative body of the District, is therefore authorized to take the necessary action to have the Improvement Areas of the District incur bonded indebtedness to finance the design, construction and acquisition of public facilities for the District, to annually levy special taxes on taxable property in the Improvement Areas in amounts sufficient to pay the principal of and interest on such bonds and to pay or accumulate funds for paying the costs of the public facilities; and (xii) an appropriations limit for each Improvement Area of the District has been established in the amount set forth in the applicable ballot.

SECTION 2. Declaration of Results. All votes voted in the consolidated special elections on the propositions with respect to the Improvement Areas of the District (i) to incur a bonded indebtedness to finance the design, construction and acquisition of public facilities for the District, (ii) levy annual special taxes on taxable property within the Improvement Areas to pay the principal of and interest on the bonds of each Improvement Area, or to pay or accumulate funds for paying the costs of the design, construction and acquisition of public facilities for the District, and (iii) establishing an appropriations limit for each Improvement Area of the District in the amount set forth in the applicable ballot were voted in favor thereof, and all such propositions carried.

SECTION 3. Effect of Elections. The effect of the results of the consolidated special elections, as specified in Section 2 hereof, is that the City Council, as the legislative body of the District, is authorized (i) to have the Improvement Areas of the District incur bonded indebtedness in an amount and for the purposes set forth in Proposition A of the Official Ballot for the consolidated special elections for each Improvement Area, (ii) to annually levy special taxes on taxable property in the Improvement Areas in an amount sufficient to pay the principal of and interest on such

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Resolution No. _____
Page No. 4
bonds or to pay or accumulate funds for paying the costs of the design, construction and acquisition of public facilities at the special tax rates and pursuant to the methodology for determining and apportioning such special taxes which are set forth in Exhibits “A” through “D” (for each respective Improvement Area) to the Resolution of Formation adopted by the City Council on December 10, 2025, and (iii) an appropriations limit has been established for each Improvement Area of the District in the amount set forth in the applicable ballot.

SECTION 4. Notice of Special Tax Lien. The City Clerk shall record a separate notice of special tax lien pursuant to Section 53328.3 of the California Government Code and Section 3114.5 of the California Streets and Highways Code for each Improvement Area, attaching the applicable Rate and Method of Apportionment of Special Tax.

SECTION 5. CEQA. The City Council finds this Resolution is not subject to the California Environmental Quality Act (“CEQA”) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

SECTION 6. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid by a court of competent jurisdiction, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable.

SECTION 7. Effective Date. This Resolution shall become effective immediately upon its adoption.

PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS 10TH DAY OF DECEMBER, 2025.

SCOTT STILES, CITY MANAGER
ATTEST:

BRENDA PREE, CITY CLERK

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Resolution No. _____
Page No. 5

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this 10th day of December, 2025.

BRENDA PREE, CITY CLERK

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ATTACHMENT E
Ordinance
Levying Special Taxes

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Ordinance No. ____

Page 1 ends

ORDINANCE NO. _________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY

OF PALM SPRINGS, CALIFORNIA, ACTING AS THE

LEGISLATIVE BODY OF COMMUNITY FACILITIES
DISTRICT NO. 2025-1 (SERENA PARK) OF THE CITY OF

PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF

CALIFORNIA AUTHORIZING THE LEVY OF SPECIAL

TAXES IN SUCH COMMUNITY FACILITIES DISTRICT
AND IMPROVEMENT AREA NOS. 1, 2, 3, AND 4

THEREOF
WHEREAS, the City Council of the City of Palm Springs, California (the “City Council”), has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors authorizing the levy of special taxes in each improvement area of the community facilities district, all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1. Division 2, Title 5 of the Government Code of the State of California (the “Act”).

WHEREAS, this community facilities district shall hereinafter be referred to as Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs, County of Riverside, State of California (the “District”) and improvement areas therein designated as Improvement Area No. 1, Improvement Area No. 2, Improvement Area No. 3, and Improvement Area No. 4 (each an “Improvement Area” and together the “Improvement Areas”).

THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK), DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. This City Council does, by the passage of this Ordinance, authorize the levy of special taxes on all parcels of taxable property located in the Improvement Areas of the District pursuant to the Rate and Method of Apportionment as set forth in Exhibits “A” through “D” attached hereto and incorporated herein by this reference (each a “Rate and Method” and together the “Rates and Methods”).

Section 2. This City Council, acting as the legislative body of the District, is hereby further authorized, by resolution, to annually determine the special tax to be levied within each Improvement Area of the District for the then current tax year or future tax years, commencing fiscal year 2025-26; provided, however, the special tax to be levied in the Improvement Areas shall not exceed the maximum special tax authorized to be levied pursuant to the Rate and Method for such Improvement Areas.

Section 3. The special taxes herein authorized to be levied, to the extent possible, 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.

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Ordinance No. ____

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Section 4. The special taxes authorized to be levied shall be secured by the lien imposed pursuant to Section 3114.5 and 3115.5 of the California Streets and Highways Code, which lien shall be a continuing lien and shall secure each levy of the special taxes. The lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the special taxes ceases to be levied by the City Council.

Section 5. This Ordinance shall be effective thirty (30) days after its adoption.

Within fifteen (15) days after its adoption, the City Clerk shall cause this Ordinance to be published in a newspaper of general circulation in the City.

INTRODUCED at a regular meeting of the City Council of the City of Palm Springs on the 10th day of December, 2025.

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Palm Springs on this ____ day of ________________, 202_.

SCOTT STILES, CITY MANAGER
ATTEST:

BRENDA PREE, CITY CLERK

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )
I, BRENDA PREE, City Clerk of the City of Palm Springs, hereby certify that Ordinance No. _____ is a full, true and correct copy as was introduced at a regular meeting of the Palm Springs City Council on December 10, 2025 and adopted at a regular meeting of the City Council held on __________ by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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Ordinance No. ____

Page 3 ends

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this ___ day of __________, 202_.

BRENDA PREE, CITY CLERK

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Ordinance No. ____

Page 3 ends

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EXHIBIT “A”

RATE AND METHOD OF APPORTIONMENT FOR

THE CITY OF PALM SPRINGS
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(SERENA PARK)

CITY OF PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA IMPROVEMENT AREA NO. 1
A Special Tax (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to each Parcel of Taxable Property located within the boundaries of Improvement Area No. 1 of the CFD.

The amount of Special Tax to be levied in each Fiscal Year, on a Parcel, shall be determined by the City Council of The City of Palm Springs, acting in its capacity as the legislative body of the CFD by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, Public Property, and/or Property Owners’ Association Property that is not Exempt Property as set forth in Sections B, C, and D, below. All of the real property within Improvement Area No. 1, unless exempted by law or by the provisions hereof in Section E, 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:
“Acre” or “Acreage” means the acreage of a Parcel as indicated on the most recent Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area shown on the applicable Final Map, parcel map, condominium plan, or other similar instrument. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1 of Division 2 of Title 5 of the California Government Code of the State of California. “Administrative Expenses” means all actual or reasonably estimated costs and expenses of the City related to Improvement Area No. 1 that are chargeable or allocable to carry out its duties as the administrator as allowed by the Act, which shall include without limitation, all costs and expenses arising out of or resulting from the annual levy and collection of the Special Tax, trustee fees, rebate compliance calculation fees, any litigation involving the CFD, continuing disclosure undertakings of the City as imposed by applicable laws and regulations, communication with bondholders and normal administrative expenses.
“Administrator” means an official of the City, or designee thereof, responsible for determining the annual amount of the levy and collection of the Special Taxes. “Approved Property” means all Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a Building Permit on or prior to the April 1st preceding the Fiscal Year in which the Special Tax is being levied.
“Assessor’s Parcel Map” means an official map of the Assessor of the County of Riverside designating parcels by Assessor’s Parcel number.

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“Assigned Special Tax” means the Special Tax for each Land Use Category of Developed Property, as determined in accordance with Section C.1.a., below.
“Backup Special Tax” means the Special Tax amount set forth in Section C.1.b., below. “Bonds” means any bonds or other indebtedness (as defined in the Act), whether in one or more series, issued by the CFD and secured by the levy of Improvement Area No. 1 Special Taxes. “Boundary Map” means a recorded map, as amended, of the CFD which indicates the boundaries of Improvement Area No. 1 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 permits issued or changed after the first issuance, as determined by the Administrator.
“CFD” means Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs established pursuant to the Act.
“City” means The City of Palm Springs.
“City Council” means the City Council of The City of Palm Springs. “County” means the County of Riverside.
“Developed Property” means all Parcels of Taxable Property that are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Tax is being levied and for which a Building Permit for new construction has been issued on or prior to April 1st preceding the Fiscal Year in which the Special Tax is being levied. “Dwelling Unit” or “(D/U)” means a residential unit that is offered for sale (and not for rent) that is used or permitted to be used as a domicile by one or more persons, as determined by the Administrator.
“Exempt Property” means any Parcel which is exempt from Special Taxes pursuant to Section E below.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which Building Permits may be issued without further subdivision. “Fiscal Year” means the 12 month period starting on July 1 of any calendar year and ending on the following June 30.
“Improvement Area No. 1” or “IA No. 1” means the property in the CFD designated as Improvement Area No. 1 on the Boundary Map.
“Indenture” means the bond indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same.

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“Land Use Category” means any of the categories listed in Table 1. “MAI Certified Appraiser” or “Appraiser” means a certified appraiser and member of the Appraisal Institute who has met strict testing, standards and experience requirements. “Maximum Special Tax” means for each Parcel, the maximum Special Tax, determined in accordance with Section C, which can be levied in any Fiscal Year on such Parcel. “Minimum Sale Price” means the minimum price at which Dwelling Units of a given Land Use Category have sold or are expected to be sold in a normal marketing environment and shall not include prices for such Dwelling Units that are sold at a discount to expected sales prices for the purpose of stimulating the initial sales activity with respect to such Land Use Category. No incentives or discounts offered by the seller will be deducted from expected or sold home prices. “Other Property” means all Parcels of Developed Property for which a Building Permit was issued for any type of use other than Single Family Property.
“Parcel(s)” means a lot or parcel shown on an Assessor’s Parcel Map located in Improvement Area No. 1.
“Price Point Consultant” means any consultant or firm of such consultants selected by the CFD that (a) has substantial experience in performing price point studies for Residential Property within community facilities districts established under the Act or otherwise estimating or confirming pricing for Dwelling Units of Residential Property in such community facilities districts, (b) has recognized expertise in analyzing economic and real estate data that relates to the pricing of Dwelling Units of Residential Property in such community facilities districts, (c) is in fact independent and not under the control of the CFD or the City, (d) does not have any substantial interest, direct or indirect, with or in (i) the CFD, (ii) the City, (iii) any owner of real property in the CFD, or (iv) any real property in the CFD, and (e) is not connected with the CFD or the City as an officer or employee thereof, but who may be regularly retained to make reports to the CFD or the City. “Price Point Study” means a price point study or a letter updating a previous price point study prepared by the Price Point Consultant pursuant to Section C.5 herein. “Property Owners’ Association Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, have been conveyed, dedicated to, or irrevocably offered for dedication to a property owner association, including any master or sub-association. “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 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, Public Property, and Property Owners’ Association 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, Public Property, and Property Owners’ Association Property.
“Public Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, are used for rights-of-way or any other purpose and is owned by, dedicated to, or irrevocably offered for dedication to the federal government, the State of California, the County, or any other local jurisdiction, provided, however, that any property leased by a public agency to a

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private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use.
“Rate and Method” means this Rate and Method of Apportionment of Special Tax for Improvement Area No. 1 of Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs. “Residential Floor Area” means all of the square footage of living area of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio or similar area on a Parcel.

The determination of Residential Floor Area shall be made by reference to the original Building Permit issued for the Parcel or, if the Building Permit is not available by reference to a similar official document as selected by the Administrator.
“Residential Property” means all Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more Dwelling Units. “Single Family Property” means all Parcels of Residential Property. “Special Tax(es)” means the special tax to be levied in each Fiscal Year pursuant to the Rate and Method on each Parcel of Taxable Property in accordance with Section D. “Special Tax Requirement” means that amount required in any Fiscal Year: (i) to pay annual debt service on all outstanding Bonds due in the calendar year which commences in such Fiscal Year; (ii) to pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) to pay Administrative Expenses; (iv) to pay any anticipated shortfall due based on Special Tax delinquencies in the prior Fiscal Year; (v) to establish or replenish any reserve funds for the outstanding Bonds or with respect to Bonds expected to be issued in such Fiscal Year; (vi) until the final series of Bonds are issued as determined by the City Council, to pay directly for acquisition or construction of the facilities eligible under the Act, provided that the inclusion of such amount does not increase the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Step 2 or Step 3 of section D below; less (vii) a credit for funds available to reduce the annual Special Tax levy as determined pursuant to the Indenture as determined by the Administrator.
“Taxable Property” means all Parcels for which the Special Taxes have not been prepaid in full pursuant to Section H. or that are not exempt from the Special Tax pursuant to law or Section E. “Taxable Unit” means either a Dwelling Unit or an Acre, as shown in Table 1. “Total Tax Burden” means for any Dwelling Unit, the annual Special Tax, together with ad valorem property taxes, special assessments, special taxes for any overlapping community facilities district, and any other taxes, fees, and charges which are levied and imposed on such Dwelling Unit and the real property on which it is located and collected by the County on ad valorem tax bills and which are secured by such Dwelling Unit and the real property on which it is located, assuming such Dwelling Unit had been completed, sold, and subject to such levies and impositions, excluding PACE Charges (or any other charge entered into voluntarily by the property owner) and service charges such as those related to sewer and trash.
“Undeveloped Property” means all Parcels of Taxable Property not classified as Developed Property, Approved Property, Public Property, or Property Owners’ Association Property.

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B. ASSIGNMENT TO LAND USE CATEGORY
Each Fiscal Year, commencing with the 2026-2027 Fiscal Year, all Parcels of Taxable Property shall be classified as Developed Property, Approved Property, Undeveloped Property, Public Property, and/or Property Owners’ Association Property, and subject to the levy of Special Taxes in accordance with this Rate and Method as determined pursuant to Sections C and D.

Parcels of Developed Property shall further be classified as Residential Property or Other Property.

Parcels of Residential Property shall further be classified as Single Family Property. Parcels of Single Family Property shall be further categorized into Land Use Categories based on the Residential Floor Area for such Parcel.

C. MAXIMUM SPECIAL TAX RATE

1. Developed Property
The Maximum Special Tax for each Parcel of Single Family Property shall be the greater of: (i) the applicable Assigned Special Tax described in Table 1 or (ii) the amount derived by application of the Backup Special Tax.

The Maximum Special Tax for each Parcel of Other Property shall be the Assigned Special Tax described in Table 1.

On each July 1, commencing July 1, 2026, the Maximum Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Maximum Special Tax increases. Following the Fiscal Year 2043-2044, the Maximum Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044. a. Assigned Special Tax
The Assigned Special Tax for each Parcel of Developed Property is shown in Table 1.

TABLE 1
Assigned Special Taxes for Developed Property
Fiscal Year 2025-2026
Land Use Category
Taxable
Unit Residential Floor Area
Assigned Special Tax
Per Taxable Unit

1. Single Family Property D/U Less than 2,100 sq. ft. $3,825

2. Single Family Property D/U 2,100 sq. ft. – 2,299 sq. ft. $4,110

3. Single Family Property D/U Greater than 2,299 sq. ft. $4,425

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b. Backup Special Tax
When a Final Map is recorded, the Backup Special Tax for a Parcel classified or to be classified as Single Family Property within such Final Map shall be determined by multiplying the Undeveloped Property Maximum Special Tax per Acre by the total Acreage of Taxable Property within such Final Map, excluding the Acreage associated with (i) Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to Section E and (ii) Other Property, , and dividing such amount by the number of Parcels within such Final Map classified as either (i) Single Family Property or (ii) Approved Property for which a Building Permit is expected to be issued for Single Family Property (i.e., the number of residential lots).

A Parcel that does not have any changes made to it after the initial assignment of the Backup Special Tax shall not be increased if other Parcels in a Final Map are changed. Prior to the issuance of Bonds, if Parcels classified or to be classified as Single Family Property are subsequently changed or modified by recordation of a lot line adjustment or similar instrument, then the Backup Special Tax shall be recalculated for the area that has been changed or modified using the methodology described in the preceding paragraph. Following the issuance of Bonds, no adjustments shall be made to the Backup Special Tax for any Parcel which would result in the reduction of debt service coverage, as projected at the time of Bond issuance.

The Backup Special Tax shall not apply to Other Property, Public Property, or Property Owners’ Association Property.

On each July 1, commencing July 1, 2026, the Backup Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Backup Special Tax increases. Following the Fiscal Year 2043-2044, the Backup Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044.

2. Approved Property
The Maximum Special Tax for each Parcel of Approved Property expected to be classified as Single Family Property shall be the Backup Special Tax computed pursuant to Section C.1.b above.

The Maximum Special Tax for each Parcel of Approved Property expected to be classified as Other Property shall be $33,834 per Acre.

3. Undeveloped Property
The Maximum Special Tax for each Parcel of Undeveloped Property is shown in Table 2 below.

TABLE 2
Undeveloped Property Maximum Special Tax
Fiscal Year 2025-2026
Maximum Special Tax Per Acre
$33,834

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4. Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to the provisions of Section E.

The Maximum Special Tax for each Parcel of Public Property and/or Property Owners Association Property that is not Exempt Property shall be equal to the product of the applicable Undeveloped Property Maximum Special Tax rate per Acre in Table 2 multiplied by the Acreage of such Parcel.

5. Special Tax Reduction Prior to Issuance of First Series of Bonds.

Prior to the issuance of the first series of Bonds, the CFD shall do one of the following 1) select and engage a Price Point Consultant, where the Price Point Consultant shall prepare a Price Point Study setting forth the Minimum Sale Price of Dwelling Units within each Land Use Category of Residential Property or 2) select and engage a MAI Certified Appraiser, where the MAI Certified Appraiser shall prepare an appraisal setting forth at least the minimum market value of Dwelling Units within each Land Use Category of Residential Property. If, based upon such Price Point Study or appraisal, the Administrator calculates that the Total Tax Burden applicable to Dwelling Units within one or more Land Use Category of Residential Property to be constructed within the CFD exceeds 2.00% of the Minimum Sale Price of such Taxable Units, the Special Tax within such Land Use Category of Residential Property shall be reduced to the extent necessary to cause the Total Tax Burden applicable to Dwelling Units within such Land Use Category(ies) not to exceed 2.00% of the Minimum Sale Price of such Taxable Units. Each Special Tax reduction for a Land Use Category shall be calculated by the Administrator separately, and it shall not be required that such reduction be proportionate among Land Use Categories.

If the Special Tax for any Land Use Category is reduced pursuant to the preceding paragraph, the Administrator shall calculate a reduced Maximum Special Tax for Other Property and Undeveloped Property, as well as a reduced Backup Special Tax for Developed Property. The revised Backup Special Tax shall be equal to the Maximum Special Tax as set forth in Table 1, reduced by a percentage equal to the weighted average percentage reduction in the Special Tax for all Land Use Categories of Residential Property. The weighted average percentage will be calculated by taking the sum of the products of the number of Taxable Units constructed or expected to be constructed in each Land Use Category multiplied by the percentage change in the Special Tax for each Land Use Category (or 0 for Land Use Categories that are not changing). This amount is then divided by the total number of Dwelling Units constructed or expected to be constructed and converted to a percentage. The reduced Maximum Special Tax shall be used to compute the reduced Backup Special Tax. Following the issuance of Bonds, no adjustments shall be made to the Backup Special Tax for any Parcel which would result in the reduction of debt service coverage, as projected at the time of Bond issuance.

The Special Tax reductions, if required pursuant to this section, shall be reflected in an amended notice of Special Tax lien, which the CFD shall cause to be recorded by executing a certificate in substantially the form attached herein as Exhibit B.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX

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Commencing with Fiscal Year 2026-2027 and for each following Fiscal Year, the City Council shall levy the Special Tax on all Taxable Property until the amount of Special Taxes equals the applicable Special Tax Requirement in accordance with the following steps:

First: The Special Tax shall be levied Proportionately on each Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax rate as needed to satisfy the Special Tax Requirement; Second: 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 Parcel of Approved Property at up to 100% of the Maximum Special Tax for Approved Property; Third: 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 Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax for Undeveloped Property; Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax to be levied on each Parcel of Developed Property for which the Maximum Special Tax is derived by the application of the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to the Maximum Special Tax for such Parcel;
Fifth: 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 Parcel of Taxable Property that is Public Property or Property Owners’ Association Property at up to 100% of the Maximum Special Tax for such Parcel.

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

E. EXEMPTIONS
The Administrator shall classify as Exempt Property all Parcels of (i) Public Property or (ii) Property Owners’ Association Property; provided that such classification shall not reduce the Acreage of all Taxable Property of the CFD to fewer than 16.07 Acres. The Administrator shall not classify a Parcel of Public Property or Property Owners’ Association Property as Exempt Property if such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 16.07 Acres. Such Parcels that cannot be classified as Exempt Property because such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 16.07 Acres will be classified as Property Owners’ Association Property or Public Property and will continue to be subject to Special Taxes. The Administrator shall classify such Parcels as Exempt Property in the chronological order in which property becomes Public Property or Property Owners’ Association Property.

F. MANNER OF COLLECTION

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The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of Improvement Area No. 1, and provided further that the CFD may covenant to foreclose and may actually foreclose on Parcels having delinquent Special Taxes as permitted by the Act.

G. APPEALS
Any taxpayer may file a written appeal of the Special Tax on his/her Parcel(s) with the 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 Administrator shall review the appeal, meet with the appellant if the Administrator deems necessary, and advise the appellant of its determination. If the Administrator agrees with the appellant, the Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant’s Parcel(s). No refunds of previously paid Special Taxes shall be made.

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

The City Council may interpret this Rate and Method for purposes of clarifying any ambiguity and make determinations relative to the amount of Administrative Expenses.

H. PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section H:
“CFD Public Facilities” means $9,690,276, expressed in 2025 dollars, which shall increase by the Construction Inflation Index on July 1, 2026, and on each July 1 thereafter, or such lower number as (i) shall be determined by the Administrator as sufficient to provide the public facilities under the authorized bonding program, or (ii) shall be determined by the City Council concurrently with a covenant that the CFD will not issue any more Bonds.
“Construction Fund” means, collectively, an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct public facilities eligible under the Act and any account established prior to the issuance of Bonds for such purpose. “Construction Inflation Index” means the annual percentage change in the Engineering NewsRecord Building Cost Index for the City of Los Angeles, measured as of the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the Administrator 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) Bond proceeds deposited in Construction Funds and accounts and (ii) other amounts (special taxes, interest earnings, etc.)

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allocated to Construction Funds and accounts that were available to fund such CFD Public Facilities prior to the date of prepayment, but not less than $0.
“Outstanding Bonds” means all previously issued Bonds, which will remain outstanding after the payment of principal from the amount of Special Taxes that have been levied, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Special Taxes.

1. Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Parcels of Developed Property, (ii) Parcels of Approved Property or Undeveloped Property for which a Building Permit has been issued, (iii) Approved Property or Undeveloped Property for which a Building Permit has not been issued, and (iv) Parcels of Public Property or Property Owners’ Association Property that are not Exempt Property pursuant to Section E. The Maximum Special Tax obligation applicable to a Parcel may be fully prepaid and the obligation to pay the Special Tax for such 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 Parcel at the time of prepayment. An owner of a Parcel intending to prepay the Maximum Special Tax obligation for such Parcel shall provide the Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the 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 Parcel. Within 15 days of receipt of such non-refundable deposit, the Administrator shall notify such owner of the Prepayment Amount for the Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes.

The Prepayment Amount (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 Parcel.

2. For a Parcel of Developed Property, compute the Maximum Special Tax for the Parcel. For a Parcel of Approved Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for the Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Parcel. For a Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued, Public Property or Property Owners’ Association Property to be prepaid, compute the Maximum Special Tax for the Parcel.

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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 Parcels of Taxable Property based on the applicable Maximum Special Tax for Parcels of Developed Property not including any 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 Parcel (the “Future Facilities Amount”).

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

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

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

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

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

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

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

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

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

As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to paragraph 9 above, the Administrator shall remove the current Fiscal Year’s Special Tax levy for the Parcel from the County tax roll. With respect to any 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 Parcel, and the obligation to pay the Special Tax for such Parcel shall cease.

Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Taxes that may be levied on all Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses.

Tenders of Bonds in prepayment of the 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 a 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 H.1 shall be modified as provided by the following formula:

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

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The owner of a Parcel who desires to partially prepay the Maximum Special Tax obligation for the Parcel shall notify the 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 Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the Administrator shall notify such owner of the amount of the Partial Prepayment for the Parcel. A Partial Prepayment must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment.

With respect to any Parcel for which the Maximum Special Tax obligation is partially prepaid, the Administrator shall (i) distribute the Partial Prepayment as provided in Paragraph 15 of Section H.1, and (ii) indicate in the records of the CFD that there has been a Partial Prepayment for the Parcel and that a portion of the Special Tax obligation equal to the remaining percentage (1.00 - F) of Special Tax obligation will continue on the Parcel pursuant to Section D.

I. TERM OF THE SPECIAL TAX
The Special Tax shall not be levied after the 2065-2066 Fiscal Year.

J. INTERPRETATIONS
The City Council may interpret this Rate and Method by ordinance or resolution for purposes of clarifying any vagueness or ambiguity. Any decision of the City Council shall be final and binding as to all persons.

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“EXHIBIT B”

CERTIFICATE OF MODIFICATION OF SPECIAL TAX
CITY OF PALM SPRINGS AND CFD NO. 2025-1 (SERENA PARK) IMPROVEMENT AREA NO. 1 CERTIFICATE Pursuant to Section C of the Rate and Method of Apportionment of Special Tax for Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs (“CFD No. 2025-1”), the Special Tax for Residential Property and Other Property within CFD No. 2025-1 has been modified.

The information in Table 1 relating to the Special Tax for Developed Property within CFD No. 2025-1, as stated in Section C.1. of the Rate and Method of Apportionment, has been modified as follows:

Developed Property
The Maximum Special Tax for each Parcel of Single Family Property shall be the greater of: (i) the applicable Assigned Special Tax described in Table 1 or (ii) the amount derived by application of the Backup Special Tax.

The Maximum Special Tax for each Parcel of Other Property shall be the Assigned Special Tax described in Table 1.

TABLE 1
Assigned Special Taxes for Developed Property
Fiscal Year 20__-20__
Land Use Category
Taxable
Unit Residential Floor Area
Assigned Special Tax
Per Taxable Unit

1. Single Family Property D/U Less than 2,100 sq. ft. $________

2. Single Family Property D/U 2,100 sq. ft. – 2,299 sq. ft. $________

3. Single Family Property D/U Greater than 2,299 sq. ft. $________

4. Other Property Acre N/A $________

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CERTIFICATE OF MODIFICATION OF SPECIAL TAX
By execution hereof, the undersigned acknowledge, on behalf of the District and CFD No. 2025-1, receipt of this certificate and modification of the Rate and Method of Apportionment of Special Tax as set forth in this certificate.

CITY OF PALM SPRINGS
IMPROVEMENT AREA NO. 1 OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK) By:_________________________________ Date:______________________

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EXHIBIT “B”

RATE AND METHOD OF APPORTIONMENT FOR

THE CITY OF PALM SPRINGS
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(SERENA PARK)

CITY OF PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA IMPROVEMENT AREA NO. 2
A Special Tax (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to each Parcel of Taxable Property located within the boundaries of Improvement Area No. 2 of the CFD.

The amount of Special Tax to be levied in each Fiscal Year, on a Parcel, shall be determined by the City Council of The City of Palm Springs, acting in its capacity as the legislative body of the CFD by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, Public Property, and/or Property Owners’ Association Property that is not Exempt Property as set forth in Sections B, C, and D, below. All of the real property within Improvement Area No. 2, unless exempted by law or by the provisions hereof in Section E, 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:
“Acre” or “Acreage” means the acreage of a Parcel as indicated on the most recent Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area shown on the applicable Final Map, parcel map, condominium plan, or other similar instrument. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1 of Division 2 of Title 5 of the California Government Code of the State of California. “Administrative Expenses” means all actual or reasonably estimated costs and expenses of the City related to Improvement Area No. 2 that are chargeable or allocable to carry out its duties as the administrator as allowed by the Act, which shall include without limitation, all costs and expenses arising out of or resulting from the annual levy and collection of the Special Tax, trustee fees, rebate compliance calculation fees, any litigation involving the CFD, continuing disclosure undertakings of the City as imposed by applicable laws and regulations, communication with bondholders and normal administrative expenses.
“Administrator” means an official of the City, or designee thereof, responsible for determining the annual amount of the levy and collection of the Special Taxes. “Approved Property” means all Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a Building Permit on or prior to the April 1st preceding the Fiscal Year in which the Special Tax is being levied.

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“Assessor’s Parcel Map” means an official map of the Assessor of the County of Riverside designating parcels by Assessor’s Parcel number.
“Assigned Special Tax” means the Special Tax for each Land Use Category of Developed Property, as determined in accordance with Section C.1.a., below.
“Backup Special Tax” means the Special Tax amount set forth in Section C.1.b., below. “Bonds” means any bonds or other indebtedness (as defined in the Act), whether in one or more series, issued by the CFD and secured by the levy of Improvement Area No. 2 Special Taxes. “Boundary Map” means a recorded map, as amended, of the CFD which indicates the boundaries of Improvement Area No. 2 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 permits issued or changed after the first issuance, as determined by the Administrator.
“CFD” means Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs established pursuant to the Act.
“City” means The City of Palm Springs.
“City Council” means the City Council of The City of Palm Springs. “County” means the County of Riverside.
“Developed Property” means all Parcels of Taxable Property that are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Tax is being levied and for which a Building Permit for new construction has been issued on or prior to April 1st preceding the Fiscal Year in which the Special Tax is being levied. “Dwelling Unit” or “(D/U)” means a residential unit that is offered for sale (and not for rent) that is used or permitted to be used as a domicile by one or more persons, as determined by the Administrator.
“Exempt Property” means any Parcel which is exempt from Special Taxes pursuant to Section E below.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which Building Permits may be issued without further subdivision. “Fiscal Year” means the 12 month period starting on July 1 of any calendar year and ending on the following June 30.
“Improvement Area No. 2” or “IA No. 2” means the property in the CFD designated as Improvement Area No. 2 on the Boundary Map.

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“Indenture” means the bond indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1. “MAI Certified Appraiser” or “Appraiser” means a certified appraiser and member of the Appraisal Institute who has met strict testing, standards and experience requirements. “Maximum Special Tax” means for each Parcel, the maximum Special Tax, determined in accordance with Section C, which can be levied in any Fiscal Year on such Parcel. “Minimum Sale Price” means the minimum price at which Dwelling Units of a given Land Use Category have sold or are expected to be sold in a normal marketing environment and shall not include prices for such Dwelling Units that are sold at a discount to expected sales prices for the purpose of stimulating the initial sales activity with respect to such Land Use Category. No incentives or discounts offered by the seller will be deducted from expected or sold home prices. “Other Property” means all Parcels of Developed Property for which a Building Permit was issued for any type of use other than Single Family Property.
“Parcel(s)” means a lot or parcel shown on an Assessor’s Parcel Map located in Improvement Area No. 2.
“Price Point Consultant” means any consultant or firm of such consultants selected by the CFD that (a) has substantial experience in performing price point studies for Residential Property within community facilities districts established under the Act or otherwise estimating or confirming pricing for Dwelling Units of Residential Property in such community facilities districts, (b) has recognized expertise in analyzing economic and real estate data that relates to the pricing of Dwelling Units of Residential Property in such community facilities districts, (c) is in fact independent and not under the control of the CFD or the City, (d) does not have any substantial interest, direct or indirect, with or in (i) the CFD, (ii) the City, (iii) any owner of real property in the CFD, or (iv) any real property in the CFD, and (e) is not connected with the CFD or the City as an officer or employee thereof, but who may be regularly retained to make reports to the CFD or the City. “Price Point Study” means a price point study or a letter updating a previous price point study prepared by the Price Point Consultant pursuant to Section C.5 herein. “Property Owners’ Association Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, have been conveyed, dedicated to, or irrevocably offered for dedication to a property owner association, including any master or sub-association. “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 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, Public Property, and Property Owners’ Association 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, Public Property, and Property Owners’ Association Property.

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“Public Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, are used for rights-of-way or any other purpose and is owned by, dedicated to, or irrevocably offered for dedication to the federal government, the State of California, the County, or any other local jurisdiction, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use.
“Rate and Method” means this Rate and Method of Apportionment of Special Tax for Improvement Area No. 2 of Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs. “Residential Floor Area” means all of the square footage of living area of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio or similar area on a Parcel.

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“Undeveloped Property” means all Parcels of Taxable Property not classified as Developed Property, Approved Property, Public Property, or Property Owners’ Association Property.

B. ASSIGNMENT TO LAND USE CATEGORY
Each Fiscal Year, commencing with the 2026-2027 Fiscal Year, all Parcels of Taxable Property shall be classified as Developed Property, Approved Property, Undeveloped Property, Public Property, and/or Property Owners’ Association Property, and subject to the levy of Special Taxes in accordance with this Rate and Method as determined pursuant to Sections C and D.

Parcels of Developed Property shall further be classified as Residential Property or Other Property.

C. MAXIMUM SPECIAL TAX RATE

The Maximum Special Tax for each Parcel of Other Property shall be the Assigned Special Tax described in Table 1.

TABLE 1
Assigned Special Taxes for Developed Property
Fiscal Year 2025-2026
Land Use Category
Taxable
Unit Residential Floor Area
Assigned Special Tax
Per Taxable Unit

1. Single Family Property D/U Less than 2,200 sq. ft. $4,265

2. Single Family Property D/U 2,200 sq. ft. – 2,349 sq. ft. $4,440

3. Single Family Property D/U 2,350 sq. ft. – 2,499 sq. ft. $4,615

4. Single Family Property D/U 2,500 sq. ft. – 2,649 sq. ft. $4,790

5. Single Family Property D/U 2,650 sq. ft. – 2,799 sq. ft. $4,965

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6. Single Family Property D/U Greater than 2,799 sq. ft. $5,400

7. Other Property Acre N/A $28,731
On each July 1, commencing July 1, 2026, the Assigned Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Assigned Special Tax increases. Following the Fiscal Year 2043-2044, the Assigned Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044. b. Backup Special Tax
When a Final Map is recorded, the Backup Special Tax for a Parcel classified or to be classified as Single Family Property within such Final Map shall be determined by multiplying the Undeveloped Property Maximum Special Tax per Acre by the total Acreage of Taxable Property within such Final Map, excluding the Acreage associated with (i) Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to Section E and (ii) Other Property, , and dividing such amount by the number of Parcels within such Final Map classified as either (i) Single Family Property or (ii) Approved Property for which a Building Permit is expected to be issued for Single Family Property (i.e., the number of residential lots).

The Backup Special Tax shall not apply to Other Property, Public Property, or Property Owners’ Association Property.

The Maximum Special Tax for each Parcel of Approved Property expected to be classified as Other Property shall be $28,731 per Acre.

3. Undeveloped Property
The Maximum Special Tax for each Parcel of Undeveloped Property is shown in Table 2 below.

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TABLE 2
Undeveloped Property Maximum Special Tax
Fiscal Year 2025-2026
Maximum Special Tax Per Acre
$28,731

4. Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to the provisions of Section E.

5. Special Tax Reduction Prior to Issuance of First Series of Bonds.

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The Special Tax reductions, if required pursuant to this section, shall be reflected in an amended notice of Special Tax lien, which the CFD shall cause to be recorded by executing a certificate in substantially the form attached herein as Exhibit B.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2026-2027 and for each following Fiscal Year, the City Council shall levy the Special Tax on all Taxable Property until the amount of Special Taxes equals the applicable Special Tax Requirement in accordance with the following steps:

E. EXEMPTIONS
The Administrator shall classify as Exempt Property all Parcels of (i) Public Property or (ii) Property Owners’ Association Property; provided that such classification shall not reduce the Acreage of all Taxable Property of the CFD to fewer than 16.57 Acres. The Administrator shall not classify a Parcel of Public Property or Property Owners’ Association Property as Exempt Property if such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 16.57 Acres. Such Parcels that cannot be classified as Exempt Property because such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 16.57 Acres will be classified as Property Owners’ Association Property or Public Property and will continue to be subject to Special Taxes. The

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Administrator shall classify such Parcels as Exempt Property in the chronological order in which property becomes Public Property or Property Owners’ Association Property.

F. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of Improvement Area No. 2, and provided further that the CFD may covenant to foreclose and may actually foreclose on Parcels having delinquent Special Taxes as permitted by the Act.

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

The City Council may interpret this Rate and Method for purposes of clarifying any ambiguity and make determinations relative to the amount of Administrative Expenses.

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Index shall be another index as determined by the Administrator 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) Bond proceeds deposited in Construction Funds and accounts and (ii) other amounts (special taxes, interest earnings, etc.) allocated to Construction Funds and accounts that were available to fund such CFD Public Facilities prior to the date of prepayment, but not less than $0.
“Outstanding Bonds” means all previously issued Bonds, which will remain outstanding after the payment of principal from the amount of Special Taxes that have been levied, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Special Taxes.

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

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

2. For a Parcel of Developed Property, compute the Maximum Special Tax for the Parcel. For a Parcel of Approved Property or Undeveloped Property for which a Building Permit has been issued,

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compute the Maximum Special Tax for the Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Parcel. For a Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued, Public Property or Property Owners’ Association Property to be prepaid, compute the Maximum Special Tax for the Parcel.

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

6. Determine the Future Facilities Costs.

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

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

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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.

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

PP = Partial Prepayment
PE = the Prepayment Amount calculated according to Section H.1

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F = the percent by which the owner of the Parcel(s) is partially prepaying the Maximum Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section H.1 The owner of a Parcel who desires to partially prepay the Maximum Special Tax obligation for the Parcel shall notify the 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 Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the Administrator shall notify such owner of the amount of the Partial Prepayment for the Parcel. A Partial Prepayment must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment.

I. TERM OF THE SPECIAL TAX
The Special Tax shall not be levied after the 2068-2069 Fiscal Year.

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“EXHIBIT B”

CERTIFICATE OF MODIFICATION OF SPECIAL TAX
CITY OF PALM SPRINGS AND CFD NO. 2025-1 (SERENA PARK) IMPROVEMENT AREA NO. 2 CERTIFICATE Pursuant to Section C of the Rate and Method of Apportionment of Special Tax for Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs (“CFD No. 2025-1”), the Special Tax for Residential Property and Other Property within CFD No. 2025-1 has been modified.

The information in Table 1 relating to the Special Tax for Developed Property within CFD No. 2025-1, as stated in Section C.1. of the Rate and Method of Apportionment, has been modified as follows:

The Maximum Special Tax for each Parcel of Other Property shall be the Assigned Special Tax described in Table 1.

TABLE 1
Assigned Special Taxes for Developed Property
Fiscal Year 20__-20__
Land Use Category
Taxable
Unit Residential Floor Area
Assigned Special Tax
Per Taxable Unit

1. Single Family Property D/U Less than 2,200 sq. ft. $_______

2. Single Family Property D/U 2,200 sq. ft. – 2,349 sq. ft. $_______

3. Single Family Property D/U 2,350 sq. ft. – 2,499 sq. ft. $_______

4. Single Family Property D/U 2,500 sq. ft. – 2,649 sq. ft. $_______

5. Single Family Property D/U 2,650 sq. ft. – 2,799 sq. ft. $_______

6. Single Family Property D/U Greater than 2,799 sq. ft. $_______

7. Other Property Acre N/A $_______

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CITY OF PALM SPRINGS
IMPROVEMENT AREA NO. 2 OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK) By:_________________________________ Date:______________________

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EXHIBIT “C”

RATE AND METHOD OF APPORTIONMENT FOR

THE CITY OF PALM SPRINGS
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(SERENA PARK)

CITY OF PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA IMPROVEMENT AREA NO. 3
A Special Tax (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to each Parcel of Taxable Property located within the boundaries of Improvement Area No. 3 of the CFD.

The amount of Special Tax to be levied in each Fiscal Year, on a Parcel, shall be determined by the City Council of The City of Palm Springs, acting in its capacity as the legislative body of the CFD by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, Public Property, and/or Property Owners’ Association Property that is not Exempt Property as set forth in Sections B, C, and D, below. All of the real property within Improvement Area No. 3, unless exempted by law or by the provisions hereof in Section E, 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:
“Acre” or “Acreage” means the acreage of a Parcel as indicated on the most recent Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area shown on the applicable Final Map, parcel map, condominium plan, or other similar instrument. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1 of Division 2 of Title 5 of the California Government Code of the State of California. “Administrative Expenses” means all actual or reasonably estimated costs and expenses of the City related to Improvement Area No. 3 that are chargeable or allocable to carry out its duties as the administrator as allowed by the Act, which shall include without limitation, all costs and expenses arising out of or resulting from the annual levy and collection of the Special Tax, trustee fees, rebate compliance calculation fees, any litigation involving the CFD, continuing disclosure undertakings of the City as imposed by applicable laws and regulations, communication with bondholders and normal administrative expenses.
“Administrator” means an official of the City, or designee thereof, responsible for determining the annual amount of the levy and collection of the Special Taxes. “Approved Property” means all Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a Building Permit on or prior to the April 1st preceding the Fiscal Year in which the Special Tax is being levied.

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“Assessor’s Parcel Map” means an official map of the Assessor of the County of Riverside designating parcels by Assessor’s Parcel number.
“Assigned Special Tax” means the Special Tax for each Land Use Category of Developed Property, as determined in accordance with Section C.1.a., below.
“Backup Special Tax” means the Special Tax amount set forth in Section C.1.b., below. “Bonds” means any bonds or other indebtedness (as defined in the Act), whether in one or more series, issued by the CFD and secured by the levy of Improvement Area No. 3 Special Taxes. “Boundary Map” means a recorded map, as amended, of the CFD which indicates the boundaries of Improvement Area No. 3 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 permits issued or changed after the first issuance, as determined by the Administrator.
“CFD” means Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs established pursuant to the Act.
“City” means The City of Palm Springs.
“City Council” means the City Council of The City of Palm Springs. “County” means the County of Riverside.
“Developed Property” means all Parcels of Taxable Property that are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Tax is being levied and for which a Building Permit for new construction has been issued on or prior to April 1st preceding the Fiscal Year in which the Special Tax is being levied. “Dwelling Unit” or “(D/U)” means a residential unit that is offered for sale (and not for rent) that is used or permitted to be used as a domicile by one or more persons, as determined by the Administrator.
“Exempt Property” means any Parcel which is exempt from Special Taxes pursuant to Section E below.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which Building Permits may be issued without further subdivision. “Fiscal Year” means the 12 month period starting on July 1 of any calendar year and ending on the following June 30.
“Improvement Area No. 3” or “IA No. 3” means the property in the CFD designated as Improvement Area No. 3 on the Boundary Map.

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“Indenture” means the bond indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1. “MAI Certified Appraiser” or “Appraiser” means a certified appraiser and member of the Appraisal Institute who has met strict testing, standards and experience requirements. “Maximum Special Tax” means for each Parcel, the maximum Special Tax, determined in accordance with Section C, which can be levied in any Fiscal Year on such Parcel. “Minimum Sale Price” means the minimum price at which Dwelling Units of a given Land Use Category have sold or are expected to be sold in a normal marketing environment and shall not include prices for such Dwelling Units that are sold at a discount to expected sales prices for the purpose of stimulating the initial sales activity with respect to such Land Use Category. No incentives or discounts offered by the seller will be deducted from expected or sold home prices. “Other Property” means all Parcels of Developed Property for which a Building Permit was issued for any type of use other than Single Family Property.
“Parcel(s)” means a lot or parcel shown on an Assessor’s Parcel Map located in Improvement Area No. 3.
“Price Point Consultant” means any consultant or firm of such consultants selected by the CFD that (a) has substantial experience in performing price point studies for Residential Property within community facilities districts established under the Act or otherwise estimating or confirming pricing for Dwelling Units of Residential Property in such community facilities districts, (b) has recognized expertise in analyzing economic and real estate data that relates to the pricing of Dwelling Units of Residential Property in such community facilities districts, (c) is in fact independent and not under the control of the CFD or the City, (d) does not have any substantial interest, direct or indirect, with or in (i) the CFD, (ii) the City, (iii) any owner of real property in the CFD, or (iv) any real property in the CFD, and (e) is not connected with the CFD or the City as an officer or employee thereof, but who may be regularly retained to make reports to the CFD or the City. “Price Point Study” means a price point study or a letter updating a previous price point study prepared by the Price Point Consultant pursuant to Section C.5 herein. “Property Owners’ Association Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, have been conveyed, dedicated to, or irrevocably offered for dedication to a property owner association, including any master or sub-association. “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 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, Public Property, and Property Owners’ Association 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, Public Property, and Property Owners’ Association Property.

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“Public Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, are used for rights-of-way or any other purpose and is owned by, dedicated to, or irrevocably offered for dedication to the federal government, the State of California, the County, or any other local jurisdiction, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use.
“Rate and Method” means this Rate and Method of Apportionment of Special Tax for Improvement Area No. 3 of Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs. “Residential Floor Area” means all of the square footage of living area of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio or similar area on a Parcel.

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“Undeveloped Property” means all Parcels of Taxable Property not classified as Developed Property, Approved Property, Public Property, or Property Owners’ Association Property.

Parcels of Developed Property shall further be classified as Residential Property or Other Property.

C. MAXIMUM SPECIAL TAX RATE

The Maximum Special Tax for each Parcel of Other Property shall be the Assigned Special Tax described in Table 1.

TABLE 1
Assigned Special Taxes for Developed Property
Fiscal Year 2025-2026
Land Use Category
Taxable
Unit Residential Floor Area
Assigned Special Tax
Per Taxable Unit

1. Single Family Property D/U Less than 1,750 sq. ft. $3,720

2. Single Family Property D/U 1,750 sq. ft. – 1,949 sq. ft. $3,860

3. Single Family Property D/U 1,950 sq. ft. – 2,149 sq. ft. $4,000

4. Single Family Property D/U 2,150 sq. ft. – 2,349 sq. ft. $4,795

5. Single Family Property D/U 2,350 sq. ft. – 2,549 sq. ft. $4,955

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6. Single Family Property D/U 2,550 sq. ft. – 2,749 sq. ft. $5,115

7. Single Family Property D/U Greater than 2,749 sq. ft. $5,400

8. Other Property Acre N/A $27,301
On each July 1, commencing July 1, 2026, the Assigned Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Assigned Special Tax increases. Following the Fiscal Year 2043-2044, the Assigned Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044. b. Backup Special Tax
When a Final Map is recorded, the Backup Special Tax for a Parcel classified or to be classified as Single Family Property within such Final Map shall be determined by multiplying the Undeveloped Property Maximum Special Tax per Acre by the total Acreage of Taxable Property within such Final Map, excluding the Acreage associated with (i) Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to Section E and (ii) Other Property, , and dividing such amount by the number of Parcels within such Final Map classified as either (i) Single Family Property or (ii) Approved Property for which a Building Permit is expected to be issued for Single Family Property (i.e., the number of residential lots).

The Backup Special Tax shall not apply to Other Property, Public Property, or Property Owners’ Association Property.

The Maximum Special Tax for each Parcel of Approved Property expected to be classified as Other Property shall be $27,301 per Acre.

3. Undeveloped Property

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The Maximum Special Tax for each Parcel of Undeveloped Property is shown in Table 2 below.

TABLE 2
Undeveloped Property Maximum Special Tax
Fiscal Year 2025-2026
Maximum Special Tax Per Acre
$27,301

4. Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to the provisions of Section E.

5. Special Tax Reduction Prior to Issuance of First Series of Bonds.

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The Special Tax reductions, if required pursuant to this section, shall be reflected in an amended notice of Special Tax lien, which the CFD shall cause to be recorded by executing a certificate in substantially the form attached herein as Exhibit B.

E. EXEMPTIONS
The Administrator shall classify as Exempt Property all Parcels of (i) Public Property or (ii) Property Owners’ Association Property; provided that such classification shall not reduce the Acreage of all Taxable Property of the CFD to fewer than 24.23 Acres. The Administrator shall not classify a Parcel of Public Property or Property Owners’ Association Property as Exempt Property if such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 24.23 Acres. Such Parcels that cannot be classified as Exempt Property because such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 24.23 Acres will be classified as Property Owners’ Association Property or Public Property and will continue to be subject to Special Taxes. The

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Administrator shall classify such Parcels as Exempt Property in the chronological order in which property becomes Public Property or Property Owners’ Association Property.

F. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of Improvement Area No. 3, and provided further that the CFD may covenant to foreclose and may actually foreclose on Parcels having delinquent Special Taxes as permitted by the Act.

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

The City Council may interpret this Rate and Method for purposes of clarifying any ambiguity and make determinations relative to the amount of Administrative Expenses.

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Index shall be another index as determined by the Administrator 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) Bond proceeds deposited in Construction Funds and accounts and (ii) other amounts (special taxes, interest earnings, etc.) allocated to Construction Funds and accounts that were available to fund such CFD Public Facilities prior to the date of prepayment, but not less than $0.
“Outstanding Bonds” means all previously issued Bonds, which will remain outstanding after the payment of principal from the amount of Special Taxes that have been levied, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Special Taxes.

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

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

2. For a Parcel of Developed Property, compute the Maximum Special Tax for the Parcel. For a Parcel of Approved Property or Undeveloped Property for which a Building Permit has been issued,

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compute the Maximum Special Tax for the Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Parcel. For a Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued, Public Property or Property Owners’ Association Property to be prepaid, compute the Maximum Special Tax for the Parcel.

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

6. Determine the Future Facilities Costs.

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

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

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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.

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

PP = Partial Prepayment
PE = the Prepayment Amount calculated according to Section H.1

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F = the percent by which the owner of the Parcel(s) is partially prepaying the Maximum Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section H.1 The owner of a Parcel who desires to partially prepay the Maximum Special Tax obligation for the Parcel shall notify the 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 Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the Administrator shall notify such owner of the amount of the Partial Prepayment for the Parcel. A Partial Prepayment must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment.

I. TERM OF THE SPECIAL TAX
The Special Tax shall not be levied after the 2070-2071 Fiscal Year.

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“EXHIBIT B”

CERTIFICATE OF MODIFICATION OF SPECIAL TAX
CITY OF PALM SPRINGS AND CFD NO. 2025-1 (SERENA PARK) IMPROVEMENT AREA NO. 3 CERTIFICATE Pursuant to Section C of the Rate and Method of Apportionment of Special Tax for Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs (“CFD No. 2025-1”), the Special Tax for Residential Property and Other Property within CFD No. 2025-1 has been modified.

The information in Table 1 relating to the Special Tax for Developed Property within CFD No. 2025-1, as stated in Section C.1. of the Rate and Method of Apportionment, has been modified as follows:

The Maximum Special Tax for each Parcel of Other Property shall be the Assigned Special Tax described in Table 1.

TABLE 1
Assigned Special Taxes for Developed Property
Fiscal Year 20__-20__
Land Use Category
Taxable
Unit Residential Floor Area
Assigned Special Tax
Per Taxable Unit

1. Single Family Property D/U Less than 1,750 sq. ft. $________

2. Single Family Property D/U 1,750 sq. ft. – 1,949 sq. ft. $________

3. Single Family Property D/U 1,950 sq. ft. – 2,149 sq. ft. $________

4. Single Family Property D/U 2,150 sq. ft. – 2,349 sq. ft. $________

5. Single Family Property D/U 2,350 sq. ft. – 2,549 sq. ft. $________

6. Single Family Property D/U 2,550 sq. ft. – 2,749 sq. ft. $________

7. Single Family Property D/U Greater than 2,749 sq. ft. $________

8. Other Property Acre N/A $________

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CITY OF PALM SPRINGS
IMPROVEMENT AREA NO. 3 OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK) By:_________________________________ Date:______________________

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EXHIBIT “D”

RATE AND METHOD OF APPORTIONMENT FOR

THE CITY OF PALM SPRINGS
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(SERENA PARK)

CITY OF PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA IMPROVEMENT AREA NO. 4
A Special Tax (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to each Parcel of Taxable Property located within the boundaries of Improvement Area No. 4 of the CFD.

The amount of Special Tax to be levied in each Fiscal Year, on a Parcel, shall be determined by the City Council of The City of Palm Springs, acting in its capacity as the legislative body of the CFD by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, Public Property, and/or Property Owners’ Association Property that is not Exempt Property as set forth in Sections B, C, and D, below. All of the real property within Improvement Area No. 4, unless exempted by law or by the provisions hereof in Section E, 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:
“Acre” or “Acreage” means the acreage of a Parcel as indicated on the most recent Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area shown on the applicable Final Map, parcel map, condominium plan, or other similar instrument. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1 of Division 2 of Title 5 of the California Government Code of the State of California. “Administrative Expenses” means all actual or reasonably estimated costs and expenses of the City related to Improvement Area No. 4 that are chargeable or allocable to carry out its duties as the administrator as allowed by the Act, which shall include without limitation, all costs and expenses arising out of or resulting from the annual levy and collection of the Special Tax, trustee fees, rebate compliance calculation fees, any litigation involving the CFD, continuing disclosure undertakings of the City as imposed by applicable laws and regulations, communication with bondholders and normal administrative expenses.
“Administrator” means an official of the City, or designee thereof, responsible for determining the annual amount of the levy and collection of the Special Taxes. “Approved Property” means all Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a Building Permit on or prior to the April 1st preceding the Fiscal Year in which the Special Tax is being levied.

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“Assessor’s Parcel Map” means an official map of the Assessor of the County of Riverside designating parcels by Assessor’s Parcel number.
“Assigned Special Tax” means the Special Tax for each Land Use Category of Developed Property, as determined in accordance with Section C.1.a., below.
“Backup Special Tax” means the Special Tax amount set forth in Section C.1.b., below. “Bonds” means any bonds or other indebtedness (as defined in the Act), whether in one or more series, issued by the CFD and secured by the levy of Improvement Area No. 4 Special Taxes. “Boundary Map” means a recorded map, as amended, of the CFD which indicates the boundaries of Improvement Area No. 4 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 permits issued or changed after the first issuance, as determined by the Administrator.
“CFD” means Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs established pursuant to the Act.
“City” means The City of Palm Springs.
“City Council” means the City Council of The City of Palm Springs. “County” means the County of Riverside.
“Developed Property” means all Parcels of Taxable Property that are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Tax is being levied and for which a Building Permit for new construction has been issued on or prior to April 1st preceding the Fiscal Year in which the Special Tax is being levied. “Dwelling Unit” or “(D/U)” means a residential unit that is offered for sale (and not for rent) that is used or permitted to be used as a domicile by one or more persons, as determined by the Administrator.
“Exempt Property” means any Parcel which is exempt from Special Taxes pursuant to Section E below.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which Building Permits may be issued without further subdivision. “Fiscal Year” means the 12 month period starting on July 1 of any calendar year and ending on the following June 30.
“Improvement Area No. 4” or “IA No. 4” means the property in the CFD designated as Improvement Area No. 4 on the Boundary Map.

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“Indenture” means the bond indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1. “MAI Certified Appraiser” or “Appraiser” means a certified appraiser and member of the Appraisal Institute who has met strict testing, standards and experience requirements. “Maximum Special Tax” means for each Parcel, the maximum Special Tax, determined in accordance with Section C, which can be levied in any Fiscal Year on such Parcel. “Minimum Sale Price” means the minimum price at which Dwelling Units of a given Land Use Category have sold or are expected to be sold in a normal marketing environment and shall not include prices for such Dwelling Units that are sold at a discount to expected sales prices for the purpose of stimulating the initial sales activity with respect to such Land Use Category. No incentives or discounts offered by the seller will be deducted from expected or sold home prices. “Other Property” means all Parcels of Developed Property for which a Building Permit was issued for any type of use other than Single Family Property.
“Parcel(s)” means a lot or parcel shown on an Assessor’s Parcel Map located in Improvement Area No. 4.
“Price Point Consultant” means any consultant or firm of such consultants selected by the CFD that (a) has substantial experience in performing price point studies for Residential Property within community facilities districts established under the Act or otherwise estimating or confirming pricing for Dwelling Units of Residential Property in such community facilities districts, (b) has recognized expertise in analyzing economic and real estate data that relates to the pricing of Dwelling Units of Residential Property in such community facilities districts, (c) is in fact independent and not under the control of the CFD or the City, (d) does not have any substantial interest, direct or indirect, with or in (i) the CFD, (ii) the City, (iii) any owner of real property in the CFD, or (iv) any real property in the CFD, and (e) is not connected with the CFD or the City as an officer or employee thereof, but who may be regularly retained to make reports to the CFD or the City. “Price Point Study” means a price point study or a letter updating a previous price point study prepared by the Price Point Consultant pursuant to Section C.5 herein. “Property Owners’ Association Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, have been conveyed, dedicated to, or irrevocably offered for dedication to a property owner association, including any master or sub-association. “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 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, Public Property, and Property Owners’ Association 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, Public Property, and Property Owners’ Association Property.

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“Public Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, are used for rights-of-way or any other purpose and is owned by, dedicated to, or irrevocably offered for dedication to the federal government, the State of California, the County, or any other local jurisdiction, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use.
“Rate and Method” means this Rate and Method of Apportionment of Special Tax for Improvement Area No. 4 of Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs. “Residential Floor Area” means all of the square footage of living area of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio or similar area on a Parcel.

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“Undeveloped Property” means all Parcels of Taxable Property not classified as Developed Property, Approved Property, Public Property, or Property Owners’ Association Property.

Parcels of Developed Property shall further be classified as Residential Property or Other Property.

C. MAXIMUM SPECIAL TAX RATE

The Maximum Special Tax for each Parcel of Other Property shall be the Assigned Special Tax described in Table 1.

TABLE 1
Assigned Special Taxes for Developed Property
Fiscal Year 2025-2026
Land Use Category
Taxable
Unit Residential Floor Area
Assigned Special Tax
Per Taxable Unit

1. Single Family Property D/U Less than 2,100 sq. ft. $3,470

2. Single Family Property D/U 2,100 sq. ft. – 2,299 sq. ft. $3,735

3. Single Family Property D/U Greater than 2,299 sq. ft. $4,000

4. Other Property Acre N/A $31,262

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D-6
On each July 1, commencing July 1, 2026, the Assigned Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Assigned Special Tax increases. Following the Fiscal Year 2043-2044, the Assigned Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044. b. Backup Special Tax
When a Final Map is recorded, the Backup Special Tax for a Parcel classified or to be classified as Single Family Property within such Final Map shall be determined by multiplying the Undeveloped Property Maximum Special Tax per Acre by the total Acreage of Taxable Property within such Final Map, excluding the Acreage associated with (i) Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to Section E and (ii) Other Property, , and dividing such amount by the number of Parcels within such Final Map classified as either (i) Single Family Property or (ii) Approved Property for which a Building Permit is expected to be issued for Single Family Property (i.e., the number of residential lots).

The Backup Special Tax shall not apply to Other Property, Public Property, or Property Owners’ Association Property.

The Maximum Special Tax for each Parcel of Approved Property expected to be classified as Other Property shall be $31,262 per Acre.

3. Undeveloped Property
The Maximum Special Tax for each Parcel of Undeveloped Property is shown in Table 2 below.

TABLE 2
Undeveloped Property Maximum Special Tax

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D-7
Fiscal Year 2025-2026
Maximum Special Tax Per Acre
$31,262

4. Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to the provisions of Section E.

5. Special Tax Reduction Prior to Issuance of First Series of Bonds.

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D-8
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2026-2027 and for each following Fiscal Year, the City Council shall levy the Special Tax on all Taxable Property until the amount of Special Taxes equals the applicable Special Tax Requirement in accordance with the following steps:

E. EXEMPTIONS
The Administrator shall classify as Exempt Property all Parcels of (i) Public Property or (ii) Property Owners’ Association Property; provided that such classification shall not reduce the Acreage of all Taxable Property of the CFD to fewer than 10.87 Acres. The Administrator shall not classify a Parcel of Public Property or Property Owners’ Association Property as Exempt Property if such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 10.87 Acres. Such Parcels that cannot be classified as Exempt Property because such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 10.87 Acres will be classified as Property Owners’ Association Property or Public Property and will continue to be subject to Special Taxes. The Administrator shall classify such Parcels as Exempt Property in the chronological order in which property becomes Public Property or Property Owners’ Association Property.

F. MANNER OF COLLECTION

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D-9
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of Improvement Area No. 4, and provided further that the CFD may covenant to foreclose and may actually foreclose on Parcels having delinquent Special Taxes as permitted by the Act.

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

The City Council may interpret this Rate and Method for purposes of clarifying any ambiguity and make determinations relative to the amount of Administrative Expenses.

H. PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section H:
“CFD Public Facilities” means $4,102,493, expressed in 2025 dollars, which shall increase by the Construction Inflation Index on July 1, 2026, and on each July 1 thereafter, or such lower number as (i) shall be determined by the Administrator as sufficient to provide the public facilities under the authorized bonding program, or (ii) shall be determined by the City Council concurrently with a covenant that the CFD will not issue any more Bonds.
“Construction Fund” means, collectively, an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct public facilities eligible under the Act and any account established prior to the issuance of Bonds for such purpose. “Construction Inflation Index” means the annual percentage change in the Engineering NewsRecord Building Cost Index for the City of Los Angeles, measured as of the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the Administrator 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) Bond proceeds deposited in Construction Funds and accounts and (ii) other amounts (special taxes, interest earnings, etc.)

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D-10
allocated to Construction Funds and accounts that were available to fund such CFD Public Facilities prior to the date of prepayment, but not less than $0.
“Outstanding Bonds” means all previously issued Bonds, which will remain outstanding after the payment of principal from the amount of Special Taxes that have been levied, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Special Taxes.

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

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

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D-11

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

6. Determine the Future Facilities Costs.

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

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

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D-12

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

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D-13
The owner of a Parcel who desires to partially prepay the Maximum Special Tax obligation for the Parcel shall notify the 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 Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the Administrator shall notify such owner of the amount of the Partial Prepayment for the Parcel. A Partial Prepayment must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment.

I. TERM OF THE SPECIAL TAX
The Special Tax shall not be levied after the 2073-2074 Fiscal Year.

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D-13

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D-14
“EXHIBIT B”

CERTIFICATE OF MODIFICATION OF SPECIAL TAX
CITY OF PALM SPRINGS AND CFD NO. 2025-1 (SERENA PARK) IMPROVEMENT AREA NO. 4 CERTIFICATE Pursuant to Section C of the Rate and Method of Apportionment of Special Tax for Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs (“CFD No. 2025-1”), the Special Tax for Residential Property and Other Property within CFD No. 2025-1 has been modified.

The information in Table 1 relating to the Special Tax for Developed Property within CFD No. 2025-1, as stated in Section C.1. of the Rate and Method of Apportionment, has been modified as follows:

The Maximum Special Tax for each Parcel of Other Property shall be the Assigned Special Tax described in Table 1.

TABLE 1
Assigned Special Taxes for Developed Property
Fiscal Year 20__-20__
Land Use Category
Taxable
Unit Residential Floor Area
Assigned Special Tax
Per Taxable Unit

1. Single Family Property D/U Less than 2,100 sq. ft. $______

2. Single Family Property D/U 2,100 sq. ft. – 2,299 sq. ft. $______

3. Single Family Property D/U Greater than 2,299 sq. ft. $______

4. Other Property Acre N/A $______

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D-14

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D-15

CITY OF PALM SPRINGS
IMPROVEMENT AREA NO. 4 OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK) By:_________________________________ Date:______________________

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ATTACHMENT F
Resolution Approving
Acquisition and Financing
Agreement
RESOLUTION NO. _____

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS, CALIFORNIA APPROVING A FUNDING,

CONSTRUCTION AND ACQUISITION AGREEMENT
RELATING TO COMMUNITY FACILITIES DISTRICT NO.
2025-1 (SERENA PARK) AND AUTHORIZING RELATED

ACTIONS
WHEREAS, the City of Palm Springs (the “City”) is a municipal corporation and charter city duly organized and existing under and pursuant to the Constitution and the laws of the State of California (the “State”); and
WHEREAS, at the request of Serena 386, LLC, a Delaware limited liability company (the “Developer”), the developer of the Serena Park Project (the “Project”), the City Council of the City has authorized the formation of the Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs, County of Riverside, State of California (the “CFD”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”); and

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Resolution No. ______

Page 1 ends

WHEREAS, the CFD is authorized to finance (i) the design, planning, engineering, installation and acquisition or construction of certain public facilities and improvements to be owned, operated or maintained by the City (the “Improvements”); and (ii) to the extent authorized by law, to satisfy the obligation of the Developer for the payment of certain fees to the City that are credited to the public facilities (the “Fees”); and WHEREAS, there has been presented to the City Council, the form of an Acquisition/Financing Agreement by and among the City and the Developer (the “Acquisition Agreement”) to establish the terms and conditions for acquiring and financing the Improvements and Fees.

THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, HEREBY RESOLVES, DETERMINES AND APPROVES AS FOLLOWS:

SECTION 1. Findings. All of the preceding recitals are true and correct and are incorporated herein by this reference.

SECTION 2. Approval. The form of Acquisition Agreement as presented to this City Council and on file with the City Clerk is hereby approved. The City Manager and such other official or officials of the City as may be designated in writing by this City Council (each, an “Authorized Officer” and together, the “Authorized Officers”) are each authorized to execute the Acquisition Agreement for and on behalf of the City with such changes thereto as such Authorized Officer, following consultation with the City Attorney and Best Best & Krieger LLP, deem to be in the best interests of the City.

SECTION 3. Authorization. The Authorized Officers and other officers, employees and agents of the City, are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable in order to consummate the transactions herein authorized and otherwise to carry out, give effect to and comply with the terms and intent of this Resolution. All actions heretofore taken by the Authorized Officers and other officers, employees and agents of the City with respect to the matters described herein are hereby approved, confirmed and ratified.

SECTION 4. Effective Date. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS 10TH DAY OF DECEMBER, 2025.

SCOTT STILES, CITY MANAGER
ATTEST:

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BRENDA PREE, CITY CLERK

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this 10th day of December, 2025.

BRENDA PREE, CITY CLERK

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ATTACHMENT G
Community Facilities District
(CFD) Report

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-
City of Palm Springs
Community Facilities District No. 2025-1
Prepared for:

December 2025
Community Facilities District Report

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Table of Contents
Sections
Section 1. Introduction_______________________________________________________ 1 Section 2. Description of Facilities/Improvements _________________________________ 2 Section 3. Cost Estimate ______________________________________________________ 3 Section 4. Proposed Development______________________________________________ 5 Section 5. Rate and Method of Apportionment____________________________________ 6 Tables
Table 3-1. Cost Estimate ______________________________________________________ 3 Appendices
Appendix A. Rate and Method of Apportionment
Appendix B. Boundary Map

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1. Introduction
City of Palm Springs Community Facilities District Report CFD No. 2025-1 (Serena Park) 1
AGENCY: CITY OF PALM SPRINGS
PROJECT: COMMUNITY FACILITIES DISTRICT NO. 2025-1
(SERENA PARK)
TO: CITY COUNCIL

CITY OF PALM SPRINGS

RIVERSIDE COUNTY

STATE OF CALIFORNIA
Whereas, the City Council of the CITY OF PALM SPRINGS, RIVERSIDE COUNTY, CALIFORNIA (hereinafter referred to as the “City Council”), did, pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”, being chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, and specifically Section 53321.5 thereof, (the “Act”) expressly ordered the filing of a written Public Report (the “Report”) for a proposed COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK). This Community Facilities District shall be referred to as COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK) of the CITY OF PALM SPRINGS (hereinafter referred to as the “District” and “CFD No. 2025-1”) Whereas, on October 22, 2025, the City Council adopted Resolution No. 25347 (the “Resolution”), and the Resolution ordering said Report, did direct that said Report generally contain the following:
• A description of the public facilities by type proposed to be financed by CFD No. 2025-1; • An estimate setting forth costs of providing such facilities; • The Rate and Method of Apportionment of Special Tax in sufficient detail to allow each landowner or resident within the proposed District to estimate the annual amount of payment thereof.

NOW, THEREFORE, the undersigned, authorized representative of WEBB MUNICIPAL FINANCE, LLC, the appointed Special Tax Consultant and responsible officer or person directed to prepare the Report, pursuant to the provisions of the Act, does hereby submit the following data:

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2. Description of Facilities/Improvements
City of Palm Springs Community Facilities District Report CFD No. 2025-1 (Serena Park) 2
Pursuant to Section 53340 of the Act, the proceeds of any Special Tax levied and collected by CFD No. 2025-1 may be used only to pay for the cost of providing public facilities and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the annual cost associated with determination of the amount of Special Taxes, collection of Special Taxes, payment of Special Taxes, or costs otherwise incurred in order to carry out the authorized purposes of the community facilities district.

A general description of the proposed facilities for the District is as follows:

Facilities
The types of public facilities proposed to be provided for and financed by CFD No. 2025-1 and each improvement area therein are those authorized by the Act that are necessary for the development of the property within CFD No. 2025-1, including, but not limited to the following facilities to be owned by the City (either through construction or through payment of capital fees): street and transportation improvements including rights of way, curbs and gutters, paving, sidewalks, striping and signage, and other improvements relating thereto; park acquisition and improvements; storm drainage improvements; and sewer improvements.

Incidental Expenses
The Incidental Expenses to be paid from bond proceeds and/or Special Taxes include: all costs associated with the creation of CFD No. 2025-1, the issuance of bonds (which may include, but is not limited to, funding the reserve fund, capitalized interest, underwriter discount, underwriter premium, appraisals and cost of issuance), the determination of the amount of Special Taxes to be levied, costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2025-1, including legal fees, fees of consultants, engineering, planning, designing and the annual administration cost of CFD No. 2025-1.

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

The final plans and specifications approved by the applicable public agency may show substitutes or modifications in order to accomplish the work or serve the new development and any such substitution or modification shall not constitute a change or modification in the proceedings relating to CFD No. 2025-1.

Based upon the preceding, it is my opinion that the facilities being funded are those that are necessary to meet certain increased demands placed upon the City of Palm Springs, as a result of development and/or rehabilitation occurring within the boundaries of the District.

DATED: December 10, 2025 WEBB MUNICIPAL FINANCE, LLC
By: _______________________________

SPECIAL TAX CONSULTANT FOR

CITY OF PALM SPRINGS

RIVERSIDE COUNTY

STATE OF CALIFORNIA

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3. Cost Estimate
City of Palm Springs Community Facilities District Report CFD 2025-1
3 1. The cost estimate of the facilities eligible to be financed through the issuance of CFD No. 2025-1 Bonds is estimated to be $25,720,552 based upon current dollars (Fiscal Year 2025-26) for Improvement Areas 1, 2, 3, and 4.

2. For further particulars, reference is made to Table 3-1 on the following pages and incorporated herein by reference.

3. Pursuant to Section 53340 of the Act, the proceeds of any Special Tax levied and collected by CFD No. 2025-1 may be used only to pay for the cost of providing public facilities and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the annual costs associated with determination of the amount of Special Taxes, collection of Special Taxes, payment of Special Taxes, or costs otherwise incurred in order to carry out the authorized purposes of the Community Facilities District. The incidental expenses associated with the annual administration of each Improvement Area of CFD No. 2025-1 are estimated to be $30,000 in the initial Fiscal Year. However, it is anticipated that the incidental expenses will vary due to inflation and other factors that may not be foreseen today, and the actual incidental expenses may exceed these amounts accordingly.

Table 3-1
Cost Estimate
Funding Requirements
Improvement
Area No. 1
Improvement
Area No. 2
Improvement
Area No. 3
Improvement
Area NO. 4
CFD No. 2025-1
Total

TOTAL ELIGIBLE PROJECT COSTS
Park Development Fees $811,800 $627,300 $934,800 $559,650 $2,933,550 Park Development Fees - Credit ($811,800) ($627,300) ($934,800) ($0) ($2,373,900) Drainage Fee - North $376,659 $318,014 $321,113 $135,805 $1,151,591 Sewer Facility Fee $132,792 $102,612 $152,912 $91,546 $479,862 Storm Drainage $1,723,881 $463,362 $497,787 $472,178 $3,157,208 Sewer System $1,029,365 $572,125
$
$1,223,574 $602,441 $3,427,505
Perimeter Walls $0 $0 $0 $465,125 $465,125
Curb & Gutter $702,027 $593,214 $650,069 $321,301 $2,266,611 Street Paving $1,083,379 $820,422 $1,367,898 $599,855 $3,871,554 Side Walk $276,338 $43,723 $0 $174,909 $494,970
Striping and Signage $17,000 $14,155 $20,175 $16,585 $67,915 Park $2,512,670 $0 $0 $0 $2,512,670
Prevailing Wage (25%) $1,836,165 $626,750 $939,876 $663,099 $4,065,890 DA Fee for Each IA $0 $845,596 $1,260,104 $0 $2,105,700 DA Fee for IA 1 $0 $439,444 $654,856 $0 $1,094,300
Total $9,690,276 $4,839,417 $7,088,364 $4,102,494 $25,720,551

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3. Cost Estimate
City of Palm Springs Community Facilities District Report CFD 2025-1
4 Estimated Funding Summary Improvement
Area No. 1
Improvement
Area No. 2
Improvement
Area No. 3
Improvement
Area No. 4
Total Estimated Bond Par Amount1 $8,610,000 $6,790,000 $9,790,000 $5,230,000 Total Estimated Incidental Expenses2
($1,327,065) ($1,160,381) ($1,560,482) ($905,923)
Total Estimated Project Fund $7,282,935 $5,629,619 $8,229,518 $4,324,077 Total Estimated Unfunded/Surplus Eligible Project
Costs ($2,407,341) $790,202 $1,141,154 $221,583
1 Par Amount Estimated based upon a 30-year issuance with interest rates between 5.25% and 5.85% and projected revenue, escalating at 2% through FY 2043/44 and 0% thereafter.
2 Estimated Incidental Expenses include Reserve Fund, Underwriters Discount, Capitalized Interest, and Incidental Expenses.

DATED: December 10, 2025 WEBB MUNICIPAL FINANCE, LLC
By: __________________________

SPECIAL TAX CONSULTANT FOR

CITY OF PALM SPRINGS

RIVERSIDE COUNTY

STATE OF CALIFORNIA

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4. Proposed Development
City of Palm Springs Community Facilities District Report CFD 2025-1
5 Improvement Area 1 is planned to contain approximately 17.86 net taxable acres within Tract Numbers 36691-1 and 36691-3. Improvement Area 1 is planned to be developed into 132 single-family detached units and is generally located west of Gene Autry Trail and northeast of Whitewater Club Drive in the City of Palm Springs. The proposed Improvement Area 1 boundaries include a portion of Assessor Parcel Number 501-190-011.

Improvement Area 2 is planned to contain approximately 18.41 net taxable acres within Tract Numbers 36691-4 and 36691-6. Improvement Area 2 is planned to be developed into 102 single-family detached units and is generally located west of Gene Autry Trail, northwest of Whitewater Club Drive and north of Joyce Drive in the City of Palm Springs. The proposed Improvement Area 2 boundaries include Assessor Parcel Number 669-590-066 and a portion of the following Assessor Parcel Numbers: 501-190-011 and 669-480-027.

Improvement Area 3 is planned to contain approximately 26.92 net taxable acres within Tract Numbers 36691-2, 36691-5 and 36691. Improvement Area 3 is planned to be developed into 152 single-family detached units and is generally located west and south of Whitewater Club Drive, north of Verona Road, east of Farrell Drive and south of Savanna Way in the City of Palm Springs. The proposed Improvement Area 3 boundaries include a portion of the following Assessor Parcel Numbers: 501-190-011 and 669-480-027.

Improvement Area 4 is planned to contain approximately 12.08 net taxable acres within Tract Numbers 38042 and 39267. Improvement Area 4 is planned to be developed into 91 single-family detached units and is generally located west of Gene Autry Trail and east of Los Alamos Road in the City of Palm Springs. The proposed Improvement Area 4 boundaries include the following Assessor Parcel Numbers: 677-020-032 and 677-030-034.

The Boundary Map for CFD No. 2025-1 is attached hereto as Appendix B (the “Boundary Map”).

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5. Rate and Method of Apportionment
City of Palm Springs Community Facilities District Report CFD 2025-1
6 1. Each Rate and Method of Apportionment provides sufficient detail to allow each property owner within the proposed District to calculate the Maximum Special Tax for their property. Each Rate and Method of Apportionment of the Special Tax for the District, established pursuant to these proceedings, is attached hereto as Appendix A (the “Rate and Method of Apportionment”). The Special Tax will be collected in the same manner and at the same time as ad valorem property taxes and subject to the same penalties and provisions; however, the Special Tax may be collected at a different time or in a different manner if necessary for CFD No. 2025-1 to meet its financial obligations and may covenant to foreclose on delinquent parcels as permitted by the Act.

2. All of the property located within CFD No. 2025-1, unless exempted by law or by the Special Tax proposed for CFD No. 2025-1, shall be taxed for the purpose of providing necessary facilities to serve the District. The Boundary Map for CFD No. 2025-1 is attached hereto as Appendix B. Pursuant to Section 53325.3 of the Act, the tax imposed “is a Special Tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property.” The Special Tax may be based on benefit received by property, the cost of making facilities available or other reasonable basis as determined by the City Council, although the Special Tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Constitution. A property owner within the District may choose to prepay in whole or in part the Special Tax. The available method for so doing is described in Section H of each Rate and Method (“Prepayment of Special Tax”).

For each year that any Bonds are outstanding, the Special Tax shall be levied on all Parcels in accordance with the Rate and Method of Apportionment. If any delinquent Special Taxes remain uncollected prior to or after all Bonds are retired, the Special Tax may be levied to the extent necessary to reimburse the CFD for uncollected Special Taxes and costs associated with the levy of such Special Taxes, but the Special Tax shall not be levied after the 2065-2066 Fiscal Year for Improvement Area 1, the 2068-2069 Fiscal Year for Improvement Area 2, the 2070-2071 Fiscal Year for Improvement Area 3, and the 2073-2074 Fiscal Year for Improvement Area 4.

3. For particulars as to each Rate and Method of Apportionment, see the attached and incorporated Appendix A.

It is my opinion that each Rate and Method of Apportionment, described above and set forth in Appendix A, is fair and reasonable.

This Report has been prepared and consolidated by the Special Tax Consultant, Webb Municipal Finance, LLC, and is herewith submitted to the City Council pursuant to the applicable provisions of the Mello-Roos Community Facilities Act of 1982.

DATED: December 10, 2025 WEBB MUNICIPAL FINANCE, LLC
By: _______________________________

SPECIAL TAX CONSULTANT FOR

CITY OF PALM SPRINGS

RIVERSIDE COUNTY

STATE OF CALIFORNIA

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5. Rate and Method of Apportionment
City of Palm Springs Community Facilities District Report CFD 2025-1
7 1. Each Rate and Method of Apportionment allows each property owner within the proposed District to estimate the annual amount that would be required for payment. Each Rate and Method of Apportionment of the Special Tax for the District, established pursuant to these proceedings, is attached hereto as Appendix A (the “Rate and Method of Apportionment”). The Special Tax will be collected in the same manner and at the same time as ad valorem property taxes and subject to the same penalties and provisions; however, the Special Tax may be collected at a different time or in a different manner if necessary for CFD No. 2025-1 to meet its financial obligations and may covenant to foreclose on delinquent parcels as permitted by the Act.

3. For particulars as to each Rate and Method of Apportionment, see the attached and incorporated Appendix A.

It is my opinion that each Rate and Method of Apportionment, described above and set forth in Appendix A, is fair and reasonable.

DATED: December 10, 2025 WEBB MUNICIPAL FINANCE, LLC
By: _______________________________

SPECIAL TAX CONSULTANT FOR

CITY OF PALM SPRINGS

RIVERSIDE COUNTY

STATE OF CALIFORNIA

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APPENDIX A
Rate and Method of Apportionment

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A-1

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
IMPROVEMENT AREA NO. 1 OF
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK)

OF THE CITY OF PALM SPRINGS
A Special Tax (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to each Parcel of Taxable Property located within the boundaries of Improvement Area No. 1 of the CFD.

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A-2
“Bonds” means any bonds or other indebtedness (as defined in the Act), whether in one or more series, issued by the CFD and secured by the levy of Improvement Area No. 1 Special Taxes. “Boundary Map” means a recorded map, as amended, of the CFD which indicates the boundaries of Improvement Area No. 1 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 permits issued or changed after the first issuance, as determined by the Administrator.
“CFD” means Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs established pursuant to the Act.
“City” means The City of Palm Springs.
“City Council” means the City Council of The City of Palm Springs. “County” means the County of Riverside.
“Developed Property” means all Parcels of Taxable Property that are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Tax is being levied and for which a Building Permit for new construction has been issued on or prior to April 1st preceding the Fiscal Year in which the Special Tax is being levied.
“Dwelling Unit” or “(D/U)” means a residential unit that is offered for sale (and not for rent) that is used or permitted to be used as a domicile by one or more persons, as determined by the Administrator.
“Exempt Property” means any Parcel which is exempt from Special Taxes pursuant to Section E below. “Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which Building Permits may be issued without further subdivision. “Fiscal Year” means the 12 month period starting on July 1 of any calendar year and ending on the following June 30.
“Improvement Area No. 1” or “IA No. 1” means the property in the CFD designated as Improvement Area No. 1 on the Boundary Map.
“Indenture” means the bond indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1. “MAI Certified Appraiser” or “Appraiser” means a certified appraiser and member of the Appraisal Institute who has met strict testing, standards and experience requirements.

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“Maximum Special Tax” means for each Parcel, the maximum Special Tax, determined in accordance with Section C, which can be levied in any Fiscal Year on such Parcel. “Minimum Sale Price” means the minimum price at which Dwelling Units of a given Land Use Category have sold or are expected to be sold in a normal marketing environment and shall not include prices for such Dwelling Units that are sold at a discount to expected sales prices for the purpose of stimulating the initial sales activity with respect to such Land Use Category. No incentives or discounts offered by the seller will be deducted from expected or sold home prices. “Other Property” means all Parcels of Developed Property for which a Building Permit was issued for any type of use other than Single Family Property.
“Parcel(s)” means a lot or parcel shown on an Assessor’s Parcel Map located in Improvement Area No. 1.
“Price Point Consultant” means any consultant or firm of such consultants selected by the CFD that (a) has substantial experience in performing price point studies for Residential Property within community facilities districts established under the Act or otherwise estimating or confirming pricing for Dwelling Units of Residential Property in such community facilities districts, (b) has recognized expertise in analyzing economic and real estate data that relates to the pricing of Dwelling Units of Residential Property in such community facilities districts, (c) is in fact independent and not under the control of the CFD or the City, (d) does not have any substantial interest, direct or indirect, with or in (i) the CFD, (ii) the City, (iii) any owner of real property in the CFD, or (iv) any real property in the CFD, and (e) is not connected with the CFD or the City as an officer or employee thereof, but who may be regularly retained to make reports to the CFD or the City. “Price Point Study” means a price point study or a letter updating a previous price point study prepared by the Price Point Consultant pursuant to Section C.5 herein. “Property Owners’ Association Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, have been conveyed, dedicated to, or irrevocably offered for dedication to a property owner association, including any master or sub-association. “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 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, Public Property, and Property Owners’ Association 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, Public Property, and Property Owners’ Association Property.
“Public Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, are used for rights-of-way or any other purpose and is owned by, dedicated to, or irrevocably offered for dedication to the federal government, the State of California, the County, or any other local jurisdiction, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use.
“Rate and Method” means this Rate and Method of Apportionment of Special Tax for Improvement Area No. 1 of Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs.

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“Residential Floor Area” means all of the square footage of living area of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio or similar area on a Parcel.

The determination of Residential Floor Area shall be made by reference to the original Building Permit issued for the Parcel or, if the Building Permit is not available by reference to a similar official document as selected by the Administrator.
“Residential Property” means all Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more Dwelling Units. “Single Family Property” means all Parcels of Residential Property. “Special Tax(es)” means the special tax to be levied in each Fiscal Year pursuant to the Rate and Method on each Parcel of Taxable Property in accordance with Section D. “Special Tax Requirement” means that amount required in any Fiscal Year: (i) to pay annual debt service on all outstanding Bonds due in the calendar year which commences in such Fiscal Year; (ii) to pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) to pay Administrative Expenses; (iv) to pay any anticipated shortfall due based on Special Tax delinquencies in the prior Fiscal Year; (v) to establish or replenish any reserve funds for the outstanding Bonds or with respect to Bonds expected to be issued in such Fiscal Year; (vi) until the final series of Bonds are issued as determined by the City Council, to pay directly for acquisition or construction of the facilities eligible under the Act, provided that the inclusion of such amount does not increase the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Step 2 or Step 3 of section D below; less (vii) a credit for funds available to reduce the annual Special Tax levy as determined pursuant to the Indenture as determined by the Administrator. “Taxable Property” means all Parcels for which the Special Taxes have not been prepaid in full pursuant to Section H. or that are not exempt from the Special Tax pursuant to law or Section E. “Taxable Unit” means either a Dwelling Unit or an Acre, as shown in Table 1. “Total Tax Burden” means for any Dwelling Unit, the annual Special Tax, together with ad valorem property taxes, special assessments, special taxes for any overlapping community facilities district, and any other taxes, fees, and charges which are levied and imposed on such Dwelling Unit and the real property on which it is located and collected by the County on ad valorem tax bills and which are secured by such Dwelling Unit and the real property on which it is located, assuming such Dwelling Unit had been completed, sold, and subject to such levies and impositions, excluding PACE Charges (or any other charge entered into voluntarily by the property owner) and service charges such as those related to sewer and trash.
“Undeveloped Property” means all Parcels of Taxable Property not classified as Developed Property, Approved Property, Public Property, or Property Owners’ Association Property.

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Parcels of Developed Property shall further be classified as Residential Property or Other Property.

C. MAXIMUM SPECIAL TAX RATE

The Maximum Special Tax for each Parcel of Other Property shall be the Assigned Special Tax described in Table 1.

TABLE 1
Assigned Special Taxes for Developed Property
Fiscal Year 2025-2026
Land Use Category
Taxable
Unit Residential Floor Area
Assigned Special Tax
Per Taxable Unit

1. Single Family Property D/U Less than 2,100 sq. ft. $3,825

2. Single Family Property D/U 2,100 sq. ft. – 2,299 sq. ft. $4,110

3. Single Family Property D/U Greater than 2,299 sq. ft. $4,425

4. Other Property Acre N/A $33,834
On each July 1, commencing July 1, 2026, the Assigned Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Assigned Special Tax increases. Following the Fiscal Year 2043-2044, the Assigned Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044. b. Backup Special Tax
When a Final Map is recorded, the Backup Special Tax for a Parcel classified or to be classified as Single Family Property within such Final Map shall be determined by multiplying the Undeveloped Property Maximum Special Tax per Acre by the total Acreage of Taxable Property within such Final Map,

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excluding the Acreage associated with (i) Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to Section E and (ii) Other Property, , and dividing such amount by the number of Parcels within such Final Map classified as either (i) Single Family Property or (ii) Approved Property for which a Building Permit is expected to be issued for Single Family Property (i.e., the number of residential lots).

The Backup Special Tax shall not apply to Other Property, Public Property, or Property Owners’ Association Property.

The Maximum Special Tax for each Parcel of Approved Property expected to be classified as Other Property shall be $33,834 per Acre.

3. Undeveloped Property
The Maximum Special Tax for each Parcel of Undeveloped Property is shown in Table 2 below.

TABLE 2
Undeveloped Property Maximum Special Tax
Fiscal Year 2025-2026
Maximum Special Tax Per Acre
$33,834

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4. Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to the provisions of Section E.

5. Special Tax Reduction Prior to Issuance of First Series of Bonds.

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First: The Special Tax shall be levied Proportionately on each Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax rate as needed to satisfy the Special Tax Requirement; Second: 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 Parcel of Approved Property at up to 100% of the Maximum Special Tax for Approved Property; Third: 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 Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax for Undeveloped Property; Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax to be levied on each Parcel of Developed Property for which the Maximum Special Tax is derived by the application of the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to the Maximum Special Tax for such Parcel;
Fifth: 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 Parcel of Taxable Property that is Public Property or Property Owners’ Association Property at up to 100% of the Maximum Special Tax for such Parcel.

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obligations of Improvement Area No. 1, and provided further that the CFD may covenant to foreclose and may actually foreclose on Parcels having delinquent Special Taxes as permitted by the Act.

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

The City Council may interpret this Rate and Method for purposes of clarifying any ambiguity and make determinations relative to the amount of Administrative Expenses.

H. PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section H:
“CFD Public Facilities” means $9,690,276, expressed in 2025 dollars, which shall increase by the Construction Inflation Index on July 1, 2026, and on each July 1 thereafter, or such lower number as (i) shall be determined by the Administrator as sufficient to provide the public facilities under the authorized bonding program, or (ii) shall be determined by the City Council concurrently with a covenant that the CFD will not issue any more Bonds.
“Construction Fund” means, collectively, an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct public facilities eligible under the Act and any account established prior to the issuance of Bonds for such purpose. “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 previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the Administrator 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) Bond proceeds deposited in Construction Funds and accounts and (ii) other amounts (special taxes, interest earnings, etc.) allocated to Construction Funds and accounts that were available to fund such CFD Public Facilities prior to the date of prepayment, but not less than $0.
“Outstanding Bonds” means all previously issued Bonds, which will remain outstanding after the payment of principal from the amount of Special Taxes that have been levied, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Special Taxes.

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

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

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

6. Determine the Future Facilities Costs.

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

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

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Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by the CFD.

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

PP = Partial Prepayment
PE = the Prepayment Amount calculated according to Section H.1 F = the percent by which the owner of the Parcel(s) is partially prepaying the Maximum Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section H.1 The owner of a Parcel who desires to partially prepay the Maximum Special Tax obligation for the Parcel shall notify the 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 Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the Administrator shall notify such owner of the amount of the Partial Prepayment for the Parcel. A

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Partial Prepayment must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment.

I. TERM OF THE SPECIAL TAX
The Special Tax shall not be levied after the 2065-2066 Fiscal Year.

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“EXHIBIT B”

The information in Table 1 relating to the Special Tax for Developed Property within CFD No. 2025-1, as stated in Section C.1. of the Rate and Method of Apportionment, has been modified as follows:

The Maximum Special Tax for each Parcel of Other Property shall be the Assigned Special Tax described in Table 1.

TABLE 1
Assigned Special Taxes for Developed Property
Fiscal Year 20__-20__
Land Use Category
Taxable
Unit Residential Floor Area
Assigned Special Tax
Per Taxable Unit

1. Single Family Property D/U Less than 2,100 sq. ft. $________

2. Single Family Property D/U 2,100 sq. ft. – 2,299 sq. ft. $________

3. Single Family Property D/U Greater than 2,299 sq. ft. $________

4. Other Property Acre N/A $________

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CITY OF PALM SPRINGS
IMPROVEMENT AREA NO. 1 OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK) By:_________________________________ Date:______________________

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RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
IMPROVEMENT AREA NO. 2 OF
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK)

The amount of Special Tax to be levied in each Fiscal Year, on a Parcel, shall be determined by the City Council of The City of Palm Springs, acting in its capacity as the legislative body of the CFD by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, Public Property, and/or Property Owners’ Association Property that is not Exempt Property as set forth in Sections B, C, and D, below. All of the real property within Improvement Area No. 2, unless exempted by law or by the provisions hereof in Section E, 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:
“Acre” or “Acreage” means the acreage of a Parcel as indicated on the most recent Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area shown on the applicable Final Map, parcel map, condominium plan, or other similar instrument. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1 of Division 2 of Title 5 of the California Government Code of the State of California. “Administrative Expenses” means all actual or reasonably estimated costs and expenses of the City related to Improvement Area No. 2 that are chargeable or allocable to carry out its duties as the administrator as allowed by the Act, which shall include without limitation, all costs and expenses arising out of or resulting from the annual levy and collection of the Special Tax, trustee fees, rebate compliance calculation fees, any litigation involving the CFD, continuing disclosure undertakings of the City as imposed by applicable laws and regulations, communication with bondholders and normal administrative expenses.
“Administrator” means an official of the City, or designee thereof, responsible for determining the annual amount of the levy and collection of the Special Taxes. “Approved Property” means all Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a Building Permit on or prior to the April 1st preceding the Fiscal Year in which the Special Tax is being levied.
“Assessor’s Parcel Map” means an official map of the Assessor of the County of Riverside designating parcels by Assessor’s Parcel number.
“Assigned Special Tax” means the Special Tax for each Land Use Category of Developed Property, as determined in accordance with Section C.1.a., below.
“Backup Special Tax” means the Special Tax amount set forth in Section C.1.b., below.

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“Bonds” means any bonds or other indebtedness (as defined in the Act), whether in one or more series, issued by the CFD and secured by the levy of Improvement Area No. 2 Special Taxes. “Boundary Map” means a recorded map, as amended, of the CFD which indicates the boundaries of Improvement Area No. 2 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 permits issued or changed after the first issuance, as determined by the Administrator.
“CFD” means Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs established pursuant to the Act.
“City” means The City of Palm Springs.
“City Council” means the City Council of The City of Palm Springs. “County” means the County of Riverside.
“Developed Property” means all Parcels of Taxable Property that are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Tax is being levied and for which a Building Permit for new construction has been issued on or prior to April 1st preceding the Fiscal Year in which the Special Tax is being levied.
“Dwelling Unit” or “(D/U)” means a residential unit that is offered for sale (and not for rent) that is used or permitted to be used as a domicile by one or more persons, as determined by the Administrator.
“Exempt Property” means any Parcel which is exempt from Special Taxes pursuant to Section E below. “Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which Building Permits may be issued without further subdivision. “Fiscal Year” means the 12 month period starting on July 1 of any calendar year and ending on the following June 30.
“Improvement Area No. 2” or “IA No. 2” means the property in the CFD designated as Improvement Area No. 2 on the Boundary Map.
“Indenture” means the bond indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1. “MAI Certified Appraiser” or “Appraiser” means a certified appraiser and member of the Appraisal Institute who has met strict testing, standards and experience requirements.

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“Maximum Special Tax” means for each Parcel, the maximum Special Tax, determined in accordance with Section C, which can be levied in any Fiscal Year on such Parcel. “Minimum Sale Price” means the minimum price at which Dwelling Units of a given Land Use Category have sold or are expected to be sold in a normal marketing environment and shall not include prices for such Dwelling Units that are sold at a discount to expected sales prices for the purpose of stimulating the initial sales activity with respect to such Land Use Category. No incentives or discounts offered by the seller will be deducted from expected or sold home prices. “Other Property” means all Parcels of Developed Property for which a Building Permit was issued for any type of use other than Single Family Property.
“Parcel(s)” means a lot or parcel shown on an Assessor’s Parcel Map located in Improvement Area No. 2.
“Price Point Consultant” means any consultant or firm of such consultants selected by the CFD that (a) has substantial experience in performing price point studies for Residential Property within community facilities districts established under the Act or otherwise estimating or confirming pricing for Dwelling Units of Residential Property in such community facilities districts, (b) has recognized expertise in analyzing economic and real estate data that relates to the pricing of Dwelling Units of Residential Property in such community facilities districts, (c) is in fact independent and not under the control of the CFD or the City, (d) does not have any substantial interest, direct or indirect, with or in (i) the CFD, (ii) the City, (iii) any owner of real property in the CFD, or (iv) any real property in the CFD, and (e) is not connected with the CFD or the City as an officer or employee thereof, but who may be regularly retained to make reports to the CFD or the City. “Price Point Study” means a price point study or a letter updating a previous price point study prepared by the Price Point Consultant pursuant to Section C.5 herein. “Property Owners’ Association Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, have been conveyed, dedicated to, or irrevocably offered for dedication to a property owner association, including any master or sub-association. “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 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, Public Property, and Property Owners’ Association 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, Public Property, and Property Owners’ Association Property.
“Public Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, are used for rights-of-way or any other purpose and is owned by, dedicated to, or irrevocably offered for dedication to the federal government, the State of California, the County, or any other local jurisdiction, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use.
“Rate and Method” means this Rate and Method of Apportionment of Special Tax for Improvement Area No. 2 of Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs.

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“Residential Floor Area” means all of the square footage of living area of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio or similar area on a Parcel.

The determination of Residential Floor Area shall be made by reference to the original Building Permit issued for the Parcel or, if the Building Permit is not available by reference to a similar official document as selected by the Administrator.
“Residential Property” means all Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more Dwelling Units. “Single Family Property” means all Parcels of Residential Property. “Special Tax(es)” means the special tax to be levied in each Fiscal Year pursuant to the Rate and Method on each Parcel of Taxable Property in accordance with Section D. “Special Tax Requirement” means that amount required in any Fiscal Year: (i) to pay annual debt service on all outstanding Bonds due in the calendar year which commences in such Fiscal Year; (ii) to pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) to pay Administrative Expenses; (iv) to pay any anticipated shortfall due based on Special Tax delinquencies in the prior Fiscal Year; (v) to establish or replenish any reserve funds for the outstanding Bonds or with respect to Bonds expected to be issued in such Fiscal Year; (vi) until the final series of Bonds are issued as determined by the City Council, to pay directly for acquisition or construction of the facilities eligible under the Act, provided that the inclusion of such amount does not increase the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Step 2 or Step 3 of section D below; less (vii) a credit for funds available to reduce the annual Special Tax levy as determined pursuant to the Indenture as determined by the Administrator. “Taxable Property” means all Parcels for which the Special Taxes have not been prepaid in full pursuant to Section H. or that are not exempt from the Special Tax pursuant to law or Section E. “Taxable Unit” means either a Dwelling Unit or an Acre, as shown in Table 1. “Total Tax Burden” means for any Dwelling Unit, the annual Special Tax, together with ad valorem property taxes, special assessments, special taxes for any overlapping community facilities district, and any other taxes, fees, and charges which are levied and imposed on such Dwelling Unit and the real property on which it is located and collected by the County on ad valorem tax bills and which are secured by such Dwelling Unit and the real property on which it is located, assuming such Dwelling Unit had been completed, sold, and subject to such levies and impositions, excluding PACE Charges (or any other charge entered into voluntarily by the property owner) and service charges such as those related to sewer and trash.
“Undeveloped Property” means all Parcels of Taxable Property not classified as Developed Property, Approved Property, Public Property, or Property Owners’ Association Property.

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Parcels of Developed Property shall further be classified as Residential Property or Other Property.