Addendum (PDF) — Paso Robles City Council, June 16, 2026

CITY OF EL PASO DE ROBLES
"The Pass of the Oaks"
City Council Regular Meeting Agenda Addendum

Tuesday, June 16, 2026, 5:15 PM
Tuesday, June 16, 2026, 6:00 PM
Norris Meeting Room - Centennial Park
600 Nickerson Drive
Paso Robles, CA 93446
Residents can livestream the meeting at www.prcity.com/youtube, and call (805)865-7276 to provide public comment via phone. The phone line will open just prior to the start of the meeting and remain open throughout the meeting to ensure the opportunity to comment on each item heard by the Council, other than brief reports and announcements by staff or the Council.

Written public comments can be submitted via email to [email protected] prior to 12:00 noon on the day of the Council meeting to be posted as an addendum to the Agenda. If submitting written comments in advance of the meeting, please note the agenda item by number or name. City Council meetings will be livestreamed during the meeting and also available to play later on YouTube by accessing the following link: www.prcity.com/youtube. Any writing or document pertaining to an open session item on this agenda which is distributed to a majority of the City Council after the posting of this agenda will be available for public inspection at the time the subject writing or document is distributed. The writing or document will be available for public review in the City Clerk’s Office, 1000 Spring Street, Paso Robles, CA, during normal business hours, and may be posted on the City’s web site at www.prcity.com/meetings.

AMERICANS WITH DISABILITIES ACT Any individual, who because of a disability needs special assistance to attend or participate in this meeting, may request assistance by contacting the City Clerk’s Office (805) 237- 3960. Whenever possible, requests should be made four (4) working days in advance of the meeting.

Pages
Q. PUBLIC HEARINGS
*1. Approval of Resolution Confirming the Existence of Weeds or Noxious Growth Creating a Potential Fire Hazard and Ordering their Abatement 3 - 20
Paul Patti, Battalion Chief/Fire Marshal
CEQA Determination: The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378
Recommendation: Approve Resolution 26-XXX, confirming the existence of public nuisance(s) described in Exhibit A and ordering the abatement of weeds or noxious growth to abate the nuisance.
*3. Proposed Formation of Community Facilities District No. 2026-1 (BeechwoodFacilities) to Provide Transportation Facilities, Park and Recreation Improvements and Facilities, Parkway and Landscaping Improvements, Public Safety Facilities Including Police
21 - 66
and Fire Buildings and Equipment, Public Library and Community Center Facilities, Water, Wastewater and Storm Drain Improvements, Street Improvements, General City Council Agenda June 16, 2026
Government Facilities, and Dry Utilities
Ryan Cornell, Administrative Services Director
CEQA Determination: The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.

Recommendation: It is recommended that City Council take the following actions:

1. Approve Resolution 26-XXX(A), declaring intention to establish proposed Community Facilities District No. 2026-1 (Beechwood-Facilities) and to designate two improvement areas therein and to levy a special tax therein;

2. Approve Resolution 26-XXX(B), declaring necessity to incur a bonded indebtedness of proposed City of Paso Robles Community Facilities District No. 2026-1 (Beechwood-Facilities) for Improvement Areas No. 1 and 2, therein.

City Council Agenda June 16, 2026 Page 2 of 66
Council Agenda Report
From: Paul Patti, Battalion Chief/Fire Marshal
Subject: Approval of Resolution Confirming the Existence of Weeds or Noxious Growth Creating a Potential Fire Hazard and Ordering their Abatement
CEQA Determination: The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.

Date: June 16, 2026
Facts

1. On June 2, 2026, the City Council approved Resolution 26-058, declaring weeds or noxious growth on 350 specific properties within the City to be a nuisance.

2. “Notice to Abate” letters were mailed to each affected property owner, outlining the violations and steps required for compliance.

3. All property owners in violation were also notified of this public hearing and invited to show cause why the conditions should not be declared a nuisance and why the City should not proceed with abatement.

4. An updated exhibit of properties still in violation will be provided at the 6 p.m. City Council meeting on June 16, 2026.

5. Under Paso Robles Municipal Code Ordinance No. 1068, the City Council has the authority to direct the Fire Marshal to abate the nuisance by removing weeds, rubbish, refuse, and dirt.

Options

1. Take no action.

2. Declare a public nuisance relating to weed abatement and order the Fire Marshal to abate the weeds and noxious growth on those properties that are non-compliant as of June 16, 2026.

3. Amend or modify the Resolution as submitted.

4. Provide alternative direction to staff.

Analysis and Conclusions
Paso Robles Fire and Emergency Services takes a proactive approach to fire prevention through enforcement of the City’s Weed Abatement Ordinance (Ordinance No. 1068). As part of this effort, more than 11,900 properties were inspected. Following public outreach, inspection, and formal notifications, 195 properties, as listed in Exhibit A, remain in violation and require abatement.

Declaring these properties as a public nuisance and authorizing abatement is a necessary step to mitigate fire hazards and ensure public safety. The Fire Marshal will serve as the enforcement superintendent, overseeing the removal of hazardous vegetation and debris.

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Upon Council approval of the resolution, the Fire Marshal will coordinate abatement efforts through a private contractor retained by the City. The contractor is scheduled to begin clearing weeds, rubbish, and noxious growth immediately following the public hearing.

Property owners who bring their parcels into full compliance before the contractor arrives will not be charged for abatement. This provides a final opportunity for owners to avoid the costs associated with forced compliance.

All abatement work is expected to be completed by June 30, 2026, ahead of the region’s peak fire season.

The full cost of abatement, including all administrative and operational expenses, will be billed to each non-compliant property owner. If payment is not received, the City will recover the costs through a special tax assessment lien, recorded against the property and collected via the San Luis Obispo County Tax Assessor’s annual property tax billing. The lien remains in effect until the full amount is repaid to the City Fiscal Impact
There is no fiscal impact to the City for this action. The full cost of abatement, including administrative costs, will be recovered through billing and special assessments placed on the affected properties.

However, costs associated with notifying properties that ultimately complied with Ordinance 1068 will not be recouped.

CEQA
The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.

Recommendation
Approve Resolution 26-XXX, confirming the existence of public nuisance(s) described in Exhibit A and ordering the abatement of weeds or noxious growth to abate the nuisance.

Attachments

1. Resolution 26-XXX – Public Nuisance Abatement
a. Exhibit A – Assessor’s Parcel Number, address, and owner

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Attachment 1
RESOLUTION 26-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES

CONFIRMING EXISTENCE OF A PUBLIC NUISANCE, THEREFORE CREATING A POTENTIAL

FIRE HAZARD ON VARIOUS PROPERTIES THROUHGOUT THE CITY AND

ORDERING THE FIRE CHIEF TO ABATE THE NUISANCE
WHEREAS, the City Council of El Paso de Robles (“City”) on June 2, 2026 adopted Resolution No. 26-058 “A resolution of the City Council of El Paso de Robles Making Declaration Of Public Nuisances Relating To Weed Abatement Within The City And Setting Public Hearing For 2026 Weed Abatement” which set a hearing forJune16,2026to consider allobjectionsto the abatement ofthenuisance (herein“Declaration of Nuisance”); and
WHEREAS, the Declaration of Nuisance, among other things:
 Declared that weeds or noxious growth growing on certain properties within the City to be a nuisance.
 Directed the Fire Marshal to give written Notice (herein “Notice to Abate”) to the property owners of each property, wherein the weeds and noxious growth were declared to be a nuisance, of a public hearing scheduled for June 16, 2026, at 6:00 p.m. for consideration of objections to the City’s Declaration of Nuisance; and
WHEREAS, the Fire Marshal provided the Notice to Abate in accordance with Paso Robles Municipal Code Chapter 16.10 and Council Resolution No. 26-058 and conducted an inspection of the affected properties to determine whether or not said property owners had abated the weeds and noxious growth pursuant to the Notice to Abate; and
WHEREAS, the Fire Marshal has determined that the weeds and noxious growth on those properties identified in Exhibit A have not been abated and create a fire hazard; and WHEREAS, the City Council held a public hearing on June 16, 2026 and considered all objections to the proposed abatement of weeds and noxious growth.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The City Council hereby confirms the immediate existence of a public nuisance on those parcels listed in the attached Exhibit A (incorporated herein by reference) and pursuant to Paso Robles Municipal Code, Chapter 16.10, and Government Code Section 39571 orders the Fire Marshal to abate the nuisance by having the weeds and noxious growth removed. a. Before the FireMarshal arrives, any property ownermay remove theweeds and noxious growth at his/her own expense. In that case, the assessment and lien shall be limited to the costs incurred by the City in enforcing abatement upon the parcels, including investigation, boundary determination, measurement, clerical and other related costs. b. The Fire Marshal may abate the nuisance(s) by City forces or hiring of contractors. c. The Fire Marshalshallsubmit to the City for confirmation an itemized written report (“Report”) showing such costs.
d. A copy of the Report shall be posted for at least three days prior to its submission to the City

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Attachment 1
within the 24-hour City noticing board nearthe chamber doors of the City Council, with a notice of the submission time.
e. Return to City Council for the levy of abatement costs and the placement of said costs as a property lien.

APPROVED by the City Council of the City of El Paso de Robles by the following vote on June 16, 2026.

AYES:

NOES:

ABSENT:

ABSTAIN:

John R. Hamon, Jr., Mayor
ATTEST:

Melissa Martin, City Clerk
Exhibit A – Property List - Assessor Parcel Number, address, and owner

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Properties in Violation of Ordinance EXHIBIT A

NUMBER APN ADDRESS OWNER
1 008-012-025 504 38TH ST SLO INVESTMENTS LLC A CA LLC
2 008-012-027 520 38TH ST SLO INVESTMENTS LLC A CA LLC
3 008-012-028 534 38TH ST SLO INVESTMENTS LLC A CA LLC
4 008-031-034 3548 OAK ST WEBB FAMILY TRUST
5 008-041-040 3545 PARK ST CORVERA JAIME
6 008-051-021 2805 BLACK OAK DR PASO ROBLES DRES LLC A CA LLC 7 008-121-026 825 24TH ST JKT TRUST
8 008-122-034 1006 26TH ST PATEL JITEN & ULOOPI 2000 TRUST (TR 1) 9 008-132-016 1123 YSABEL AV YASUMOTO HARRY & VIRGINIA FAMILY TRUST 10 008-132-019 2715 BLACK OAK DR FERRY MICHELLE L
11 008-132-029 1215 YSABEL AV BLACKS HATCHERY & TURKEY FARM INC 12 008-132-030 2620 RIVERSIDE AV PACHECO FAMILY TRUST NO ONE 13 008-152-020 2248 OLIVE ST RATLIFF BRIAN
14 008-153-011 2120 OLIVE ST ANDERSON RENE & KAY TRUST
15 008-153-012 415 21ST ST CLAASSEN JEFFREY M
16 008-161-010 525 23RD ST PHAM VU V REVOCABLE LIVING TRUST (TR 1) 17 008-172-018 2245 PINE ST PHILLIPS FAMILY TRUST
18 008-172-020 2231 PINE ST MCCAFFERTY KIM
19 008-221-014 2133 OAK ST LYONS SUSAN F
20 008-222-006 2006 VINE ST ROSE THOMAS E
21 008-227-002 820 22ND ST ESTRADA ANGEL A
22 008-227-007 2145 PINE ST SMITH HANNE K 2003 REVOCABLE TRUST 23 008-227-015 2125 PINE ST MITCHELL DANIELLE
24 008-228-019 2030 PARK ST HURST JUSTIN C 2019 TRUST
25 008-232-001 1844 VINE ST AUSTIN AARON
26 008-232-014 1827 OAK ST SNYDER STEPHEN F LIVING TRUST 27 008-232-018 1825 OAK ST SNYDER STEPHEN F LIVING TRUST 28 008-236-007 1827 PARK ST KWAAK MIKE

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Properties in Violation of Ordinance EXHIBIT A
29 008-237-011 1929 PINE ST KING NELLIE M REVOCABLE LIVING TRUST 30 008-242-014 1019 18TH ST PAULSEN ALBERT C
31 008-243-002 1820 RIVERSIDE AV COOK RICHARD S LIVING TRUST 2019 32 008-243-017 1131 18TH ST CALIFORNIA COASTAL INVESTMENTS LLC 33 008-243-022 1844 RIVERSIDE AV PATEL JITEN & ULOOPI 2000 TRUST 34 008-243-023 1838 RIVERSIDE AV FORD DONALD TRUST
35 008-273-007 207 18TH ST VENEGAS ELIAS R
36 008-274-015 234 18TH ST RUSSELL KAREN A TRUST
37 008-281-012 1707 OAK ST KARSO KATHLEEN A
38 008-281-013 1705 OAK ST ABBEY KRISTINE J
39 008-283-014 605 17TH ST DEVER JULIE
40 008-287-002 1742 PARK ST VELASQUEZ MARIA E
41 008-294-007 1611 RIVERSIDE AV PASOAIR HOLDINGS LP A CA LP 42 008-307-002 1628 OLIVE ST LOPEZ JSL LLC A CA LLC
43 008-321-002 1534 SPRING ST ATASCADERO ENTERPRISES LLC A LLC 44 008-324-008 1427 PINE ST TIL CHAD V
45 008-327-002 1430 RAILROAD ST KOPACK CHRISTOPHER M IRREVOCABLE TRUST (TR 1) 46 008-431-016 112 BURKET PL OFFUTT TRUST
47 008-431-019 2150 ALMOND SPRINGS DR KLEMENTOVICH LEO F REVOCABLE LIVING TRUST 48 008-431-043 88 MOUNTAIN SPRINGS RD CHREENE TONI A
49 008-431-062 2342 ALMOND SPRINGS DR JOHNSON WILDER FAMILY TRUST 50 009-134-011 277 BLACKBURN ST DEQUIROZ MINELIA M
51 009-142-004 818 OLIVE ST DODD FAMILY TRUST #1
52 009-143-003 920 VINE ST YOUNTS COY T & DOROTHY M FAMILY TRUST 53 009-181-007 711 LELAND ST FINFROCK FAMILY TRUST
54 009-181-008 325 PACIFIC AV HARRELL DEAN C
55 009-211-016 731 PASO ROBLES ST TSUI PHILIP & MARY Q TRUST 56 009-213-008 716 PASO ROBLES ST KOR PASO LLC A CA LLC 57 009-214-002 650 PASO ROBLES ST VIBORG PAUL & DEBBIE FAMILY REVOCABLE TRUST

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Properties in Violation of Ordinance EXHIBIT A
58 009-221-015 420 DERBY LN HILLMAN FAMILY TRUST
59 009-221-036 355 DERBY LN REDDICK NANCY D
60 009-221-074 312 MAPLEWOOD CT PLUTO CAPITAL TRUST 2019 61 009-221-078 304 MAPLEWOOD CT ARTHUR FAMILY TRUST
62 009-222-001 198 BLOSSOM CT WILMAR 1984 FAMILY TRUST
63 009-241-032 402 PEACHTREE LN MARTINES JOSEPH
64 009-251-015 529 VINE ST MCELWAIN ALAN & ESTELLA REVOCABLE TRUST 65 009-258-002 420 OAK ST JONES HEATHER C (AKA 1)
66 009-268-008 UPRR ROW SOUTHERN PACIFIC TRANSPORTATION CO (FKA) 67 009-281-013 225 VINE ST HEGWOOD DENNIS J REVOCABLE LIVING TRUST 68 009-282-003 110 OLIVE ST WYNNE KEVIN P REVOCABLE TRUST 69 009-291-007 724 4TH ST BELLISSIMO INVESTMENTS LLC A CA LLC 70 009-291-012 800 4TH ST AZSA HOSPITALITY LLC A CA LLC 71 009-291-013 800 4TH ST AZSA HOSPITALITY LLC A CA LLC 72 009-291-014 800 4TH ST AZSA HOSPITALITY LLC A CA LLC 73 009-291-015 800 4TH ST AZSA HOSPITALITY LLC A CA LLC 74 009-291-019 800 4TH ST AZSA HOSPITALITY LLC A CA LLC 75 009-291-021 800 4TH ST AZSA HOSPITALITY LLC A CA LLC 76 009-291-023 800 4TH ST AZSA HOSPITALITY LLC A CA LLC 77 009-291-024 800 4TH ST AZSA HOSPITALITY LLC A CA LLC 78 009-313-034 379 CAMINO LOBO JEFFRIES WENDY J
79 009-313-054 290 SANTA BELLA HORNING BRITTANY L
80 009-325-015 255 SAN AUGUSTIN DR DORNER DOUGLAS
81 009-328-002 214 SANTA CRUZ AV KING DANIELLE LB
82 009-328-009 284 SANTA CRUZ AV RENDON JOSE G
83 009-329-001 114 SAN AUGUSTIN DR RAY CLAYTON G
84 009-329-015 255 SANTA CRUZ AV HELBERG KARI A
85 009-352-004 645 MOSS AV MALLOY FAMILY TRUST
86 009-361-008 627 BOLEN DR BIRKS JODY

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Properties in Violation of Ordinance EXHIBIT A
87 009-372-006 616 TRIGO LN ARMSTRONG DANIELLE
88 009-401-037 501 CRESTON RD GARCIA JANNET R
89 009-411-052 516 PALM CT ARGIE TIMOTHY F
90 009-423-014 720 SHANNON HILL DR GULARTE JOANNE M
91 009-424-026 609 CRESTON RD DIAZ BUENO FAMILY TRUST
92 009-441-062 727 TRIGO LN WINTER GENTLE E (AKA 1)
93 009-460-029 823 CASALS DR MCILWAIN ESTHER REVOCABLE TRUST 94 009-462-014 940 WADE CT THATCHER LARRY W II
95 009-463-001 915 AUSTIN CT INIGUEZ FAMILY TRUST
96 009-484-024 2198 BEL AIR PL CANO FERNANDO
97 009-485-038 2077 FALLBROOK CT LOPEZ MATTHEW
98 009-514-023 242 CHEYENNE DR TOSTE RICHARD M
99 009-516-007 723 RED CLOUD RD WILSON FAMILY TRUST
100 009-516-032 594 RED CLOUD RD KILIC KEMAL S
101 009-516-040 622 NAVAJO AV BERGER FAMILY TRUST
102 009-516-043 616 NAVAJO AV MID SOUTH RETIREMENT SERVICES LLC 103 009-523-005 105 CAPITOL HILL DR COOK RICHARD S LIVING TRUST 2019 104 009-523-006 105 CAPITOL HILL DR COOK RICHARD S LIVING TRUST 2019 105 009-541-007 426 CRESTON RD MAGGARD DANIEL (AKA 1)
106 009-563-048 1206 FRANCES ST POPE HELEN M
107 009-564-044 1254 LANA ST RUTLEDGE JENNIFER V
108 009-565-021 1029 RACHEL LN STOWELL RONELLE
109 009-565-029 1147 RACHEL LN BRECHTEL DONALD W & MAUREEN U TRUST 110 009-566-017 128 ROSEMARY DR LEE DESIREE M
111 009-567-003 547 ANDREA CIR KHAZAL BORHAN
112 009-573-013 325 PRIMROSE LN HANSEN BRYCE E & ANN L REVOCABLE TRUST 113 009-610-044 427 CHEROKEE CT CARDINALE FAMILY LIVING TRUST (TR 3) 114 009-610-069 304 RAINBOW CT ANGELINI JAMES A
115 009-612-053 370 CRAZY HORSE DR GREER LYNDA B

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Properties in Violation of Ordinance EXHIBIT A
116 009-621-013 115 OLIVE ST HILLTOP ESTATES HOMEOWNERS ASSOCIATION INC A CA CO 117 009-641-033 747 ROLLING HILLS RD COYKENDALL IVAN & RUTH REVOCABLE LIVING TRUST 118 009-641-034 745 ROLLING HILLS RD COYKENDALL IVAN & RUTH REVOCABLE LIVING TRUST 119 009-641-035 743 ROLLING HILLS RD BERNARD FAMILY TRUST 120 009-641-048 BEJAR RICO LLC A CA LLC
121 009-664-018 826 RED CLOUD RD ROUSH CATHERINE A
122 009-671-032 447 JANICE ST DART ENTERPRISES LLC
123 009-671-045 1102 NANETTE LN LESSI TARYN
124 009-671-049 437 HELEN ST ACKHART WENDY
125 009-671-063 1148 PATRICIA LN STEINEKE DAVID L & CAROLINA A MORILLO TRUST 126 009-671-080 419 MELODY DR AVILA ARIANNA
127 009-671-081 413 MELODY DR DISHNO NICHOLAS T
128 009-671-083 349 MELODY DR MCMULLIN JUSTIN
129 009-681-038 1104 LINDA CIR SOTO KATI
130 009-699-008 329 QUARTERHORSE LN RENZ TRUST
131 009-711-001 320 MELODY DR GARD ERIC B
132 009-711-049 1023 TANYA DR LARSEN NATHANIEL A
133 009-750-043 2301 ASHWOOD PL DOMINGUEZ ALEJANDRA
134 009-753-003 370 SCOTT ST MAGANDA ISAIAS
135 009-754-052 1949 TULIPWOOD DR BUCKINGHAM FAMILY TRUST 136 009-754-055 1955 TULIPWOOD DR MANNING CARIN L (AKA 1) 137 009-758-018 2463 BEECHWOOD DR MILBURN CAROL E
138 009-759-019 210 WARBLER CT MCKINNEY WILLIAM L FAMILY TRUST 139 009-766-013 1645 SUMMER CREEK LN NOBRIGA KRISTINA L 140 009-766-015 1649 SUMMER CREEK LN JONES DANIELLE P
141 009-781-016 1026 TURTLE CREEK RD BURBANK KELLIE A (AKA 1) 142 009-781-021 1004 TURTLE CREEK RD KONOPA CHRISTIAN P 143 009-782-044 1509 POPPY LN SHIER MARIAH (AKA 1)
144 009-784-034 1056 PIONEER TRAIL RD JAMISON PETER A

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Properties in Violation of Ordinance EXHIBIT A
145 009-785-019 910 RUNNING STAG WY IRWIN BRETT
146 009-785-058 814 SYCAMORE CANYON RD GIANNINI ELAINE G TRUST 147 009-795-007 3045 LINNE RD SH AA VINEDO LLC A DE LLC 148 009-795-008 3161 LINNE RD SH AA VINEDO LLC A DE LLC 149 009-796-026 1557 SWEETHEART LN OUR TOWN REALTY INC
150 009-796-043 601 LINNE RD VINEDO II LLC A DE LLC
151 009-797-006 1557 SILVERY MOON LN OUR TOWN REALTY INC 152 009-797-014 1557 BLUE HEAVEN LN OUR TOWN REALTY INC 153 009-801-026 3045 LINNE RD STG VINEDO LLC A DE LLC
154 009-831-021 211 ALEXA CT PATEL FAMILY TRUST
155 009-851-023 65 NUTWOOD CIR DRA COMMERCIAL LLC A CA LLC 156 025-015-017 1205 MARIAH LN DANIELS LIVING TRUST
157 025-151-011 924 OSOS WY GARCIA ERNEST & LINDA M 2023 REVOCABLE TRUST 158 025-281-020 736 IVY LN CHUTE FAMILY TRUST
159 025-291-005 746 ORCHARD DR BARTON TYLER J 2020 REVOCABLE TRUST 160 025-291-007 742 ORCHARD DR PEGUERO NICOLE
161 025-362-004 2940 UNION RD PASO HIGHWAY HOTEL PARTNERS LP A CA LTD PTP 162 025-362-013 2914 ARDMORE RD HONZEL PATRICIA REVOCABLE TRUST 163 025-364-014 1316 PINNACLE CT GALLAGHER FAMILY TRUST 164 025-365-024 1325 CROWN WY HIGGINS ALISHA M
165 025-371-040 3051 UNION RD THIESSEN GARRETT A
166 025-372-004 1927 CATAHOULA CT ALVAREZ HECTOR
167 025-382-002 1500 FONTANA RD OLSEN RANCH 212 LLC A CA LLC 168 025-402-075 1644 KLECK RD HARROD HOMES ONE LP A CA LTD PTP 169 025-402-077 1644 KLECK RD HARROD HOMES ONE LP A CA LTD PTP 170 025-403-059 2230 PROSPECT AV CEPHAS INVESTMENTS LLC A CA LLC 171 025-407-016 1733 MESA RD BELL RICHARD H JR
172 025-410-004 2800 BUENA VISTA DR SLO CO COMMUNITY COLLEGE DISTRICT 173 025-410-009 1520 EXPERIMENTAL STATION RD HARVEST GOLD INVESTMENT GROUP LLC A CA LLC

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Properties in Violation of Ordinance EXHIBIT A
174 025-410-011 2615 BUENA VISTA DR ARCIERO & SONS INC A CA CORP 175 025-423-011 2510 GOLDEN HILL RD MULLAHEY MICHAEL J TRUST (TR 1) 176 025-423-012 2105 TRACTOR ST MULLAHEY MICHAEL J TRUST (TR 1) 177 025-423-013 2125 TRACTOR ST MULLAHEY MICHAEL J TRUST (TR 1) 178 025-423-019 2107 TRACTOR ST MULLAHEY MICHAEL J TRUST (TR 1) 179 025-423-020 2127 TRACTOR ST MULLAHEY MICHAEL J TRUST (TR 1) 180 025-424-001 2709 GERMAINE WY SCOTT & BRIAN INC 401K PROFIT SHARING PLAN 181 025-424-002 2711 GERMAINE WY SCOTT & BRIAN INC 401K PROFIT SHARING PLAN 182 025-424-003 2713 GERMAINE WY SCOTT & BRIAN INC 401K PROFIT SHARING PLAN 183 025-424-004 2715 GERMAINE WY SCOTT & BRIAN INC 401K PROFIT SHARING PLAN 184 025-425-034 2650 DANLEY CT MULLAHEY MICHAEL & DIANE FAMILY TRUST (TR 1) 185 025-431-087 4735 AIRPORT RD STATE OF CALIFORNIA
186 025-434-013 5050 AIRPORT RD AMERICAN WAY LLC A CA LLC 187 025-436-019 3490 AIRPORT RD DIDONNA ANTHONY & MAXINE TRUST 188 025-437-035 3556 COMBINE ST CAMPOS DAVID
189 025-481-021 4380 TARSUS CIR JONES LIVING TRUST
190 025-501-006 1751 RIVER RD TROESH READY MIX INC A CA CORP 191 025-501-007 1741 RIVER RD TROESH READY MIX INC A CA CORP 192 025-501-015 1801 RIVER RD TROESH READY MIX INC A CA CORP 193 025-523-072 1710 VIA LANTANA LISA'S PASO DREAM VACATIONS LLC A CA LLC 194 025-530-003 329 WILD MUSTARD LN BRAVO UZZIEL FT
195 025-533-044 509 GRAND CANYON DR DELACRUZ CELERINO

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Council Agenda Report
From: Ryan Cornell, Administrative Services Director
Subject: Proposed Formation of Community Facilities District No. 2026-1 (Beechwood-Facilities) to Provide Transportation Facilities, Park and Recreation Improvements and Facilities, Parkway and Landscaping Improvements, Public Safety Facilities Including Police an CEQA Determination: The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.

Date: June 16, 2026
Facts

1. The Beechwood Specific Plan Project (the “Project”) proposes the development of 911 residential units, including at least 150 multi-family residential units; 40,000 square feet of neighborhood commercial/mixed-use development; 20+ acres of open space that includes an 8-acre public park, smaller public green spaces, and conserved open space; and a 2.9-mile multi-use pathway network.

2. The City and the Beechwood Owners Group are parties to a certain Development Agreement (“DA”) dated April 14, 2021, in which the City granted Beechwood Owners Group the exclusive right to develop the Project. DAs are a commonly used tool executed for large or complex developments and are legally binding contracts negotiated between the City and the developer to delineate the terms and conditions of a proposed development project.

3. City Council Resolution No. 03-232, and General Plan policy LU-4A, Action Item 3, requires a fiscal impact analysis for new development in specific plan areas and conditions projects accordingly to ensure that they will be fiscally neutral and not result in a net fiscal loss for the City.

4. The Mello-Roos Community Facilities Act of 1982, as amended, commencing with Government Code Section 53311 (the “Act”) permits public agencies, including cities, to establish a community facilities district (“CFD”) which allows for financing the construction of public infrastructure and certain services.

5. CFDs impose a special tax on property owners within the CFD boundary through an annual special tax levy collected on the property tax bill. This financing mechanism allows new development to pay for significant public infrastructure and augmented public service needs over time. But because the CFD special tax is added to the existing standard ad valorem property tax bill, it also creates potentially significant tax bills when compared to properties not located in CFD boundaries.

6. On December 3, 2019, City Council approved Resolution No. 19-127, approving an updated Community Facilities District Local Goals and Policies, which is a necessary first step in the formation of CFDs.

7. The City received a petition from the owner of property (‘Developer”) within the boundaries of proposed Community Facilities District No. 2026-1 (Beechwood – Facilities) (“CFD No. 2026-1”), requesting formation of CFD No. 2026-1 to finance certain public facilities.

Options

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1. Take no action;

2. Approve the resolutions declaring intention to establish Community Facilities District No. 2026-1 (Beechwood-Facilities) and declaring necessity to incur bonded indebtedness of proposed CFD No. 2026-1;

3. Provide alternative direction to staff.

Analysis and Conclusions
Pursuant to the provisions of the DA there are many public facilities which are required to be constructed by the Developer. Consistent with the DA, the Developer has requested the formation of CFD No. 2026-1 under the provisions of the Act. A CFD can finance, through the issuance of bonds, public facilities which are needed for development within communities, such as streets, water and sewer improvements, parks, schools and flood control. The bonds are repaid from special taxes levied on the taxable real property within the CFD and remain a liability of the Developer and ultimately the homeowners. The funds of the City are not responsible for the payment of debt service and administration of the CFD. The sole source of repayment of the bonds is the special tax to be levied.

The Act was enacted by the California Legislature to provide an alternate method of financing certain essential public capital facilities and services, especially in the developing areas of the State of California.

Once duly established by a city, county, or other local agency, a CFD is a separate legal entity with defined boundaries, with the governing board or legislative body of the local agency acting on its behalf. Subject to approval by a two-thirds vote of the qualified electors in compliance with the provisions of the Act, a legislative body of a local agency may issue bonds for a CFD and may levy and collect a special tax within a CFD to repay such indebtedness.

If formed, CFD No. 2026-1 will fund a portion of the cost of engineering, planning and designing the facilities, including costs of the property owner petitioning to form CFD No. 2026-1, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2026-1; and any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the facilities. CFD No. 2026-1 is authorized to finance any capital improvement fee imposed by any local agency pursuant to Section 53313.5 of the Act that serves or is required for the Project.

In connection therewith, the first resolution to be considered by the City Council is the Resolution of Intention (the “ROI”) to form CFD No. 2026-1. The ROI does all of the following:
• Establishes the boundaries of CFD No. 2026-1 and designates two separate improvement areas therein;
• Details a formula describing the rate and method of apportionment of the special tax for each of the improvement areas (Exhibit ‘B’ to ROI, the “Rate and Method”); • Lists the authorized public facilities proposed to be funded by CFD No. 2026-1 (Exhibit ‘A’ to ROI); • Calls a public hearing on the matters set forth in the ROI; and • Describes the voting procedures for the intended future election.

As mentioned above, adoption of the ROI sets the date, time and place for a public hearing on the matters set forth in the ROI, including the proposed formation of CFD No. 2026-1 and the levy of special taxes therein. At the public hearing, testimony of all interested persons will be heard and protests will be considered. The proposed date of the public hearing is July 21, 2026, at 6:30 p.m. in the City Council Chambers.

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Each year, the City will approve the annual costs for CFD No. 2026-1. The special tax to be levied will include amounts to pay for, including but not limited to, the following:
• Debt Service on the Bonds (i.e., principal and interest on bonds) • Administrative expenses of CFD No. 2026-1
• Replenishment of the reserve fund (if necessary)
The second resolution before the City Council for consideration is the Resolution Declaring Necessity to Incur Bonded Indebtedness (the “RON”) within CFD No. 2026-1 and each Improvement Area therein. The RON sets forth the maximum proposed amount of bonded indebtedness that may be incurred in each Improvement Area. The financing of authorized facilities may require multiple bond issues totaling no more than $15 million in Improvement Area No. 1 and $15 million in Improvement Area No. 2 to fund up to $30 million of Developer installed improvements listed in the Exhibit ‘A’ to the RON. The RON also calls a public hearing on the proposed incurrence of bonded indebtedness to be held at the same time and location as the public hearing on the ROI.

Fiscal Impact
Properties within CFD No. 2026-1 will be subject to an annual special tax collected by the County in the same manner as ad valorem property taxes. The special tax rate will depend on several variables including location of property in improvement areas and product.

Formation costs incurred by the City in connection with CFD No. 2026-1 have been and will be reimbursed by Developer for staff and consultant time. The City will receive an administrative fee for its oversight and the formation of CFD No. 2026-1 and shall be reimbursed for actual costs in conjunction with annual administration of CFD No. 2026-1, which shall be included as part of the annual special tax levy. Finally, the bonds are secured by a lien on the individual properties within CFD No. 2026-1 and the special taxes to be levied are the sole source of repayment for the bonds.

CEQA
The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.

Recommendation (Option 2)
It is recommended that City Council take the following actions:

Attachments

1. Resolution 26-XXX (A) of the City Council of the City of El Paso de Robles Declaring Intention to Establish the City of Paso Robles Community Facilities District No. 2026-1 (Beechwood–Facilities), County of San Luis Obispo, State of California, and to Designate Two Improvement Areas Therein and to Levy a Special Tax Therein

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2. Resolution 26-XXX (B) of the City Council of the City of El Paso de Robles Declaring Necessity to Incur Bonded Indebtedness of Proposed City of Paso Robles Community Facilities District No. 2026-1 (Beechwood–Facilities) County of San Luis Obispo, State of California For Improvement Area Nos. 1 and 2 Therein

3. Rate and Method of Apportionment-Improvement Area No. 1

4. Rate and Method of Apportionment-Improvement Area No. 2

5. Proposed Boundary Map

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Attachment 1
RESOLUTION 26-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES

DECLARING NECESSITY TO INCUR A BONDED INDEBTEDNESS OF PROPOSED CITY OF PASO ROBLES COMMUNITY FACILITIES DISTRICT NO. 2026-1 (BEECHWOOD – FACILITIES) FOR IMPROVEMENT AREA NOS. 1 AND 2 THEREIN
WHEREAS, pursuant to Section 53321 of the California Government Code, the City Council (the “City Council”) of the City of El Paso de Robles (the “City”) has adopted a resolution (the “Resolution of Intention”) declaring its intention to establish City of Paso Robles Community Facilities District No. 2026- 1 (Beechwood – Facilities) (“CFD No. 2026-1”), for the purpose of providing and financing certain authorized facilities described in Exhibit A attached hereto and incorporated herein by this reference (the “Facilities”) which are necessary to meet increased demands placed upon the City as a result of development which will occur within CFD No. 2026-1; and WHEREAS, the City Council has determined that it is necessary for proposed CFD No. 2026-1 to incur a bonded indebtedness for the purpose of providing and financing such Facilities; and WHEREAS, this City intends to designate two improvement areas within CFD No. 2026-1 pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”) for the purpose of contributing to the financing of the Facilities, such improvement areas to be known as Improvement Area No. 1 and Improvement Area No. 2 (individually, an “Improvement Area” or collectively, the “Improvement Areas”); and
WHEREAS, it is the intention of this City Council to finance the acquisition or construction of all or a portion of such Facilities through the issuance of one or more series of bonds for each Improvement Area of CFD No. 2026-1, such bonds to be secured by special taxes to be levied on taxable property within each such Improvement Area, all as authorized pursuant to the Act.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES AS FOLLOWS:

Section 1. Recitals. The above recitals are all true and correct and the City Council so finds and determines.

Section 2. Declaration of Convenience and Necessity. This City Council hereby declares that the public convenience and necessity requires that a bonded indebtedness be incurred by CFD No. 2026-1 to contribute to the financing of all or a portion of the Facilities. The cost of the acquisition and construction of the Facilities includes incidental expenses for the Facilities comprising of, but not limited to, the costs of planning and designing the Facilities, together with the costs of environmental evaluations thereof, and all costs associated with the creation of CFD No. 2026-1, the issuance of bonds, the determination of the amount of any special taxes or the collection of payment of any special taxes and costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2026-1, together with any other expenses incidental to the acquisition and construction of the Facilities.

Section 3. Purpose for Proposed Indebtedness. The purpose for the proposed debt of CFD No. 2026-1 for each Improvement Area is to contribute to the financing of the acquisition or construction of the Facilities.

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Attachment 1
Section 4. Bond Authorization. For each Improvement Area, bonds may be issued in one or more series. The maximum amount of the bonded indebtedness of CFD No. 2026-1 for each Improvement Area may include all costs and estimated costs incidental to, or connected with, the accomplishment of the purpose for which the indebtedness is proposed to be incurred as authorized pursuant to the Act. The maximum amount of the indebtedness proposed to be authorized for each Improvement Area is:

Improvement Area No. 1 - $15,000,000
Improvement Area No. 2 - $15,000,000
Section 5. Hearing. A public hearing to be held by the City Council to consider the incurring of the proposed bonded indebtedness for CFD No. 2026-1 and for each Improvement Area therein has been fixed by the City Council to be held at 6:00 p.m. on July 21, 2026, in the Norris Meeting Room located at Centennial Park, 600 Nickerson Drive, Paso Robles, California. Said public hearing shall be conducted concurrently with the hearing on the formation of CFD No. 2026-1 and levy of special taxes therein. At such public hearing, any persons interested, including all taxpayers, property owners and registered voters with the proposed boundaries of CFD No. 2026-1 may appear and be heard on the proposed debt issuance or on any other matters set forth herein, and they may present any matters relating to the necessity for incurring such bonded indebtedness to finance the acquisition and construction of the Facilities to be secured by a special tax to be levied within CFD No. 2026-1.

Section 6. Notice. The City Clerk shall publish a notice of the time and place of said hearing pursuant to Section 53346 of the Act and may also give notice of the time and place of said hearing by first-class mail to each registered voter and to each landowner within each Improvement Area of CFD No. 2026-1.

APPROVED this 16th day of June, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

John R. Hamon, Jr., Mayor
ATTEST:

Melissa Martin, City Clerk
Exhibit A - Description Of Authorized Facilities

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Exhibit A

EXHIBIT A

DESCRIPTION OF AUTHORIZED FACILITIES
The proposed types of facilities to be financed by CFD No. 2026-1 include:

Transportation facilities, park and recreation improvements and facilities, parkway and landscaping improvements, public safety facilities including police and fire buildings and equipment, public library and community center facilities, water, wastewater and storm drain improvements, street improvements, general governmental facilities, and dry utilities and all appurtenances and appurtenant work in connection with the foregoing facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such facilities, and to finance the incidental expenses to be incurred, including:
a. The cost of engineering, planning and designing the Facilities; b. All costs, including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and
c. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.

CFD No. 2026-1 is authorized to finance any capital improvement fee imposed by any local agency pursuant to Section 53313.5 of the Mello-Roos Act that serves or is required for the project.

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Attachment 2
RESOLUTION 26-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES AS FOLLOWS:

Section 1. Recitals. The above recitals are all true and correct and the City Council so finds and determines.

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Attachment 2
Section 3. Purpose for Proposed Indebtedness. The purpose for the proposed debt of CFD No. 2026-1 for each Improvement Area is to contribute to the financing of the acquisition or construction of the Facilities.

Section 4. Bond Authorization. For each Improvement Area, bonds may be issued in one or more series. The maximum amount of the bonded indebtedness of CFD No. 2026-1 for each Improvement Area may include all costs and estimated costs incidental to, or connected with, the accomplishment of the purpose for which the indebtedness is proposed to be incurred as authorized pursuant to the Act. The maximum amount of the indebtedness proposed to be authorized for each Improvement Area is:

APPROVED this 16th day of June, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

John R. Hamon, Jr., Mayor
ATTEST:

Melissa Martin, City Clerk

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Attachment 2
Exhibit A – Description of Authorized Facilities

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Exhibit A

EXHIBIT A

DESCRIPTION OF AUTHORIZED FACILITIES
The proposed types of facilities to be financed by CFD No. 2026-1 include:

CFD No. 2026-1 is authorized to finance any capital improvement fee imposed by any local agency pursuant to Section 53313.5 of the Mello-Roos Act that serves or is required for the project.

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1 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
IMPROVEMENT AREA NO. 1 OF CITY OF PASO ROBLES
COMMUNITY FACILITIES DISTRICT NO. 2026-1
(BEECHWOOD - FACILITIES)
A Special Tax as hereinafter defined shall be levied on all Assessor’s Parcels in Improvement Area No. 1 of City of Paso Robles Community Facilities District No. 2026-1 (Beechwood - Facilities) ("CFD No. 2026-1 (IA No. 1)") and collected each Fiscal Year commencing in Fiscal Year 2025-2026, in an amount determined by the Council, through the application of this Rate and Method of Apportionment as described below. All of the real property in CFD No. 2026-1 (IA No. 1), unless exempted by law or by the provisions hereof, 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 land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Final Map, parcel map, condominium plan, or other recorded County parcel map.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2026-1 (IA No. 1): the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2026-1 (IA No. 1) or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2026-1 (IA No. 1) or any designee thereof of complying with City, CFD No. 2026-1 (IA No. 1), major property owner, or obligated persons disclosure requirements associated with applicable federal and state securities laws and of the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2026-1 (IA No. 1), or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2026-1 (IA No. 1) for any other administrative purposes of CFD No. 2026-1 (IA No. 1), including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure, or otherwise addressing the disposition of delinquent Special Taxes. "Assessor’s Parcel" means any real property to which an Assessor’s Parcel Number is assigned as shown on an Assessor’s Parcel Map.

Attachment No. 3

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2 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)
"Assessor’s Parcel Map" means an official map of the County Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax for each Land Use Class of Developed Property, as determined in accordance with Section C below. “Authorized Facilities” means the facilities authorized to be financed by CFD No. 2026-1 (IA No. 1).
"Backup Special Tax" means the Special Tax of that name described in Section C below.
"Bonds" means any bonds or other debt as defined in Section 53317(d) of the Act, whether in one or more series, issued by CFD No. 2026-1 (IA No. 1) under the Act. "Boundary Map" means a recorded map which indicates the boundaries of CFD No. 2026-1 (IA No. 1).
"Building Permit" means the first legal document issued by the City giving official permission for the construction of a building on an Assessor’s Parcel. For purposes of this definition and application of the Special Tax, “Building Permit” may or may not include any subsequent building permits issued or changed after the first issuance, as determined by the CFD Administrator.
"Calendar Year" means the period commencing January 1 of any year and ending the following December 31.
"CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes.
"CFD No. 2026-1 (IA No. 1)" means the Improvement Area No. 1 of City of Paso Robles Community Facilities District No. 2026-1 (Beechwood – Facilities). “City” means the City of Paso Robles.
"Council" means the City Council.
"County" means the County of San Luis Obispo.
"Developed Property" means, for each Fiscal Year, all Taxable Property in CFD No. 2026-1 (IA No. 1), located within a Final Map that was recorded as of January 1 of the prior Fiscal Year, for which a Building Permit was issued prior to May 1 of the prior Fiscal Year.
“Dwelling Unit” means one residential unit of any configuration, including, but not limited to, a single-family attached or detached dwelling, condominium, mobile home, or otherwise, excluding hotels and motels. A casita or accessory dwelling unit (“ADU”) of any configuration shall not be counted as a separate Dwelling Unit for purposes of this Rate and Method of Apportionment.
“Exempt Welfare Exemption Property” means, for each Fiscal Year, an Assessor’s Parcel that, prior to the issuance of Bonds, received a welfare exemption under subdivision (g) of Section 214 of the California Revenue and Taxation Code (or any Attachment No. 3

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3 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)
successor statute), as indicated in the County’s assessor’s roll finalized as of January 1 of the previous Fiscal Year, and is exempt from the Special Tax pursuant to Section 53340(c) of the Act.
"Final Map" means (i) a final map, or portion thereof, approved by the County pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) that creates individual lots or parcels for which Building Permits may be issued without further subdivision, or (ii) for condominiums, a final map approved by the County and a condominium plan recorded pursuant to California Civil Code Section 4285 creating such individual lots or parcels.
"Final Mapped Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied; and (ii) for which a Building Permit has not been issued on or before May 1 preceding the Fiscal Year in which the Special Tax is being levied.
"Fiscal Year" means the period starting July 1 and ending on the following June 30. "Indenture" means the indenture, fiscal agent agreement, resolution, or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time.
"Land Use Class" means any of the categories listed in Table 1 herein. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor’s Parcel within CFD No. 2026-1 (IA No. 1).
“Non-Residential Floor Area” means the total building square footage of the nonresidential building(s) located on an Assessor’s Parcel, measured from outside wall to outside wall, not including space devoted to stairwells, public restrooms, lighted courts, vehicle parking and areas incident thereto, and mechanical equipment incidental to the operation of such building. The determination of Non-Residential Floor Area shall be made by reference to the Building Permit(s) issued for such Assessor’s Parcel and/or to the appropriate records kept by the City, as reasonably determined by the CFD Administrator.
"Non-Residential Property" means all Assessor's Parcels of Taxable Property for which a Building Permit(s) was issued for a non-residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property.
"Outstanding Bonds" means all Bonds which are deemed to be outstanding under the Indenture.
"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1. “Property Owner’s Association” means, collectively, any property owner association or homeowners association, including any master or sub-association, created for CFD No. 2026-1 (IA No. 1).

Attachment No. 3

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4 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)
"Property Owner Association Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2026-1 (IA No. 1) that was owned by a Property Owner Association, as of January 1 of the prior Fiscal Year. "Proportionately" means, for Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is equal for all Assessor’s Parcels of Developed Property. For Undeveloped Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Undeveloped Property. For Taxable Property Owner Association Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Taxable Property Owner Association Property. For Taxable Public Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Taxable Public Property.
"Public Property" means, for each Fiscal Year, any property within CFD No. 2026-1 (IA No. 1) that is owned by, irrevocably offered for dedication to, or dedicated to the federal government, the State, the City, or any other public agency as of June 30 of the prior Fiscal Year; 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 in accordance with its use. To ensure that property is classified as Public Property in the first Fiscal Year after it is acquired by, irrevocably offered for dedication to, or dedicated to a public agency, the property owner shall notify the CFD Administrator in writing of such acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the acquisition, offer, or dedication occurred. “Rate and Method of Apportionment” means this Rate and Method of Apportionment of Special Taxes, City of Paso Robles, Community Facilities District No. 2026-1 (Beechwood - Facilities).
"Residential Floor Area" means all of the square footage of living area within the perimeter of a Dwelling Unit, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The CFD Administrator shall determine the Residential Floor Area based upon the Building Permit(s) issued for such Dwelling Unit.
"Residential Property" means Developed Property, for which a Building Permit has been issued for purposes of constructing one or more Dwelling Units. "Special Tax" means a special tax levied in any Fiscal Year to pay the Special Tax Requirement.
“Special Tax Requirement” means that amount required in any Fiscal Year to: (i) pay debt service on all Outstanding Bonds; (ii) pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds to the extent such establishment or replenishment has not been included in a computation of the Special Tax Requirement in a previous Fiscal Year; (v) pay directly for the acquisition or construction of Authorized Facilities to the extent that inclusion of such amount does not increase the Special Tax levy on Final Mapped Property or Undeveloped Attachment No. 3

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5 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)
Property; and (vi) pay for reasonably anticipated Special Tax delinquencies based on the historical delinquency rate for CFD No. 2026-1 (IA No. 1) as determined by the CFD Administrator; less (vii) a credit for funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator pursuant to the Indenture. "State" means the State of California.
"Taxable Property" means all of the Assessor’s Parcels within the boundaries of CFD No. 2026-1 (IA No. 1) which are not exempt from the Special Tax pursuant to law or Section E below.
"Taxable Property Owner Association Property" means all Assessor’s Parcels of Property Owner Association Property that are not exempt pursuant to Section E below.
"Taxable Public Property" means all Assessor’s Parcels of Public Property that are not exempt pursuant to Section E below.
“Total Floor Area” means the sum of the Residential Floor Area and the NonResidential Floor Area located on an Assessor’s Parcel. "Trustee" means the trustee or fiscal agent under the Indenture. "Undeveloped Property” means all Assessor’s Parcels of Taxable Property which are not Developed Property, Final Mapped Property, Public Property, or Property Owner’s Association Property.

B ASSIGNMENT TO LAND USE CLASSES
Each Fiscal Year, beginning with Fiscal Year 2025-2026, each Assessor’s Parcel of Taxable Property shall be classified as Developed Property, Final Mapped Property, Undeveloped Property, Public Property and/or Property Owner’s Association Property.

Assessor’s Parcels of Developed Property shall further be classified as Residential Property or Non-Residential Property. Each Assessor’s Parcel of Residential Property shall be further categorized into Land Use Classes based on its Residential Floor Area and assigned the appropriate Assigned Special Tax.

The determination of the Residential Floor Area shall be made by reference to the original Building Permit issued for the Dwelling Unit of an Assessor’s Parcel. The Building Permit may include any subsequent document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the original issuance, as determined by the CFD Administrator as necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property in each year will be at least 1.1 times annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses in each year.

C MAXIMUM SPECIAL TAX RATE
C.1 Developed Property
The Maximum Special Tax for each Assessor’s Parcel classified as Developed Property shall be the greater of (i) the amount derived by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax.

Attachment No. 3

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6 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)
Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Residential Property or Non-Residential Property shall be subject to an Assigned Special Tax. The Assigned Special Tax applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 below.

Table 1: Assigned Special Tax for Developed Property
Land Use
Class
Description Assigned Special Tax
1 RESIDENTIAL PROPERTY (> 2,650 SF) $5,985 PER DWELLING UNIT 2 RESIDENTIAL PROPERTY (2,350 - 2,650 SF) $5,569 PER DWELLING UNIT 3 RESIDENTIAL PROPERTY (2,050 - 2,350 SF) $5,153 PER DWELLING UNIT 4 RESIDENTIAL PROPERTY (1,750 - 2,050 SF) $4,738 PER DWELLING UNIT 5 RESIDENTIAL PROPERTY (1,450 - 1,750 SF) $4,322 PER DWELLING UNIT 6 RESIDENTIAL PROPERTY (<= 1,450 SF) $3,699 PER DWELLING UNIT 7 NON-RESIDENTIAL PROPERTY $42,377 PER ACRE
Backup Special Tax
The Backup Special Tax for each Assessor’s Parcel of Residential Property in a Final Map shall be computed by multiplying the Acreage of all Taxable Property (excluding Acreage associated with current or expected Non-Residential Property, Taxable Public Property, or Taxable Property Owner Association Property, if any) in such Final Map by $42,377, and dividing the product by the number of such Assessor’s Parcels (i.e., the number of residential lots) in such Final Map.

Notwithstanding the foregoing, if all or any portion of a Final Map is subsequently changed or modified, then the Backup Special Tax for each Assessor’s Parcel of Residential Property in such Final Map, or the portion thereof that is changed or modified, shall be a rate per Acre calculated as follows:

1. Determine the total Backup Special Taxes anticipated to apply to the changed or modified portion of the Final Map prior to the change or modification.

2. Divide the amount determined pursuant to paragraph 1 above by the total Acreage of Residential Property excluding Non-Residential Property, Taxable Public Property, and Taxable Property Owner Association Property which is ultimately expected to exist in such changed or modified Final Map area, as reasonably determined by the CFD Administrator.

3. The result is the Backup Special Tax per Acre which shall be applicable to all Assessor's Parcels of Residential Property in such changed or modified Final Map.

C.2 Final Mapped Property
The Maximum Special Tax for each Assessor’s Parcel of Final Mapped Property expected to be classified as Residential Property shall be the Backup Special Tax computed pursuant to Section C.1.b above.

C.3 Undeveloped Property, Taxable Property Owner Association Property, Attachment No. 3

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7 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)
and/or Taxable Public Property.

The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property, Taxable Property Owner Association Property, or Taxable Public Property shall be $42,377 per Acre.

C.4 Multiple Land Use Classes
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land Use Class. The annual Maximum Special Taxes levied on an Assessor’s Parcel shall be the sum of the Maximum Special Taxes for all Land Use Classes located on that Assessor’s Parcel. If an Assessor’s Parcel of Developed Property includes Non-Residential Property, the Acreage to be assigned to such property for purposes of establishing the Special Tax shall be an amount proportional to the Total Floor Area associated with Non-Residential Property, as applicable. Furthermore, for a condominium plan, if only a portion of its Building Permits have been issued, the remaining portion of the condominium plan shall be considered Final Mapped Property. The CFD Administrator’s allocation to each type of property shall be final.

D APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2025-2026 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement and shall levy the Special Tax until the total Special Tax levy equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:

First: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement.

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

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

Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to 100% of the Maximum Special Tax as needed to satisfy the Special Tax Requirement.

Fifth: If additional monies are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Property Owner Association Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

Attachment No. 3

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8 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)
Sixth: If additional monies are needed to satisfy the Special Tax Requirement after the first five steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Public Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

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

E EXEMPTIONS
No Special Tax shall be levied on Acres of Property Owner Association Property or Public Property in CFD No. 2026-1 (IA No. 1) provided that an Assessor’s Parcel shall not be exempt and shall be classified as Taxable Property Owner Association Property and Taxable Public Property if exempting such property would reduce the sum of all Taxable Property to less than 19.02 Acres. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which such Assessor’s Parcels or portions thereof within CFD No. 2026-1 (IA No. 1) become Public Property or Property Owner Association Property.

However, should an Assessor’s Parcel no longer be classified as Public Property or Property Owner Association Property, it will, from that point forward, be subject to the Special Tax.

Property Owner Association Property or Public Property that is not exempt from the Special Tax under this section shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the fifth step and sixth step in Section D above, respectively, at up to 100% of the applicable Maximum Special Tax for Taxable Property Owner Association Property or Taxable Public Property.

In addition, no Special Tax shall be levied on any Assessor’s Parcel in any Fiscal Year in which such Assessor’s Parcel is classified as Exempt Welfare Exemption Property.

F APPEALS AND INTERPRETATIONS
Any taxpayer may file a written appeal of the Special Tax on his/her property with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes.

During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall eliminate or reduce the Special Tax on the appellant’s property.

If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has 30 days in which to appeal to the Council by filing a written notice of appeal with the clerk of the Council, provided that the appellant is current in his/her payments of Special Taxes. The second appeal must specify the reasons for the disagreement with the CFD Administrator’s determination.

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

Attachment No. 3

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9 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)

G PREPAYMENT
The following additional definitions apply to this Section G:
“CFD Public Facilities” means $9,825,000 or such lower amount (i) authorized by the Council to provide the public facilities to be funded under CFD No. 2026-1 (IA No. 1), or (ii) determined by the Council concurrently with a covenant that it will not issue any more Bonds to be supported by the Special Tax levied under this Rate and Method of Apportionment.
“Construction Fund” means a fund held by the Trustee to fund CFD Public Facilities. “Future Facilities Cost” means the CFD Public Facilities minus public facility costs previously funded, or that can be funded from funds in the Construction Fund. “Outstanding Bonds” means all previously issued Bonds secured by the levy of the Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of the Special Tax.

G.1 Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has been issued, (iii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has not been issued; and (iv) Assessor’s Parcels of Public Property or Property Owner’s Association Property that are not exempt pursuant to Section E.

The Maximum Special Tax obligation applicable to an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Maximum Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by CFD No. 2026-1 (IA No. 1) in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel. Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such Prepayment Amount.

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

Prepayment Amount
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
Attachment No. 3

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10 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Special Tax Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:

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

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

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

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

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

6. Determine the Future Facilities Cost.

7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s Parcel, which amount shall not be less than $0 (the “Future Facilities Amount”).

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

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

10. Determine the amount the CFD Administrator reasonably expects to derive Attachment No. 3

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11 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)
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 CFD No. 2026-1 (IA No. 1), 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 Assessor’s Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).

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

14. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest payment following the current Fiscal Year, the capitalized interest credit (the “Capitalized Interest Credit”) shall be calculated by multiplying the quotient derived pursuant to paragraph 3 by the expected balance in the capitalized interest account after such first interest payment.

15. 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, less the Capitalized Interest Credit.

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

The Prepayment Amount may not be sufficient to redeem an aggregate principal amount of Outstanding Bonds which is equally divisible by $5,000. In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments.

As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is Attachment No. 3

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12 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)
prepaid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special Tax obligation and the release of the Special Tax lien for the Assessor’s Parcel, and the obligation to pay the Special Tax for such Assessor’s Parcel shall cease.

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

G.2 Prepayment in Part
The Maximum Special Tax obligation for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has been issued, (iii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has not been issued; and (iv) Assessor’s Parcels of Public Property or Property Owner’s Association Property that are not exempt pursuant to Section E, may be partially prepaid. For purposes of determining the partial prepayment amount, the provisions of Section G.1 shall be modified as provided by the following formula:

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

PP = The partial prepayment;
PE = The Prepayment Amount calculated according to Section G.1; F = The percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax obligation; and
A = The Administrative Fees and Expenses determined pursuant to Section G.1.

The owner of an Assessor’s Parcel who desires to partially prepay the Maximum Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by CFD No. 2026-1 (IA No. 1) in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial Prepayment for the Assessor’s 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 Amount.

With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 16 of Section G.1, and (ii) indicate in the records of CFD No. 2026-1 (IA No. 1) that there has been a Partial Prepayment for the Assessor’s Parcel and that a portion of the Special Tax obligation equal to the remaining Attachment No. 3

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13 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)
percentage (1.00 - F) of Special Tax obligation will continue on the Assessor’s Parcel pursuant to Section D.

H SPECIAL TAX REDUCTION
The following definitions apply to this Section H:
"Base Price" means the minimum price at which Dwelling Units within a given Plan Type 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 Plan Type. If such information is not available, means the base price of such Dwelling Units, estimated by an MAI Appraiser or Price Point Consultant as of such date, based upon their actual or expected characteristics, such as living area, view, or lot size, but excluding potential appreciation or premiums, options or upgrades. "Plan Type" means a discrete residential plan type generally consisting of residential Dwelling Units that share a common product type (e.g., detached, attached) and that have nearly identical amounts of living area, that is constructed or expected to be constructed within CFD No. 2026-1 (IA No. 1) or the surrounding area as identified in the appraisal or the Price Point Study.
"Price Point Consultant" means any consultant or firm of such consultants selected by CFD No. 2026-1 (IA No. 1) that (a) has substantial experience in performing price point studies or otherwise estimating or confirming pricing for Dwelling Units within community facilities districts, (b) is well versed in analyzing economic and real estate data that relates to the pricing of Dwelling Units in community facilities districts, (c) is independent and not under the control of CFD No. 2026-1 (IA No. 1), the City, or the developer, (d) does not have any substantial interest, direct or indirect, with or in CFD No. 2026-1 (IA No. 1), the City, any owner of real property in CFD No. 2026-1 (IA No. 1), or any real property in CFD No. 2026-1 (IA No. 1), and (e) is not connected with CFD No. 2026-1 (IA No. 1) or the City as an officer or employee thereof, but who may be regularly retained to make reports to CFD No. 2026-1 (IA No. 1) or the County. "Price Point Study" means a price point study or a letter updating a previous price point study, which (a) has been prepared by the Price Point Consultant, (b) sets forth the Plan Types constructed or expected to be constructed within CFD No. 2026-1 (IA No. 1), (c) sets forth the estimated number of constructed and expected Dwelling Units for each Plan Type, (d) sets forth estimates of the Base Price for each Plan Type and (e) uses a date for establishing such Base Prices that is no earlier than 30 days prior to the date the Price Point Study is delivered to the CFD Administrator pursuant to Section H herein.
"Total Effective Tax Rate" means, for a Plan Type, (a) the Total Tax Burden for such Plan Type divided by (b) the Base Price for such Plan Type, converted to a percentage. "Total Effective Tax Rate Limit" means 1.80%.
"Total Tax Burden” means, with respect to a Plan Type, for the Fiscal Year for which the calculation is being performed, the sum of the Assigned Special Tax and estimated ad valorem property taxes, special assessments, special taxes for any overlapping community facilities districts, and any other governmental taxes, fees and charges levied or imposed on Dwelling Units of such Plan Type in CFD No. 2026- Attachment No. 3

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14 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)
1 (IA No. 1) in such Fiscal Year or that would have been levied on all such Dwelling Units had these Dwelling Units been subject to such levies (excluding homeowner’s association dues and Property Assessed Clean Energy (“PACE”) charges imposed pursuant to AB 811 or SB 555, that are levied on individual Assessor’s Parcels, or any other charges applicable to the Assessor’s Parcels initiated by the homeowner after the close of escrow).

At least 30 days prior to the issuance of the first series of Bonds, the following steps shall be taken for each Land Use Class of for-sale Residential Property in CFD No. 2026-1 (IA No. 1) for evaluating the Special Tax:

Step No.:

1. The CFD Administrator shall determine whether or not the Total Effective Tax Rate for all Plan Types in a Land Use Class is less than or equal to the Total Effective Tax Rate Limit for each Land Use Class of for-sale Residential Property in CFD No. 2026-1 (IA No. 1).
a. If the Total Effective Tax Rate for all Plan Types in a Land Use Class in CFD No. 2026-1 (IA No. 1) is less than or equal to the Total Effective Tax Rate Limit, then there shall be no reduction in Special Tax for such Land Use Class in CFD No. 2026-1 (IA No. 1).
b. If the Total Effective Tax Rate for any Plan Type in a Land Use Class in CFD No. 2026-1 (IA No. 1) is greater than the Total Effective Tax Rate Limit , the CFD Administrator shall calculate a revised Assigned Special Tax for that Land Use Class in CFD No. 2026-1 (IA No. 1), such that the revised Assigned Special Tax does not cause the Total Effective Tax Rate for any Plan Type in such Land Use Class to exceed the Total Effective Tax Rate Limit.

2. If the Assigned Special Tax for any Land Use Class is revised pursuant to step

1.b. above, the CFD Administrator shall also prepare and execute a Certificate to Amend the Special Tax substantially in the form of Exhibit “A” hereto and shall deliver such Certificate to Amend the Special Tax to CFD No. 2026-1 (IA No. 1). The Certificate to Amend the Special Tax shall be completed for all Land Use Classes and shall set forth, as applicable, either (i) the reduced Assigned Special Tax for a Land Use Class as calculated pursuant to step 1.b., or (ii) the Assigned Special Tax as identified in Table 1 of Section C for a Land Use Class that was not revised as determined pursuant to step 1.a. A reduction to the Assigned Special Tax in one Land Use Class shall not require a reduction in any other Land Use Class.

3. If the anticipated date of issuance of Bonds is within 180 days of the date of receipt of the Price Point Study by the CFD Administrator, CFD No. 2026-1 (IA No. 1) shall execute the acknowledgement on such Certificate to Amend the Special Tax dated as of the closing date of such Bonds, and upon the closing of such Bonds, the Assigned Special Tax for each Land Use Class shall be as set forth in such Certificate to Amend the Special Tax. If the date of issuance of Bonds is not within 180 days of the date of receipt of the Price Point Study by the CFD Administrator, such Certificate to Amend the Special Tax shall not be acknowledged by CFD No. 2026-1 (IA No. 1) and shall, as of such date, be Attachment No. 3

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15 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)
void and of no further force and effect. In such case, if subsequently Bonds are expected to be issued, at least 30 days prior to that expected date, steps 1 and 2 of this section shall be performed based on a new Price Point Study.

4. After the execution by CFD No. 2026-1 (IA No. 1) of the acknowledgement on the Certificate to Amend the Special Tax, CFD No. 2026-1 (IA No. 1) shall cause to be recorded in the records of the County Recorder an Amended Notice of Special Tax Lien for CFD No. 2026-1 (IA No. 1) reflecting the Assigned Special Tax for CFD No. 2026-1 (IA No. 1) set forth in such Certificate to Amend the Special Tax.

5. If the Assigned Special Tax is not required to be changed for any Land Use Class based on the calculations performed under step 1 above, there shall be no reduction in the Assigned Special Tax and no Certificate to Amend the Special Tax shall be required.

I MANNER OF COLLECTION
The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 2026-1 (IA No. 1) may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.

J TERM OF SPECIAL TAX
The Special Taxes shall be levied until the final series of Bonds have matured, provided that the Special Taxes shall not be levied after Fiscal Year 2074-2075. The Special Taxes will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined that all required interest and principal payments on the Bonds have been paid, no delinquent Special Taxes remain uncollected, and the City has covenanted that it will not issue any more Bonds (other than refunding Bonds) to be supported by Special Taxes levied under this Rate and Method of Apportionment as described in Section D.

Attachment No. 3

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A-1 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 1) (Beechwood - Facilities)

EXHIBIT A

CERTIFICATE TO AMEND THE SPECIAL TAX
IMPROVEMENT AREA NO. 1 OF CITY OF PASO ROBLES
COMMUNITY FACILITIES DISTRICT NO. 2026-1 (BEECHWOOD -

FACILITIES)

TAX REDUCTION CERTIFICATE

1. Pursuant to Section H of the Rate and Method of Apportionment, as attached to the Notice of Special Tax Lien, recorded in the Official Records of the County of San Luis Obispo as Instrument No. XXXXXX on MM/DD/YYYY, the City of Paso Robles (the “City”) hereby reduces the Assigned Special Taxes for Developed Property within CFD No. 2026- 1 (IA No. 1) set forth in Table 1 of the Rate and Method of Apportionment for CFD No. 2026-1 (IA No. 1).

2. The calculations made pursuant to Section H were based upon a Price Point Study that was received by the CFD Administrator on _________________.

3. The information in Table 1, relating to the Assigned Special Tax for Developed Property within CFD No. 2026-1 (IA No. 1) shall be amended and restated in full as follows:

Table A-1: Assigned Special Tax for Developed Property
Land Use
Class
Description Assigned Special Tax
1 RESIDENTIAL PROPERTY (> 2,650 SF) [$ ] PER DWELLING UNIT 2 RESIDENTIAL PROPERTY (2,350 - 2,650 SF) [$ ] PER DWELLING UNIT 3 RESIDENTIAL PROPERTY (2,050 - 2,350 SF) [$ ] PER DWELLING UNIT 4 RESIDENTIAL PROPERTY (1,750 - 2,050 SF) [$ ] PER DWELLING UNIT 5 RESIDENTIAL PROPERTY (1,450 - 1,750 SF) [$ ] PER DWELLING UNIT 6 RESIDENTIAL PROPERTY (<= 1,450 SF) [$ ] PER DWELLING UNIT 7 NON-RESIDENTIAL PROPERTY $42,377 PER ACRE

4. Upon execution of the certificate by the City and CFD No. 2026-1 (IA No. 1), the City shall cause an amended Notice of Special Tax Lien for CFD No. 2026-1 (IA No. 1) to be recorded reflecting the modifications set forth herein.

Submitted:

CFD ADMINISTRATOR
By: Date:

By execution hereof, the undersigned acknowledges, on behalf of CFD No. 2026-1 (IA No. 1), receipt of this certificate and modification of the Rate and Method of Apportionment as set forth in this certificate.

Community Facilities District No. 2026-1 (Beechwood - Facilities) of the City of Paso Robles.

By: Date as of:

Attachment No. 3

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1 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 2) (Beechwood - Facilities)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
IMPROVEMENT AREA NO. 2 OF CITY OF PASO ROBLES
COMMUNITY FACILITIES DISTRICT NO. 2026-1
(BEECHWOOD - FACILITIES)
A Special Tax as hereinafter defined shall be levied on all Assessor’s Parcels in Improvement Area No. 2 of City of Paso Robles Community Facilities District No. 2026-1 (Beechwood - Facilities) ("CFD No. 2026-1 (IA No. 2)") and collected each Fiscal Year commencing in Fiscal Year 2025-2026, in an amount determined by the Council, through the application of this Rate and Method of Apportionment as described below. All of the real property in CFD No. 2026-1 (IA No. 2), unless exempted by law or by the provisions hereof, 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 land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Final Map, parcel map, condominium plan, or other recorded County parcel map.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2026-1 (IA No. 2): the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2026-1 (IA No. 2) or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2026-1 (IA No. 2) or any designee thereof of complying with City, CFD No. 2026-1 (IA No. 2), major property owner, or obligated persons disclosure requirements associated with applicable federal and state securities laws and of the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2026-1 (IA No. 2), or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2026-1 (IA No. 2) for any other administrative purposes of CFD No. 2026-1 (IA No. 2), including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure, or otherwise addressing the disposition of delinquent Special Taxes. "Assessor’s Parcel" means any real property to which an Assessor’s Parcel Number is assigned as shown on an Assessor’s Parcel Map.

Attachment No. 4

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2 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 2) (Beechwood - Facilities)
"Assessor’s Parcel Map" means an official map of the County Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax for each Land Use Class of Developed Property, as determined in accordance with Section C below. “Authorized Facilities” means the facilities authorized to be financed by CFD No. 2026-1 (IA No. 2).
"Backup Special Tax" means the Special Tax of that name described in Section C below.
"Bonds" means any bonds or other debt as defined in Section 53317(d) of the Act, whether in one or more series, issued by CFD No. 2026-1 (IA No. 2) under the Act. "Boundary Map" means a recorded map which indicates the boundaries of CFD No. 2026-1 (IA No. 2).
"Building Permit" means the first legal document issued by the City giving official permission for the construction of a building on an Assessor’s Parcel. For purposes of this definition and application of the Special Tax, “Building Permit” may or may not include any subsequent building permits issued or changed after the first issuance, as determined by the CFD Administrator.
"Calendar Year" means the period commencing January 1 of any year and ending the following December 31.
"CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes.
"CFD No. 2026-1 (IA No. 2)" means the Improvement Area No. 2 of City of Paso Robles Community Facilities District No. 2026-1 (Beechwood – Facilities). “City” means the City of Paso Robles.
"Council" means the City Council.
"County" means the County of San Luis Obispo.
"Developed Property" means, for each Fiscal Year, all Taxable Property in CFD No. 2026-1 (IA No. 2), located within a Final Map that was recorded as of January 1 of the prior Fiscal Year, for which a Building Permit was issued prior to May 1 of the prior Fiscal Year.
“Dwelling Unit” means one residential unit of any configuration, including, but not limited to, a single-family attached or detached dwelling, condominium, mobile home, or otherwise, excluding hotels and motels. A casita or accessory dwelling unit (“ADU”) of any configuration shall not be counted as a separate Dwelling Unit for purposes of this Rate and Method of Apportionment.
“Exempt Welfare Exemption Property” means, for each Fiscal Year, an Assessor’s Parcel that, prior to the issuance of Bonds, received a welfare exemption under subdivision (g) of Section 214 of the California Revenue and Taxation Code (or any Attachment No. 4

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3 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 2) (Beechwood - Facilities)
successor statute), as indicated in the County’s assessor’s roll finalized as of January 1 of the previous Fiscal Year, and is exempt from the Special Tax pursuant to Section 53340(c) of the Act.
"Final Map" means (i) a final map, or portion thereof, approved by the County pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) that creates individual lots or parcels for which Building Permits may be issued without further subdivision, or (ii) for condominiums, a final map approved by the County and a condominium plan recorded pursuant to California Civil Code Section 4285 creating such individual lots or parcels.
"Final Mapped Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied; and (ii) for which a Building Permit has not been issued on or before May 1 preceding the Fiscal Year in which the Special Tax is being levied.
"Fiscal Year" means the period starting July 1 and ending on the following June 30. "Indenture" means the indenture, fiscal agent agreement, resolution, or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time.
"Land Use Class" means any of the categories listed in Table 1 herein. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor’s Parcel within CFD No. 2026-1 (IA No. 2).
“Non-Residential Floor Area” means the total building square footage of the nonresidential building(s) located on an Assessor’s Parcel, measured from outside wall to outside wall, not including space devoted to stairwells, public restrooms, lighted courts, vehicle parking and areas incident thereto, and mechanical equipment incidental to the operation of such building. The determination of Non-Residential Floor Area shall be made by reference to the Building Permit(s) issued for such Assessor’s Parcel and/or to the appropriate records kept by the City, as reasonably determined by the CFD Administrator.
"Non-Residential Property" means all Assessor's Parcels of Taxable Property for which a Building Permit(s) was issued for a non-residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property.
"Outstanding Bonds" means all Bonds which are deemed to be outstanding under the Indenture.
"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1. “Property Owner’s Association” means, collectively, any property owner association or homeowners association, including any master or sub-association, created for CFD No. 2026-1 (IA No. 2).

Attachment No. 4

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4 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 2) (Beechwood - Facilities)
"Property Owner Association Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2026-1 (IA No. 2) that was owned by a Property Owner Association, as of January 1 of the prior Fiscal Year. "Proportionately" means, for Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is equal for all Assessor’s Parcels of Developed Property. For Undeveloped Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Undeveloped Property. For Taxable Property Owner Association Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Taxable Property Owner Association Property. For Taxable Public Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Taxable Public Property.
"Public Property" means, for each Fiscal Year, any property within CFD No. 2026-1 (IA No. 2) that is owned by, irrevocably offered for dedication to, or dedicated to the federal government, the State, the City, or any other public agency as of June 30 of the prior Fiscal Year; 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 in accordance with its use. To ensure that property is classified as Public Property in the first Fiscal Year after it is acquired by, irrevocably offered for dedication to, or dedicated to a public agency, the property owner shall notify the CFD Administrator in writing of such acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the acquisition, offer, or dedication occurred. “Rate and Method of Apportionment” means this Rate and Method of Apportionment of Special Taxes, City of Paso Robles, Community Facilities District No. 2026-1 (Beechwood - Facilities).
"Residential Floor Area" means all of the square footage of living area within the perimeter of a Dwelling Unit, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The CFD Administrator shall determine the Residential Floor Area based upon the Building Permit(s) issued for such Dwelling Unit.
"Residential Property" means Developed Property, for which a Building Permit has been issued for purposes of constructing one or more Dwelling Units. "Special Tax" means a special tax levied in any Fiscal Year to pay the Special Tax Requirement.
“Special Tax Requirement” means that amount required in any Fiscal Year to: (i) pay debt service on all Outstanding Bonds; (ii) pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds to the extent such establishment or replenishment has not been included in a computation of the Special Tax Requirement in a previous Fiscal Year; (v) pay directly for the acquisition or construction of Authorized Facilities to the extent that inclusion of such amount does not increase the Special Tax levy on Final Mapped Property or Undeveloped Attachment No. 4

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5 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 2) (Beechwood - Facilities)
Property; and (vi) pay for reasonably anticipated Special Tax delinquencies based on the historical delinquency rate for CFD No. 2026-1 (IA No. 2) as determined by the CFD Administrator; less (vii) a credit for funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator pursuant to the Indenture. "State" means the State of California.
"Taxable Property" means all of the Assessor’s Parcels within the boundaries of CFD No. 2026-1 (IA No. 2) which are not exempt from the Special Tax pursuant to law or Section E below.
"Taxable Property Owner Association Property" means all Assessor’s Parcels of Property Owner Association Property that are not exempt pursuant to Section E below.
"Taxable Public Property" means all Assessor’s Parcels of Public Property that are not exempt pursuant to Section E below.
“Total Floor Area” means the sum of the Residential Floor Area and the NonResidential Floor Area located on an Assessor’s Parcel. "Trustee" means the trustee or fiscal agent under the Indenture. "Undeveloped Property” means all Assessor’s Parcels of Taxable Property which are not Developed Property, Final Mapped Property, Public Property, or Property Owner’s Association Property.

Attachment No. 4

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6 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 2) (Beechwood - Facilities)
Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Residential Property or Non-Residential Property shall be subject to an Assigned Special Tax. The Assigned Special Tax applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 below.

Table 1: Assigned Special Tax for Developed Property
Land Use
Class
Description Assigned Special Tax
1 RESIDENTIAL PROPERTY (> 2,500 SF) $5,985 PER DWELLING UNIT 2 RESIDENTIAL PROPERTY (2,300 - 2,500 SF) $5,569 PER DWELLING UNIT 3 RESIDENTIAL PROPERTY (2,100 - 2,300 SF) $5,153 PER DWELLING UNIT 4 RESIDENTIAL PROPERTY (1,900 - 2,100 SF) $4,738 PER DWELLING UNIT 5 RESIDENTIAL PROPERTY (1,700 - 1,900 SF) $4,392 PER DWELLING UNIT 6 RESIDENTIAL PROPERTY (1,500 - 1,700 SF) $4,066 PER DWELLING UNIT RESIDENTIAL PROPERTY (<= 1,500 SF) $3,699 PER DWELLING UNIT 7 NON-RESIDENTIAL PROPERTY $42,800 PER ACRE
Backup Special Tax
The Backup Special Tax for each Assessor’s Parcel of Residential Property in a Final Map shall be computed by multiplying the Acreage of all Taxable Property (excluding Acreage associated with current or expected Non-Residential Property, Taxable Public Property, or Taxable Property Owner Association Property, if any) in such Final Map by $43,265, and dividing the product by the number of such Assessor’s Parcels (i.e., the number of residential lots) in such Final Map.

1. Determine the total Backup Special Taxes anticipated to apply to the changed or modified portion of the Final Map prior to the change or modification.

3. The result is the Backup Special Tax per Acre which shall be applicable to all Assessor's Parcels of Residential Property in such changed or modified Final Map.

C.3 Undeveloped Property, Taxable Property Owner Association Property, Attachment No. 4

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7 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 2) (Beechwood - Facilities)
and/or Taxable Public Property.

The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property, Taxable Property Owner Association Property, or Taxable Public Property shall be $43,265 per Acre.

First: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement.

Attachment No. 4

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8 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 2) (Beechwood - Facilities)
Sixth: If additional monies are needed to satisfy the Special Tax Requirement after the first five steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Public Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

E EXEMPTIONS
No Special Tax shall be levied on Acres of Property Owner Association Property or Public Property in CFD No. 2026-1 (IA No. 2) provided that an Assessor’s Parcel shall not be exempt and shall be classified as Taxable Property Owner Association Property and Taxable Public Property if exempting such property would reduce the sum of all Taxable Property to less than 18.17 Acres. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which such Assessor’s Parcels or portions thereof within CFD No. 2026-1 (IA No. 2) become Public Property or Property Owner Association Property.

However, should an Assessor’s Parcel no longer be classified as Public Property or Property Owner Association Property, it will, from that point forward, be subject to the Special Tax.

In addition, no Special Tax shall be levied on any Assessor’s Parcel in any Fiscal Year in which such Assessor’s Parcel is classified as Exempt Welfare Exemption Property.

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

Attachment No. 4

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9 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 2) (Beechwood - Facilities)

G PREPAYMENT
The following additional definitions apply to this Section G:
“CFD Public Facilities” means $10,040,000 or such lower amount (i) authorized by the Council to provide the public facilities to be funded under CFD No. 2026-1 (IA No. 2), or (ii) determined by the Council concurrently with a covenant that it will not issue any more Bonds to be supported by the Special Tax levied under this Rate and Method of Apportionment.
“Construction Fund” means a fund held by the Trustee to fund CFD Public Facilities. “Future Facilities Cost” means the CFD Public Facilities minus public facility costs previously funded, or that can be funded from funds in the Construction Fund. “Outstanding Bonds” means all previously issued Bonds secured by the levy of the Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of the Special Tax.

The Maximum Special Tax obligation applicable to an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Maximum Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by CFD No. 2026-1 (IA No. 2) in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel. Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such Prepayment Amount.

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

Prepayment Amount
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
Attachment No. 4

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10 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 2) (Beechwood - Facilities)
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Special Tax Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:

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

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 Cost.

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

10. Determine the amount the CFD Administrator reasonably expects to derive Attachment No. 4

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11 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 2) (Beechwood - Facilities)
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 CFD No. 2026-1 (IA No. 2), 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 Assessor’s Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).

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12 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 2) (Beechwood - Facilities)
prepaid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special Tax obligation and the release of the Special Tax lien for the Assessor’s Parcel, and the obligation to pay the Special Tax for such Assessor’s Parcel shall cease.

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

The owner of an Assessor’s Parcel who desires to partially prepay the Maximum Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by CFD No. 2026-1 (IA No. 2) in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial Prepayment for the Assessor’s 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 Amount.

With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 16 of Section G.1, and (ii) indicate in the records of CFD No. 2026-1 (IA No. 2) that there has been a Partial Prepayment for the Assessor’s Parcel and that a portion of the Special Tax obligation equal to the remaining Attachment No. 4

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13 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 2) (Beechwood - Facilities)
percentage (1.00 - F) of Special Tax obligation will continue on the Assessor’s Parcel pursuant to Section D.

H SPECIAL TAX REDUCTION
The following definitions apply to this Section H:
"Base Price" means the minimum price at which Dwelling Units within a given Plan Type have sold or are expected to be sold in a normal marketing environment and shall not include prices of 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 Plan Type. If such information is not available, means the base price of such Dwelling Units, estimated by an MAI Appraiser or Price Point Consultant as of such date, based upon their actual or expected characteristics, such as living area, view, or lot size, but excluding potential appreciation or premiums, options or upgrades. "Plan Type" means a discrete residential plan type generally consisting of residential Dwelling Units that share a common product type (e.g., detached, attached) and that have nearly identical amounts of living area, that is constructed or expected to be constructed within CFD No. 2026-1 (IA No. 2) or the surrounding area as identified in the appraisal or Price Point Study.
"Price Point Consultant" means any consultant or firm of such consultants selected by CFD No. 2026-1 (IA No. 2) that (a) has substantial experience in performing price point studies or otherwise estimating or confirming pricing for Dwelling Units within community facilities districts, (b) is well versed in analyzing economic and real estate data that relates to the pricing of Dwelling Units in community facilities districts, (c) is independent and not under the control of CFD No. 2026-1 (IA No. 2), the City, or the developer, (d) does not have any substantial interest, direct or indirect, with or in CFD No. 2026-1 (IA No. 2), the City, any owner of real property in CFD No. 2026-1 (IA No. 2), or any real property in CFD No. 2026-1 (IA No. 2), and (e) is not connected with CFD No. 2026-1 (IA No. 2) or the City as an officer or employee thereof, but who may be regularly retained to make reports to CFD No. 2026-1 (IA No. 2) or the County. "Price Point Study" means a price point study or a letter updating a previous price point study, which (a) has been prepared by the Price Point Consultant, (b) sets forth the Plan Types constructed or expected to be constructed within CFD No. 2026-1 (IA No. 2), (c) sets forth the estimated number of constructed and expected Dwelling Units for each Plan Type, (d) sets forth estimates of the Base Price for each Plan Type and (e) uses a date for establishing such Base Prices that is no earlier than 30 days prior to the date the Price Point Study is delivered to the CFD Administrator pursuant to Section H herein.
"Total Effective Tax Rate" means, for a Plan Type, (a) the Total Tax Burden for such Plan Type divided by (b) the Base Price for such Plan Type, converted to a percentage. "Total Effective Tax Rate Limit" means 1.80%.
"Total Tax Burden” means, with respect to a Plan Type, for the Fiscal Year for which the calculation is being performed, the sum of the Assigned Special Tax and estimated ad valorem property taxes, special assessments, special taxes for any overlapping community facilities districts, and any other governmental taxes, fees and charges levied or imposed on Dwelling Units of such Plan Type in CFD No. 2026- Attachment No. 4

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14 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 2) (Beechwood - Facilities)
1 (IA No. 2) in such Fiscal Year or that would have been levied on all such Dwelling Units had these Dwelling Units been subject to such levies (excluding homeowner’s association dues and Property Assessed Clean Energy (“PACE”) charges imposed pursuant to AB 811 or SB 555, that are levied on individual Assessor’s Parcels, or any other charges applicable to the Assessor’s Parcels initiated by the homeowner after the close of escrow).

Step No.:

1. The CFD Administrator shall determine whether or not the Total Effective Tax Rate for all Plan Types in a Land Use Class is less than or equal to the Total Effective Tax Rate Limit for each Land Use Class of for-sale Residential Property in CFD No. 2026-1 (IA No. 2).
a. If the Total Effective Tax Rate for all Plan Types in a Land Use Class in CFD No. 2026-1 (IA No. 2) is less than or equal to the Total Effective Tax Rate Limit, then there shall be no reduction in Special Tax for such Land Use Class in CFD No. 2026-1 (IA No. 2).
b. If the Total Effective Tax Rate for any Plan Type in a Land Use Class in CFD No. 2026-1 (IA No. 2) is greater than the Total Effective Tax Rate Limit , the CFD Administrator shall calculate a revised Assigned Special Tax for that Land Use Class in CFD No. 2026-1 (IA No. 2), such that the revised Assigned Special Tax does not cause the Total Effective Tax Rate for any Plan Type in such Land Use Class to exceed the Total Effective Tax Rate Limit.

2. If the Assigned Special Tax for any Land Use Class is revised pursuant to step

1.b. above, the CFD Administrator shall also prepare and execute a Certificate to Amend the Special Tax substantially in the form of Exhibit “A” hereto and shall deliver such Certificate to Amend the Special Tax to CFD No. 2026-1 (IA No. 2). The Certificate to Amend the Special Tax shall be completed for all Land Use Classes and shall set forth, as applicable, either (i) the reduced Assigned Special Tax for a Land Use Class as calculated pursuant to step 1.b., or (ii) the Assigned Special Tax as identified in Table 1 of Section C for a Land Use Class that was not revised as determined pursuant to step 1.a. A reduction to the Assigned Special Tax in one Land Use Class shall not require a reduction in any other Land Use Class.

3. If the anticipated date of issuance of Bonds is within 180 days of the date of receipt of the Price Point Study by the CFD Administrator, CFD No. 2026-1 (IA No. 2) shall execute the acknowledgement on such Certificate to Amend the Special Tax dated as of the closing date of such Bonds, and upon the closing of such Bonds, the Assigned Special Tax for each Land Use Class shall be as set forth in such Certificate to Amend the Special Tax. If the date of issuance of Bonds is not within 180 days of the date of receipt of the Price Point Study by the CFD Administrator, such Certificate to Amend the Special Tax shall not be acknowledged by CFD No. 2026-1 (IA No. 2) and shall, as of such date, be Attachment No. 4

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15 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 2) (Beechwood - Facilities)
void and of no further force and effect. In such case, if subsequently Bonds are expected to be issued, at least 30 days prior to that expected date, steps 1 and 2 of this section shall be performed based on a new Price Point Study.

4. After the execution by CFD No. 2026-1 (IA No. 2) of the acknowledgement on the Certificate to Amend the Special Tax, CFD No. 2026-1 (IA No. 2) shall cause to be recorded in the records of the County Recorder an Amended Notice of Special Tax Lien for CFD No. 2026-1 (IA No. 2) reflecting the Assigned Special Tax for CFD No. 2026-1 (IA No. 2) set forth in such Certificate to Amend the Special Tax.

I MANNER OF COLLECTION
The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 2026-1 (IA No. 2) may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.

Attachment No. 4

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A-1 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 2) (Beechwood - Facilities)

EXHIBIT A

CERTIFICATE TO AMEND THE SPECIAL TAX
IMPROVEMENT AREA NO. 2 OF CITY OF PASO ROBLES
COMMUNITY FACILITIES DISTRICT NO. 2026-1 (BEECHWOOD -

FACILITIES)

TAX REDUCTION CERTIFICATE

1. Pursuant to Section H of the Rate and Method of Apportionment, as attached to the Notice of Special Tax Lien, recorded in the Official Records of the County of San Luis Obispo as Instrument No. XXXXXX on MM/DD/YYYY, the City of Paso Robles (the “City”) hereby reduces the Assigned Special Taxes for Developed Property within CFD No. 2026- 1 (IA No. 2) set forth in Table 1 of the Rate and Method of Apportionment for CFD No. 2026-1 (IA No. 2).

2. The calculations made pursuant to Section H were based upon a Price Point Study that was received by the CFD Administrator on _________________.

3. The information in Table 1, relating to the Assigned Special Tax for Developed Property within CFD No. 2026-1 (IA No. 2) shall be amended and restated in full as follows:

Table A-1: Assigned Special Tax for Developed Property
Land Use
Class
Description Assigned Special Tax
1 RESIDENTIAL PROPERTY (> 2,500 SF) [$ ] PER DWELLING UNIT 2 RESIDENTIAL PROPERTY (2,300 - 2,500 SF) [$ ] PER DWELLING UNIT 3 RESIDENTIAL PROPERTY (2,100 - 2,300 SF) [$ ] PER DWELLING UNIT 4 RESIDENTIAL PROPERTY (1,900 - 2,100 SF) [$ ] PER DWELLING UNIT 5 RESIDENTIAL PROPERTY (1,700 - 1,900 SF) [$ ] PER DWELLING UNIT 6 RESIDENTIAL PROPERTY (1,500 - 1,700 SF) [$ ] PER DWELLING UNIT 7 RESIDENTIAL PROPERTY (<= 1,500 SF) [$ ] PER DWELLING UNIT 8 NON-RESIDENTIAL PROPERTY $42,800 PER ACRE

4. Upon execution of the certificate by the City and CFD No. 2026-1 (IA No. 2), the City shall cause an amended Notice of Special Tax Lien for CFD No. 2026-1 (IA No. 2) to be recorded reflecting the modifications set forth herein.

Submitted:

CFD ADMINISTRATOR
By: Date:

By execution hereof, the undersigned acknowledges, on behalf of CFD No. 2026-1 (IA No. 2), receipt of this certificate and modification of the Rate and Method of Apportionment as set forth in this certificate.

Community Facilities District No. 2026-1 (Beechwood - Facilities) of the City of Paso Robles.

Attachment No. 4

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A-2 Rate and Method of Apportionment
CFD No. 2026-1 (IA No. 2) (Beechwood - Facilities)
By: Date as of:

Attachment No. 4

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Attachment 5

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Paso Robles City CouncilJune 16, 2026

Paso Robles City Council
June 16, 2026