Agenda packet — Rancho Cordova City Council, August 4, 2025 (part 2 of 3)

IA No. 4 of The Ranch CFD No. 2021-1 5 June 9, 2025
(b) in the sole and absolute discretion of the City, proceeds received by the CFD from the collection of penalties associated with delinquent Special Taxes; and (c) any other revenues available to pay such costs, each as determined in the sole discretion of the City.

“Taxable Owners Association Property” means, in any Fiscal Year after the First Bond Sale, any Parcel of Owners Association Property that satisfies all three of the following conditions: (i) the Parcel had not been Owners Association Property on the date of the First Bond Sale, (ii) based on reference to Attachments 1 and 2 (as may be updated pursuant to Section D below), the Parcel was not anticipated to be Owners Association Property as determined by the Administrator, and (iii) if the Parcel were to be e xempt from the Special Tax because it is Owners Association Property, the Expected Maximum Special Tax Revenues would be reduced to a point at which Required Coverage could not be maintained.

“Taxable Property” means all of the Parcels within the boundaries of Improvement Area No. 4 that are not exempt from the Special Tax pursuant to law or Section G below.

“Taxable Public Property ” means in any Fiscal Year after the F irst Bond Sale, any Parcel of Public Property that satisfies all three of the following conditions: (i) the Parcel had not been Public Property on the date of the First Bond Sale, (ii) based on reference to Attachments 1 and 2 (as may be updated pursuant to Section D below), the Parcel was not anticipated to be Public Property as determined by the Administrator, and (iii) if the Parcel were to be exempt from the Special Tax because it is Public Property, the Expected Maximum Special Tax Revenues would be reduced to a point at which Required Coverage could not be maintained.

“Taxable Welfare Exemption Property” means in any Fiscal Year after the First Bond Sale, any Parcel of Welfare Exemption Property that satisfies all three of the following conditions: (i) the Parcel had not been Welfare Exemption Property on the date of issuance of the First Bond Sale; (ii) based on reference to Attachments 1 and 2 (as may be updated pursuant to Section D herein), the Parcel was not anticipated to be Welfare Exemption Property based on the Expected Land Uses, as determined by the Administrator; and (iii) if the Parcel were to be exempt from the Special Tax because it has become Welfare Exemption Property, the Expected Maximum Special Tax Revenues would be reduced to a point at which Required Coverage could not be maintained.

“Tentative Map” means a tentative map or substantial conformance exhibit for property in Improvement Area No. 4, including any adjustments or amendments thereto.

“Undeveloped Property” means, in any Fiscal Year, all Parcels of Taxable Property that are not Final Map Property or Developed Property, as defined herein.

“Village” means a specific geographic area within Improvement Area No. 4 that (i) is identified by an assigned number on Attachment 1, (ii) is expected to have single family lots that are all of a similar size, and (iii) is assigned Expected Maximum Special Tax Revenues in Attachment 2 based on the Expected Land Uses for that Village.

“Welfare Exemption Property” means, in any Fiscal Year, any Parcels in the CFD that have received a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code and for which such welfare exemption is still in place.

ITEM 13.6.

ATTACHMENT 2
Exhibit A1 to the Resolution

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IA No. 4 of The Ranch CFD No. 2021-1 6 June 9, 2025
B. DATA FOR ADMINISTRATION OF THE SPECIAL TAX

Each Fiscal Year, the Administrator shall: (i) assign each Parcel of Taxable Property to the appropriate Development Class, (ii) for Developed Property, categorize each Parcel as Single Family Property or Other Property, (iii) for Single Family Property, determine within which Village each Parcel of Developed Property is located and the number of Residential Units on the Parcel; (iv) for Other Property, determine the Acreage of each Parcel; and (v) determine the Special Tax Requirement for the Fiscal Year . In addition, the Administrator shall, on an ongoing basis, monitor the Tentative Map, Final Maps, and Building Permits to determine if there are any proposed Land Use Changes that would change the Expected Maximum Special Tax Revenues.

If the Expected Maximum Special Tax Revenues will be revised pursuant to a proposed Land Use Change, the Administrator shall apply the steps set forth in Section D below.

In any Fiscal Year, if it is determined that: (i) a parcel map for property in Improvement Area No. 4 was recorded after January 1 of the prior Fiscal Year (or any other date after which the Assessor will not incorporate the newly- created Parcels into the then current tax roll), (ii) because of the date the parcel map was recorded, the Assessor does not yet recognize the new Parcels created by the parcel map, and (iii) one or more of the newly- created Parcels is in a different Development Class and/or Land Use Category than other Parcels created by the subdivision, the Administrator shall calculate the Special Taxes for the property affected by recordation of the parcel map by determining the Special Taxes that apply separately to the property within each Development Class and/or Land Use Category , then applying the sum of the individual Special Taxes to the Parcel that was subdivided by recordation of the parcel map.

C. MAXIMUM SPECIAL TAX

1. Developed Property and Final Map Property

The Maximum Special Tax for a Parcel of Developed Property or Final Map Property is the greater of (i) the Base Special Tax set forth in Table 1 below, or, (ii) the Maximum Special Tax determined pursuant to Section D.

Table 1
Base Special Tax
Developed Property and Final Map Property

Land Use

Base Special Tax
Fiscal Year 2025-26 *
Single Family Property
Village 22
Villages 18 & 21-2
Village 15-2
Village 12-2

$2,353 per Residential Unit or SFD Lot
$3,048 per Residential Unit or SFD Lot
$3,144 per Residential Unit or SFD Lot
$4,012 per Residential Unit or SFD Lot
Other Property $33,660 per Acre

* On July 1, 2026, and on each July 1 thereafter, all figures shown in Table 1 above shall be increased by an amount equal to 2.0% of the amount in effect for the prior Fiscal Year.

ITEM 13.6.

ATTACHMENT 2
Exhibit A1 to the Resolution

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IA No. 4 of The Ranch CFD No. 2021-1 7 June 9, 2025

2. Undeveloped Property, Taxable Owners Association Property, Taxable Public Property , and Taxable Welfare Exemption Property

The Maximum Special Tax for Undeveloped Property, Taxable Owners Association Property, Taxable Public Property, and Taxable Welfare Exemption Property is $33,660 per Acre for Fiscal Year 2025-26, which amount shall increase on July 1, 2026 and each July 1 thereafter by an amount equal to 2.0% of the amount in effect for the prior Fiscal Year.

D. C HANGES TO THE MAXIMUM SPECIAL TAX

1. Land Use Changes

The Expected Maximum Special Tax Revenues shown in Attachment 2 were originally calculated based on the Expected Land Uses at the Annexation Date. Attachment 2 is subject to modification upon the occurrence of Land Use Changes, as described below. The Administrator shall review all Land Use Changes and compare the revised land uses to the Expected Land Uses to evaluate the impact on the Expected Maximum Special Tax Revenues.

Prior to the First Bond Sale, if a Land Use Change is proposed or identified that will result in a change in the Expected Maximum Special Tax Revenues, no action will be needed pursuant to this Section D. Upon approval of the Land Use Change, the Administrator shall update Attachment 2 to show the revised Expected Maximum Special Tax Revenues.

After the First Bond Sale, if a Land Use Change is proposed or identified, Steps 1 through 3 must be applied:

Step 1: By reference to Attachment 2 (which shall be updated by the Administrator each time a Land Use Change has been processed according to this Section D or a prepayment has been made), the Administrator shall identify the Expected Maximum Special Tax Revenues prior to the Land Use Change.

Step 2: The Administrator shall calculate the Expected Maximum Special Tax Revenues that could be collected from Taxable Property in Improvement Area No. 4 after the Land Use Change based on application of the Base Special Taxes from Table

1. Step 3: If the revenues calculated in Step 2 are (i) higher than those determined in Step 1 or (ii) less than those calculated in Step 1, but the reduction in Expected Maximum Special Tax Revenues does not reduce debt service coverage on outstanding Bonds below Required Coverage, no further action is needed, and the Administrator shall update Attachment 2 to show the revised Expected Maximum Special Tax Revenues.

If the revenues calculated in Step 2 are less than those calculated in Step 1, and the Administrator determines that the reduction in Expected Maximum Special Tax Revenues would reduce debt service coverage on outstanding Bonds below Required Coverage, one of the following shall occur:

ITEM 13.6.

ATTACHMENT 2
Exhibit A1 to the Resolution

Page 141 of 379 ends

IA No. 4 of The Ranch CFD No. 2021-1 8 June 9, 2025

3.a. The landowner requesting the Land Use Change (the “Requesting Landowner”) may make a prepayment in an amount that will ensure that the reduced Expected Maximum Special Tax Revenues are sufficient to provide Required Coverage, as determined pursuant to Section H below. If the Requesting Landowner notifies the Administrator that he/she would like to remedy the reduction by making a prepayment, such prepayment must be made by the earlier of (i) 30 days from the date of delivery of the prepayment estimate or (ii) the date of issuance of any Building Permits for any Parcel owned by the Requesting Landowner that was Final Map Property or Undeveloped Property at the time the Administrator prepared the prepayment estimate, or

3.b. If a prepayment is not received by the due date specified above, the Base Special Tax used to determine the Maximum Special Tax for each Parcel of Taxable Property in the area affected by the Land Use Change shall be increased proportionately until the Expected Maximum Special Tax Revenues are sufficient to maintain Required Coverage.

Pursuant to this Section D.3, the Administrator may from time to time update Attachment 2 to reflect revised Expected Maximum Special Tax Revenues. Such update shall be maintained internally by the Administrator and shall not require recordation of an amended RMA.

If multiple Land Use Changes are proposed simultaneously by a single landowner (which may include approval of multiple Final Maps at one time), and the landowner requests that the impact of two or more of the Land Use Changes be considered together, the Administrator shall consider the combined effect of the Land Use Changes to determine if there is a reduction in Expected Maximum Special Tax Revenues. If there is a reduction that would reduce debt service coverage below Required Coverage, and no prepayment has been received, then the Base Special Tax used to determine the Maximum Special Tax for each Parcel of Taxable Property in the areas affected by the Land Use Changes shall be increased proportionately until the aggregate amount that can be levied within such areas is equal to the amount that could have been levied prior to the proposed Land Use Changes. If Land Use Changes are proposed simultaneously by multiple landowners, or if an individual landowner proposing multiple Land Use Changes does not request that such Land Use Changes be considered together , the Administrator shall consider the proposed Land Use Changes individually.

Notwithstanding the foregoing, once a certificate of occupancy has been issued for a Residential Unit on a Parcel, the Maximum Special Tax for the Parcel cannot be increased because of subsequent Land Use Changes that may occur within the area in which the Parcel is located.

The duties imposed on the Administrator pursuant to this Section D to review Land Use Changes, and to review Final Maps and make certain calculations, are intended only to facilitate the administration of the Special Tax and to better assure the sufficiency of tax capacity to pay debt service on Bonds. Such duties are not intended to give any developer, subdivider, or owner of property the right to receive notice of the potential impact of Land Use Changes on the Special Tax applicable to a Parcel; and each developer, subdivider, or owner of property whose property is the subject of a Land Use Change shall be responsible for understanding the impact thereof on the Special Tax applicable to such property.

ITEM 13.6.

ATTACHMENT 2
Exhibit A1 to the Resolution

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IA No. 4 of The Ranch CFD No. 2021-1 9 June 9, 2025

2. Partial Prepayments

If a Parcel makes a partial prepayment pursuant to Section H below, the Administrator shall recalculate the Maximum Special Tax for the Parcel pursuant to Section H.2. In addition, the Administrator shall update Attachment 2 to reflect the prepayment and the revised Expected Maximum Special Tax Revenues for Improvement Area No. 4. After the prepayment has been received, the application of Sections D and H of this RMA shall be based on the adjusted Expected Maximum Special Tax Revenues after the prepayment.

3. Conversion of a Parcel of Public Property to Private Use

If, in any Fiscal Year, a Parcel of Public Property is converted to private use, such Parcel shall be subject to the levy of the Special Tax. The Maximum Special Tax for each such Parcel shall be determined based on the applicable Base Special Tax for the Parcel, as determined by the Administrator. In addition, the Administrator shall update Attachment 2 to reflect the conversion and the revised Expected Maximum Special Tax Revenues for Improvement Area No. 4.

4. Transfer of Expected Maximum Special Tax Revenues from One Village to Another

The Expected Maximum Special Tax Revenues were determined for each Village based on the Expected Land Uses within that Village. If the expected number of Residential Units is transferred from one Village to another, the City may, in its sole discretion, allow for a corresponding transfer of Expected Maximum Special Tax Revenues between the Villages. Such a transfer shall only be allowed if (i) all adjustments are agreed to in writing by the affected property owners and the City, and (ii) there is no reduction in the total Expected Maximum Special Tax Revenues as a result of the transfer. In addition, the Administrator shall update Attachment 2 to reflect the transfer and the revised Expected Maximum Special Tax Revenues for Improvement Area No. 4.

E. METHOD OF LEVY OF THE SPECIAL TAX

Each Fiscal Year, the Administrator shall determine the Special Tax Requirement to be collected in that Fiscal Year. A Special Tax shall then be levied according to the following steps:

Step 1: T he Special Tax shall be levied Proportionately on each Parcel of Developed Property up to 100% of the Maximum Special Tax for each Parcel of Developed Property until the amount levied is equal to the Special Tax Requirement prior to applying any Capitalized Interest that is available in the CFD accounts.

Step 2: If additional revenue is needed after Step 1 in order to meet the Special Tax Requirement after Capitalized Interest has been applied to reduce the Special Tax Requirement, the Special Tax shall be levied Proportionately on each Parcel of Final Map Property up to 100% of the Maximum Special Tax for each Parcel of Final Map Property until the amount levied is equal to the Special Tax Requirement.

Step 3: If additional revenue is needed after Step 2, the Special Tax shall be levied Proportionately on each Parcel of Undeveloped Property up to 100% of the ITEM 13.6.

ATTACHMENT 2
Exhibit A1 to the Resolution

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IA No. 4 of The Ranch CFD No. 2021-1 10 June 9, 2025
Maximum Special Tax for each Parcel of Undeveloped Property until the amount levied is equal to the Special Tax Requirement.

Step 4: If additional revenue is needed after Step 3, the Special Tax shall be levied Proportionately on each Parcel of Taxable Welfare Exemption Property, up to 100% of the Maximum Special Tax for each Parcel of Taxable Welfare Exemption Property for such Fiscal Year until the amount levied is equal to the Special Tax Requirement.

Step 5: If additional revenue is needed after Step 4, the Special Tax shall be levied Proportionately on each Parcel of Taxable Owners Association Property, up to 100% of the Maximum Special Tax for each Parcel of Taxable Owners Association Property until the amount levied is equal to the Special Tax Requirement.

Step 6: If additional revenue is needed after Step 5, the Special Tax shall be levied Proportionately on each Parcel of Taxable Public Property, up to 100% of the Maximum Special Tax for each Parcel of Taxable Public Property until the amount levied is equal to the Special Tax Requirement.

F. MANNER OF COLLECTION OF SPECIAL TAX

The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that prepayments are permitted as set forth in Section H below and provided further that the City may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner, and may collect delinquent Special Taxes through foreclosure or other available methods.

The Special Tax shall be levied and collected until principal and interest on Bonds have been repaid. However, in no event shall Special Taxes be levied after Fiscal Year 2065-66. Under no circumstances may the Special Tax on a Parcel of Developed Property in residential use be increased in any Fiscal Year as a consequence of delinquency or default in payment of the Special Tax levied on another Parcel or Parcels by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquencies or defaults.

G. EXEMPTIONS

Notwithstanding any other provision of this RMA, no Special Tax shall be levied in any Fiscal Year on the following:

(1) Public Property, except Taxable Public Property.

(2) Owners Association Property, except Taxable Owners Association Property.

(3) Welfare Exemption Property, except Taxable Welfare Exemption Property.

(4) Parcels that are owned by a public utility for an unmanned facility.

ITEM 13.6.

ATTACHMENT 2
Exhibit A1 to the Resolution

Page 144 of 379 ends

IA No. 4 of The Ranch CFD No. 2021-1 11 June 9, 2025
(5) Parcels that are subject to an easement that precludes any other use on the Parcel.

(6) Parcels that have fully prepaid the Special Tax obligation assigned to the Parcel pursuant to the formula set forth in Section H below.

H. PREPAYMENTS

The following definitions apply to this Section H:

“Outstanding Bonds” means all Previously Issued Bonds which remain outstanding, with the following exception: if a Special Tax has been levied against, or already paid by, an Assessor’s Parcel making a prepayment, and a portion of the Special Tax will be used to pay a portion of the next principal payment on the Bonds that remain outstanding (as determined by the Administrator), that next principal payment shall be subtracted from the total Bond principal that remains outstanding, and the difference shall b e used as the amount of Outstanding Bonds for purposes of this prepayment formula.

“Previously Issued Bonds” means all Bonds that have been issued prior to the date of prepayment.

“Public Facilities Requirement” means either $13 million in 2025 dollars, which shall increase on January 1, 2026, and on each January 1 thereafter by 2% of the amount in effect in the prior year or such other number as shall be determined by the City as sufficient to fund improvements that are authorized to be funded by Improvement Area No. 4. The Public Facilities Requirement shown above may be adjusted each time property annexes into Improvement Area No. 4 or there is an adjustment to the Expected Maximum Special Tax Revenues due to a Land Use Change.

“Remaining Facilities Costs” means the Public Facilities Requirement minus public facility costs funded by Previously Issued Bonds, developer equity and any other source of funding.

1. Full Prepayment

The Special Tax obligation applicable to a Parcel in Improvement Area No. 4 may be prepaid and the obligation of the Parcel to pay the Special Tax permanently satisfied as described herein, provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Parcel at the time of prepayment. An owner of a Parcel intending to prepay the Special Tax obligation shall provide the City with written notice of intent to prepay. Within 30 days of receipt of such written notice, the City or its designee shall notify such owner of the prepayment amount for such Parcel. Prepayment must be made not less than 75 days prior to any redemption date for Bonds to be redeemed with the proceeds of such prepaid Special Taxes. The Prepayment Amount shall be calculated as follows: (capitalized terms as defined below):

ITEM 13.6.

ATTACHMENT 2
Exhibit A1 to the Resolution

Page 145 of 379 ends

IA No. 4 of The Ranch CFD No. 2021-1 12 June 9, 2025
Bond Redemption Amount
plus R emaining Facilities Amount
plus Redemption Premium
plus Defeasance Requirement
plus Administrative Fees and Expenses
less Reserve Fund Credit
equals Prepayment Amount

As of the proposed date of prepayment, the Prepayment Amount shall be determined by application of the following steps:

Step 1. Compute the amount that could be collected from the Parcel prepaying the Special Tax in the Fiscal Year in which prepayment would be received by the City by applying the Base Special Tax to the Expected Land Uses for the Parcel. If this Section H is being applied to calculate a prepayment pursuant to Section D above, compute the amount by which the proposed Land Use Change would reduce Expected Maximum Special Tax Revenues below the amount needed for Required Coverage, and use this amount for purposes of this Step 1.

Step 2. Divide the Maximum Special Tax computed pursuant to Step 1 for such Parcel by the total Expected Maximum Special Tax Revenues for all property in Improvement Area No. 4, as shown in Attachment 2.

Step 3. Multiply the quotient computed pursuant to Step 2 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the “Bond Redemption Amount”).

Step 4. Compute the current Remaining Facilities Costs (if any).

Step 5. Multiply the quotient computed pursuant to Step 2 by the amount determined pursuant to Step 4 to compute the amount of Remaining Facilities Costs to be prepaid (the “Remaining Facilities Amount”).

Step 6. Multiply the Bond Redemption Amount computed pursuant to Step 3 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).

Step 7. Compute the amount needed to pay interest on the Bond Redemption Amount starting with the first Bond interest payment date after which the prepayment will be received until the earliest redemption date for the Outstanding Bonds. However, if Bonds are calla ble at the first interest payment date after the prepayment has been received, Steps 7, 8 and 9 of this prepayment formula will not apply.

Step 8: Compute the amount of interest the City reasonably expects to derive from reinvestment of the Bond Redemption Amount plus the Redemption Premium from the first Bond interest payment date after which the ITEM 13.6.

ATTACHMENT 2
Exhibit A1 to the Resolution

Page 146 of 379 ends

IA No. 4 of The Ranch CFD No. 2021-1 13 June 9, 2025
prepayment has been received until the redemption date for the Outstanding Bonds.

Step 9: Subtract the amount computed pursuant to Step 8 from the amount computed pursuant to Step 7 (the “Defeasance Requirement”).

Step 10. The administrative fees and expenses associated with the prepayment will be determined by the Administrator and include the costs of computing the prepayment, redeeming Bonds and recording any notices to evidence the prepayment and the redemption (the “ Administrative Fees and Expenses”).

Step 11. If and to the extent so provided in the Indenture, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the “Reserve Fund Credit”).

Step 12. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to Steps 3, 5, 6, 9, and 10, less the amount computed pursuant to Step 11 (the “Prepayment Amount”).

Step 13. From the Prepayment Amount, the amounts computed pursuant to Steps 3, 6, and 9 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds or make debt service payments. The amount computed pursuant to Step 5 shall be deposited into the Improvement Fund. The amount computed pursuant to Step 10 shall be retained in the account or fund that is established to pay Administrative Expenses.

Once a full prepayment of a Parcel’s Special Tax obligation has been received, a Notice of Cancellation of Special Tax Lien shall be recorded against the Parcel to reflect the discharge of the Parcel’s obligation to pay the Special Tax. However, a Notice of Cancellation of Special Tax Lien shall not be recorded until all Special Taxes levied on the Parcel in the current or prior Fiscal Years have been collected.

2. Partial Prepayment

A partial prepayment may be made in an amount equal to any percentage of full prepayment desired by the party making a partial prepayment, except that the full amount of Administrative Fees and Expenses determined in Step 10 shall be included in the partial prepayment. The Maximum Special Tax that can be levied on a Parcel after a partial prepayment is made shall be equal to the portion of the Maximum Special Tax that was not prepaid. Once a partial prepayment has been received, an Amended Notice of Special Tax Lien shall be recorded against the Parcel to reflect the reduced Special Tax lien for the Parcel, and the Administrator shall update Attachment 2 to show the revised Expected Maximum Special Tax Revenues. However, an Amended Notice of Special Tax Lien shall not be recorded until all Special Taxes levied on the Parcel in the current or prior Fiscal Years have been collected.

ITEM 13.6.

ATTACHMENT 2
Exhibit A1 to the Resolution

Page 147 of 379 ends

IA No. 4 of The Ranch CFD No. 2021-1 14 June 9, 2025

3. Maintaining Required Coverage

Notwithstanding the foregoing, if at any point in time the Administrator determines that the Maximum Special Tax revenue that could be collected from Taxable Property that remains subject to the Special Tax after the proposed prepayment would be less than Required Coverage on Bonds that will remain outstanding after defeasance or redemption of Bonds from proceeds of the estimated prepayment, the amount of the prepayment shall be increased until the amount of Bonds defeased or redeemed is sufficien t to reduce remaining annual debt service to a point at which Required Coverage is maintained.

I. INTERPRETATION OF RMA

Interpretations may be made by Resolution of the City Council to interpret, clarify, and/or revise this RMA to correct any inconsistency, vagueness, or ambiguity as it relates to the Special Tax, method of apportionment, classification of properties, or any definition applicable to Improvement Area No. 4 of the CFD, as long as such correction does not materially affect the levy and collection of Special Taxes. The City, upon the request of an owner of land within Improvement Area No. 4 which is not Developed Property, may also amend this RMA in any manner acceptable to the City, by resolution or ordinance following a public hearing, upon the affirmative vote of such owner to such amendment and without the vote of owners of any other land within Improvement Area No. 4, provided such amendment only affects such owner's land. Under no circumstances may such revisions to the RMA decrease the Expected Maximum Special Tax Revenues to a level that will reduce debt service coverage below Required Coverage.

ITEM 13.6.

ATTACHMENT 2
Exhibit A1 to the Resolution

Page 148 of 379 ends

ATTACHMENT 1

Improvement Area No. 4 of the
City of Rancho Cordova
The Ranch
Community Facilities District No. 2021-1

The Ranch
Expected Lot Layout in Improvement Area No. 4

ITEM 13.6.

ATTACHMENT 2
Exhibit A1 to the Resolution

Page 149 of 379 ends

BUILDING RELATIONSHIPS ONE PROJECT AT A TIME
3301 C St, Bldg. 100-BTel 916.341.7760
Fax 916.341.7767 Sacramento, CA 95816
ITEM 13.6.

ATTACHMENT 2
Exhibit A1 to the Resolution

Page 150 of 379 ends

ATTACHMENT 2

Improvement Area No. 4 of the
City of Rancho Cordova
The Ranch
Community Facilities District No. 2021-1

Expected Land Uses and Expected Maximum Special Tax Revenues in Improvement Area No. 4

Village

Expected
Land Uses

Base Special Tax
(FY 2025-26) *
Expected
Maximum Special
Tax Revenues
(FY 2025-26) *
Village 22 90 Residential Units
$2,353 per
Residential Unit $211,770
Villages 18 & 21-2 66 Residential Units
$3,048 per
Residential Unit $201,168
Village 15-2 51 Residential Units
$3,144 per
Residential Unit $160,344
Village 12-2 77 Residential Units
$4,012 per
Residential Unit $308,924
Expected Maximum Special Tax Revenues (FY 2025-26 $) $882,206

* On July 1, 2026, and each July 1 thereafter, all dollar amounts shown above shall be increased by 2% of the amount in effect in the prior Fiscal Year.

ITEM 13.6.

ATTACHMENT 2
Exhibit A1 to the Resolution

Page 151 of 379 ends

I
A No. 5 of The Ranch CFD No. 2021-1 1 June 9, 2025
IMPROVEMENT AREA NO. 5 OF THE

CITY OF RANCHO CORDOVA

THE RANCH
COMMUNITY FACILITIES DISTRICT NO. 2021-1

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
A S
pecial Tax applicable to each Assessor’s Parcel in Improvement Area No. 5 of the City of Rancho Cordova The Ranch Community Facilities District No. 20 21-1 shall be levied and collected according to the tax liability determined by the City Council through the application of the appropriate amount or rate for Taxable Property, as described below. All of the property in Improvement Area No. 5, unless exempted by law or by the provisions of Section G below, shall be taxed for the purposes, to the extent, and in the manner herein provided, including property subsequently annexed to Improvement Area No. 5 unless a separate Rate and Method of Apportionment is adopted for the annexation area.

A. DEF

INITIONS
T
he 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 or other parcel map recorded at the County Recorder’s Office. “
Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, (commencing with Section 53311), Part 1, Division 2 of Title 5 of the Government Code of the State of California.
“
Administrative Expenses” means any or all of the following: the fees and expenses of any fiscal agent or trustee (including any fees or expenses of its counsel) employed in connection with any Bonds, and the expenses of the City in carrying out its duties with respect to Improvement Area No. 5, the CFD and the Bonds, including, but not limited to, the levy and collection of Special Taxes, the fees and expenses of its counsel, charges levied by the County in connection with the levy and collection of Special Taxes, costs related to property owner inquiries regarding the Special Tax, costs associated with appeals or requests for interpretation associated with the Special Tax and this RMA, amounts needed to pay rebate to the federal government with respect to Bonds, costs associated with complying with continuing disclosure requirements for the City and any major property owners or other obligated parties, costs associated with foreclosure and collection of delinquent Special Taxes, and all other costs and expenses of the City and County in any way related to the establishment or administration of Improvement Area No. 5 and the CFD. “
Administrator” shall mean the person or firm designated by the City to administer the Special Tax according to this RMA.
“A
nnexation Date” means the date on which the property in Improvement Area No. 5 was annexed to the CFD.

ITEM 13.6.

ATTACHMENT 3
Exhibit A2 to the Resolution

Page 152 of 379 ends

IA No. 5 of The Ranch CFD No. 2021-1 2 June 9, 2025
“Assessor’s Parcel” or “Parcel” means a lot or parcel shown on an Assessor’s Parcel Map with an assigned Assessor’s Parcel number.

“Assessor’s Parcel Map” means an official map of the County Assessor designating Parcels by Assessor’s Parcel Number.

“Authorized Facilities” means the public facilities authorized to be financed, in whole or in part, by the CFD.

“Base Special Tax” means, for any Land Use Category, the applicable Special Tax initially identified in Table 1 in Section C, as may be adjusted pursuant to Sections D or H herein.

“Bonds” means bonds or other debt (as defined in the Act), whether in one or more series, secured by the Special Tax and issued or assumed by or for Improvement Area No. 5 to fund Authorized Facilities.

“Building Permit” means a permit that allows for vertical construction of a building or buildings, which shall not include a separate permit issued for construction of the foundation thereof.

“Capitalized Interest” means funds in any capitalized interest account available to pay debt service on Bonds.

“CFD” means the City of Rancho Cordova The Ranch Community Facilities District No. 2021-1.

“City” means the City of Rancho Cordova.

“City Council” means the City Council of the City of Rancho Cordova.

“County” means the County of Sacramento.

“Developed Property” means, in any Fiscal Year, all Parcels of Taxable Property that are not Taxable Owners Association Property , Taxable Public Property , or Taxable Welfare Exemption Property for which a Bu ilding P ermit for new construction was issued prior to June 1 of the preceding Fiscal Year.

“Development Class” means, individually, Developed Property, Final Map Property, Undeveloped Property, Taxable Owners Association Property, Taxable Public Property, and Taxable Welfare Exemption Property.

“Expected Land Uses” means the number of Residential Units and the Acreage of Other Property expected within Improvement Area No. 5 at the Annexation Date, as identified in Attachments 1 and 2 of this RMA. Pursuant to Section D of this RMA, the Administrator shall update Attachment 2 each time there is a Land Use Change. Such update (s) shall be maintained internally by the Administrator and shall not require recordation of an amended RMA.

“Expected Maximum Special Tax Revenues” means the aggregate Special Tax that can be levied based on application of the Base Special Tax to the Expected Land Uses. The Expected Maximum Special Tax Revenues at the Annexation Date are shown in Attachment 2 and may be ITEM 13.6.

ATTACHMENT 3
Exhibit A2 to the Resolution

Page 153 of 379 ends

IA No. 5 of The Ranch CFD No. 2021-1 3 June 9, 2025
revised pursuant to Sections D or H herein. Such update (s) will be maintained internally by the Administrator and will not require recordation of an amended RMA.

“Final Map” means a final map, or portion thereof, approved by the City or County pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq ) that creates SFD Lots. The term “Fina l Map” shall not include any large -lot subdivision map, Assessor’s Parcel Map, or subdivision map or portion thereof, that does not create SFD Lots, including Assessor’s Parcels that are designated as remainder parcels.

“Final Map Property” means, in any Fiscal Year, all SFD Lots created within Final Map s that had recorded prior to June 30 of the preceding Fiscal Year and which have not yet become Developed Property.

“First Bond Sale” means issuance of the first series of Bonds secured, in whole or in part, by Special Taxes levied and collected from Parcels in Improvement Area No. 5.

“Fiscal Year” means the period starting July 1 and ending on the following June 30.

“Improvement Area No. 5” means Improvement Area No. 5 of the CFD.

“Improvement Fund” means the account (regardless of its name) identified in the Indenture to hold funds that are available for expenditure to acquire or construct Authorized Facilities.

“Indenture” means the bond indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended, and/or supplemented from time to time, and any instrument replacing or supplementing the same.

“Land Use Category” means the categories of land use identified in Table 1 in Section C below.

“Land Use Change” means a proposed or approved change to the Expected Land Uses after the Annexation Date.

“Maximum Special Tax” means the greatest amount of Special Tax that can be levied on a Parcel in any Fiscal Year, as determined in accordance with Sections C and D below.

“Other Property” means any Parcel of Developed Property in Improvement Area No. 5 that does not fit within the definition of Single Family Property.

“Owners Association” means a homeowners association or property owners association that provides services to, and collects assessments, fees, dues, or charges from, property within Improvement Area No. 5.

“Owners Association Property” means any property within the boundaries of Improvement Area No. 5 that is owned in fee or by easement by an Owners Association, not including any such property that is located directly under a residential structure.

“Proportionately” means, for each Development Class, that the ratio of the actual Special Tax levied in any Fiscal Year to the Maximum Special Tax authorized to be levied in that Fiscal Year is equal for all parcels assigned to the Development Class.

ITEM 13.6.

ATTACHMENT 3
Exhibit A2 to the Resolution

Page 154 of 379 ends

IA No. 5 of The Ranch CFD No. 2021-1 4 June 9, 2025
“Public Property” means any property within the boundaries of Improvement Area No. 5 that is owned by the City, County, federal government, State of California or other public agency.

“Required Coverage” means the amount by which the Expected Maximum Special Tax Revenues must exceed the Bond debt service and priority Administrative Expenses (if any), as set forth in the Indenture, Certificate of Special Tax Consultant, or other formation or bond document that identifies the minimum required debt service coverage.

“Residential Unit” means an SFD Unit or an individual residential unit within a duplex, halfplex, triplex, fourplex, townhome, live/work or condominium structure, or apartment building. A second unit (granny flat) that shares a Parcel with an SFD Unit will not be considered a Residential Unit for purposes of levying the Special Tax.

“RMA” means this Rate and Method of Apportionment of Special Tax.

“SFD Lot” means an individual residential lot, identified and numbered on a recorded Final Map, on which a Building Permit has been or is permitted to be issued for construction of an SFD Unit without further subdivision of the lot and for which no further subdivision of the lot is anticipated pursuant to an approved Tentative Map.

“SFD Unit” means a residential unit that does not share a common wall with another residential unit.

“Single Family Property” means, in any Fiscal Year, all Parcels of Taxable Property for which a Building P ermit was or is expected to be issued for : (i) construction of a n SFD Unit , or (ii) construction of a residential structure consisting of two or more Residential Units that share common walls, have separate Assessor’s Parcel numbers assigned to them (except for a duplex unit, which may share an Assessor’s Parcel with another duplex unit), and may be purchased by individual homebuyers (which shall still be the case even if the Residential Units are purchased and subsequently offered for rent by the owner s of the Residential U nits), including such residential structures that meet the statutory definition of a condominium contained in Civil Code Section 4125.

“Special Tax” means a special tax levied in any Fiscal Year to pay the Special Tax Requirement.

“Special Tax Requirement” means the amount necessary in any Fiscal Year to: (i) pay principal and interest on Bonds that are due in the calendar year that begins in such Fiscal Year; (ii) pay periodic costs on the Bonds, including but not limited to, credit enhancement, liquidity support and rebate payments on the Bonds; (iii) replenish reserve funds created for the Bonds under the Indenture to the extent such replenishment has not been included in the computation of the Special Tax Requirement in a previous Fiscal Year; (iv) cure any delinquencies in the payment of principal or interest on Bonds which have occurred in the prior Fiscal Year or, based on prior delinquencies, are expected to occur in the current Fiscal Year ; (v) pay Administrative Expenses; and (vi) pay directly for Authorized Facilities, so long as such levy under this clause (vi) does not increase the Special Tax levied on Final Map Property or Undeveloped Property. The amounts referred to in clauses (i) and (ii) of the definition of Special Tax Requirement may be reduced in any Fiscal Year by: (a) interest earnings on or surplus balances in funds and accounts for the Bonds to the extent that such earnings or balances are available to apply against such costs pursuant to the Indenture; ITEM 13.6.

ATTACHMENT 3
Exhibit A2 to the Resolution

Page 155 of 379 ends

IA No. 5 of The Ranch CFD No. 2021-1 5 June 9, 2025
(b) in the sole and absolute discretion of the City, proceeds received by the CFD from the collection of penalties associated with delinquent Special Taxes; and (c) any other revenues available to pay such costs, each as determined in the sole discretion of the City.

“Taxable Property” means all of the Parcels within the boundaries of Improvement Area No. 5 that are not exempt from the Special Tax pursuant to law or Section G below.

“Tentative Map” means a tentative map or substantial conformance exhibit for property in Improvement Area No. 5, including any adjustments or amendments thereto.

“Undeveloped Property” means, in any Fiscal Year, all Parcels of Taxable Property that are not Final Map Property or Developed Property, as defined herein.

“Village” means a specific geographic area within Improvement Area No. 5 that (i) is identified by an assigned number on Attachment 1, (ii) is expected to have single family lots that are all of a similar size, and (iii) is assigned Expected Maximum Special Tax Revenues in Attachment 2 based on the Expected Land Uses for that Village.

ITEM 13.6.

ATTACHMENT 3
Exhibit A2 to the Resolution

Page 156 of 379 ends

IA No. 5 of The Ranch CFD No. 2021-1 6 June 9, 2025
B. DATA FOR ADMINISTRATION OF THE SPECIAL TAX

If the Expected Maximum Special Tax Revenues will be revised pursuant to a proposed Land Use Change, the Administrator shall apply the steps set forth in Section D below.

In any Fiscal Year, if it is determined that: (i) a parcel map for property in Improvement Area No. 5 was recorded after January 1 of the prior Fiscal Year (or any other date after which the Assessor will not incorporate the newly- created Parcels into the then current tax roll), (ii) because of the date the parcel map was recorded, the Assessor does not yet recognize the new Parcels created by the parcel map, and (iii) one or more of the newly- created Parcels is in a different Development Class and/or Land Use Category than other Parcels created by the subdivision, the Administrator shall calculate the Special Taxes for the property affected by recordation of the parcel map by determining the Special Taxes that apply separately to the property within each Development Class and/or Land Use Category , then applying the sum of the individual Special Taxes to the Parcel that was subdivided by recordation of the parcel map.

C. MAXIMUM SPECIAL TAX

1. Developed Property and Final Map Property

Table 1
Base Special Tax
Developed Property and Final Map Property

Land Use

Base Special Tax
Fiscal Year 2025-26 *
Single Family Property
Village 16
Villages 14 & 17

$3,048 per Residential Unit or SFD Lot
$3,144 per Residential Unit or SFD Lot
Other Property $33,790 per Acre

* On July 1, 2026, and on each July 1 thereafter, all figures shown in Table 1 above shall be increased by an amount equal to 2.0% of the amount in effect for the prior Fiscal Year.

ITEM 13.6.

ATTACHMENT 3
Exhibit A2 to the Resolution

Page 157 of 379 ends

IA No. 5 of The Ranch CFD No. 2021-1 7 June 9, 2025

2. Undeveloped Property, Taxable Owners Association Property, Taxable Public Property , and Taxable Welfare Exemption Property

The Maximum Special Tax for Undeveloped Property, Taxable Owners Association Property, Taxable Public Property, and Taxable Welfare Exemption Property is $33,790 per Acre for Fiscal Year 2025-26, which amount shall increase on July 1, 2026 and each July 1 thereafter by an amount equal to 2.0% of the amount in effect for the prior Fiscal Year.

D. C HANGES TO THE MAXIMUM SPECIAL TAX

1. Land Use Changes

After the First Bond Sale, if a Land Use Change is proposed or identified, Steps 1 through 3 must be applied:

Step 2: The Administrator shall calculate the Expected Maximum Special Tax Revenues that could be collected from Taxable Property in Improvement Area No. 5 after the Land Use Change based on application of the Base Special Taxes from Table

ITEM 13.6.

ATTACHMENT 3
Exhibit A2 to the Resolution

Page 158 of 379 ends

IA No. 5 of The Ranch CFD No. 2021-1 8 June 9, 2025

ITEM 13.6.

ATTACHMENT 3
Exhibit A2 to the Resolution

Page 159 of 379 ends

IA No. 5 of The Ranch CFD No. 2021-1 9 June 9, 2025

2. Partial Prepayments

If a Parcel makes a partial prepayment pursuant to Section H below, the Administrator shall recalculate the Maximum Special Tax for the Parcel pursuant to Section H.2. In addition, the Administrator shall update Attachment 2 to reflect the prepayment and the revised Expected Maximum Special Tax Revenues for Improvement Area No. 5. After the prepayment has been received, the application of Sections D and H of this RMA shall be based on the adjusted Expected Maximum Special Tax Revenues after the prepayment.

3. Conversion of a Parcel of Public Property to Private Use

4. Transfer of Expected Maximum Special Tax Revenues from One Village to Another

E. METHOD OF LEVY OF THE SPECIAL TAX

Each Fiscal Year, the Administrator shall determine the Special Tax Requirement to be collected in that Fiscal Year. A Special Tax shall then be levied according to the following steps:

Step 3: If additional revenue is needed after Step 2, the Special Tax shall be levied Proportionately on each Parcel of Undeveloped Property up to 100% of the ITEM 13.6.

ATTACHMENT 3
Exhibit A2 to the Resolution

Page 160 of 379 ends

IA No. 5 of The Ranch CFD No. 2021-1 10 June 9, 2025
Maximum Special Tax for each Parcel of Undeveloped Property until the amount levied is equal to the Special Tax Requirement.

F. MANNER OF COLLECTION OF SPECIAL TAX

G. EXEMPTIONS

Notwithstanding any other provision of this RMA, no Special Tax shall be levied in any Fiscal Year on the following:

(1) Public Property, except Taxable Public Property.

(2) Owners Association Property, except Taxable Owners Association Property.

(3) Welfare Exemption Property, except Taxable Welfare Exemption Property.

(4) Parcels that are owned by a public utility for an unmanned facility.

ITEM 13.6.

ATTACHMENT 3
Exhibit A2 to the Resolution

Page 161 of 379 ends

IA No. 5 of The Ranch CFD No. 2021-1 11 June 9, 2025
(5) Parcels that are subject to an easement that precludes any other use on the Parcel.

(6) Parcels that have fully prepaid the Special Tax obligation assigned to the Parcel pursuant to the formula set forth in Section H below.

H. PREPAYMENTS

The following definitions apply to this Section H:

“Previously Issued Bonds” means all Bonds that have been issued prior to the date of prepayment.

“Public Facilities Requirement” means either $8 million in 2025 dollars, which shall increase on January 1, 2026, and on each January 1 thereafter by 2% of the amount in effect in the prior year or such other number as shall be determined by the City as sufficient to fund improvements that are authorized to be funded by Improvement Area No. 5. The Public Facilities Requirement shown above may be adjusted each time property annexes into Improvement Area No. 5 or there is an adjustment to the Expected Maximum Special Tax Revenues due to a Land Use Change.

“Remaining Facilities Costs” means the Public Facilities Requirement minus public facility costs funded by Previously Issued Bonds, developer equity and any other source of funding.

1. Full Prepayment

The Special Tax obligation applicable to a Parcel in Improvement Area No. 5 may be prepaid and the obligation of the Parcel to pay the Special Tax permanently satisfied as described herein, provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Parcel at the time of prepayment. An owner of a Parcel intending to prepay the Special Tax obligation shall provide the City with written notice of intent to prepay. Within 30 days of receipt of such written notice, the City or its designee shall notify such owner of the prepayment amount for such Parcel. Prepayment must be made not less than 75 days prior to any redemption date for Bonds to be redeemed with the proceeds of such prepaid Special Taxes. The Prepayment Amount shall be calculated as follows: (capitalized terms as defined below):

ITEM 13.6.

ATTACHMENT 3
Exhibit A2 to the Resolution

Page 162 of 379 ends

IA No. 5 of The Ranch CFD No. 2021-1 12 June 9, 2025
Bond Redemption Amount
plus R emaining Facilities Amount
plus Redemption Premium
plus Defeasance Requirement
plus Administrative Fees and Expenses
less Reserve Fund Credit
equals Prepayment Amount

As of the proposed date of prepayment, the Prepayment Amount shall be determined by application of the following steps:

Step 2. Divide the Maximum Special Tax computed pursuant to Step 1 for such Parcel by the total Expected Maximum Special Tax Revenues for all property in Improvement Area No. 5, as shown in Attachment 2.

Step 3. Multiply the quotient computed pursuant to Step 2 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the “Bond Redemption Amount”).

Step 4. Compute the current Remaining Facilities Costs (if any).

Step 6. Multiply the Bond Redemption Amount computed pursuant to Step 3 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).

ATTACHMENT 3
Exhibit A2 to the Resolution

Page 163 of 379 ends

IA No. 5 of The Ranch CFD No. 2021-1 13 June 9, 2025
prepayment has been received until the redemption date for the Outstanding Bonds.

Step 9: Subtract the amount computed pursuant to Step 8 from the amount computed pursuant to Step 7 (the “Defeasance Requirement”).

Step 12. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to Steps 3, 5, 6, 9, and 10, less the amount computed pursuant to Step 11 (the “Prepayment Amount”).

2. Partial Prepayment

ITEM 13.6.

ATTACHMENT 3
Exhibit A2 to the Resolution

Page 164 of 379 ends

IA No. 5 of The Ranch CFD No. 2021-1 14 June 9, 2025

3. Maintaining Required Coverage

I. INTERPRETATION OF RMA

Interpretations may be made by Resolution of the City Council to interpret, clarify, and/or revise this RMA to correct any inconsistency, vagueness, or ambiguity as it relates to the Special Tax, method of apportionment, classification of properties, or any definition applicable to Improvement Area No. 5 of the CFD, as long as such correction does not materially affect the levy and collection of Special Taxes. The City, upon the request of an owner of land within Improvement Area No. 5 which is not Developed Property, may also amend this RMA in any manner acceptable to the City, by resolution or ordinance following a public hearing, upon the affirmative vote of such owner to such amendment and without the vote of owners of any other land within Improvement Area No. 5, provided such amendment only affects such owner's land. Under no circumstances may such revisions to the RMA decrease the Expected Maximum Special Tax Revenues to a level that will reduce debt service coverage below Required Coverage.

ITEM 13.6.

ATTACHMENT 3
Exhibit A2 to the Resolution

Page 165 of 379 ends

ATTACHMENT 1

Improvement Area No. 5 of the
City of Rancho Cordova
The Ranch
Community Facilities District No. 2021-1

The Ranch
Expected Lot Layout in Improvement Area No. 5

ITEM 13.6.

ATTACHMENT 3
Exhibit A2 to the Resolution

Page 166 of 379 ends

BUILDING RELATIONSHIPS ONE PROJECT AT A TIME
3301 C St, Bldg. 100-BTel 916.341.7760
Fax 916.341.7767 Sacramento, CA 95816
ITEM 13.6.

ATTACHMENT 3
Exhibit A2 to the Resolution

Page 167 of 379 ends

ATTACHMENT 2

Improvement Area No. 5 of the
City of Rancho Cordova
The Ranch
Community Facilities District No. 2021-1

Expected Land Uses and Expected Maximum Special Tax Revenues in Improvement Area No. 5

Village

Expected
Land Uses

Base Special Tax
(FY 2025-26) *
Expected
Maximum Special
Tax Revenues
(FY 2025-26) *
Village 16 53 Residential Units
$3,048 per
Residential Unit $161,544
Villages 14 & 17 123 Residential Units
$3,144 per
Residential Unit $386,712
Expected Maximum Special Tax Revenues (FY 2025-26 $) $548,256

* On July 1, 2026, and each July 1 thereafter, all dollar amounts shown above shall be increased by 2% of the amount in effect in the prior Fiscal Year.

ITEM 13.6.

ATTACHMENT 3
Exhibit A2 to the Resolution

Page 168 of 379 ends

1 CI

TY OF RANCHO CORDOVA
The Ranch Community Facilities District No. 2021-1
R
equest and Unanimous Approval for Annexation
and Landowner-Voter Ballot
(Improvement Area No. 4)
Cit
y Council of the
City of Rancho Cordova
2729 Prospect Park Drive
Rancho Cordova, CA 95670
M
embers of the City Council:

Re
citals
A. The under
signed is the authorized representative of GTIS -HOV HOLDINGS XVI LLC , LLC
, a California limited liability company (the " Landowner"), the owner of the all the parcels listed in Exhibit A, which parcels collectively comprise of all the land proposed to be included within the respective Improvement Area No. 4 (described herein) from the Future Annexation Area of “The Ranch Community Facilities District No. 2021- 1” ("CFD N
o. 2021-1" or “CFD”).

B. The Landow
ner is the sole owner of the fee simple interest in the real property identified in Exhibit A, attached hereto and by this reference incorporated herein (the "Property").

C. P
ursuant to the Mello- Roos Community Facilities Act of 1982 (the "Act "), the City Council (the “ City Council”) of the City of Rancho Cordova adopted its Resolution No. 195-2021 (the " Resolution of Formation") on December 6, 2021, which, among other things:

1. es
tablished the CFD No. 2021- 1 and designated Improvement Area No. 1 (“Improvement Area No. 1”);

2. des
ignated certain real property as a future annexation area (the " Future Annexation Area") to be annexed to CFD No. 2021-1;

3. aut
horized CFD No. 2021- 1 and every current and future improvement area thereto to finance the costs and expenses of certain public facilities and related payments (together, the "Facilities") described in Exhibit B , attached hereto and by this reference incorporated herein; and

4. appr
oved the form of the rate and method of apportionment for Improvement Area No. 1 (the “Improvement Area No. 1 RMA”).

D. The
boundaries of the CFD, Improvement Area No. 1 and the Future Annexation Area are shown on a boundary map (the " Boundary Map") that was recorded on November ITEM 13.6.

ATTACHMENT 4
Exhibit B1 to the Resolution

Page 169 of 379 ends

-2-
15, 2021 at 8:11 a.m., in the Office of the Sacramento County Recorder in Book 135 of Maps of Assessment and Community Facilities Districts at Page 36 as Instrument Number 202111150034.

E. Pursuant to the Act, on December 6, 2021, the City Council adopted its Resolution No. 196-2021 (the “Resolution of Necessity”), which sets forth the necessity for the City to issue special tax bonds or other forms of debt obligations for CFD No. 2021- 1 in the following amounts:

1. for Improvement Area No. 1, a not -to-exceed principal amount of $20,350,000 (“Improvement Area No. 1 Indebtedness Limit”); and

2. for the portion of CFD No. 2021-1 that is not in Improvement Area No. 1, a not-to- exceed principal amount of $66,120,000 (“ Non-Improvement Area No. 1 Indebtedness Limit”), with the actual limit for an improvement area created from annexation of all or part of the Future Annexation Area to be identified and approved in accordance with the Annexation Approval Procedures listed below, and the new improvement area’s limit to be subtracted from the Non- Improvement Area No. 1 Indebtedness Limit.

F. The Resolution of Formation provided that property in the Future Annexation Area may be annexed into CFD No. 2021-1 as its own improvement area (a “Future Improvement Area”) or to an existing improvement area, and that t he designation of any territory annexing to CFD No. 2021- 1 as a Future Improvement Area , the maximum amount of bonded indebtedness and other debt for such Future Improvement Area, the rate and method of apportionment of special tax for such Future Improvement Area and the appropriations limit for such Future Improvement Area would be identified and approved in a unanimous approval (a “ Unanimous Approval”) executed by property owners in connection with an annexation to the CFD in accordance with certain procedures (the “Annexation Approval Procedures”).

G. The Annexation Approval Procedures include procedures where the annexation of territory in the Future Annexation Area as a Future Improvement Area may be implemented and completed without the need for approval of the City Council of the City, as follows (capitalized terms have the meanings given them in the Resolution of Formation):

1. The rate and method of apportionment of special tax for the Future Improvement Area is prepared by a special tax consultant retained by the City.

2. The rate and method of apportionment of special tax for the Future Improvement Area complies with the City's local goals and policies concerning the use of the Act.

3. The rate and method of apportionment of special tax for the Future Improvement Area does not establish a maximum special tax amount for the initial fiscal year in which the special tax may be levied for any category of special tax set forth in the Improvement Area No. 1 RMA that is greater than 120% of the maximum amount of the same or closest category of special tax for the same fiscal year calculated pursuant to the Improvement Area No. 1 RMA.

ITEM 13.6.

ATTACHMENT 4
Exhibit B1 to the Resolution

Page 170 of 379 ends

-3-

4. The rate and method of apportionment of special tax for the Future Improvement Area does not introduce a type of special tax that was not included in the Improvement Area No. 1 RMA (e.g., a special tax that is levied and must be paid in a single fiscal year).

5. The rate and method of apportionment of special tax for the Future Improvement Area includes a mechanism that protects against revenue loss as a result of land use changes.

The Resolution of Formation provides that if the Annexation Approval Procedures for annexation of territory in the Future Annexation Area as a Future Improvement Area listed above have been satisfied, the Unanimous Approval shall be deemed accepted by the City and the City Clerk shall record an amendment to the notice of special tax lien or a new notice of special tax lien for the CFD pursuant to Streets & Highways Code Section 3117.5.

H. The Property is part of the Future Annexation Area. The Landowner wishes to annex the Property into CFD No. 2021- 1 as a Future Improvement Area. The Landowner believes that the Annexation Approval Procedures listed above for annexation of territory that is in the Future Annexation Area into CFD No. 2021- 1 as a Future Improvement Area will be met.

I. By this instrument, the Landowner identifies, specifies and approves the annexation of the Property to CFD No. 2021 -1 as Improvement Area No. 4 of CFD No. 2021 -1 (“Improvement Area No. 4 ”) and the other matters included herein, without a public hearing, as authorized by the Act and the Resolution of Formation.

J. The Landowner hereby represents and warrants that, to the best of its knowledge without inquiry, there are no persons resident on the Property that are registered voters.

Approval and Vote

The undersigned representative of the Landowner, on behalf of the entity it represents, hereby petitions, represents, warrants, and certifies to the City as follows:

1. I am familiar with the CFD, the Future Annexation Area and the land therein listed in Exhibit A hereto and proposed to be Improvement Area No. 4 of the CFD.

2. I am familiar with and have personally inspected the land within Improvement Area No. 4, which is undeveloped land, and I have noted that there are no dwellings thereon that might serve as habitation for registered voters. Based on the foregoing, I have determined that at no time during the 90 days preceding the date hereof were there ever any persons registered to vote within the territory of Improvement Area No. 4.

3. The Council is requested to establish Improvement Area No. 4 within the CFD over land shown on the Annexation Map for the captioned Consolidated Boundaries of Cit of Ranch Cordova The Ranch Community Facilities District No. 2021-1 , on file with the Clerk, and to establish a special tax applicable to such land as described in Rate, Method of Apportionment, and Manner of Collection of Special Tax for Improvement Area No. 4 (“Improvement Area No. 4 RMA”), which is attached to this Unanimous Approval as Exhibit C.

ITEM 13.6.

ATTACHMENT 4
Exhibit B1 to the Resolution

Page 171 of 379 ends

-4-

4. The Landowner hereby requests that the City record a consolidated map of CFD No. 2021-1 that shows the territory to be annexed as Improvement Area No. 4 in substantially the form and substance of the map attached hereto as Exhibit D.

5. The undersigned is legally entitled and authorized to cast the ballot for the Owner in the landowner, mailed-ballot election to be conducted on ________, 2025 within Improvement Area No. 2021-1 to determine whether to ratify and confirm the Improvement Area No. 4 RMA.

6. The Owner hereby consents to the applicability of the Improvement Area No. 4 RMA to land within Improvement Area No. 4.

7. The Owner hereby requests and provides unanimous approval and consent for the issuance of bonded indebtedness secured by special taxes in Improvement Area No. 4 up to a maximum limit of $ 22,250,000 and the establishment of an appropriations limit applicable to Improvement Area No. 4 of $22,250,000. After the issuance of bonds for Improvement Area No. 4 any authorized but unissued bonds in Improvement Area No. 4 may be reallocated to other improvement areas which are annexed into the CFD.

8. The undersigned, on behalf of the above -named Owner, hereby waives each of the following:

a. any and all minimum time periods relative to the public hearing to be held pursuant to the Mello- Roos Community Facilities Act of 1982 (the “Act”) and the publication of the notice of hearing pursuant to the Act.

b. any and all minimum time periods relative to the landowner -voter election to be held pursuant to the Act to ratify and confirm the Council’s approval of the Improvement Area No. 4 RMA;

c. the preparation and distribution of an impartial analysis of the ballot measure, as well as arguments in favor and against, under the authority of the Act;

d. the requirement to publish notice of the election under the Act;

e. the requirements regarding the time to mail ballots to the qualified electors under Elections Code Section 4101, and agrees to accept either mailed service or personal service of the ballot;

f. the requirements regarding identification envelopes for the return of mailed ballots contained in the Act;

g. any and all defects in notice or procedure in the process of ordering the Improvement Area No. 4 RMA including but not limited to the public hearing, and conduct of the election, whether known or unknown (other than the right to have ballots accurately counted); and

h. any irregularity in the proceedings that may be claimed as a result of the application of such waivers.

9. The undersigned expressly acknowledges, represents and states that the election is being expedited by the City, pursuant to this waiver and consent, at the particular instance and request of the above-named Owner and this consent and waiver shall constitute a ITEM 13.6.

ATTACHMENT 4
Exhibit B1 to the Resolution

Page 172 of 379 ends

-5-
ballot and vote in favor of such change as indicated following the below signature of each Owner and votes as follows by checking a “yes” vote or a “no” vote to the following ballot measure.

BALLOT MEASURE: Shall the measure pursuant to which
(i) City of Rancho Cordova shall incur indebtedness and issue bonds up to $22,250,000 on behalf of the
Improvement Area No. 4 of The Ranch Community Facilities District No. 2021-1 (“CFD”), to acquire and/or construct facilities set forth in the list of authorized facilities for Improvement Area No. 4 attached hereto and pay for the costs of issuing the bonds and related expenses in the list attached hereto; (ii) a special tax shall be levied at rates of $______ to $______/ residential unit (with other property taxed at other rates), subject to annual escalation, through Fiscal Year 2064-65 raising $______ in Fiscal Year 2025-26 (assuming full build- out of Improvement Area No. 4 ), to pay for the principal and interest upon such bonds, to pay the costs of the County in administering Improvement Area No. 4, and to pay for the costs of acquiring and/or constructing said facilities in accordance with the rate and method of apportionment of special taxes for Improvement Area No. 4 attached hereto; and (iii) the annual appropriations limit of the CFD shall initially be $ 22,250,000, subject to escalation, be adopted?

YES
_______

NO
_______

By execution in the space provided below, the undersigned Landowner certifies that such owner has initiated, requested and /or reviewed all the CFD provisions and proceedings leading up to this election, including the list of authorized facilities, the bond indebtedness limit for the CFD, and the Rate and Method of Apportionment, which includes the tax rates and duration of the special tax to be placed on the Landowner’s property.

ITEM 13.6.

ATTACHMENT 4
Exhibit B1 to the Resolution

Page 173 of 379 ends

-6-
The foregoing Unanimous Approval is true and correct and this Request and Unanimous Approval for Annexation is executed and vote has been cast as of __________, 2025 , in _________________, California.

GTIS-HOV HOLDINGS XVI LLC,
a California limited liability company

By: K. Hovnanian at Jaeger Ranch, LLC,
a California limited liability company, its
Managing Member

By:

Name:

Its:

ITEM 13.6.

ATTACHMENT 4
Exhibit B1 to the Resolution

Page 174 of 379 ends

EXHIBIT A

IDENTIFICATION OF THE PROPERTY

CITY OF RANCHO CORDOVA
The Ranch Community Facilities District No. 2021-1
(Improvement Area No. 4)

Property Owner APN

GTIS-HOV HOLDINGS XVI LLC, LLC

ITEM 13.6.

ATTACHMENT 4
Exhibit B1 to the Resolution

Page 175 of 379 ends

EXHIBIT B

Page 1 ends

EXHIBIT B

DESCRIPTION OF FACILITIES TO BE FINANCED BY THE CFD AND EACH

IMPROVEMENT AREA THEREIN

LIST OF FACILITIES

The Facilities shown below are to be finance by the City of Rancho Cordova The Ranch Community Facilities District No. 2021-1 (the, “CFD”).

Facilities.

The Facilities which are proposed to be financed with the proceeds of the sales of bonds of the proposed CFD, or the payment of the fees to the appropriate jurisdiction with respect to such facilities proposed to be financed with the proceeds of the sale of bonds of the proposed CFD, are generally described as follows:

Roadway Facilities

Including: Pavement, Curb, Gutter, Sidewalks, Joint Trench Utilities, Signals, Street Lights, Stop Signs, General Signage, Local & Regional Drainage, Landscaping & Irrigation (incl. backflow preventers), Soundwalls, Entry Monumentation, and Striping

R-1 Chrysanthy Boulevard

R-2 Rancho Cordova Parkway

R-3 North Campus Road

R-2 Any and all major streets, residential collectors and minor residential streets within The Ranch.

Sewer Facilities

S-1 Any and all major Sewer facilities necessary to provide sewer service to The Ranch

Water Facilities

W-1 Any and all major Water facilities necessary to provide water service to The Ranch

Drainage Facilities

D-1 Detention Basin(s)

D-2 Any and all major Drainage facilities necessary to provide drainage conveyance, detention or water quality treatment for The Ranch

Impact, Development Agreement and Sunridge Specific Plan Area Fees

I-1 Transportation Development Impact Fee
ITEM 13.6.

ATTACHMENT 4
Exhibit B1 to the Resolution

Page 176 of 379 ends

EXHIBIT B

Page 2 ends

I-2 Supplemental Transportation Fee

I-3 Community Facilities Impact Fee

I-4 Park Renovation Fee

1-5 SD Roadway Fee

Engineering Studies, Permitting, Public Facilities Report, Financing Plan

E-1 Consultant fees, application fees, processing fees, and document production costs associated with the CFD preparation and processing of Public Facilities Reports, Engineering Studies, CFD Reports, Financing Plans, Environmental Permitting, and Environmental Studies, as well as other costs associated with the District Formation and Bond Sales process.

Other

O-1 Any other facilities serving substantially the same purpose as the above described Facilities.

O-2 Any other facilities permitted under the Mello- Roos Community Facilities Act of 1982, including the facilities described in Section 53313.5 of the California Government Code, as amended from time to time, provided that such facilities satisfy at least one of the following criteria: 1) augment, improve or expand existing District facilities that are primarily for the benefit of the District, or 2) repair or rehabilitate existing District facilities.

The foregoing description of the type of Facilities eligible to be financed is general in nature and includes any appurtenant work and incidental expenses related to the Facilities. The final nature and location of the facilities will be determined upon the preparation of final plans and specifications for such facilities.

Incidentals

The bond related expenses authorized include the City, underwriters discount, financial advisor, appraisals, reserve fund balance, capitalized interest, bond counsel, disclosure counsel, special tax consultant, bond and official statement printing and all other incidental expenses.

Administrative fees include those of the City, the Community Facilities District, the Bond Trustee, the Special Tax Consultant and the Fiscal Agent, related to the Community Facilities District and the Bonds.

ITEM 13.6.

ATTACHMENT 4
Exhibit B1 to the Resolution

Page 177 of 379 ends

IA
No. 4 of The Ranch CFD No. 2021-1 1 June 9, 2025
IMPROVEMENT AREA NO. 4 OF THE

CITY OF RANCHO CORDOVA

THE RANCH
COMMUNITY FACILITIES DISTRICT NO. 2021-1

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
A Sp
ecial Tax applicable to each Assessor’s Parcel in Improvement Area No. 4 of the City of Rancho Cordova The Ranch Community Facilities District No. 20 21-1 shall be levied and collected according to the tax liability determined by the City Council through the application of the appropriate amount or rate for Taxable Property, as described below. All of the property in Improvement Area No. 4, unless exempted by law or by the provisions of Section G below, shall be taxed for the purposes, to the extent, and in the manner herein provided, including property subsequently annexed to Improvement Area No. 4 unless a separate Rate and Method of Apportionment is adopted for the annexation area.

A. DEFI

NITIONS
Th
e terms hereinafter set forth have the following meanings:
“A
cre” 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 or other parcel map recorded at the County Recorder’s Office. “Ac
t” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, (commencing with Section 53311), Part 1, Division 2 of Title 5 of the Government Code of the State of California.
“A
dministrative Expenses” means any or all of the following: the fees and expenses of any fiscal agent or trustee (including any fees or expenses of its counsel) employed in connection with any Bonds, and the expenses of the City in carrying out its duties with respect to Improvement Area No. 4, the CFD and the Bonds, including, but not limited to, the levy and collection of Special Taxes, the fees and expenses of its counsel, charges levied by the County in connection with the levy and collection of Special Taxes, costs related to property owner inquiries regarding the Special Tax, costs associated with appeals or requests for interpretation associated with the Special Tax and this RMA, amounts needed to pay rebate to the federal government with respect to Bonds, costs associated with complying with continuing disclosure requirements for the City and any major property owners or other obligated parties, costs associated with foreclosure and collection of delinquent Special Taxes, and all other costs and expenses of the City and County in any way related to the establishment or administration of Improvement Area No. 4 and the CFD. “A
dministrator” shall mean the person or firm designated by the City to administer the Special Tax according to this RMA.
“An
nexation Date” means the date on which the property in Improvement Area No. 4 was annexed to the CFD.

EXHIBIT C
ITEM 13.6.

ATTACHMENT 4
Exhibit B1 to the Resolution

Page 178 of 379 ends

IA No. 4 of The Ranch CFD No. 2021-1 2 June 9, 2025
“Assessor’s Parcel” or “Parcel” means a lot or parcel shown on an Assessor’s Parcel Map with an assigned Assessor’s Parcel number.

“Assessor’s Parcel Map” means an official map of the County Assessor designating Parcels by Assessor’s Parcel Number.

“Authorized Facilities” means the public facilities authorized to be financed, in whole or in part, by the CFD.

“Base Special Tax” means, for any Land Use Category, the applicable Special Tax initially identified in Table 1 in Section C, as may be adjusted pursuant to Sections D or H herein.

“Bonds” means bonds or other debt (as defined in the Act), whether in one or more series, secured by the Special Tax and issued or assumed by or for Improvement Area No. 4 to fund Authorized Facilities.

“Building Permit” means a permit that allows for vertical construction of a building or buildings, which shall not include a separate permit issued for construction of the foundation thereof.

“Capitalized Interest” means funds in any capitalized interest account available to pay debt service on Bonds.

“CFD” means the City of Rancho Cordova The Ranch Community Facilities District No. 2021-1.

“City” means the City of Rancho Cordova.

“City Council” means the City Council of the City of Rancho Cordova.

“County” means the County of Sacramento.

“Expected Land Uses” means the number of Residential Units and the Acreage of Other Property expected within Improvement Area No. 4 at the Annexation Date, as identified in Attachments 1 and 2 of this RMA. Pursuant to Section D of this RMA, the Administrator shall update Attachment 2 each time there is a Land Use Change. Such update (s) shall be maintained internally by the Administrator and shall not require recordation of an amended RMA.

ATTACHMENT 4
Exhibit B1 to the Resolution

Page 179 of 379 ends

IA No. 4 of The Ranch CFD No. 2021-1 3 June 9, 2025
revised pursuant to Sections D or H herein. Such update (s) will be maintained internally by the Administrator and will not require recordation of an amended RMA.

“First Bond Sale” means issuance of the first series of Bonds secured, in whole or in part, by Special Taxes levied and collected from Parcels in Improvement Area No. 4.

“Fiscal Year” means the period starting July 1 and ending on the following June 30.

“Improvement Area No. 4” means Improvement Area No. 4 of the CFD.

“Improvement Fund” means the account (regardless of its name) identified in the Indenture to hold funds that are available for expenditure to acquire or construct Authorized Facilities.

“Land Use Category” means the categories of land use identified in Table 1 in Section C below.

“Land Use Change” means a proposed or approved change to the Expected Land Uses after the Annexation Date.

“Maximum Special Tax” means the greatest amount of Special Tax that can be levied on a Parcel in any Fiscal Year, as determined in accordance with Sections C and D below.

“Other Property” means any Parcel of Developed Property in Improvement Area No. 4 that does not fit within the definition of Single Family Property.

“Owners Association Property” means any property within the boundaries of Improvement Area No. 4 that is owned in fee or by easement by an Owners Association, not including any such property that is located directly under a residential structure.

ITEM 13.6.

ATTACHMENT 4
Exhibit B1 to the Resolution

Page 180 of 379 ends

IA No. 4 of The Ranch CFD No. 2021-1 4 June 9, 2025
“Public Property” means any property within the boundaries of Improvement Area No. 4 that is owned by the City, County, federal government, State of California or other public agency.

“RMA” means this Rate and Method of Apportionment of Special Tax.

“SFD Unit” means a residential unit that does not share a common wall with another residential unit.

“Special Tax” means a special tax levied in any Fiscal Year to pay the Special Tax Requirement.

ATTACHMENT 4
Exhibit B1 to the Resolution

Page 181 of 379 ends

“Taxable Property” means all of the Parcels within the boundaries of Improvement Area No. 4 that are not exempt from the Special Tax pursuant to law or Section G below.

“Tentative Map” means a tentative map or substantial conformance exhibit for property in Improvement Area No. 4, including any adjustments or amendments thereto.

“Undeveloped Property” means, in any Fiscal Year, all Parcels of Taxable Property that are not Final Map Property or Developed Property, as defined herein.

ITEM 13.6.

ATTACHMENT 4
Exhibit B1 to the Resolution

Page 182 of 379 ends

IA No. 4 of The Ranch CFD No. 2021-1 6 June 9, 2025
B. DATA FOR ADMINISTRATION OF THE SPECIAL TAX

If the Expected Maximum Special Tax Revenues will be revised pursuant to a proposed Land Use Change, the Administrator shall apply the steps set forth in Section D below.

C. MAXIMUM SPECIAL TAX

1. Developed Property and Final Map Property

Table 1
Base Special Tax
Developed Property and Final Map Property

Land Use

Base Special Tax
Fiscal Year 2025-26 *
Single Family Property
Village 22
Villages 18 & 21-2
Village 15-2
Village 12-2

$2,353 per Residential Unit or SFD Lot
$3,048 per Residential Unit or SFD Lot
$3,144 per Residential Unit or SFD Lot
$4,012 per Residential Unit or SFD Lot
Other Property $33,660 per Acre

* On July 1, 2026, and on each July 1 thereafter, all figures shown in Table 1 above shall be increased by an amount equal to 2.0% of the amount in effect for the prior Fiscal Year.

ITEM 13.6.

ATTACHMENT 4
Exhibit B1 to the Resolution

Page 183 of 379 ends

IA No. 4 of The Ranch CFD No. 2021-1 7 June 9, 2025

2. Undeveloped Property, Taxable Owners Association Property, Taxable Public Property , and Taxable Welfare Exemption Property

D. C HANGES TO THE MAXIMUM SPECIAL TAX

1. Land Use Changes

After the First Bond Sale, if a Land Use Change is proposed or identified, Steps 1 through 3 must be applied:

ITEM 13.6.

ATTACHMENT 4
Exhibit B1 to the Resolution

Page 184 of 379 ends

IA No. 4 of The Ranch CFD No. 2021-1 8 June 9, 2025

ITEM 13.6.

ATTACHMENT 4
Exhibit B1 to the Resolution

Page 185 of 379 ends

IA No. 4 of The Ranch CFD No. 2021-1 9 June 9, 2025

2. Partial Prepayments

3. Conversion of a Parcel of Public Property to Private Use

4. Transfer of Expected Maximum Special Tax Revenues from One Village to Another

E. METHOD OF LEVY OF THE SPECIAL TAX

Each Fiscal Year, the Administrator shall determine the Special Tax Requirement to be collected in that Fiscal Year. A Special Tax shall then be levied according to the following steps:

Step 3: If additional revenue is needed after Step 2, the Special Tax shall be levied Proportionately on each Parcel of Undeveloped Property up to 100% of the ITEM 13.6.

ATTACHMENT 4
Exhibit B1 to the Resolution

Page 186 of 379 ends

IA No. 4 of The Ranch CFD No. 2021-1 10 June 9, 2025
Maximum Special Tax for each Parcel of Undeveloped Property until the amount levied is equal to the Special Tax Requirement.

F. MANNER OF COLLECTION OF SPECIAL TAX

G. EXEMPTIONS

Notwithstanding any other provision of this RMA, no Special Tax shall be levied in any Fiscal Year on the following:

(1) Public Property, except Taxable Public Property.

(2) Owners Association Property, except Taxable Owners Association Property.

(3) Welfare Exemption Property, except Taxable Welfare Exemption Property.

(4) Parcels that are owned by a public utility for an unmanned facility.

ITEM 13.6.

ATTACHMENT 4
Exhibit B1 to the Resolution

Page 187 of 379 ends

IA No. 4 of The Ranch CFD No. 2021-1 11 June 9, 2025
(5) Parcels that are subject to an easement that precludes any other use on the Parcel.

(6) Parcels that have fully prepaid the Special Tax obligation assigned to the Parcel pursuant to the formula set forth in Section H below.

H. PREPAYMENTS

The following definitions apply to this Section H:

“Previously Issued Bonds” means all Bonds that have been issued prior to the date of prepayment.

“Remaining Facilities Costs” means the Public Facilities Requirement minus public facility costs funded by Previously Issued Bonds, developer equity and any other source of funding.

1. Full Prepayment

ITEM 13.6.

ATTACHMENT 4
Exhibit B1 to the Resolution

Page 188 of 379 ends

As of the proposed date of prepayment, the Prepayment Amount shall be determined by application of the following steps:

Step 3. Multiply the quotient computed pursuant to Step 2 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the “Bond Redemption Amount”).

Step 4. Compute the current Remaining Facilities Costs (if any).

Step 6. Multiply the Bond Redemption Amount computed pursuant to Step 3 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).

ATTACHMENT 4
Exhibit B1 to the Resolution

Page 189 of 379 ends

IA No. 4 of The Ranch CFD No. 2021-1 13 June 9, 2025
prepayment has been received until the redemption date for the Outstanding Bonds.

Step 9: Subtract the amount computed pursuant to Step 8 from the amount computed pursuant to Step 7 (the “Defeasance Requirement”).

Step 12. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to Steps 3, 5, 6, 9, and 10, less the amount computed pursuant to Step 11 (the “Prepayment Amount”).

2. Partial Prepayment

ITEM 13.6.

ATTACHMENT 4
Exhibit B1 to the Resolution

Page 190 of 379 ends

IA No. 4 of The Ranch CFD No. 2021-1 14 June 9, 2025

3. Maintaining Required Coverage

I. INTERPRETATION OF RMA

ITEM 13.6.

ATTACHMENT 4
Exhibit B1 to the Resolution

Page 191 of 379 ends

ATTACHMENT 1

Improvement Area No. 4 of the
City of Rancho Cordova
The Ranch
Community Facilities District No. 2021-1

The Ranch
Expected Lot Layout in Improvement Area No. 4

ITEM 13.6.

ATTACHMENT 4
Exhibit B1 to the Resolution

Page 192 of 379 ends

BUILDING RELATIONSHIPS ONE PROJECT AT A TIME
3301 C St, Bldg. 100-BTel 916.341.7760
Fax 916.341.7767 Sacramento, CA 95816
ITEM 13.6.

ATTACHMENT 4
Exhibit B1 to the Resolution

Page 193 of 379 ends

ATTACHMENT 2

Improvement Area No. 4 of the
City of Rancho Cordova
The Ranch
Community Facilities District No. 2021-1

Expected Land Uses and Expected Maximum Special Tax Revenues in Improvement Area No. 4

Village

Expected
Land Uses

* On July 1, 2026, and each July 1 thereafter, all dollar amounts shown above shall be increased by 2% of the amount in effect in the prior Fiscal Year.

ITEM 13.6.

ATTACHMENT 4
Exhibit B1 to the Resolution

Page 194 of 379 ends

EXHIBIT D

CONSOLIDATED BOUNDARY MAP OF
CFD NO. 2021-1

ITEM 13.6.

ATTACHMENT 4
Exhibit B1 to the Resolution

Page 195 of 379 ends

1 C

ITY OF RANCHO CORDOVA
The Ranch Community Facilities District No. 2021-1
R
equest and Unanimous Approval for Annexation
and Landowner-Voter Ballot
(Improvement Area No. 5)
Cit
y Council of the
City of Rancho Cordova
2729 Prospect Park Drive
Rancho Cordova, CA 95670
M
embers of the City Council:

Re
citals
A. The under
signed is the authorized representative of GTIS -HOV HOLDINGS XVI LLC , LLC
, a California limited liability company (the " Landowner"), the owner of the all the parcels listed in Exhibit A, which parcels collectively comprise of all the land proposed to be included within the respective Improvement Area No. 5 (described herein) from the Future Annexation Area of “The Ranch Community Facilities District No. 2021- 1” ("CFD No
. 2021-1" or “CFD”).

B. The Landow
ner is the sole owner of the fee simple interest in the real property identified in Exhibit A, attached hereto and by this reference incorporated herein (the "Property").

C. P
ursuant to the Mello- Roos Community Facilities Act of 1982 (the "Act "), the City Council (the “City Council”) of the City of Rancho Cordova adopted its Resolution No. 195-2021 (the "Resolution of Formation") on December 6, 2021, which, among other things:

1. es
tablished the CFD No. 2021-1 and designated Improvement Area No. 1 (“Improvement Area No. 1”);

2. des
ignated certain real property as a future annexation area (the " Future Annexation Area") to be annexed to CFD No. 2021-1;

3. aut
horized CFD No. 2021-1 and every current and future improvement ar ea ther
eto to finance the costs and expenses of certain public facilities and relat ed pay
ments (together, the "Facilities") described in Exhibit B, attached hereto and by this reference incorporated herein; and

4. appr
oved the form of the rate and method of apportionment for Improvement Area No. 1 (the “Improvement Area No. 1 RMA”).

D. The
boundaries of the CFD, Improvement Area No. 1 and the Future Annexation Area are shown on a boundary map (the " Boundary Map") that was recorded on November ITEM 13.6.

ATTACHMENT 5
Exhibit B2 to the Resolution

Page 196 of 379 ends

-2-
15, 2021 at 8:11 a.m., in the Office of the Sacramento County Recorder in Book 135 of Maps of Assessment and Community Facilities Districts at Page 36 as Instrument Number 202111150034.

1. for Improvement Area No. 1, a not -to-exceed principal amount of $20,350,000 (“Improvement Area No. 1 Indebtedness Limit”); and

2. for the portion of CFD No. 2021-1 that is not in Improvement Area No. 1, a not-to- exceed principal amount of $66,120,000 (“Non-Improvement Area No. 1 Indebtedness Limit”), with the actual limit for an improvement area created from annexation of all or part of the Future Annexation Area to be identified and approved in accordance with the Annexation Approval Procedures listed below, and the new improvement area’s limit to be subtracted from the Non- Improvement Area No. 1 Indebtedness Limit.

F. The Resolution of Formation provided that property in the Future Annexation Area may be annexed into CFD No. 2021-1 as its own improvement area (a “Future Improvement Area”) or to an existing improvement area, and that t he designation of any territory annexing to CFD No. 2021-1 as a Future Improvement Area , the maximum amount of bonded indebtedness and other debt for such Future Improvement Area, the rate and method of apportionment of special tax for such Future Improvement Area and the appropriations limit for such Future Improvement Area would be identified and approved in a unanimous approval (a “ Unanimous Approval”) executed by property owners in connection with an annexation to the CFD in accordance with certain procedures (the “Annexation Approval Procedures”).

1. The rate and method of apportionment of special tax for the Future Improvement Area is prepared by a special tax consultant retained by the City.

2. The rate and method of apportionment of special tax for the Future Improvement Area complies with the City's local goals and policies concerning the use of the Act.

ITEM 13.6.

ATTACHMENT 5
Exhibit B2 to the Resolution

Page 197 of 379 ends

-3-

4. The rate and method of apportionment of special tax for the Future I mprovement Area does not introduce a type of special tax that was not included in the Improvement Area No. 1 RMA (e.g., a special tax that is levied and must be paid in a single fiscal year).

5. The rate and method of apportionment of special tax for the Future I mprovement Area includes a mechanism that protects against revenue loss as a result of land use changes.

H. The Property is part of the Future Annexation Area. The Landowner wishes to annex the Property into CFD No. 2021-1 as a Future Improvement Area. The Landowner believes that the Annexation Approval Procedures listed above for annexation of territory that is in the Future Annexation Area into CFD No. 2021-1 as a Future Improvement Area will be met.

I. By this instrument, the Landowner identifies, specifies and approves the annexation of the Property to CFD No. 2021 -1 as Improvement Area No. 5 of CFD No. 2021 -1 (“Improvement Area No. 5 ”) and the other matters included herein, without a public hearing, as authorized by the Act and the Resolution of Formation.

J. The Landowner hereby represents and warrants that, to the best of its knowledge without inquiry, there are no persons resident on the Property that are registered voters.

Approval and Vote

The undersigned representative of the Landowner, on behalf of the entity it represents, hereby petitions, represents, warrants, and certifies to the City as follows:

1. I am familiar with the CFD, the Future Annexation Area and the land therein listed in Exhibit A hereto and proposed to be Improvement Area No. 5 of the CFD.

2. I am familiar with and have personally inspected the land within Improvement Area No. 5, which is undeveloped land, and I have noted that there are no dwellings thereon that might serve as habitation for registered voters. Based on the foregoing, I have determined that at no time during the 90 days preceding the date hereof were there ever any persons registered to vote within the territory of Improvement Area No. 5.

3. The Council is requested to establish Improvement Area No. 5 within the CFD over land shown on the Annexation Map for the captioned Consolidated Boundaries of Cit of Ranch Cordova The Ranch Community Facilities District No. 2021-1 , on file with the Clerk, and to establish a special tax applicable to such land as described in Rate, Method of Apportionment, and Manner of Collection of Special Tax for Improvement Area No. 5 (“Improvement Area No. 5 RMA”), which is attached to this Unanimous Approval as Exhibit C.

ITEM 13.6.

ATTACHMENT 5
Exhibit B2 to the Resolution

Page 198 of 379 ends

-4-

4. The Landowner hereby requests that the City record a consolidated map of CFD No. 2021-1 that shows the territory to be annexed as Improvement Area No. 5 in substantially the form and substance of the map attached hereto as Exhibit D.

6. The Owner hereby consents to the applicability of the Improvement Area No. 5 RMA to land within Improvement Area No. 5.

7. The Owner hereby requests and provides unanimous approval and consent for the issuance of bonded indebtedness secured by special taxes in Improvement Area No. 5 up to a maximum limit of $ 13,870,000 and the establishment of an appropriations limit applicable to Improvement Area No. 5 of $13,870,000. After the issuance of bonds for Improvement Area No. 5 any authorized but unissued bonds in Improvement Area No. 5 may be reallocated to other improvement areas which are annexed into the CFD.

8. The undersigned, on behalf of the above -named Owner, hereby waives each of the following:

b. any and all minimum time periods relative to the landowner -voter election to be held pursuant to the Act to ratify and confirm the Council’s approval of the Improvement Area No. 5 RMA;

c. the preparation and distribution of an impartial analysis of the ballot measure, as well as arguments in favor and against, under the authority of the Act;

d. the requirement to publish notice of the election under the Act;

e. the requirements regarding the time to mail ballots to the qualified electors under Elections Code Section 4101, and agrees to accept either mailed service or personal service of the ballot;

f. the requirements regarding identification envelopes for the return of mailed ballots contained in the Act;

g. any and all defects in notice or procedure in the process of ordering the Improvement Area No. 5 RMA including but not limited to the public hearing, and conduct of the election, whether known or unknown (other than the right to have ballots accurately counted); and

h. any irregularity in the proceedings that may be claimed as a result of the application of such waivers.

ATTACHMENT 5
Exhibit B2 to the Resolution

Page 199 of 379 ends

BALLOT MEASURE: Shall the measure pursuant to which
(i) City of Rancho Cordova shall incur indebtedness and issue bonds up to $13,870,000 on behalf of the
Improvement Area No. 5 of The Ranch Community Facilities District No. 2021 -1 (“CFD”), to acquire and/or construct facilities set forth in the list of authorized facilities for Improvement Area No. 5 attached hereto and pay for the costs of issuing the bonds and related expenses in the list attached hereto; (ii) a special tax shall be levied at rates of $______ to $______/ residential unit (with other property taxed at other rates), subject to annual escalation, through Fiscal Year 2064-65 raising $______ in Fiscal Year 2025-26 (assuming full build- out of Improvement Area No. 5 ), to pay for the principal and interest upon such bonds, to pay the costs of the County in administering Improvement Area No. 5, and to pay for the costs of acquiring and/or constructing said facilities in accordance with the rate and method of apportionment of special taxes for Improvement Area No. 5 attached hereto; and (iii) the annual appropriations limit of the CFD shall initially be $ 13,870,000, subject to escalation, be adopted?

YES
_______

NO
_______

ITEM 13.6.

ATTACHMENT 5
Exhibit B2 to the Resolution

Page 200 of 379 ends

GTIS-HOV HOLDINGS XVI LLC,
a California limited liability company

By: K. Hovnanian at Jaeger Ranch, LLC,
a California limited liability company, its
Managing Member

By:

Name:

Its:

ITEM 13.6.

ATTACHMENT 5
Exhibit B2 to the Resolution

Page 201 of 379 ends

EXHIBIT A

IDENTIFICATION OF THE PROPERTY

CITY OF RANCHO CORDOVA
The Ranch Community Facilities District No. 2021-1
(Improvement Area No. 5)

Property Owner APN

GTIS-HOV HOLDINGS XVI LLC, LLC

ITEM 13.6.

ATTACHMENT 5
Exhibit B2 to the Resolution

Page 202 of 379 ends

EXHIBIT B

Page 1 ends

EXHIBIT B

DESCRIPTION OF FACILITIES TO BE FINANCED BY THE CFD AND EACH

IMPROVEMENT AREA THEREIN

LIST OF FACILITIES

The Facilities shown below are to be finance by the City of Rancho Cordova The Ranch Community Facilities District No. 2021-1 (the, “CFD”).

Facilities.

Roadway Facilities

R-1 Chrysanthy Boulevard

R-2 Rancho Cordova Parkway

R-3 North Campus Road

R-2 Any and all major streets, residential collectors and minor residential streets within The Ranch.

Sewer Facilities

S-1 Any and all major Sewer facilities necessary to provide sewer service to The Ranch

Water Facilities

W-1 Any and all major Water facilities necessary to provide water service to The Ranch

Drainage Facilities

D-1 Detention Basin(s)

D-2 Any and all major Drainage facilities necessary to provide drainage conveyance, detention or water quality treatment for The Ranch

Impact, Development Agreement and Sunridge Specific Plan Area Fees

I-1 Transportation Development Impact Fee
ITEM 13.6.

ATTACHMENT 5
Exhibit B2 to the Resolution

Page 203 of 379 ends

EXHIBIT B

Page 2 ends

I-2 Supplemental Transportation Fee

I-3 Community Facilities Impact Fee

I-4 Park Renovation Fee

1-5 SD Roadway Fee

Engineering Studies, Permitting, Public Facilities Report, Financing Plan

Other

O-1 Any other facilities serving substantially the same purpose as the above described Facilities.

Incidentals

ITEM 13.6.

ATTACHMENT 5
Exhibit B2 to the Resolution

Page 204 of 379 ends

IA
No. 5 of The Ranch CFD No. 2021-1 1 June 9, 2025
IMPROVEMENT AREA NO. 5 OF THE

CITY OF RANCHO CORDOVA

THE RANCH
COMMUNITY FACILITIES DISTRICT NO. 2021-1

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
A Sp
ecial Tax applicable to each Assessor’s Parcel in Improvement Area No. 5 of the City of Rancho Cordova The Ranch Community Facilities District No. 20 21-1 shall be levied and collected according to the tax liability determined by the City Council through the application of the appropriate amount or rate for Taxable Property, as described below. All of the property in Improvement Area No. 5, unless exempted by law or by the provisions of Section G below, shall be taxed for the purposes, to the extent, and in the manner herein provided, including property subsequently annexed to Improvement Area No. 5 unless a separate Rate and Method of Apportionment is adopted for the annexation area.

A. DEFI

NITIONS
Th
e terms hereinafter set forth have the following meanings:
“A
cre” 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 or other parcel map recorded at the County Recorder’s Office. “Ac
t” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, (commencing with Section 53311), Part 1, Division 2 of Title 5 of the Government Code of the State of California.
“A
dministrative Expenses” means any or all of the following: the fees and expenses of any fiscal agent or trustee (including any fees or expenses of its counsel) employed in connection with any Bonds, and the expenses of the City in carrying out its duties with respect to Improvement Area No. 5, the CFD and the Bonds, including, but not limited to, the levy and collection of Special Taxes, the fees and expenses of its counsel, charges levied by the County in connection with the levy and collection of Special Taxes, costs related to property owner inquiries regarding the Special Tax, costs associated with appeals or requests for interpretation associated with the Special Tax and this RMA, amounts needed to pay rebate to the federal government with respect to Bonds, costs associated with complying with continuing disclosure requirements for the City and any major property owners or other obligated parties, costs associated with foreclosure and collection of delinquent Special Taxes, and all other costs and expenses of the City and County in any way related to the establishment or administration of Improvement Area No. 5 and the CFD. “A
dministrator” shall mean the person or firm designated by the City to administer the Special Tax according to this RMA.
“An
nexation Date” means the date on which the property in Improvement Area No. 5 was annexed to the CFD.

EXHIBIT C
ITEM 13.6.

ATTACHMENT 5
Exhibit B2 to the Resolution

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IA No. 5 of The Ranch CFD No. 2021-1 2 June 9, 2025
“Assessor’s Parcel” or “Parcel” means a lot or parcel shown on an Assessor’s Parcel Map with an assigned Assessor’s Parcel number.

“Assessor’s Parcel Map” means an official map of the County Assessor designating Parcels by Assessor’s Parcel Number.

“Authorized Facilities” means the public facilities authorized to be financed, in whole or in part, by the CFD.

“Base Special Tax” means, for any Land Use Category, the applicable Special Tax initially identified in Table 1 in Section C, as may be adjusted pursuant to Sections D or H herein.

“Building Permit” means a permit that allows for vertical construction of a building or buildings, which shall not include a separate permit issued for construction of the foundation thereof.

“Capitalized Interest” means funds in any capitalized interest account available to pay debt service on Bonds.

“CFD” means the City of Rancho Cordova The Ranch Community Facilities District No. 2021-1.

“City” means the City of Rancho Cordova.

“City Council” means the City Council of the City of Rancho Cordova.

“County” means the County of Sacramento.

ATTACHMENT 5
Exhibit B2 to the Resolution

Page 206 of 379 ends