RESOLUTION NO. 2025/2026-20
RESOLUTION OF THE BOARD OF EDUCATION OF
RIVERSIDE
UNIFIED
SCHOOL
DISTRICT
ESTABLISHING
COMMUNITY
FACILITIES
DISTRICT
NO.
42 OF
RIVERSIDE
UNIFIED
SCHOOL
DISTRICT,
COUNTY
OF
RIVERSIDE,
STATE
OF
CALIFORNIA,
AND
ESTABLISHING
THE
BOUNDARIES
THEREOF
WHEREAS , on August 21, 2025, the Board of Education (the “Board of Education”) of Riverside
Unified
School
District
(the
“District”)
has
heretofore
adopted
Resolution
No.
2025/2026-05
(the
“Resolution
of
Intention”)
declaring
its
intention
that
a
proposed
community
facilities
district
to
be
known
as
“Community
Facilities
District
No.
42 of
Riverside
Unified
School
District,
County
of
Riverside,
State
of
California”
(the
“CFD”)
be
established
pursuant
to
Chapter
2.5 (commencing
with
Section
53311)
of
Part
1 of
Division
2 of
Title
5 of
the
California
Government
Code,
commonly
known
as
the
“Mello-Roos
Community
Facilities
Act
of
1982”
(the
“Act”),
fixing
the
time
and
place
for
a
public
hearing
on
the
formation
of
the
CFD,
and
setting
forth
the
proposed
Rate
and
Method
of
Apportionment
of
Special
Taxes
therefor
(the
“RMA”);
and
WHEREAS , the CFD is proposed to be established for the purpose of designing, constructing,
acquiring
and
financing
through
the
levy
of
special
taxes
and
sale
of
bonds
the
design,
construction
and
acquisition
of
public
school
facilities
which
are
necessary
to
meet
increased
demands
placed
upon
the
District
as
a
result
of
the
development
of
said
real
property,
and
the
design,
construction
and
acquisition
of
public
facilities
which
are
necessary
to
meet
increased
demands
placed
upon
the
City
of
Riverside
(the
“City”)
as
a
result
of
the
development
of
said
real
property,
and
it
is
proposed
that
the
District
for
and
on
behalf
of
the
CFD
will
be
authorized
to
issue
bonds
and
incur
a
bonded
indebtedness
for
the
purpose
of
financing
such
facilities
in
the
aggregate
principal
amount
of
$6,000,000;
and
WHEREAS , the Board of Education has adopted a resolution approving a joint community
facilities
agreement
to
be
entered
into,
pursuant
to
Sections
53316.2
through
53316.6
of
the
California
Government
Code,
with
the
City,
whereby
the
Board
of
Education
will
initiate
and
conduct
proceedings
for
the
formation
of
the
proposed
CFD
for
the
purpose
of
financing
certain
public
facilities
for
the
City;
and
WHEREAS , the City Council of the City will also approve such joint community facilities
agreement;
and
WHEREAS , notices were published and mailed to the owners of the property in the CFD as
required
by
law
relative
to
the
intention
of
the
Board
of
Education
to
establish
the
CFD
and
the
levy
of
special
taxes
therein
to
finance
construction
and
acquisition
of
public
school
facilities
and
other
public
facilities
therefor
and
the
incurring
of
a
bonded
indebtedness
by
the
District
for
and
on
behalf
of
the
CFD,
and
of
the
time
and
place
of
the
public
hearing;
and
WHEREAS , on September 25, 2025, at the time and place specified in the published and mailed
notices,
the
Board
of
Education
conducted
a
public
hearing
as
required
by
law
relative
to
the formation of the CFD, the levy of special taxes therein, the provision of certain fees for and/or
the
costs
of
the
design,
construction
and
acquisition
of
public
facilities
therein,
and
the
incurring
of
a
bonded
indebtedness
by
the
District
for
and
on
behalf
of
the
CFD;
and
WHEREAS , at the time of the public hearing, all persons desiring to be heard on all matters
pertaining
to
the
formation
of
the
CFD,
the
levy
of
the
special
taxes,
the
financing
of
certain
fees
for
and/or
the
costs
of
the
design,
construction
and
acquisition
of
public
facilities
and
the
incurring
of
the
bonded
indebtedness
thereby
were
heard,
and
a
full
and
fair
hearing
was
held;
and
WHEREAS , prior to the commencement of the public hearing there was filed with the Board
of
Education
a
report
(the
“Report”)
containing
a
description
of
the
certain
fees
and
public
facilities
required
to
meet
the
needs
of
the
CFD,
and
an
estimate
of
the
costs
of
such
facilities
and
fees,
as
required
by
Section
53321.5
of
the
California
Government
Code;
and
WHEREAS , at the public hearing, evidence was presented to the Board of Education on the
matters
before
it,
and
the
Board
of
Education
at
the
conclusion
of
the
hearing
was
fully
advised
as
to
all
matters
relating
to
the
formation
of
the
CFD,
the
levy
of
the
special
taxes
therein,
the
provision
of
certain
fees
for
and/or
the
costs
of
the
design,
construction
and
acquisition
of
public
facilities
therein
and
the
incurring
of
the
bonded
indebtedness
thereby;
and
WHEREAS , the Board of Education may, therefore, proceed to establish the CFD.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE
BOARD
OF
EDUCATION
OF
RIVERSIDE
UNIFIED
SCHOOL
DISTRICT
AS
FOLLOWS
:
Section 1 . Findings . The Board of Education finds as follows:
(a) All of the preceding recitals are true and correct; (b) On September 25, 2025, pursuant to notice thereof duly given as provided by
law,
the
Board
of
Education
conducted
a
public
hearing
with
respect
to
the
formation
of
the
CFD,
the
incurring
of
a
bonded
indebtedness
by
and
for
the
CFD,
and
the
annual
levying
of
specified
special
taxes
on
the
taxable
property
within
the
CFD
to
pay
principal
of
and
interest
on
bonds
to
be
issued
by
and
for
the
CFD
to
finance
certain
fees
for
and
the
costs
of
the
public
facilities
which
are
described
in
Section
3 hereof
or
to
accumulate
funds
for
paying
the
certain
fees
for
and/or
the
costs
of
such
public
facilities;
(c) A map of the boundaries of the CFD was recorded on September 2, 2025, pursuant
to
Sections
3111
and
3113
of
the
California
Streets
and
Highways
Code,
in
Book
97 of
Maps
of
Assessment
and
Community
Facilities
Districts,
at
page
15,
and
as
Document
No.
2025-0268652,
in
the
official
records
of
the
County
of
Riverside;
(d) All prior proceedings with respect to the formation of the CFD prior to and
during
the
public
hearing
with
respect
to
the
formation
of
the
CFD,
which
was
conducted
by
the
Board
of
Education
on
September
25,
2025,
were
valid
and
in
conformity
with
the
requirements
of
the
Act,
and
except
to
the
extent
inconsistent
with
this
resolution,
the
Resolution
- 2 -
of Intention is reaffirmed, and its provisions and findings are, to that same extent, incorporated herein
by
this
reference;
(e) No written protests were received, at or prior to the time of the public hearing,
against
the
formation
of
the
CFD,
or
the
levying
of
the
special
taxes,
or
the
incurring
of
a
bonded
indebtedness
by
the
CFD
for
the
furnishing
of
certain
fees
for
and/or
the
costs
of
the
design,
construction
and
acquisition
of
specified
types
of
public
facilities,
and
the
special
taxes
have,
therefore,
not
been
eliminated
by
majority
protest
pursuant
to
Section
53324
of
the
California
Government
Code
and
the
Board
of
Education
finds
that
it
is
not
precluded
by
the
Act
from
proceeding
in
this
matter;
(f) The Board of Education is, therefore, authorized to adopt a resolution of formation
pursuant
to
Section
53325.1
of
the
California
Government
Code
for
the
formation
of
Community
Facilities
District
No.
42 of
Riverside
Unified
School
District,
County
of
Riverside,
State
of
California,
and
the
CFD
should
be
established;
(g) Less than 12 persons have been registered to vote within the territory of the
CFD
for
each
of
the
90 days
preceding
the
close
of
the
public
hearing
held
on
September
25,
2025;
and
(h) Pursuant to Section 53326 of the California Government Code, as a result of
the
finding
set
forth
in
paragraph
(g)
above,
the
vote
in
the
special
elections
provided
for
in
Section
10 of
this
resolution
shall
be
by
the
landowners
of
the
CFD
whose
property
would
be
subject
to
the
special
taxes
if
they
were
levied
at
the
time
of
the
special
elections,
and
each
landowner
shall
have
one
vote
for
each
acre,
or
portion
thereof,
which
he
or
she
owns
within
the
CFD
which
would
be
subject
to
the
proposed
special
taxes
if
they
were
levied
at
the
time
of
the
elections.
Section 2 . Formation of District; Boundaries . Community Facilities District No. 42 of Riverside
Unified
School
District,
County
of
Riverside,
State
of
California,
is
hereby
established.
The
boundaries
of
the
CFD
are
shown
on
the
map
entitled
“Proposed
Boundaries
of
Community
Facilities
District
No.
42 of
Riverside
Unified
School
District
(Sagecrest),
County
of
Riverside,
State
of
California,”
which
is
on
file
with
the
Director
of
Planning
and
Development
of
the
District,
and
said
map
and
those
boundaries
are
hereby
approved
and
established.
Section 3 . Types of Facilities; Incidental Expenses . (a) The types of public facilities to be provided for and financed by the CFD, which
may
be
provided
by
the
construction
or
acquisition
thereof
or
the
financing
of
capital
improvement
fees
to
be
used
for
the
construction
or
acquisition
thereof
(herein,
the
“Facilities”)
are
as
follows:
(i) School Facilities . Elementary school, middle school or high school
facilities,
including
furniture,
fixtures
and
equipment
therefor,
acquisition,
construction,
expansion,
relocation,
rehabilitation,
leasing
or
purchasing
of
school
facilities
and
improvements
and
the
sites
therefor
and
facilities
which
are
appurtenant
thereto,
including,
but
not
limited
to,
athletic
and
recreation
facilities,
child
care
facilities,
administrative
facilities
and
permanent
or
relocatable
classrooms,
and
transportation
facilities;
and
- 3 -
(ii) City Facilities . Storm drain improvements, street improvements, traffic
and
railroad
signal
improvements,
transportation
impact
improvements,
regional/reserve
park
improvements,
local
park
improvements,
aquatic
facilities,
trail
improvements,
and
other
facilities
owned
by
the
City.
The Facilities include but shall not be limited to the improvements listed herein
and
may
include
facilities
financed
with
the
fees.
Other
improvements
of
the
same
type
or
types
may
be
substituted
in
the
place
of
one
or
more
of
the
specified
improvements
listed
above.
(b) The cost of the Facilities shall include but shall not be limited to the expense
of
constructing
or
purchasing
the
public
facilities
and
of
related
land,
right-of-way,
easements
and
incidental
expenses.
The
incidental
expenses
which
will
be
incurred
are
(i)
the
cost
of
planning
and
designing
the
Facilities
and
the
cost
of
environmental
evaluations
thereof,
(ii)
all
costs
associated
with
the
formation
of
the
CFD,
issuance
of
the
bonds
thereof,
the
determination
of
the
amount
of
and
collection
of
special
taxes,
and
the
payment
of
special
taxes,
and
costs
otherwise
incurred
in
order
to
carry
out
the
authorized
purposes
of
the
CFD,
and
(iii)
any
other
expenses
incidental
to
the
construction,
completion,
acquisition
and
inspection
of
the
Facilities,
including
engineering,
inspecting,
coordinating,
and
completing
the
Facilities.
Section 4 . Special Taxes . Except where funds are otherwise available, special taxes sufficient
to
pay
for
all
of
the
Facilities
and
incidental
expenses,
or
to
accumulate
funds
for
paying
the
costs
of
the
Facilities,
and
to
pay
the
principal
of
and
interest
on
the
bonds
of
the
CFD
and
the
annual
administrative
expenses
of
the
District
and
the
CFD
in
determining,
apportioning,
levying
and
collecting
such
special
taxes,
and
the
costs
of
registering,
exchanging
and
transferring
such
bonds,
secured
by
the
recordation
of
a
continuing
lien
against
all
taxable
or
nonexempt
property
in
the
CFD,
shall
be
annually
levied
within
the
CFD.
Parcels of taxable property in the CFD shall be subject to the annual levy of special
taxes
to
pay
the
principal
of
and
interest
on
the
bonds
of
the
CFD
which
may
be
issued
and
sold
to
finance
the
design,
construction
and
acquisition
of
public
facilities
for
property
in
the
CFD.
The rate and method of apportionment of special taxes to be levied on parcels of taxable
property
in
the
CFD
to
pay
the
principal
of
and
interest
of
the
bonds
of
the
CFD
which
may
be
issued
and
sold
to
finance
the
design,
construction
and
acquisition
of
public
facilities
and
to
pay
the
costs
of
such
facilities
or
to
accumulate
funds
therefor,
for
the
benefit
of
parcels
of
property
in
the
CFD,
shall
be
as
set
forth
in
the
RMA
attached
hereto
as
Exhibit
“A.”
The maximum amounts of special taxes which may be levied in any year on parcels
within
the
CFD
which
are
used
for
private
residential
purposes
(“Residential
Parcels”)
are
specified
in
dollar
amounts
in
Exhibit
“A”
hereto.
Special
taxes
shall
not
be
levied
on
any
Residential
Parcels
to
pay
the
principal
of
and
interest
on
the
outstanding
bonds
of
the
CFD
after
the
tax
or
fiscal
year
beginning
on
July
1,
2068
and
ending
on
June
30,
2069,
and
such
fiscal
year
shall
be
the
last
tax
year
in
which
special
taxes
shall
be
levied
on
Residential
Parcels
for
such
purpose.
The
Special
Tax
shall
increase
a
maximum
of
two
percent
(2.00%)
each
fiscal
year
as
authorized
by
the
RMA.
Under
no
circumstances
shall
the
Special
Tax
levied
in
any
Fiscal
Year
against
any
Assessor’s
Parcel
for
which
an
occupancy
permit
for
private
residential
use
has
been
- 4 -
issued be increased as a consequence of delinquency or default by the owner or owners of any other
Assessor’s
Parcel(s)
within
the
CFD
by
more
than
10%
above
the
amount
that
would
have
been
levied
in
that
Fiscal
Year
had
there
never
been
any
such
delinquencies
or
defaults.
To
the
extent
that
the
levy
of
the
Special
Tax
on
certain
Assessor’s
Parcels
is
limited
by
the
provision
in
the
previous
sentence,
the
levy
of
the
Special
Tax
on
each
Assessor’s
Parcel
of
all
other
property
shall
continue
in
equal
percentages
at
up
to
100%
of
the
Assigned
Special
Tax.
Terms
used
in
this
Section
that
are
not
defined
have
the
meanings
given
such
terms
in
the
RMA.
The conditions under which the obligation to pay the special taxes may be prepaid and
permanently
satisfied
are
as
set
forth
in
Exhibit
“A”
attached
hereto.
Pursuant to Section 53340 of the California Government Code, said special taxes shall
be
collected
in
the
same
manner
and
at
the
same
time
as
ordinary
ad
valorem
property
taxes;
provided,
however,
that
the
CFD
may
directly
bill
the
Special
Tax,
may
collect
Special
Taxes
at
a
different
time
or
in
a
different
manner
if
necessary
to
meet
its
financial
obligations,
and
may
covenant
to
foreclose
and
may
actually
foreclose
on
delinquent
Assessor’s
Parcels
as
permitted
by
the
Act.
Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California
Streets
and
Highways
Code,
a
continuing
lien
to
secure
each
levy
of
the
special
taxes
shall
attach
to
all
non-exempt
real
property
in
the
CFD,
and
that
lien
shall
continue
in
force
and
effect
until
the
special
tax
obligation
is
prepaid
and
permanently
satisfied
and
the
lien
canceled
in
accordance
with
law
or
until
collection
of
the
special
taxes
ceases.
The
office
of
the
Assistant
Superintendent,
Operations
of
the
District,
3380
Fourteenth
Street,
Riverside,
California,
telephone
number
(951)
788-7135,
is
designated
as
the
officer
responsible
for
preparing
annually
a
current
roll
of
special
tax
levy
obligations
by
assessor’s
parcel
numbers,
and
for
estimating
future
special
tax
levies
pursuant
to
Section
53340.1
of
the
California
Government
Code.
Pursuant to Section 53325.7 of the Act, and subject to voter approval, the initial appropriations
limit,
as
defined
by
subdivision
(h)
of
Section
8 of
Article
XIIIB
of
the
California
Constitution,
for
the
CFD
is
established
in
the
amount
of
$6,000,000.
Section 5 . Exempt Property . Pursuant to Section 53340 of the California Government Code,
and
except
as
provided
in
Exhibit
“A”
and
Section
53317.3
of
said
Code,
properties
of
entities
of
the
state,
federal,
and
local
governments
shall
be
exempt
from
the
levy
of
special
taxes
for
the
payment
of
the
principal
of
and
interest
on
the
bonds
of
the
District.
Section 6 . Necessity . The Facilities are necessary to meet increased demands placed upon
the
District
and
the
City
as
a
result
of
new
development
occurring
within
the
boundaries
of
the
CFD.
Section 7 . Report . The Report is hereby approved and is made a part of the record of the public
hearing
regarding
the
formation
of
the
CFD,
and
is
ordered
to
be
kept
on
file
in
the
office
of
the
Director
of
Planning
and
Development
as
part
of
the
record
of
these
proceedings.
Section 8 . Repayment of Funds Advanced or Work-in-Kind . Pursuant to Section 53314.9
of
the
California
Government
Code,
the
Board
of
Education
proposes
to
accept
advances
of
funds
or
work-in-kind
from
private
persons
or
private
entities
and
to
provide,
by
- 5 -
resolution, for the use of those funds or that work-in-kind for any authorized purpose, including but
not
limited
to,
paying
any
costs
incurred
by
the
District
in
establishing
the
CFD,
and
to
enter
into
an
agreement,
by
resolution,
with
the
person
or
entity
advancing
the
funds
or
work-in-kind
to
repay
funds
advanced,
or
to
reimburse
the
person
or
entity
for
the
value,
or
cost,
whichever
is
less,
of
the
work-in-kind,
as
determined
by
the
Board
of
Education.
Section 9 . Prohibition of Owner Contracts . Pursuant to Section 53329.5 of the California Government
Code,
the
Board
of
Education
finds
that
the
public
interest
will
not
be
served
by
allowing
the
owners
of
property
within
the
CFD
to
enter
into
a
contract
in
accordance
with
subdivision
(a)
of
that
section,
and
that
such
owners
shall
not
be
permitted
to
elect
to
perform
the
work
and
enter
into
a
written
contract
with
the
District
for
the
construction
of
the
Facilities
pursuant
to
said
Section
53329.5
of
the
California
Government
Code.
Section 10 . Description of Voting Procedures . The voting procedures to be followed in conducting
the
special
elections
on
(i)
the
proposition
with
respect
to
the
CFD
incurring
a
bonded
indebtedness
in
an
amount
not-to-exceed
$6,000,000,
(ii)
the
proposition
with
respect
to
the
levy
of
special
taxes
on
taxable
property
within
the
CFD
to
pay
the
principal
of
and
interest
on
the
bonds
thereof
which
may
be
issued
and
sold
to
finance
fees
for
and/or
the
costs
of
the
design,
construction
and
acquisition
of
public
facilities,
or
to
pay
or
accumulate
funds
for
paying
the
fees
for
and/or
the
costs
of
the
design,
construction
and
acquisition
of
the
public
facilities,
and
(iii)
the
proposition
with
respect
to
establishing
an
annual
appropriations
limit
for
the
CFD
in
the
amount
of
$6,000,000,
if
the
CFD
is
established
and
such
special
elections
(the
“special
elections”)
are
held
(together,
the
“Propositions”),
shall
be
as
follows:
(a) The special elections shall be held on the earliest date, following the adoption
by
the
Board
of
Education
of
this
resolution,
the
resolution
determining
the
necessity
for
the
CFD
to
incur
bonded
indebtedness
pursuant
to
Section
53351
of
the
California
Government
Code,
and
a
resolution
pursuant
to
Section
53326
of
said
Code
submitting
the
propositions
with
respect
to
(i)
the
issuance
of
bonds
of
the
CFD
and
the
levy
of
special
taxes
to
pay
the
principal
of
and
interest
on
the
bonds
of
the
CFD
or
to
pay
or
accumulate
funds
for
paying
the
costs
of
the
design,
construction
and
acquisition
of
public
facilities,
and
(ii)
establishing
an
annual
appropriations
limit
for
the
CFD,
to
the
qualified
electors
of
the
CFD
upon
which
such
elections
can
be
held
pursuant
to
said
Section
53326
which
may
be
selected
by
the
Board
of
Education,
or
such
earlier
date
as
the
owners
of
land
and
the
Clerk
of
the
Board
of
Education
(the
“Clerk”)
agree
and
concur
is
acceptable.
(b) Pursuant to said Section 53326, the special elections may be held earlier than
90 days
following
the
close
of
the
public
hearing
if
the
qualified
electors
of
the
CFD
waive
the
time
limits
for
conducting
the
special
elections
set
forth
in
said
Section
53326
by
unanimous
written
consent
and
the
Clerk
concurs
in
such
earlier
election
date
as
shall
be
consented
to
by
the
qualified
electors.
(c) Pursuant to said Section 53326, ballots for the special elections shall be delivered
to
the
qualified
electors
by
the
Clerk
by
with
return
postage
prepaid,
or
by
personal
service.
- 6 -
(d) Pursuant to applicable sections of the California Elections Code governing the
conduct
of
ballot
elections
of
school
districts,
and
specifically
Division
4 (commencing
with
Section
4000)
of
the
California
Elections
Code
with
respect
to
elections
conducted
by
mail,
the
Clerk
shall
or
deliver
to
each
qualified
elector
an
official
ballot
in
a
form
specified
by
the
Board
of
Education
in
the
resolutions
calling
and
consolidating
the
special
elections,
and
shall
also
or
deliver
to
all
such
qualified
electors
a
ballot
pamphlet
and
instructions
to
voter,
including
a
sample
ballot
identical
in
form
to
the
official
ballot
but
identified
as
a
sample
ballot,
a
statement
pursuant
to
Section
9401
of
said
Code,
an
impartial
analysis
by
the
District’s
legal
counsel
pursuant
to
Section
9500
of
said
Code
with
respect
to
the
ballot
propositions
contained
in
the
official
ballot,
arguments
and
rebuttals,
if
any,
pursuant
to
Sections
9501
to
9507,
inclusive,
of
said
Code,
a
return
identification
envelope
with
prepaid
postage
thereon
addressed
to
the
Clerk
for
returning
the
voted
official
ballots,
and
a
copy
of
this
resolution;
provided,
however,
that
such
statement,
analysis
and
arguments
may
be
waived
with
the
unanimous
consent
of
all
the
landowners,
and
in
such
event
a
finding
regarding
such
waivers
shall
be
made
in
the
resolution
adopted
by
the
Board
of
Education
calling
the
special
elections.
(e) The official ballot to be mailed or delivered by the Clerk to each landowner-voter
shall
have
printed
or
typed
thereon
the
name
of
the
landowner-voter
and
the
number
of
votes
to
be
voted
by
the
landowner-voter
and
shall
have
appended
to
it
a
certification
to
be
signed
by
the
person
voting
the
official
ballot
which
shall
certify
that
the
person
signing
the
certification
is
the
person
who
voted
the
official
ballot,
and
if
the
landowner-voter
is
other
than
a
natural
person,
that
he
or
she
is
an
officer
of
or
other
person
affiliated
with
the
landowner-voter
entitled
to
vote
such
official
ballot,
that
he
or
she
has
been
authorized
to
vote
such
official
ballot
on
behalf
of
the
landowner-voter,
that
in
voting
such
official
ballot
it
was
his
or
her
intent,
as
well
as
the
intent
of
the
landowner-voter,
to
vote
all
votes
to
which
the
landowner-voter
is
entitled
based
on
its
land
ownership
on
the
propositions
set
forth
in
the
official
ballot
as
marked
thereon
in
the
voting
square
opposite
each
such
proposition,
and
further
certifying
as
to
the
acreage
of
the
landowner-voter’s
land
ownership
within
the
CFD.
(f) The return identification envelope to be mailed or delivered by the Clerk to
each
landowner-voter
shall
have
printed
or
typed
thereon
the
following:
(i)
the
name
of
the
landowner,
(ii)
the
address
of
the
landowner,
(iii)
a
declaration
under
penalty
of
perjury
stating
that
the
voter
is
the
landowner
or
the
authorized
representative
of
the
landowner
entitled
to
vote
the
enclosed
ballot
and
is
the
person
whose
name
appears
on
the
identification
envelope,
(iv)
the
printed
name
and
signature
of
the
voter,
(v)
the
address
of
the
voter,
(vi)
the
date
of
signing
and
place
of
execution
of
said
declaration,
and
(vii)
a
notice
that
the
envelope
contains
an
official
ballot
and
is
to
be
opened
only
by
the
Clerk.
(g) The instruction to voter form to be mailed or delivered by the Clerk to the landowner-voters
shall
inform
them
that
the
official
ballots
shall
be
returned
to
the
Clerk
properly
voted
as
provided
thereon
and
with
the
certification
appended
thereto
properly
completed
and
signed
in
the
sealed
return
identification
envelope
with
the
certification
thereon
completed
and
signed
and
all
other
information
to
be
inserted
thereon
properly
inserted
by
5:30
p.m.
on
the
date
of
the
election
specified
by
the
Board
of
Education
in
the
resolution
calling
the
special
elections;
provided
that
the
election
shall
be
closed
before
such
hour
if
the
Clerk
determines
that
all
of
the
qualified
voters
have
voted.
- 7 -
(h) Upon receipt of the return identification envelope which is returned prior to
the
voting
deadline
on
the
date
of
the
special
elections,
the
Clerk
shall
canvass
the
votes
cast
in
the
special
elections,
and
shall
file
a
statement
with
the
Board
of
Education
as
to
the
results
of
such
canvass
and
the
election
on
each
proposition
set
forth
in
the
official
ballot.
The procedures set forth in this section for conducting the special elections, if they
are
held,
may
be
modified
as
the
Board
of
Education
may
determine
to
be
necessary
or
desirable
by
a
resolution
subsequently
adopted
by
the
Board
of
Education.
Section 11 . Effect of Resolution . This resolution shall take effect immediately from and after
its
passage
and
adoption.
PASSED AND ADOPTED by the Board of Education of the Riverside Unified School District
at
its
regular
meeting
held
on
the
25 th
day
of
September
2025
by
the
following
vote:
AYES:
NOES:
ABSENT:
ABSTAINED: ________________________________________ Clerk of the Board of Education of Riverside Unified School District - 8 -
STATE OF CALIFORNIA ) ) ss. COUNTY OF RIVERSIDE ) I, Dr. Jesse Tweed, Clerk of the Board of Education of Riverside Unified School District,
do
hereby
certify
that
the
above
and
foregoing
is
a
full,
true
and
correct
copy
of
Resolution
No.
2025/2026-20
of
said
Board
and
that
the
same
has
not
been
amended
or
repealed.
Dated: _____________________, 2025
________________________________________ Clerk of the Board of Education of Riverside Unified School District - 9 -
EXHIBIT “A”
RATE AND METHOD OF APPORTIONMENT FOR RIVERSIDE UNIFIED SCHOOL DISTRICT COMMUNITY FACILITIES DISTRICT NO. 42 A Special Tax as hereinafter defined shall be levied on all Assessor’s Parcels in Riverside
Unified
School
District
Community
Facilities
District
No.
42 ("CFD
No.
42")
and
collected
each
Fiscal
Year
commencing
in
Fiscal
Year
2025-2026,
in
an
amount
determined
by
the
Board
of
Education
of
the
Riverside
Unified
School
District
through
the
application
of
the
Rate
and
Method
of
Apportionment
as
described
below.
All
of
the
real
property
in
CFD
No.
42,
unless
exempted
by
law
or
by
the
provisions
hereof,
shall
be
taxed
for
the
purposes,
to
the
extent
and
in
the
manner
herein
provided.
Capitalized
terms
used
in
this
rate
and
method
of
apportionment,
including
this
preamble,
shall
have
the
meanings
given
such
terms
in
Section
A
and
Section
H.
A. DEFINITIONS The terms hereinafter set forth have the following meanings: “Accessory Dwelling Unit” or “ADU” means all Assessor’s Parcels of Residential Property
for
which
a
building
permit(s)
has
been
issued
for
an
“Accessory
Dwelling
Unit”
as
defined
in
California
Government
Code
Section
65852.2(j)(1),
as
may
be
amended
from
time
to
time,
that
is
accessory
to
a
primary
dwelling
unit.
The
ADU
may
be
located
on
the
same
Assessor’s
Parcel
as
the
primary
dwelling
unit
or
on
a
separate
Assessor’s
Parcel.
For
purposes
of
clarification,
an
ADU
located
on
an
Assessor’s
Parcel
is
(i)
considered
a
separate
dwelling
unit
from
the
primary
dwelling
unit
and
(ii)
not
subject
to
the
Special
Tax,
as
described
in
Section
E
herein.
"Acre" or "Acreage" means the land area of an Assessor’s Parcel as shown on an
Assessor’s
Parcel
Map,
or
if
the
land
area
is
not
shown
on
an
Assessor’s
Parcel
Map,
the
land
area
shown
on
the
applicable
final
map,
parcel
map,
condominium
plan,
or
other
recorded
County
parcel
map.
An
Acre
equals
43,560
square
feet
of
land
area.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being
Chapter
2.5,
Division
2 of
Title
5 of
the
Government
Code
of
the
State
of
California.
"Administrative Expenses" means the following actual or reasonably estimated costs
directly
related
to
the
administration
of
CFD
No.
42:
the
costs
of
computing
the
Special
Taxes
and
preparing
the
annual
Special
Tax
collection
schedules
(whether
by
the
School
District
or
designee
thereof
or
both);
the
costs
of
A- 1
collecting the Special Taxes (whether by the County or otherwise); the costs of remitting
the
Special
Taxes
to
the
Trustee;
the
costs
of
the
Trustee
(including
its
legal
counsel)
in
the
discharge
of
the
duties
required
of
it
under
the
Indenture;
the
costs
to
the
School
District,
CFD
No.
42 or
any
designee
thereof
of
complying
with
arbitrage
rebate
requirements;
the
costs
to
the
School
District,
CFD
No.
42 or
any
designee
thereof
of
complying
with
School
District,
CFD
No.
42 or
obligated
persons
disclosure
requirements
associated
with
applicable
federal
and
state
securities
laws
and
of
the
Act;
the
costs
associated
with
preparing
Special
Tax
disclosure
statements
and
responding
to
public
inquiries
regarding
the
Special
Taxes;
the
costs
of
the
School
District,
CFD
No.
42 or
any
designee
thereof
related
to
an
appeal
of
the
Special
Tax;
the
costs
associated
with
the
release
of
funds
from
any
escrow
account;
and
the
School
District’s
annual
administration
fees,
and
third
party
expenses.
Administrative
Expenses
shall
also
include
amounts
estimated
or
advanced
by
the
School
District
or
CFD
No.
42 for
any
other
administrative
purposes
of
CFD
No.
42,
including
attorney’s
fees
and
other
costs
related
to
commencing
and
pursuing
any
foreclosure,
or
other
resolution
of
delinquent
Special
Taxes.
"Affordable Housing Agreement” means the Affordable Housing Agreement by and
between
the
City
of
Riverside
and
Century
Communities
of
California,
LLC
that
was
recorded
on
June
20,
2025
which
limits
the
use
of
residential
units
78,
87,
92,
101,
107,
115,
120,
and
129
for
affordable
housing
purposes.
As
described
in
the
agreement,
such
units
are
considered
affordable
housing
units
until
the
initial
owner
(or
Qualified
Home
Buyer
as
defined
in
the
agreement)
sells
such
unit
to
a
new
buyer.
"Affordable Housing Property" means all Developed Property for which a building permit
has
been
issued
for
purposes
of
constructing
residential
dwelling
units
78,
87,
92,
101,
107,
115,
120,
and
129
as
shown
in
Attachment
1 herein
and
in
the
Affordable
Housing
Agreement.
For
each
Fiscal
Year,
if
any
of
the
eight
units
listed
above
are
no
longer
classified
as
Affordable
Housing
Property
as
of
January
1 of
each
year
pursuant
to
the
Affordable
Housing
Agreement
and
as
evidenced
by
a
change
in
ownership
or
otherwise
as
determined
by
the
CFD
Administrator,
then
such
units
shall
be
classified
as
Residential
Property
and
assigned
to
the
appropriate
Land
Use
Class
based
on
its
Residential
Floor
Area.
"Assessor’s Parcel" means a lot or parcel shown in an Assessor’s Parcel Map with
an
assigned
Assessor’s
parcel
number.
"Assessor’s Parcel Map" means an official map of the Assessor of the County designating
parcels
by
Assessor’s
parcel
number.
"Assigned Special Tax" means the Special Tax for each Land Use Class of Developed
Property,
as
determined
in
accordance
with
Section
C
below.
A- 2
"Backup Special Tax" means the Special Tax applicable to each Assessor’s Parcel
of
Developed
Property,
as
determined
in
accordance
with
Section
C
below.
"Board" means the Board of Education of the School District. "Bonds" means any bonds or other debt (as defined in Section 53317(d) of the Act),
whether
in
one
or
more
series,
issued
by
CFD
No.
42 under
the
Act
for
the
financing
of
authorized
public
facilities.
"CFD Administrator" means an official of the School District, or designee thereof, responsible
for
determining
the
Special
Tax
Requirement
and
providing
for
the
levy
and
collection
of
the
Special
Taxes.
"CFD No. 42" means Riverside Unified School District Community Facilities District
No.
42. “City” means the City of Riverside, California. "County" means the County of Riverside, California. "Developed Property" means, for each Fiscal Year, all Taxable Property, exclusive
of
Taxable
Property
Owner
Association
Property
and
Taxable
Public
Property,
for
which
a
building
permit
for
new
construction
was
issued
prior
to
March
1 of
the
previous
Fiscal
Year.
“Exempt Welfare Exemption Property” means, for each Fiscal Year, an Assessor’s
Parcel
that
is
(a)
receiving
a
welfare
exemption
under
subdivision
(g)
of
Section
214
of
the
California
Revenue
and
Taxation
Code
(or
any
successor
statute),
as
indicated
in
the
County’s
assessor’s
roll
finalized
as
of
January
1 of
the
previous
Fiscal
Year,
and
(b)
exempt
from
the
Special
Tax
pursuant
to
Section
53340(c)
of
the
Act.
Pursuant
to
Section
53340(c)
of
the
Act,
after
the
issuance
of
the
first
series
of
Bonds
in
CFD
No.
42,
as
applicable,
any
Assessor’s
Parcels
that
receive
a
welfare
exemption
under
subdivision
(g)
of
Section
214
of
the
California
Revenue
and
Taxation
Code
(or
any
successor
statute)
shall
not
be
classified
as
Exempt
Welfare
Exemption
Property
and
will
be
subject
to
the
Special
Tax.
"Final Map" means (i) a final map, or portion thereof, approved by the City pursuant
to
the
Subdivision
Map
Act
(California
Government
Code
Section
66410
et
seq
.)
that
creates
individual
lots
or
parcels
for
which
building
permits
may
be
issued,
or
(ii)
for
condominiums,
a
final
map
approved
by
the
City
and
a
A- 3
condominium plan recorded pursuant to California Civil Code Section 6624 creating
such
individual
lots
or
parcels.
The
term
“Final
Map”
shall
not
include
any
Assessor’s
Parcel
Map
or
subdivision
map
or
portion
thereof,
that
does
not
create
individual
lots
for
which
a
building
permit
may
be
issued,
including
Assessor’s
Parcels
that
are
designated
as
remainder
parcels.
"Fiscal Year" means the period starting July 1 and ending on the following June
30. "Indenture" means the indenture, fiscal agent agreement, resolution or other instrument
pursuant
to
which
Bonds
are
issued,
as
modified,
amended
and/or
supplemented
from
time
to
time.
"Land Use Class" means any of the classes listed in Table 1 below. "Maximum Special Tax" means, for each Assessor’s Parcel, the Maximum Special
Tax,
determined
in
accordance
with
Section
C
below,
that
can
be
levied
in
any
given
Fiscal
Year
on
such
Assessor’s
Parcel.
"Non-Residential Property" means all Developed Property for which a building permit(s)
was
issued
for
a
non-residential
use.
"Outstanding Bonds" means all Bonds which are deemed to be outstanding under
the
Indenture.
"Property Owner Association Property" means, for each Fiscal Year, any Assessor’s
Parcel
within
the
boundaries
of
CFD
No.
42 that
was
owned
by
a
property
owner
association,
including
any
master
or
sub-association,
as
of
January
1 of
the
prior
Fiscal
Year.
"Proportionately" means, for Developed Property, that the ratio of the actual Special
Tax
levy
to
the
Assigned
Special
Tax
is
equal
for
all
Developed
Property.
For
Undeveloped
Property,
"Proportionately"
means
that
the
ratio
of
the
actual
Special
Tax
levy
per
Acre
to
the
Maximum
Special
Tax
per
Acre
is
equal
for
all
Undeveloped
Property.
For
Taxable
Public
Property
and
Taxable
Property
Owner
Association
Property,
"Proportionately"
means
that
the
ratio
of
the
actual
Special
Tax
levy
per
Acre
to
the
Maximum
Special
Tax
per
Acre
is
equal
for
all
Assessor’s
Parcels
of
Taxable
Public
Property
or
Taxable
Property
Owner
Association
Property,
as
applicable.
"Public Property" means, for each Fiscal Year, any Assessor’s Parcel within CFD No.
42 that
is
owned
by,
irrevocably
offered
for
dedication
to,
or
dedicated
to
the
federal
government,
the
State,
the
County,
the
School
District
or
any
other
public
agency
as
of
June
30 of
the
prior
Fiscal
Year;
provided
however
that
any
property
A- 4
leased by a public agency to a private entity and subject to taxation under Section
53340.1
of
the
Act
shall
be
taxed
and
classified
in
accordance
with
its
use.
To
ensure
that
property
is
classified
as
Public
Property
in
the
first
Fiscal
Year
after
it
is
acquired
by,
irrevocably
offered
for
dedication
to,
or
dedicated
to
a
public
agency,
the
property
owner
shall
notify
the
CFD
Administrator
in
writing
of
such
acquisition,
offer,
or
dedication
not
later
than
June
30 of
the
Fiscal
Year
in
which
the
acquisition,
offer,
or
dedication
occurred.
"Residential Floor Area" means all of the square footage of living area within the perimeter
of
a
residential
structure,
not
including
any
carport,
walkway,
garage,
overhang,
patio,
enclosed
patio,
or
similar
area.
The
determination
of
Residential
Floor
Area
shall
be
made
by
reference
to
the
building
permit(s)
issued
for
such
residential
dwelling
unit,
excluding
Accessory
Dwelling
Units.
"Residential Property" means all Developed Property for which a building permit has
been
issued
for
purposes
of
constructing
one
or
more
residential
dwelling
units,
excluding
Affordable
Housing
Property.
"School District" means the Riverside Unified School District. "Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor’s
Parcel
of
Taxable
Property
to
fund
the
Special
Tax
Requirement
for
CFD
No.
42. "Special Tax Requirement" means that amount required in any Fiscal Year for CFD
No.
42 to:
(i)
pay
debt
service
on
all
Outstanding
Bonds
payable
in
the
calendar
year
commencing
in
such
Fiscal
Year;
(ii)
pay
periodic
costs
on
such
Bonds,
including
but
not
limited
to,
credit
enhancement
and
rebate
payments
on
the
Bonds;
(iii)
pay
Administrative
Expenses;
(iv)
pay
any
amounts
required
to
establish
or
replenish
any
reserve
funds
for
all
such
Outstanding
Bonds;
(v)
pay
directly
for
acquisition
or
construction
of
facilities
eligible
to
be
funded
by
CFD
No.
42 to
the
extent
that
the
inclusion
of
such
amount
does
not
result
in
a
Special
Tax
levy
on
Undeveloped
Property;
(vi)
pay
for
reasonably
anticipated
delinquent
Special
Taxes
based
on
the
delinquency
rate
for
Special
Taxes
levied
in
the
previous
Fiscal
Year;
less
(vii)
a
credit
for
funds
available
to
reduce
the
annual
Special
Tax
levy,
as
determined
by
the
CFD
Administrator
pursuant
to
the
Indenture.
"State" means the State of California. "Taxable Property" means all of the Assessor’s Parcels within the boundaries of CFD
No.
42 which
are
not
exempt
from
the
Special
Tax
pursuant
to
law
or
Section
E
below.
A- 5
"Taxable Property Owner Association Property" means all Assessor’s Parcels of Property
Owner
Association
Property
that
are
not
exempt
pursuant
to
Section
E
below.
"Taxable Public Property" means all Assessor’s Parcels of Public Property that are
not
exempt
pursuant
to
Section
E
below.
"Trustee" means the trustee or fiscal agent under the Indenture. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified
as
Developed
Property,
Taxable
Property
Owner
Association
Property
or
Taxable
Public
Property.
B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, commencing with Fiscal Year 2025-2026, all Taxable Property within
CFD
No.
42 shall
be
classified
as
Developed
Property,
Taxable
Property
Owner
Association
Property,
Taxable
Public
Property,
Undeveloped
Property,
or
Exempt
Welfare
Exemption
Property,
and
shall
be
subject
to
Special
Taxes
in
accordance
with
the
rate
and
method
of
apportionment
determined
pursuant
to
Sections
C
and
D
below.
Developed Property shall be further classified as Residential Property, Affordable Housing
Property,
or
Non-Residential
Property.
The
Assigned
Special
Tax
for
Residential
Property
shall
be
based
on
the
number
of
dwelling
units
on
such
Assessor’s
Parcel
and
the
Residential
Floor
Area
of
the
dwelling
units
located
on
such
Assessor’s
Parcel.
The
Assigned
Special
Tax
for
Non-Residential
Property
shall
be
based
on
the
Acreage
of
the
Assessor’s
Parcel.
There
shall
be
no
Special
Tax
for
Affordable
Housing
Property.
C. MAXIMUM SPECIAL TAX 1. Developed Property a. Maximum Special Tax The Maximum Special Tax for each Assessor’s Parcel classified as Developed
Property
that
is
Residential
Property
or
Non-Residential
Property
shall
be
the
greater
of
(i)
the
amount
derived
by
application
of
the
Assigned
Special
Tax
or
(ii)
the
amount
derived
by
application
of
the
Backup
Special
Tax.
A- 6
b. Assigned Special Tax The Assigned Special Tax for each Land Use Class is shown below in
Table
1. TABLE 1 Assigned Special Tax for Developed Property Fiscal Year 2025-2026 Land Use Category Description
Residential Floor Area
Assigned Special Tax 1 Residential Property > 1,500 sq. ft. $2,315 per Dwelling Unit 2 Residential Property 1,400 to 1,499 sq. ft. $2,100 per Dwelling Unit 3 Residential Property < 1,400 sq. ft. $2,050 per Dwelling Unit 4 Affordable Housing Property N/A $0 per Dwelling Unit 5 Non-Residential Property N/A $146,315 per Acre c. Backup Special Tax The Fiscal Year 2025-2026 aggregate Backup Special Tax attributable
to
property
within
a
Final
Map
will
equal
$146,315
multiplied
by
the
Acreage
of
all
Taxable
Property
located
within
such
Final
Map,
excluding
Acreage
associated
with
current
or
expected
Non-Residential
Property,
Taxable
Public
Property,
Taxable
Property
Owner
Association
Property,
and
Affordable
Housing
Property.
The Backup Special Tax for each Assessor’s Parcel of Residential Property
in
a
Final
Map
shall
be
computed
by
dividing
the
aggregate
Backup
Special
Tax
attributable
to
all
Assessor’s
Parcels
of
Taxable
Property
for
which
building
permits
for
residential
construction
have
or
may
be
issued,
as
determined
in
the
preceding
paragraph,
by
the
number
of
such
Assessor’s
Parcels
(i.e.,
the
number
of
residential
lots).
Notwithstanding the foregoing, if all or any portion of a Final Map is subsequently
changed
or
modified,
then
the
Backup
Special
Tax
for
each
Assessor’s
Parcel
of
Residential
Property
in
such
Final
Map,
or
the
portion
thereof
that
is
changed
or
modified,
shall
be
a
rate
per
Acre
calculated
as
follows:
A- 7
1. Determine the total Backup Special Taxes anticipated to apply
to
the
changed
or
modified
portion
of
the
Final
Map
prior
to
the
change
or
modification.
2. Divide the amount determined pursuant to paragraph 1 above
by
the
total
Acreage
of
Residential
Property
excluding
Taxable
Public
Property,
Taxable
Property
Owner
Association
Property,
and
Affordable
Housing
Property
which
is
ultimately
expected
to
exist
in
such
changed
or
modified
Final
Map
area,
as
reasonably
determined
by
the
CFD
Administrator.
3. The result is the Backup Special Tax per Acre which shall be applicable
to
all
Assessor's
Parcels
of
Residential
Property
in
such
changed
or
modified
Final
Map.
d. Increase in the Assigned Special Tax and Backup Special Tax On each July 1, commencing on July 1, 2026, the Assigned Special Tax
and
the
Backup
Special
Tax
shall
be
increased
by
an
amount
equal
to
two
percent
(2%)
of
the
amount
in
effect
for
the
previous
Fiscal
Year.
2. Undeveloped Property , Taxable Property Owner Association Property, and Taxable
Public
Property
a. Maximum Special Tax The Fiscal Year 2025-2026 Maximum Special Tax for each Assessor’s
Parcel
of
Undeveloped
Property,
Taxable
Property
Owner
Association
Property,
and
Taxable
Public
Property
shall
equal
$146,315
per
Acre.
b. Increase in the Maximum Special Tax On each July 1, commencing on July 1, 2026, the Maximum Special
Tax
for
Undeveloped
Property,
Taxable
Property
Owner
Association
Property,
and
Taxable
Public
Property
shall
be
increased
by
an
amount
equal
to
two
percent
(2%)
of
the
amount
in
effect
for
the
previous
Fiscal
Year.
A- 8
3. Multiple Land Uses In some instances an Assessor’s Parcel of Developed Property may contain
more
than
one
Land
Use
Class.
The
Assigned
Special
Tax
levied
on
an
Assessor’s
Parcel
shall
be
the
sum
of
the
Assigned
Special
Taxes
for
all
Land
Use
Classes
located
on
that
Assessor’s
Parcel.
The
Maximum
Special
Tax
that
can
be
levied
on
an
Assessor’s
Parcel
shall
be
the
sum
of
the
Maximum
Special
Taxes
that
can
be
levied
for
all
Land
Use
Classes
located
on
that
Assessor’s
Parcel.
For
an
Assessor’s
Parcel
that
contains
both
Residential
Property
and
Non-Residential
Property,
the
Acreage
of
such
Assessor’s
Parcel
shall
be
allocated
to
each
type
of
property
based
on
the
amount
of
Acreage
designated
for
each
land
use
as
determined
by
reference
to
the
site
plan
approved
for
such
Assessor’s
Parcel.
The
CFD
Administrator’s
allocation
to
each
type
of
property
shall
be
final.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX For each Fiscal Year, commencing Fiscal Year 2025-2026, the Board shall determine
the
Special
Tax
Requirement
and
shall
levy
the
Special
Tax
as
follows:
First: The Special Tax shall be levied on each Assessor’s Parcel of Developed Property
at
up
to
100%
of
the
applicable
Assigned
Special
Tax
to
satisfy
the
Special
Tax
Requirement;
Second : If additional monies are needed to satisfy the Special Tax Requirement after
the
first
step
has
been
completed,
the
Special
Tax
shall
be
levied
Proportionately
on
each
Assessor’s
Parcel
of
Undeveloped
Property
at
up
to
100%
of
the
Maximum
Special
Tax
for
Undeveloped
Property;
Third : If additional monies are needed to satisfy the Special Tax Requirement after
the
first
two
steps
have
been
completed,
then
the
levy
of
the
Special
Tax
on
each
Assessor’s
Parcel
of
Developed
Property
whose
Maximum
Special
Tax
is
determined
through
the
application
of
the
Backup
Special
Tax
shall
be
increased
in
equal
percentages
from
the
applicable
Assigned
Special
Tax
up
to
100
percent
of
the
Maximum
Special
Tax
for
each
such
Assessor’s
Parcel;
Fourth : If additional monies are needed to satisfy the Special Tax Requirement after
the
first
three
steps
have
been
completed,
then
the
Special
Tax
shall
be
levied
Proportionately
on
each
Assessor’s
Parcel
of
Taxable
Property
Owner
Association
Property
or
Taxable
Public
Property
at
up
to
the
Maximum
Special
Tax
for
Taxable
Property
Owner
Association
Property
or
Taxable
Public
Property.
A- 9
Notwithstanding the above, pursuant to Section 53321(d)(3) of the California Government
Code,
under
no
circumstances
will
the
Special
Tax
levied
in
any
Fiscal
Year
against
any
Assessor’s
Parcel
for
which
an
occupancy
permit
for
private
residential
use
has
been
issued
be
increased
as
a
consequence
of
delinquency
or
default
by
the
owner
or
owners
of
any
other
Assessor’s
Parcel(s)
within
CFD No. 42 by more than 10% above the amount that would have been levied
in
that
Fiscal
Year
had
there
never
been
any
such
delinquencies
or
defaults.
To
the
extent
that
the
levy
of
the
Special
Tax
on
certain
Assessor’s
Parcels
is
limited
by
the
provision
in
the
previous
sentence,
the
levy
of
the
Special
Tax
on
each
Assessor’s
Parcel
of
all
other
property
shall
continue
in
equal
percentages
at
up
to
100%
of
the
Assigned
Special
Tax.
E. EXEMPTIONS The Board shall not levy Special Taxes on (i) Property Owner Association Property
or
Public
Property
provided
that
an
Assessor’s
Parcel
shall
not
be
exempt
and
shall
be
classified
as
Taxable
Property
Owner
Association
Property
and
Taxable
Public
Property
if
exempting
such
property
would
reduce
the
sum
of
all
Taxable
Property
to
less
than
a
minimum
taxable
Acreage
of
2.10 Acres
and
(ii)
any
Parcels
for
which
the
obligation
to
pay
the
Special
Tax
has
been
prepaid
in
full
pursuant
to
Section
H
herein.
Tax-exempt status for the Acreage of Assessor’s Parcels or portions of Assessor’s
Parcels
of
Public
Property
and
Property
Owner
Association
Property
will
be
irrevocably
assigned
by
the
District
in
the
chronological
order
in
which
such
Assessor’s
Parcels
or
portions
of
Assessor’s
Parcels
become
Exempt
Property.
Property Owner Association Property or Public Property that is not exempt from Special
Taxes
under
this
section
shall
be
subject
to
the
levy
of
the
Special
Tax
and
shall
be
taxed
Proportionately
as
part
of
the
fourth
step
in
Section
D
above,
at
up
to
100%
of
the
applicable
Maximum
Special
Tax
for
Taxable
Property
Owner
Association
Property
or
Taxable
Public
Property.
No Special Tax shall be levied on any Assessor’s Parcel in any Fiscal Year in which
such
Assessor’s
Parcel
is
classified
as
Exempt
Welfare
Exemption
Property.
In
addition,
no
Special
Tax
shall
be
levied
on
an
Accessory
Dwelling
Unit.
F. APPEALS/INTERPRETATION Any taxpayer may file a written appeal of the Special Tax levied on his/her property
with
the
CFD
Administrator,
provided
that
the
appellant
is
current
in
his/her
payments
of
Special
Taxes.
During
the
pendency
of
an
appeal,
all
A- 10
Special Taxes previously levied must be paid on or before the payment date established
when
the
levy
was
made.
The
appeal
must
specify
the
reasons
why
the
appellant
claims
the
calculation
of
the
Special
Tax
is
in
error.
The
CFD
Administrator
shall
review
the
appeal,
meet
with
the
appellant
if
the
CFD
Administrator
deems
necessary,
and
advise
the
appellant
of
its
determination.
If
the
CFD
Administrator
agrees
with
the
appellant,
the
CFD
Administrator
shall
eliminate
or
reduce
the
Special
Tax
on
the
appellant’s
property
and/or
provide
a
refund
to
the
appellant.
If
the
CFD
Administrator
disagrees
with
the
appellant
and
the
appellant
is
dissatisfied
with
the
determination,
the
appellant
then
has
30 days
in
which
to
appeal
to
the
Board
by
filing
a
written
notice
of
appeal
with
the
clerk
of
the
Board,
provided
that
the
appellant
is
current
in
his/her
payments
of
Special
Taxes.
The
second
appeal
must
specify
the
reasons
for
its
disagreement
with
the
CFD
Administrator’s
determination.
Interpretations may be made by the Board by ordinance or resolution for purposes
of
clarifying
any
vagueness
or
ambiguity
in
this
Rate
and
Method
of
Apportionment.
G. MANNER OF COLLECTION The Special Tax will be collected in the same manner and at the same time as ordinary
ad
valorem
property
taxes;
provided,
however,
that
CFD
No.
42 may
directly
bill
the
Special
Tax,
may
collect
Special
Taxes
at
a
different
time
or
in
a
different
manner
if
necessary
to
meet
its
financial
obligations,
and
may
covenant
to
foreclose
and
may
actually
foreclose
on
delinquent
Assessor’s
Parcels
as
permitted
by
the
Act.
H. PREPAYMENT OF SPECIAL TAX The following definitions apply to this Section H: "CFD Public Facilities Cost " means either $3.9 million, expressed in 2025 dollars, which
shall
increase
by
the
annual
percentage
change
in
the
Construction
Inflation
Index
on
July
1,
2026
and
on
each
July
1 thereafter,
or
such
lower
number
as
(i)
shall
be
determined
by
the
CFD
Administrator
as
sufficient
to
provide
the
public
facilities
to
be
provided
by
CFD
No.
42 under
the
authorized
bonding
program
for
CFD
No.
42,
or
(ii)
shall
be
determined
by
the
Board
concurrently
with
a
covenant
that
it
will
not
issue
any
more
Bonds
to
be
supported
by
Special
Taxes
levied
under
this
Rate
and
Method
of
Apportionment
as
described
in
Section
D.
"Construction Fund" means an account specifically identified in the Indenture to hold
funds
which
are
currently
available
for
expenditure
to
acquire
or
construct
public
facilities
eligible
under
the
Act.
A- 11
"Construction Inflation Index" means the RS Means Class B Construction Cost Index,
or
if
the
RS
Means
Class
B
Construction
Cost
Index
ceases
to
be
used
by
the
State
Allocation
Board,
a
reasonably
comparable
index
used
by
the
State
Allocation
Board
to
estimate
changes
in
school
construction
costs,
or
in
the
absence
of
such
an
index,
the
Engineering
News
Record,
Construction
Cost
Index
(Los
Angeles
Area)
published
by
McGraw-Hill,
Inc.
"Future Facilities Costs" means the CFD Public Facilities Cost minus (i) public facility
costs
previously
paid
from
the
Construction
Fund,
(ii)
moneys
currently
on
deposit
in
the
Construction
Fund,
and
(iii)
moneys
currently
on
deposit
in
an
escrow
fund
that
are
expected
to
be
available
to
finance
facilities
costs.
"Mitigation Agreement" means the School Facilities Mitigation Agreement expected
to
be
made
and
entered
into
on
September
25,
2025
by
and
among
the
School
District
and
Century
Communities
of
California,
LLC,
as
it
may
be
amended.
"Outstanding Bonds" means all Previously Issued Bonds which are deemed to be outstanding
under
the
Indenture
after
the
first
interest
and/or
principal
payment
date
following
the
current
Fiscal
Year.
"Previously Issued Bonds" means all Bonds that have been issued by CFD No. 42 prior
to
the
date
of
prepayment.
1. Prepayment in Full The obligation of an Assessor’s Parcel to pay the Special Tax may be prepaid
and
permanently
satisfied
as
described
herein;
provided
that
a
prepayment
may
be
made
only
for
Assessor’s
Parcels
of
Developed
Property
or
Undeveloped
Property
for
which
a
building
permit
has
been
issued,
and
only
if
there
are
no
delinquent
Special
Taxes
with
respect
to
such
Assessor’s
Parcel
at
the
time
of
prepayment.
An
owner
of
an
Assessor’s
Parcel
intending
to
prepay
the
Special
Tax
obligation
shall
provide
the
CFD
Administrator
with
written
notice
of
intent
to
prepay.
Within
30 days
of
receipt
of
such
written
notice,
the
CFD
Administrator
shall
notify
such
owner
of
the
prepayment
amount
of
such
Assessor’s
Parcel.
The
CFD
Administrator
may
charge
a
reasonable
fee
for
providing
this
service.
Prepayment
must
be
made
not
less
than
45 days
prior
to
the
next
occurring
date
that
notice
of
redemption
of
Bonds
from
the
proceeds
of
such
prepayment
may
be
given
to
the
Trustee
pursuant
to
the
Indenture.
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The Prepayment Amount (defined below) shall be calculated as summarized
below
(capitalized
terms
as
defined
below):
Bond Redemption Amount plus Redemption Premium plus Future Facilities Amount plus Defeasance Amount plus Administrative Fees and Expenses less Reserve Fund Credit less Capitalized Interest Credit Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined below)
shall
be
calculated
as
follows:
Paragraph No.: 1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.
2. For Assessor’s Parcels of Developed Property, compute the Assigned Special
Tax
and
Backup
Special
Tax
applicable
for
the
Assessor’s
Parcel
to
be
prepaid.
For
Assessor’s
Parcels
of
Undeveloped
Property
(for
which
a
building
permit
has
been
issued)
to
be
prepaid,
compute
the
Assigned
Special
Tax
and
Backup
Special
Tax
for
that
Assessor’s
Parcel
as
though
it
was
already
designated
as
Developed
Property,
based
upon
the
building
permit
which
has
already
been
issued
for
that
Assessor’s
Parcel.
3. (a) Divide the Assigned Special Tax computed pursuant to paragraph 2 by the
total
estimated
Assigned
Special
Taxes
for
the
entire
CFD
No.
42 based
on
the
Developed
Property
Special
Taxes
which
could
be
charged
in
the
current
Fiscal
Year
on
all
expected
development
through
buildout
of
CFD
No.
42,
excluding
any
Assessor’s
Parcels
which
have
been
prepaid,
and
(b) Divide the Backup Special Tax computed pursuant to paragraph 2 by the
estimated
Backup
Special
Taxes
at
buildout
of
CFD
No.
42 using
the
Backup
Special
Tax
amount
for
the
current
Fiscal
Year,
excluding
any
Assessor’s
Parcels
which
have
been
prepaid.
4. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by
the
Outstanding
Bonds
to
compute
the
amount
of
Outstanding
Bonds
to
be
retired
and
prepaid
(the
"Bond
Redemption
Amount").
A- 13
5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by
the
applicable
redemption
premium,
if
any,
on
the
Outstanding
Bonds
to
be
redeemed
(the
"Redemption
Premium").
6. Compute the current Future Facilities Costs. 7. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by
the
amount
determined
pursuant
to
paragraph
6 to
compute
the
amount
of
Future
Facilities
Costs
to
be
prepaid
(the
"Future
Facilities
Amount").
8. Compute the amount needed to pay interest on the Bond Redemption Amount
from
the
first
bond
interest
and/or
principal
payment
date
following
the
current
Fiscal
Year
until
the
earliest
redemption
date
for
the
Outstanding
Bonds.
9. Determine the Special Taxes levied on the Assessor’s Parcel in the current
Fiscal
Year
which
have
not
yet
been
paid.
10. Compute the minimum amount the CFD Administrator reasonably expects to
derive
from
the
reinvestment
of
the
Prepayment
Amount
(as
defined
below)
less
the
Future
Facilities
Amount
and
the
Administrative
Fees
and
Expenses
(as
defined
below)
from
the
date
of
prepayment
until
the
redemption
date
for
the
Outstanding
Bonds
to
be
redeemed
with
the
prepayment.
11. Add the amounts computed pursuant to paragraphs 8 and 9 and subtract the
amount
computed
pursuant
to
paragraph
10 (the
"Defeasance
Amount").
12. Verify the administrative fees and expenses of CFD No. 42, including the costs
of
computation
of
the
prepayment,
the
costs
to
invest
the
prepayment
proceeds,
the
costs
of
redeeming
Bonds,
and
the
costs
of
recording
any
notices
to
evidence
the
prepayment
and
the
redemption
(the
"Administrative
Fees
and
Expenses").
13. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the
reserve
requirement
(as
defined
in
the
Indenture)
on
the
prepayment
date,
a
reserve
fund
credit
shall
be
calculated
as
a
reduction
in
the
applicable
reserve
requirement
for
the
Outstanding
Bonds
to
be
redeemed
pursuant
to
the
prepayment
(the
"Reserve
Fund
Credit
"
).
No
Reserve
Fund
Credit
shall
be
granted
if
reserve
funds
are
below
100%
of
the
reserve
requirement.
A- 14
14. If any capitalized interest for the Outstanding Bonds will not have been expended
at
the
time
of
the
first
interest
and/or
principal
payment
following
the
current
Fiscal
Year,
a
capitalized
interest
credit
shall
be
calculated
by
multiplying
the
larger
quotient
computed
pursuant
to
paragraph
3(a)
or
3(b)
by
the
expected
balance
in
the
capitalized
interest
fund
after
such
first
interest
and/or
principal
payment
(the
"Capitalized
Interest
Credit"
).
15. The Special Tax prepayment is equal to the sum of the amounts computed pursuant
to
paragraphs
4,
5,
7,
11 and
12,
less
the
amounts
computed
pursuant
to
paragraphs 13
and
14 (the
"Prepayment
Amount").
16. From the Prepayment Amount, the amounts computed pursuant to paragraphs
4,
5,
11,
13 and
14 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
paragraph
7 shall
be
deposited
into
the
construction
fund
(or
if
prior
to
the
issuance
of
Bonds,
then
such
amount
shall
be
deposited
into
a
separate
account
held
with
the
School
District
and
disbursed
in
accordance
with
the
Mitigation
Agreement).
The
amount
computed
pursuant
to
paragraph
12 shall
be
retained
by
CFD
No.
42. The Prepayment Amount may be sufficient to redeem other than a $5,000 increment
of
Bonds.
In
such
cases,
the
increment
above
$5,000
or
integral
multiple
thereof
will
be
retained
in
the
appropriate
fund
established
under
the
Indenture
to
be
used
with
the
next
prepayment
of
Bonds
or
to
make
debt
service
payments.
As a result of the payment of the current Fiscal Year’s Special Tax levy as determined
under
paragraph
9 (above),
the
CFD
Administrator
shall
remove
the
current
Fiscal
Year’s
Special
Tax
levy
for
such
Assessor’s
Parcel
from
the
County
tax
rolls.
With
respect
to
any
Assessor’s
Parcel
that
is
prepaid,
the
Board
shall
cause
a
suitable
notice
to
be
recorded
in
compliance
with
the
Act,
to
indicate
the
prepayment
of
Special
Taxes
and
the
release
of
the
Special
Tax
lien
on
such
Assessor’s
Parcel,
and
the
obligation
of
such
Assessor’s
Parcel
to
pay
the
Special
Tax
shall
cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless
the
amount
of
Assigned
Special
Taxes
that
may
be
levied
on
Taxable
Property
(excluding
Taxable
Property
Owner
Association
Property
and
Taxable
Public
Property)
within
CFD
No.
42 both
prior
to
and
after
the
proposed
prepayment,
less
expected
Administrative
Expenses,
is
at
least
1.1 times
the
applicable
annual
debt
service
on
all
Outstanding
Bonds.
2. Prepayment in Part
A- 15
The Special Tax on an Assessor’s Parcel of Developed Property or an Assessor’s
Parcel
of
Undeveloped
Property
for
which
a
building
permit
has
been
issued
may
be
partially
prepaid.
The
amount
of
the
prepayment
shall
be
calculated
as
in
Section
H.1;
except
that
a
partial
prepayment
shall
be
calculated
according
to
the
following
formula:
PP = (P
E
– A) x F + A These terms have the following meaning: PP = the partial prepayment P E
= the Prepayment Amount calculated according to
Section
H.1
F = the percentage by which the owner of the Assessor’s Parcel(s)
is
partially
prepaying
the
Special
Tax.
A = the Administration Fees and Expenses from Section H.1
The owner of any Assessor’s Parcel who desires such partial prepayment shall
notify
the
CFD
Administrator
of
such
owner’s
intent
to
partially
prepay
the
Special
Tax
and
the
percentage
by
which
the
Special
Tax
shall
be
prepaid.
The
CFD
Administrator
shall
provide
the
owner
with
a
statement
of
the
amount
required
for
the
partial
prepayment
of
the
Special
Tax
for
an
Assessor’s
Parcel
within
thirty
(30)
days
of
the
request
and
may
charge
a
reasonable
fee
for
providing
this
service.
With
respect
to
any
Assessor’s
Parcel
that
is
partially
prepaid,
the
School
District
shall
(i)
distribute
the
funds
remitted
to
it
according
to
Section
H.1,
and
(ii)
indicate
in
the
records
of
CFD
No.
42 that
there
has
been
a
partial
prepayment
of
the
Special
Tax
and
that
a
portion
of
the
Special
Tax
with
respect
to
such
Assessor’s
Parcel,
equal
to
the
outstanding
percentage
(1.00
-
F)
of
the
Maximum
Special
Tax,
shall
continue
to
be
levied
on
such
Assessor’s
Parcel
pursuant
to
Section
D.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed
unless
the
amount
of
Assigned
Special
Taxes
that
may
be
levied
on
Taxable
Property
(excluding
Taxable
Property
Owner
Association
Property
and
Taxable
Public
Property)
within
CFD
No.
42 both
prior
to
and
after
the
proposed
prepayment,
less
expected
Administrative
Expenses,
is
at
least
1.1 times
the
maximum
annual
debt
service
on
all
Outstanding
Bonds.
A- 16
I. TERM OF SPECIAL TAX The Special Tax shall be levied for the period necessary to fully satisfy the Special
Tax
Requirement,
but
in
no
event
shall
it
be
levied
after
Fiscal
Year
2068-2069.
J. RELIEF FROM BACKUP SPECIAL TAX
All Assessor’s Parcels within CFD No. 42 will be relieved simultaneously and permanently
from
the
obligation
to
pay
and
disclose
the
Backup
Special
Tax
if
the
Board
determines
that
the
total
amount
of
the
Special
Taxes
which
could
be
levied
in
any
Fiscal
Year
on
all
Assessor’s
Parcels
of
Developed
Property
based
on
the
Assigned
Special
Tax
for
such
Assessor’s
Parcels
less
the
expected
Administrative
Expenses
would
be
at
least
equal
to
one
hundred
and
ten
percent
(110%)
of
maximum
annual
debt
service
on
the
Outstanding
Bonds.
A- 17
A- 18
A- 19