Sacramento City Council
February 27, 2024

City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-00540 2/27/2024 Consent Item 15.

Calling a Special Election to Annex Territory and Make Certain Changes to the Greenbriar Community Facilities District No. 2018-03 (Improvements) File ID: 2024-00540
Location: District 1, Represented by Councilmember Kaplan Recommendation: Adopt a Resolution calling for a special election on proposals to annex property to Improvement Area No. 2 (IA-2) of the Greenbriar Community Facilities District No. 2018-03 (Improvements) (CFD) and to change the Rate and Method of Apportionment of Special Tax (RMA) for IA-2 of the CFD.

Contact: Eric Frederick, Senior Development Project Manager, (916) 808-5129, [email protected]; Sheri Smith, Special Districts Manager, (916) 808-7204, [email protected], Department of Finance
Presenter: None
Attachments:
1-Description/Analysis
2-Background
3-Schedule of Proceedings
4-Annexation Map
5-Second Amended and Restated Rate and Method for IA-2
6-Resolution
7-Exhibit A (Form of Special Election Ballots)
Additional Description/Analysis
Issue Detail: On January 9, 2024, Council adopted Resolution No. 2024-0008 (the Initial Resolution Calling Election) calling for a special mailed ballot election on whether to:
(1) Annex territory to IA-2 of the CFD; and
(2) Amend the rate and method of apportionment of the special taxes for IA-2 to add a maximum special tax rate for the area to be annexed to IA-2, add a new land use category for “Welfare Exemption Property” and related terms and provisions, identify planned non-residential

File ID: 2024-00540 2/27/2024 Consent Item 15.
development in the area to be annexed to IA-2 as exempt from the special tax, and to update the “Public Facilities Requirement” amount used in connection with prepayments, through the adoption of an amended and restated rate and method of apportionment for IA-2 in the form attached as Exhibit A to the Resolution of Intention, adopted by Council on November 28, 2023 (Resolution No. 2023-0379).

The special mailed ballot election was scheduled to be held on January 16, 2024. Following the adoption of the Initial Resolution Calling Election, the owner of all taxable property in the area proposed to be annexed the (Annexation Territory) and the owner of all taxable property currently in IA-2 (the Existing IA-2 Territory) (Greenbriar Project Owner, LLC, and Greenbriar Phase 2, LLC, respectively, and both affiliates of Integral Communities) requested the special election be postponed.

In response to that request Council adopted Resolution No. 2024-0038 on February 6, 2024, to rescind the Initial Resolution Calling Election with the intent to re-call the election at a later date. The owners of all taxable property in the Annexation Territory and the Existing IA-2 Territory have since expressed the desire to move forward with the special mailed ballot election. To accommodate this request, staff recommends adopting the attached resolution to call the special mailed ballot election again, and which will be scheduled to occur on March 5, 2024.

Policy Considerations: Annexing the property shown on the annexation boundary map included as Attachment 4 of this report to IA-2 of the CFD will satisfy one of the conditions of development for the property. Based on projected future home prices, the overall tax burden for future homeowners in this annexation area is estimated to be below the threshold outlined in the City’s adopted Policies and Procedures for Use of Special Assessment and Mello-Roos Community Facilities District Financing for Infrastructure and Public Facilities.

Modifications to the RMA that affect all of IA-2 include the addition of a new land use category for “Welfare Exemption Property,” the change in the “Public Facilities Requirement” used in connection with prepayments and related provisions and ensures compliance with recent changes to Section 53340(c) of the California Government Code.

Economic Impacts: Not applicable.

Environmental Considerations:

California Environmental Quality Act (CEQA): Under the CEQA Guidelines, the annexation of property to a CFD and modifying the RMA of a CFD (a CFD being a funding mechanism) without commitment to any specific projects which could result in a significant impact to the environment does not constitute a project for purposes of CEQA and is therefore exempt from review [CEQA Guidelines section 15378(b)(4)].

File ID: 2024-00540 2/27/2024 Consent Item 15.

Sustainability: Not applicable.

Commission/Committee Action: Not applicable.

Rationale for Recommendation: Annexing the Annexation Territory to IA-2 of the CFD will satisfy one of the conditions of development for the property and amending the rate and method of apportionment of the special tax for IA-2 will ensure compliance with current applicable law.

Conducting a public hearing on the questions of the proposed annexation and proposed adoption of an amended RMA for all of IA-2 (Second Amended RMA) is required under the Mello-Roos Community Facilities Act of 1982 (California Government Code sections 53331 to 53339.

Financial Considerations: There are currently no financial impacts to any City funds. Once annexed to the CFD residential development in the Annexation Territory will be subject to the levy of an annual special tax as described in the Second Amended RMA, which is included as Attachment 5 of this report for reference. The proposed changes set forth in the Second Amended RMA that add provisions to exempt “Welfare Exemption Property” from the levy of the special tax do not affect the maximum amount of special taxes anticipated to be collected in IA-2 because no properties are currently anticipated to be classified as such. In addition, any property that is classified as “Welfare Exemption Property” after bonds have been issued may still be subject to the special tax if certain other conditions are met.

Special tax bonds may be issued in the future to finance the acquisition and construction of certain public improvements and to finance certain governmental fees for public facilities. Those bonds will be secured solely by the levy of special taxes within IA-2, including within the Annexation Territory, pursuant to the Second Amended RMA. At this time bonds have not been issued and no special taxes have been levied in IA-2 of the CFD.

Local Business Enterprise (LBE): Not applicable.

ATTACHMENT 2

BACKGROUND

The CFD was established by the City Council on November 27, 2018, under the Mello- Roos Community Facilities Act of 1982 (the “Mello-Roos Act”). The CFD currently covers approximately 545± acres of property within the Greenbriar Planned Unit Development. The Northlake development project (formerly known as Greenbriar) is proposed for single-family, multi-family, and commercial development, as well as parks, open space, lakes/detention basins, light rail corridor and station, park and ride lot, and a school site. The Northlake project area is generally bounded by Elkhorn Boulevard to the north, State Highway 99 to the east, Interstate 5 to the south, and the City of Sacramento city limits to the west and north.

As approved by Council, the CFD will finance, through the issuance of Mello-Roos special tax bonds or the incurrence of other debt for the two improvement areas designated as such within the CFD (referred to as IA-1 and IA-2), certain development fees and public improvements authorized for the CFD. On November 27, 2018, Council adopted Resolution No. 2018-0460 deeming it necessary to incur bonded indebtedness to finance the acquisition and construction of certain public facilities and to finance certain governmental fees for public facilities in each improvement area of the CFD. The aggregate principal amount of debt proposed to be issued, in one or more series on behalf of IA-1 and IA-2 of the CFD, was originally not to exceed $55 million for IA-1 and $50 million for IA-2.

On December 1, 2020, Council adopted Resolution No. 2020-0377 to change the rate and method of apportionment (RMA), the boundary map, and the debt limit for IA-1. The changes resulted in (1) amending the RMA for IA-1 to reduce the maximum special tax rates, modify the provisions for partial prepayment of special taxes, and make related and clarifying changes, (2) amending the boundary map of the CFD by removing two parcels from IA-1 planned for commercial development, and (3) lowering the debt limit for IA-1 from $55 million to $47 million. Following this change, in February 2021, the City issued its Greenbriar CFD No. 2018-03 (Improvements) Improvement Area No. 1 Special Tax Bonds, Series 2021, in the aggregate principal amount of $43.47 million to finance the acquisition and construction of certain public facilities and to finance certain governmental fees for public facilities for the CFD, secured by special taxes levied on taxable property within IA-1.

On December 7, 2021, Council adopted Resolution No. 2021-0356 to change the RMA and debt limit for IA-2. The changes resulted in (1) amending the RMA for IA-2 to increase the maximum special tax rates, modify the provisions for partial prepayment of special taxes, and make related and clarifying changes, and (2) increasing the debt limit for IA-2 from $50 million to $67 million. To date, no special tax bonds have been issued for the CFD secured by special taxes levied on taxable property within IA-2.

Proposed Annexation and Change Proceedings for IA-2 of the CFD

The proposed annexation would add additional territory to IA-2 of the CFD (the Annexation Territory) that will be levied a special tax pursuant to a further amended and restated RMA for IA-2 (the Second Amended RMA). Only residential development within the proposed annexation area will be subject to the levy of a special tax; the area planned for non-residential development will be exempt. The authorized debt limit and public facilities and facilities fees eligible for CFD financing would not change as a result of this annexation.

Because of the addition of a new land use category in the Second Amended RMA and to comply with recent changes to Section 53340(c) of the California Government Code, change proceedings must also be undertaken for the territory already within IA-2 that is subject to the special tax (the Existing IA-2 Territory). This is being done concurrently with the annexation as there are currently no homeowners in the Existing IA-2 Territory and affiliates of Integral Communities own all of the land in the Annexation Territory and all of the existing taxable property in the Existing IA-2 Territory.

Process to Undertake Annexation and Change Proceedings

The process to annex territory to IA-2 of the CFD and modify the IA-2 RMA began with a landowner petition requesting the annexation and modifications, followed by Council’s adoption of a “resolution of intention and consideration” on November 28, 2023 (Resolution No. 2023-0379), which also called for a public hearing to be held on January 9, 2024, where all interested persons had the opportunity to protest the proposed annexation and the proposed IA-2 RMA modifications. That public hearing was held on such date, after which Council adopted a resolution calling an election on the annexation and modifications (Resolution No. 2024-0008). Subsequent to the adoption of that resolution, the “qualified electors” for these proposals requested that the election be delayed to a future date yet to be determined. Resolution No. 2024-0008 was rescinded by Council on February 6, 2024 (Resolution No. 2024-0038), and the election is now being re-called and ballots will be resubmitted to the qualified electors.

After the election takes place and if votes are received in the affirmative, Council can then adopt a Resolution Determining Results and Resolution of Change to complete the annexation process and to enact the proposed changes to IA-2 of the CFD. The final step in the process will be to adopt an ordinance supplementing and amending Ordinance Nos. 2018-0052 and 2021-0033 to incorporate the amendments to the rate and method of apportionment of the special taxes for IA-2 as so approved.

A proposed Schedule of Proceedings, outlining the timeline for these concurrent processes, is included in Attachment 3 to this report.

SCHEDULE OF PROCEEDINGS

GREENBRIAR COMMUNITY FACILITIES DISTRICT NO. 2018-03 (IMPROVEMENTS) ANNEXATION NO. 1 to IMPROVEMENT AREA NO. 2 and
CHANGE PROCEEDINGS for IMPROVEMENT AREA NO. 2

November 28, 2023 City Council: Adopted Resolution of Intention to Annex and Consider Changes to Rate and Method of Apportionment of Special Taxes for IA-2

November 30, 2023 Annexation Map Recorded

December 29, 2023 Notice of Public Hearing Published

January 9, 2024 City Council: Hold Public Hearing
Adopt Resolution Calling Special Election

February 6, 2024 City Council: Rescind Resolution Calling Special Election

February 27, 2024 City Council: Adopt Resolution Calling Special Election

March 5, 2024 Special Election Ballots Due

March 12, 2024 City Council: Adopt Resolution Declaring Election Results Adopt Resolution of Change
Pass for Publication Amendment Ordinance

March 13, 2024 Record Amendment to Notice of Special Tax Lien

March 19, 2024 City Council: Adopt Amendment Ordinance

Greenbriar CFD No. 2018-03, IA No. 2 1 November 16, 2023 IMPROVEMENT AREA NO. 2 OF THE

CITY OF SACRAMENTO
GREENBRIAR COMMUNITY FACILITIES DISTRICT NO. 2018-03
(IMPROVEMENTS)

SECOND AMENDED AND RESTATED

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX

A Special Tax authorized under the Mello-Roos Community Facilities Act of 1982 and applicable to each Assessor’s Parcel in Improvement Area No. 2 of the City of Sacramento Greenbriar Community Facilities District No. 2018-03 (Improvements) will be levied and collected according to the tax liability the City de termines through the application of the appropriate amount or rate for Taxable Property, as described below. All of the property in Improvement Area No. 2, unless exempted by law or by Section G below, will be taxed for the purposes, to the extent, and in the manner herein provided.

A. D

EFINITIONS

“Acre” means 43,560 square feet of 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 map recorded at the County Recorder’s Office.

“Act” means the Mello-Roos Community Faciliti es Act of 1982, as amended, set forth at California Government Code § 53311 through 53368.3.

“Administrative Expenses” means the actual or reasonabl y estimated costs related to administration of the CFD and Improvement Area No. 2, including but not limited to the following:

 Costs of computing the Special Tax and pr eparing the annual Special Tax collection schedules (whether by the City or its designee or both).

 Costs of collecting, auditing, dispersing, and a ccounting for the Special Tax (whether by the County, the City, or otherwise).

 Costs of remitting the Special Tax to the Trustee.

 Costs of the Trustee (including its legal c ounsel) in discharging its duties under the Indenture.

 Costs to the City or its designee of complying with arbitrage-rebate requirements relating to Improvement Area No. 2.

 Costs to the City or its designee of complying with its or any obligated person’s disclosure requirements relating to any Bonds.

Greenbriar CFD No. 2018-03, IA No. 2 2 November 16, 2023  Costs associated with preparing disclosure statements relating to Improvement Area No. 2.

 Costs incurred in responding to public inquiries regarding the Special Tax.

 Costs to the City or its designee related to any appeal of the Special Tax.

 Costs associated with the release of f unds from any escrow account relating to Improvement Area No. 2.

 Costs to the City of issuing Bonds through Improvement Area No. 2 if not recovered from proceeds of the Bonds.

 Amounts estimated to be advanced for any other administrative purposes, including but not limited to attorney’s fees and other costs rela ted to collection of the Special Tax or to commencing and pursuing to completion any foreclosure in Improvement Area No. 2.

“Administrator” means the City’s Special Districts Mana ger, his/her designee, or such other person or department as the City may designate to serve as Administrator of the CFD.

“Airspace Parcel” means a parcel with an assigned Assessor’s Parcel Number that constitutes vertical space of the underlying land.

“Anticipated Park/School Site Property” means any Assessor’s Parcel that is expected to be dedicated in its entirety to the City or a public school district for use as a park or school, as identified in Attachment 3 hereto. If a park or school site is expected on a portion of an Assessor’s Parcel that will be further subdivi ded to create the Assessor’s Parcel that will be dedicated for a park or school site, no portion of the master Assessor’s Parcel that will be further subdivided shall be designated as Anticipated Park/School Site Property unless and until the subdivision occurs and a separate Assessor’s Parcel is created for the pa rk or school. If an Assessor’s Parcel that was anticipated to be a park or school site, as show n in Attachment 3, is no longer expected to be dedicated to be used fo r a park or school, and th e Administrator is made aware of the change in the Assessor’s Parcel’s expected land use, such Assessor’s Parcel shall no longer be categorized as Anticipated Park/School Site Property. Once an Assessor’s Parcel of Anticipated Park/School Site Property has been dedicate d to the City, school district, or other public agency, it shall thereafter be categorized as Public Property for purposes of this RMA.

“Assessor’s Parcel” means a lot or parcel (including an Airspace Parcel) that is shown on an Assessor’s Parcel Map and has an assigned Assessor’s Parcel Number.

“Assessor’s Parcel Map” means an official map of the C ounty Assessor designating lots or parcels by Assessor’s Parcel Number.

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

“Authorized Facilities” means the facilities and fees authorized to be funded through the CFD.

Greenbriar CFD No. 2018-03, IA No. 2 3 November 16, 2023 “Base Special Tax” means, for Residential Units with in each Village and for Taxable Non- Residential Property, the applicable Special Tax initially identified in Table 1 in Section C, as may be adjusted pursuant to Section D.

“Bonds” means any debt (as defined in the Act) that is related to Authorized Facilities and is issued, insured, or assumed through Improvement Area No. 2, whether in one or more series.

“Building Permit” means a single permit or set of permits required to construct a residential or non-residential structure. If a permit is issued for a foundation, parking, landscaping, or other similar facility or amenity but a building permit has not yet been issued for the structure to be served by the facility or amenity, then the permit for the facility or amenity will not be considered a “Building Permit” for purposes of levying the Special Tax.

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

“CFD” means the City of Sacramento Greenbria r Community Facilities District No. 2018-03 (Improvements).

“CFD Update” means the date on which the Resolution of Change was adopted by the City Council.

“City” means the City of Sacramento, California.

“City Council” means the Sacramento City Council.

“County” means the County of Sacramento, California.

“Developed Property” means, in any Fiscal Year, all Taxable Property, excluding Taxable HOA Property, Taxable Multi-Family Property, Taxabl e Welfare Exemption Pr operty, and Taxable Public Property, for which a Building Permit was issued before June 1 of the preceding Fiscal Year.

“Development Class” means, individually, Developed Property, Final Map Property, Undeveloped Property, Anticipated Park/School Site Property, Taxa ble HOA Property, Taxable Multi-Family Property, Taxable Welfare Exemption Property, and Taxable Public Property.

“Exempt Non-Residential Property” means any Assessor’s Parcel of Non-Residential Property within the areas identifie d in Attachment 4 as ex empt non-residential par cels. Notwithstanding the foregoing, if such property is developed as Single Family Residential Property, the exemption will no longer apply, and the City will determin e the appropriate Maximum Special Tax for the Residential Units constructed on the property.

“Exempt Property” means any of the following:

 Public Property, except as otherwise authorized by § 53317.3 or § 53317.5 of the Act and other than Taxable Public Property.

Greenbriar CFD No. 2018-03, IA No. 2 4 November 16, 2023  HOA Property, other than Taxable HOA Property.

 Welfare Exemption Property, other than Taxable Welfare Exemption Property.

 Multi-Family Property, other than Taxable Multi-Family Property.

 Exempt Non-Residential Property.

 Assessor’s Parcels that are owned by a public utility and developed with an unoccupied facility.

 Assessor’s Parcels that are subject to an easement or other in strument that precludes any use other than the use set forth in the easement.

“Expected Land Uses” means the number of Residential Un its expected within Improvement Area No. 2 as of the CFD Update, as identified in Attachment 1 and as amended from time to time as set forth in this RMA.

“Expected Maximum Special Tax Revenues” means the amount of an nual revenue that would be available in Improvement Area No. 2 if the Maximum Special Tax was levied on the Expected Land Uses. The Expected Maximum Special Tax Revenues are shown in Attachment 1 of this RMA and may be changed due to prepayments in fu ture Fiscal Years and/or pursuant to Section D below.

“Final Map” means a final map or portion of a fi nal map, approved by the City under the Subdivision Map Act (California Government Code § 66410 et seq.), that creates lots that do not need to be further subdivided prior to issuance of a Building Permit for a residential structure. “Final Map” does not include any large-lot subdivision map, Assessor’s Parcel Map, or subdivision map, or any portion of such a map, that does not create lots that are in their final configuration.

“Final Map Property” means, in any Fiscal Year, all Assessor’s Parcels of Taxable Property for which a Final Map had recorded prior to June 1 of the preceding Fiscal Year and which have not yet become Developed Property, excluding Taxable HOA Property, Taxable Multi-Family Property, Taxable Welfare Exemption Property, and Taxable Public Property.

“First Bond Sale” means issuance of the firs t series of Bonds secured, in whole or in part, by Special Taxes levied and collected from Assessor’s Parcels in Improvement Area No. 2.

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

“HOA Property” means any property within the boundaries of Improvement Area No. 2 that is owned in fee or by easement by a Homeowners Association, not including any such property that is located directly under a residential structure.

“Homeowners Association” means one or more homeowners association (including any master or sub-associations) that provide services to, and collect dues, fees, or charges from, owners of property within Improvement Area No. 2.

Greenbriar CFD No. 2018-03, IA No. 2 5 November 16, 2023

“Improvement Area No. 2” means Improvement Area No. 2 of the City of Sacramento Greenbriar Community Facilities District No. 2018-03 (Improvements).

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

“Land Use Change” means a proposed or approved change to the Expected Land Uses within Improvement Area No. 2 after the CFD Update.

“Maximum Special Tax” means the Maximum Special Tax, determined in accordance with Sections C and D below, that can be levied in any Fiscal Year on any Assessor’s Parcel.

“Multi-Family Property” means any property within the boundaries of Improvement Area No. 2 for which Building Permits were issued for construction of a residential structure with five or more residential units that are offe red for rent to the general pub lic and cannot be purchased by individual homebuyers.

“Non-Residential Property” means, in any Fiscal Year, all Assessor’s Parcels of Developed Property within Improvement Area No. 2 that are not Single Family Residential Property.

“Prepayment Parcel” means an Assessor’s Parcel for which the Prepayment Amount determined under Section H below has been partially or fully prepaid.

“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 Assessor’s Parcels assigned to the Development Class.

“Public Property” means any property within Improvement Area No. 2 that is owned by the City, the County, the State of California, the federal government, or other public agency, except that any property leased by a public agency to a privat e entity and subject to taxation under § 53340.1 of the Act will be taxed and classified in accordance with its use. Privately owned property will be considered Public Property if its development is otherwise constrained by public use and necessity through an easement, a lease, or a license.

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

“Residential Unit” means a for-sale single-family-detached unit or an attached individual for-sale unit within a duplex, triplex, halfplex, fourplex, condominium, townhome, or live/work structure.

A second unit (granny flat) that shares an Assessor’s Parcel with a single-family-detached unit is not a Residential Unit for purposes of levying the Special Tax.

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

Greenbriar CFD No. 2018-03, IA No. 2 6 November 16, 2023

“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 a Residential Unit without further subdivision of the lot and for which no furthe r subdivision of the lot is anticipated pursuant to the Final Map.

“Single Family Residential Property” means, in any Fiscal Year, all Assessor’s Parcels of Developed Property for which a Building Permit wa s issued for construction of one or more Residential Units.

“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: (1) to pay principal and interest on Bonds due in the ca lendar year that begins in the Fiscal Year; (2) to create or replenish reserve funds to the ex tent replenishment has not been included in the computation of Special Tax Requirement in a previous Fiscal Year; (3) to cure any delinquencies in the payment of principal or interest on B onds that has occurred in the prior Fiscal Year; (4) to pay Administrative Expenses; and (5) to pay the cost s of Authorized Facilities not funded by Bonds, as allowed by the City, so long as such levy under this clause (5) does not increase the Special Tax levied on Final Map Property, Undeveloped Pr operty, Anticipated Park/School Site Property, Taxable HOA Property, Taxable Multi-Family Property, Taxable Welfare Exemption Property, or Taxable Public Property. The Special Tax Requirement may include reductions in the calculation in any Fiscal Year by interest earnings on, or surplus balances in, funds and accounts for the Bonds to the extent that the earnings or balances are available to apply against debt service in accordance with the Indenture or other relevant documen t; by proceeds from the co llection of penalties associated with delinquent Special Taxes; and by any other revenues available to pay debt service on the Bonds, as determined by the Administrator.

“Taxable HOA Property” means, in any Fiscal Year after the First Bond Sale, any Assessor’s Parcel of HOA Property that sati sfies all three of the followi ng conditions: (1) the Assessor’s Parcel had not been HOA Property on the date of the First Bond Sa le; (2) based on reference to Attachments 1 and 2 (as may be updated pursuant to Section D.1 below), the Assessor’s Parcel was not anticipated to be HOA Property based on the Expected Land Uses, as determined by the Administrator; and (3) if the Assessor’s Parcel were to be exempt from the Special Tax because it has become HOA Property, the Expected Maximum Special Tax Revenues would be reduced to a point at which Required Coverage could not be maintained.. “Taxable Multi-Family Property” means, in any Fiscal Year after the First Bond Sale, any Assessor’s Parcel of Multi-Family Property that satisfies all three of the following conditions: (1) the Assessor’s Parcel had not been Multi-Family Property on the date of the First Bond Sale; (2) based on reference to Attachments 1 and 2 (as may be updated pursuant to Section D.1 below), the Assessor’s Parcel was not anticipated to be Multi-Family Property based on the Expected Land Uses, as determined by the Administrator; and (3) if the Assessor’s Parcel were to be exempt from the Special Tax because it has become Multi-Family Property, the Expected Maximum Special Tax Revenues would be reduced to a point at which Required Coverage could not be maintained.

“Taxable Non-Residential Property” means any Assessor’s Parcel of Non-Residential Property that is not Exempt Non-Residential Property, as determined by the Administrator.

Greenbriar CFD No. 2018-03, IA No. 2 7 November 16, 2023

“Taxable Property” means all property within Improvement Area No. 2 that is not exempt from the Special Tax pursuant to law or Section G below.

“Taxable Public Property” means, in any Fiscal Year after the First Bond Sale, any Assessor’s Parcel of Public Property that satisfies all three of the following condi tions: (1) the Assessor’s Parcel had not been Public Prope rty on the date of the First Bond Sale; (2) based on reference to Attachments 1 and 2 (as may be updated pursuant to Section D.1 below), the Assessor’s Parcel was not anticipated to be Public Property based on the Expected Land Uses, as determined by the Administrator; and (3) if the Assessor’s Parcel were to be exempt from the Special Tax because it has become 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 Assessor’s Parcel of Welfare Exemption Propert y that satisfies all three of the following conditions: (i) the Assessor’s Parc el had not been Welfare Exemp tion 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 Assessor’s Parcel was not anticipated to be Welfare Exemption Property based on the Expected Land Uses, as dete rmined by the Administrator; and (iii) if the Assessor’s 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 the tentative map for Greenbriar Ph ase 2, as shown in Attachment 2 of this RMA, including any adjustments or amendments thereto.

“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, Final Map Pr operty, Anticipated Park/Sc hool Site Property, Taxable HOA Property, Taxable Multi-Family Property, Taxabl e Welfare Exemption Pr operty, and Taxable Public Property.

“Village” means a specific geographic area within Improvement Area No. 2 that: (1) is identified by an assigned number on the Tentative Map; (2) is expected to have SFD Lots that are all of a similar size; and (3) is assigned Expected Maximum Special Tax Revenues in Attachment 1 based on the Expected Land Uses for that Village.

“Welfare Exemption Property” means, in any Fiscal Year, any Assessor’s Parcels in Improvement Area No. 2 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.

B. D ATA FOR ADMINISTRATION OF SPECIAL TAX

On or about July 1 of each Fiscal Year, the Administrator shall identify the Special Tax Requirement for the Fiscal Year. The Administrat or shall also determine the following for each Assessor’s Parcel: (1) the current Assessor’s Parcel Number for the Assessor’s Parcel; (2) whether

Greenbriar CFD No. 2018-03, IA No. 2 8 November 16, 2023 it is Developed Property, Final Map Property, Undeveloped Prope rty, Anticipated Park/School Site Property, Taxable HOA Property, Taxabl e Multi-Family Proper ty, Taxable Welfare Exemption Property, Taxable Publ ic Property, or Exempt Propert y; (3) for Developed Property, whether an Assessor’s Parcel is Single Family Residential Property or Non-Residential Property; and (4) for Single Family Residential Property, w ithin which Village each Assessor’s Parcel is located and the number of Residential Units on the Assessor’s Parcel . In addition, the Administrator shall, on an ongoing basis, mon itor Tentative Map revisions, Final Maps, and condominium plans to determine if there are any proposed changes to the Expected Land Uses that would reduce the Expected Maximum Special Tax Revenues for a Village. If the Expected Maximum Special Tax Revenues will be reduced pursuant to a propose d Land Use Change, the Administrator shall apply the steps set forth in Section D.1 below.

In any Fiscal Year, if the Administrator determines—

 that a Final Map or other map for an Assessor’s Parcel within Improvement Area No. 2 was
recorded after January 1 of the prior Fiscal Year (or on any other date after which the County Assessor will not incorporate the newly created parcels into the then-current tax roll);

 that because of the date the map was recorded, the County Assessor does not yet recognize the new parcels created by the map; and

 that one or more of the newly created par cels is in a different Development Class from other parcels created by the map,

then the Administrator shall calculate the Special Tax for the property affected by recordation of the map by determining the Special Tax that a pplies separately to the property within each Development Class and then applying the sum of the individual Special Taxes to the Assessor’s Parcel that was subdivided by recordation of the map.

C. M

AXIMUM SPECIAL TAX

1. Developed Property and Final Map Property

The Maximum Special Tax for an Assessor’s 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.

Greenbriar CFD No. 2018-03, IA No. 2 9 November 16, 2023 Table 1
Base Special Tax for
Developed Property and Final Map Property

Land Use

Base Special Tax
(Fiscal Year 2021-22)*

Single Family Residential Property
Village 1
Village 2
Village 3
Village 4
Village 5
Village 6
Village 7
Village 8
Village 9
Village 10
Village 11
Village 12
Village 13
Village 14
Village 15
Village 16
Village 17
Village 18
Village 19
Phase 1–Village 14

$2,134 per Residential Unit or SFD Lot
$2,134 per Residential Unit or SFD Lot
$2,767 per Residential Unit or SFD Lot
$2,430 per Residential Unit or SFD Lot
$2,430 per Residential Unit or SFD Lot
$2,767 per Residential Unit or SFD Lot
$3,020 per Residential Unit or SFD Lot
$2,767 per Residential Unit or SFD Lot
$3,020 per Residential Unit or SFD Lot
$3,020 per Residential Unit or SFD Lot
$2,430 per Residential Unit or SFD Lot
$3,069 per Residential Unit or SFD Lot
$3,069 per Residential Unit or SFD Lot
$2,665 per Residential Unit or SFD Lot
$2,665 per Residential Unit or SFD Lot
$2,665 per Residential Unit or SFD Lot
$2,665 per Residential Unit or SFD Lot
$3,346 per Residential Unit or SFD Lot
$3,346 per Residential Unit or SFD Lot
$1,689 per Residential Unit or SFD Lot
Taxable Non-Residential Property $29,884 per Acre

* On July 1, 2022, and on each July 1 therea fter, the Base Special Taxes shown above will be increased by 2% of the amount in effect in the previous Fiscal Year.

2. Undeveloped Property, Anticipated Park/School Site Property, Taxable Multi- Family Property, Taxable HOA Property, Taxable Welfare Exemption Property, and Taxable Public Property

The Maximum Special Tax for Undeveloped Prope rty, Anticipated Park /School Site Property, Taxable Multi-Family Property, Taxable HOA Prope rty, Taxable Welfare Exemption Property, and Taxable Public Property is $29,884 per Acre for Fiscal Year 2021-22, which amount shall increase on July 1, 2022 and each July 1 thereafte r by an amount equal to 2.0% of the amount in effect for the prior Fiscal Year.

D. C

HANGES TO MAXIMUM SPECIAL TAX

The Expected Maximum Special Tax Revenues were calculated based on the Expected Land Uses at the CFD Update. Attachment 1 is subjec t to modification upon the occurrence of Land Use

Greenbriar CFD No. 2018-03, IA No. 2 10 November 16, 2023 Changes, as described below. The Administr ator shall review Fina l Maps, Tentative Map revisions, and other changes to land uses propos ed within Improvement Area No. 2 and compare the revised land uses to the Expected Land Uses to evaluate the impact on the Expected Maximum Special Tax Revenues.

1. Land Use Changes

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.1. Upon approval of the Land Use Change, the Administrator shall update Attachment 1 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 1 (which shall be updated by the Administrator each time a Land Use Change has been processe d according to this Section D.1 or a partial 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. 2 after the Land Use Change.

Step 3: If the revenues calculated in Step 2 are (i) higher than that determined in Step 1 or (ii) less than thos e 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 Attachme nt 1 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 the Required Coverage, one of the following shall occur:

3.a. The landowner requesting the Land Use Change (the “Requesting Landowner”) may make a prepayment in an am ount that will ensure that the reduced Expected Maximum Special Ta x Revenues are sufficient to provide Required Coverage, as determined pur suant to Section H below. If the Requesting Landowner notifies the Adminis trator 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 Bu ilding Permits for any Assessor’s Parcel owned by the Requesting Landowner th at was Final Map Property or Undeveloped Property at the time the Ad ministrator prepared the prepayment estimate, or

Greenbriar CFD No. 2018-03, IA No. 2 11 November 16, 2023

3.b. If a prepayment is not received, the Base Special Tax fo r each Assessor’s Parcel of Taxable Property in the area affected by the Land Use Change shall be increased proportionately until the Expected Maximum Special Tax Revenues for the area affected by the Land Use Cha nge is the same as it was prior to the Land Use Change.

If multiple Land Use Changes are proposed simult aneously by a single la nd owner (which may include approval of multiple Final Maps at on e time), the Administrator may consider the combined effect of all the Land Use Changes to determine if there is a reduction in Expected Maximum Special Tax Revenues. If there is a reduction, the Admin istrator shall increase the Maximum Special Tax proportionately in all of the Final Maps being proposed by the landowner until the aggregate amount that can be levied wi thin the Final Maps is equal to the amount that could have been levied prior to the proposed Land Use Change s. If Land Use Changes are proposed simultaneously by multiple landowners, the Administrator shall consider the proposed Land Use Changes individually.

Notwithstanding the foregoing, once a certificate of occupancy has be en issued for a Residential Unit on an Assessor’s Parcel, the Maximum Speci al Tax for the Assessor’s Parcel cannot be increased because of subsequent Land Use Change s that may occur within the area in which the Assessor’s Parcel is located.

The duties imposed on the Administrator pursuant to this Section D.1 to review Land Use Changes, and to review Final Maps and ma ke certain calculations, are in tended only to facilitate the administration of the Special Tax an d to better assure the sufficie ncy of tax capacity to pay debt service on Bonds. Such duties are not intended to give any devel oper, subdivider, or owner of property the right to receive not ice of the potential impact of Land Use Changes on the Special Tax applicable to an Assessor’s Parcel; and eac h developer, subdivider, or owner of property whose property is the subject of a Land Use Cha nge shall be responsible for understanding the impact thereof on the Special Tax applicable to such property.

2. Transfer of Expected Maximum Special Ta x 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: (1) all adjustments are agreed to in writing by the affected property owners and the City; and (2) there is no reduction in the total Expected Maximum Special Tax Revenues as a result of the transfer.

3. Conversion of an Assessor’s Parcel of Public Property to Private Use

If, in any Fiscal Year, an Assessor’s Parcel of P ublic Property is converted to private use, such Assessor’s Parcel shall be subject to the levy of the Special Tax. The Maximum Special Tax for each such Assessor’s Parcel shall be determined based on consideration of the Maximum Special Taxes for Assessor’s Parcels with similar land use designations, as determined by the Administrator.

Greenbriar CFD No. 2018-03, IA No. 2 12 November 16, 2023

E. M ETHOD OF LEVY OF SPECIAL TAX

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

Step 1. The Special Tax will be levied Proportiona tely on Developed Property up to 100% of the Maximum Special Tax for each Assessor’s Parcel until the amount levied is equal to the Special Tax Requirement before applyi ng Capitalized Interest that is available under the Indenture.

Step 2. If additional revenue is needed after Step 1 to meet the Special Tax Requirement after Capitalized Interest has been applied to reduce the Special Tax Requirement, the Special Tax will be levied Proportionately on Final Map Property up to 100% of the Maximum Special Tax for each Assessor’s Parcel of Final Map Property.

Step 3. If additional revenue is needed after Step 2 to meet the Special Tax Requirement after Capitalized Interest has been applied to reduce the Special Tax Requirement, the Special Tax will be levied Proportionately on Undeveloped Property up to 100% of the Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property.

Step 4. If additional revenue is needed after Step 3 to meet the Special Tax Requirement, the Special Tax will be levied Proportionately on Anticipated Park/School Site Property up to 100% of the Maximum Special Tax for each Assessor’s Parcel of Anticipated Park/School Site Property.

Step 5. If additional revenue is needed after Step 4 to meet the Special Tax Requirement, the Special Tax will be levied Proportionatel y on Taxable Multi-Family Property up to 100% of the Maximum Special Tax for each Assessor’s Parcel of Taxable Multi- Family Property.

Step 6. If additional revenue is needed after St ep 5, the Special Tax will be levied Proportionately on Taxable Welfare Exemption Property up to 100% of the Maximum Special Tax for each Assessor’s Parcel of Taxable Welfare Exemption Property.

Step 7. If additional revenue is needed after Step 6 to meet the Special Tax Requirement, the Special Tax will be levied Proportionately on Taxable HOA Property up to 100% of the Maximum Special Tax for each Assessor’s Parcel of Taxable HOA Property.

Step 8. If additional revenue is needed after Step 7 to meet the Special Tax Requirement, the Special Tax will be levied Proportionately on Taxable Public Property up to 100% of the Maximum Special Tax for each Assessor’s Parcel of Taxable Public Property.

Notwithstanding the above, under no circumstances will the Speci al Tax levied on any Single Family Residential Property be increased by more than 10% as a consequence of delinquency or default by the owner of any other property in Improvement Area No. 2.

Greenbriar CFD No. 2018-03, IA No. 2 13 November 16, 2023

F. M

ANNER OF COLLECTION OF SPECIAL TAX

The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes, except that: (1) pr epayments are permitted as set forth in Section H below; and (2) the City may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner, and may co llect delinquent Special Taxes through foreclos ure or other available methods. The Special Tax will be levied and collected until principal and interest on all Bonds have been repaid and the Authorized Facilities to be constructed directly from Special Tax proceeds have been completed. But in no event will the Special Tax be levied after Fiscal Year 2059-60.

G. E

XEMPTIONS

Notwithstanding any other provision of this RMA, the Special Tax will not be levied in any Fiscal Year on: (1) Exempt Property, except Taxable Public Property, Taxable Multi-Family Property, Taxable Non-Residential Prope rty, Taxable Welfare Exemp tion Property, and Taxable HOA Property; or (2) Prepayment Parcels that have fully prepaid the Speci al Tax obligation.

Notwithstanding the foregoing, if a Special Tax has been levied on an Asse ssor’s Parcel in any Fiscal Year, and the entire Assessor’s Parcel subsequently meets the criteria to be categorized as Exempt Property, the Assessor’s Parcel shall remain subject to the Special Tax levy, unless the First Bond Sale has yet to occur, in which case such property shall be categorized as Public Property, HOA Property, or Multi-Family Propert y, as the case may be, and the Administrator shall recalculate the Expect ed Maximum Special Tax Revenues based on the corresponding change in revenues.

H. P

REPAYMENTS

1. Definitions

The following definitions apply only to this Section H:

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

“Optional Prepayment ” means a prepayment of the Speci al Tax, other th an a mandatory prepayment under Section D.1, that is calculated using the formula in this Section H.

“Outstanding Bonds” means all Previously Issued Bonds that remain outstanding, with the following exception: if a Special Tax has been levi ed against, or has already been paid for, an Assessor’s Parcel for which a prepayment is to be made, and if a portion of the Special Tax will be used to pay a portion of the next principa l payment on the Bonds that remain outstanding (as determined by the Administrator), then the next principal payment will be subtracted from the total principal of Bonds that remain s outstanding, and the difference will be used as the amount of Outstanding Bonds for purposes of calculating the Prepayment Amount.

Greenbriar CFD No. 2018-03, IA No. 2 14 November 16, 2023

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

“Public Facilities Requirement” means either: (a) $51 million in 2021 dolla rs, increased 2% annually on each July 1 beginning July 1, 2022; or (b ) such other number as the City determines in its sole discretion to be sufficient both to fund the Authorized Facilities projected to be funded by Improvement Area No. 2 and to treat all owners of Taxable Property within Improvement Area No. 2 fairly and equitably.

“Remaining Facilities Costs” means the Public Facilities Requirement minus public-facility costs funded by Previously Issued Bonds or by Special Taxes.

2. Full Prepayment

The Special Tax obligation applicable to an Assessor’s Parcel may be prepaid and the obligation of the Assessor’s Parcel for the Special Tax perm anently satisfied as described in this Section H.2, provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to the Assessor’s Parcel at the time of prepayment. An owner of a Assessor’s Parcel intending to prepay the Special Tax obligation must provide the City with written notice of intent to prepay. Within 30 days after receipt of a writt en notice of intent to prepay, the City or its designee shall notify the owner of the amount required to fully prepay the Special Tax obligation for the Assessor’s Parcel (the “Prepayment Amount”). Prepayment must be made not less than 75 days before any redemption date for Bonds to be redeemed with the proceeds of the prepaid Special Taxes unless otherwise permitted by the City. Under no circumstance will a prepayment be allowed that would reduce debt-service coverage below the Required Coverage. The Prepayment Amount will be calculated as follows (capitalized terms as defined above or below):

The Bond Redemption Amount
 plus the Remaining Facilities Amount
 plus the Redemption Premium (if applicable)
 plus the Defeasance Requirement
 plus the Administrative Fees and Expenses
 less the Proportionate Reserve Fund Credit
equals the Prepayment Amount

As of the proposed date of prepayment, the Administrator shall calculate the Prepayment Amount by applying the following steps:

Step 1. Calculate the Maximum Special Tax to be pr epaid for the Assessor’s Parcel based on the Expected Land Uses for the Assessor’s Parcel. If this Section H is being applied to calculate a prepayment under Section D.1 above, then use, for purposes of this Step 1, the amount by which the Maximum Special Tax revenues have been reduced below the amount needed to maintain Required Cove rage due to the Land Use Change that necessitated the prepayment.

Step 2. Divide the Maximum Special Tax calculated under Step 1 by the Maximum Special Tax revenues that could be generated at buildout of all property in Improvement Area No. 2 based on the Expected Land Uses at the time the prepayment is calculated.

Greenbriar CFD No. 2018-03, IA No. 2 15 November 16, 2023

Step 3. Multiply the quotient calculated under St ep 2 by the principal amount of the Outstanding Bonds to calculate the amount of Outstanding Bonds to be retired and prepaid (the “Bond Redemption Amount”).

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

Step 5. Multiply the quotient calculated under Step 2 by the amount calculated under Step 4 to calculate the amount of Re maining Facilities Cost s to be prepaid (the “Remaining Facilities Amount”).

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

Step 7. Calculate the amount needed to pay interest on the Bond Redemption Amount starting with the last Bond interest-payment date on which interest has been or will be paid by Special Taxes already levied until the earlie st redemption date for the Outstanding Bonds. If Bonds are callable at or before the last Bond interest-payment date on which interest has been or will be paid by Speci al Taxes already levied, then Steps 7, 8, and 9 of this prepayment formula will not apply.

Step 8. Calculate the amount of interest the C ity reasonably expects to derive from reinvestment of the Bond Redemption Amount plus the Redemption Premium from the first Bond interest-payment da te after which the prepayme nt has been received until the redemption date for the Outstanding Bonds.

Step 9. Subtract the amount calculated under Step 8 from the amount calculated under Step 7 (the “Defeasance Requirement”).

Step 10. Calculate the Administrative Expenses associated with the prepayment, including the costs of determining the prepayment, redeeming Bonds, and recording any notices to evidence the prepayment and the redemption (the “Administrative Fees and Expenses”).

Step 11. If, when the prepayment is determined, the reserve fund is greater than or equal to the reserve requirement, then, to the extent so provided in the Indenture, calculate a proportionate reserve fund credit as a reducti on in the applicable reserve fund for the Outstanding Bonds to be redeemed with the prepayment (the “Proportionate Reserve Fund Credit”).

Step 12. The Prepayment Amount is equal to the sum of the amounts calculated under Steps 3, 5, 6, 9, and 10 minus the amount calculated under Step 11.

Step 13. From the Prepayment Amount, the amounts calculated under Steps 3, 6, and 9 will be deposited into the appropriate fund as established under the Indenture and will be used to retire Outstanding Bonds or make debt -service payments. The amount calculated under Step 5 will be deposited into the Construction Fund. The amount calculated under

Greenbriar CFD No. 2018-03, IA No. 2 16 November 16, 2023 Step 10 will be retained in the account or fund that is established to pay Administrative Expenses.

Once a full prepayment has been received, a Noti ce of Cancellation of Special Tax Lien will be recorded against the affected Assessor’s Parcel, except that a Notice of Cancellation of Special Tax Lien will not be recorded until all Special Ta xes levied on the affected Assessor’s Parcel in the current or prior Fiscal Years have been collected.

3. Partial Prepayment

The Special Tax on an Assessor’s Parcel or SFD Lot for which a certificate of occupancy has not yet been issued or a final inspection has not been conducted may be partially prepaid (a “Partial Prepayment”). However, a Partial Prepayment must be made in an amount equal to 25%, 50% or 75% of the amount of the full Prepayment Amount calculated under Section H.2 above. In calculating a Partial Prepayment , the Administrator shall round up the amount required for the Partial Prepayment in order to redeem whole bonds, including any redemption premium.

Only one Partial Prepayment is permitted for each Assessor’s Par cel or SFD Lot, and a Partial Prepayment will not be accepted for an Assessor’s Parcel or SFD Lot after a certificate of occupancy has been issued or a final inspection completed for that Assessor’s Parcel or SFD Lot.

The owner of an Assessor’s Parcel or SFD Lot who desires to ma ke a Partial Prepayment must notify the Administrator of the percentage of the Special Tax to be prepaid. The Administrator shall provide the owner with a statement of the amount required for the Partial Prepayment within 30 days after receiving the request and may charge a fee for providing this service. With respect to any Special Tax that is partially prepaid on an Assessor’s Parcel or SFD Lot, the Administrator shall (a) distribute the remitted prepayment funds according to Section H.2 above and (b) indicate in the records of the CFD that there has been a Partial Prepayment of the Special Tax and that a portion of the Special Tax with respect to the Assessor’s Parcel or SFD Lot, equal to the non- prepaid percentage of the Maximum Special Tax, will continue to be levied on the Assessor’s Parcel or SFD Lot according to Section F.

Once a Partial Prepayment has been received, an Amendment to Special Tax Lien will be recorded against the affected Assessor’s Parcel or SFD Lot. However, an Amendment to Special Tax Lien will not be recorded until all Special Taxes levied on the affected Assessor’s Parcel or SFD Lot in the current or prior Fiscal Years have been collected.

4. Prepayment Restrictions

Optional Prepayment of the Special Tax in accordan ce with this Section H is not permitted if it would reduce debt service coverage below the Required Coverage.

I. R

ECORDS MAINTAINED FOR THE CFD

As development occurs in the CFD, the Administrat or shall maintain a file containing records of the following information for each Assessor’s Parcel:

Greenbriar CFD No. 2018-03, IA No. 2 17 November 16, 2023 • The current Assessor’s Parcel Number
• The current Final Map status for the Assessor’s Parcel • The current Building Permit status for the Assessor’s Parcel • The designated and existing us es for the Assessor’s Parcel • The total number of Residential Un its assigned to the Assessor’s Parcel • The Maximum Special Tax assigned to the Assessor’s Parcel • Prepayments, including prepayments for Assessor’s Parcels that have fully or partially paid the Special Tax

J. I

NTERPRETATION OF SPECIAL TAX FORMULA

The City Council may, by resolution, interpret this RMA for purposes of clarifying any vagueness or ambiguity in the Special Tax rates, method of apportionment, classification of properties, and definitions applicable to the CFD. The City Council’s interpretation will be conclusive. The Administrator may do the following without the City Council’s approval:

(1) Interpret this RMA for purposes of clarifying matters as they relate to the Special Tax rate, the method of apportionment, the classification of properties, or the definitions applicable to the CFD.

(2) Make minor, non-substantive administrative and technical changes to this RMA for purposes of administrative efficiency or conve nience or to comply with new applicable federal, state, or local law, but only if the changes do not materially affect the rate, method of apportionment, and manner of collection of the Special Tax.

In addition, the City, upon request of an owner of land that is not Developed Property, may amend this RMA to reallocate the Special Tax applicable to such owner’s land in a manner acceptable to the City, without resolution or ordinance of th e City Council, upon the affirmative vote of such owner and without the vote of owners of any other land within the CFD, provided such amendment: (i) only affects the owner’s land, (ii) does not reduce the Expected Maximum Special Tax Revenues, and (iii) provides for a Special Tax distribution upon development of such land which is reasonably proportional and consistent with Special Tax rates provided for in Section C (including escalations thereto) for similar land uses and is compliant with the tax assessment loan exception contained in U.S. Treasury Regulation Section 1.141-5(d), as determined by the City.

K. A
PPEALS

A taxpayer who believes that the amount of the Special Tax assigned to the taxpayer’s Assessor’s Parcel is in error may file a notice with the Administrator, who will then promptly review the appeal and, if necessary, meet with the taxpayer. If the Administrator determines that the Special Tax should be modified, then the Special Tax levy will be corrected and, if applicable, a credit or refund will be granted.

ATTACHMENT 1

IMPROVEMENT AREA NO. 2 OF THE

CITY OF SACRAMENTO
GREENBRIAR COMMUNITY FACILITIES DISTRICT NO. 2018-03
(IMPROVEMENTS)

EXPECTED LAND USES AND EXPECTED MAXIMUM SPECIAL TAX REVENUES

Village Expected Land Uses
Base
Special Tax
FY 2021-22 /1
Expected
Maximum
Special Tax
Revenues
FY 2021-22 /1
Village 1 104 Residential Units $2,134 per Residential Unit $221,936 Village 2 89 Residential Units $2,134 per Residential Unit $189,926 Village 3 11 Residential Units $2,767 per Residential Unit $30,437 Village 4 68 Residential Units $2,430 per Residential Unit $165,240 Village 5 61 Residential Units $2,430 per Residential Unit $148,230 Village 6 54 Residential Units $2,767 per Residential Unit $149,418 Village 7 26 Residential Units $3,020 per Residential Unit $78,520 Village 8 88 Residential Units $2,767 per Residential Unit $243,496 Village 9 53 Residential Units $3,020 per Residential Unit $160,060 Village 10 59 Residential Units $3,020 per Residential Unit $178,180 Village 11 44 Residential Units $2,430 per Residential Unit $106,920 Village 12 60 Residential Units $3,069 per Residential Unit $184,140 Village 13 50 Residential Units $3,069 per Residential Unit $153,450 Village 14 54 Residential Units $2,665 per Residential Unit $143,910 Village 15 31 Residential Units $2,665 per Residential Unit $82,615 Village 16 34 Residential Units $2,665 per Residential Unit $90,610 Village 17 44 Residential Units $2,665 per Residential Unit $117,260 Village 18 59 Residential Units $3,346 per Residential Unit $197,414 Village 19 49 Residential Units $3,346 per Residential Unit $163,954 Phase 1 –
Village 14 139 Residential Units $1,689 per Residential Unit

$234,771

Total 1,177 Residential Units N/A
$3,040,487

/1 On July 1, 2022 and each July 1 thereaf ter, the Base Special Taxes and the Expected Maximum Special Tax Revenues shall be increased by two percent (2%) of the amount in effect in the prior Fiscal Year.

ATTACHMENT
2 IMPROVEMENT AREA NO. 2 OF THE

CITY OF SACRAMENTO
GREENBRIAR COMMUNITY FACILITIES DISTRICT NO. 2018-03
(IMPROVEMENTS)

IDENTIFICATION OF VILLAGES

LEGEND:

BUILDING RELATIONSHIPS ONE PROJECT AT A TIME3301 C St, Bldg. 100-BTel 916.341.7760Fax 916.341.7767Sacramento, CA 95816

ATTACHMENT
3 IMPROVEMENT AREA NO. 2 OF THE

CITY OF SACRAMENTO
GREENBRIAR COMMUNITY FACILITIES DISTRICT NO. 2018-03
(IMPROVEMENTS)

IDENTIFICATION OF ANTICIPATED PARK/SCHOOL SITE PROPERTY

BUILDING RELATIONSHIPS ONE PROJECT AT A TIME3301 C St, Bldg. 100-BTel 916.341.7760Fax 916.341.7767Sacramento, CA 95816

ATTACHMENT
4 IMPROVEMENT AREA NO. 2 OF THE

CITY OF SACRAMENTO
GREENBRIAR COMMUNITY FACILITIES DISTRICT NO. 2018-03
(IMPROVEMENTS)

IDENTIFICATION OF EXEMPT NON-RESIDENTIAL PROPERTY
LEGEND:

BUILDING RELATIONSHIPS ONE PROJECT AT A TIME3301 C St, Bldg. 100-BTel 916.341.7760Fax 916.341.7767Sacramento, CA 95816

RESOLUTION NO.

Adopted by the Sacramento City Council

Resolution Submitting Annexation of Territory to Improvement Area No. 2 of the City of Sacramento Greenbriar Community Facilities District No. 2018-03 (Improvements), Changes to Rate and Method of Apportionment of Special Taxes for said Improvement Area and Levy of Special Taxes to Qualified Electors

BACKGROUND

A. In 2018, the City Council conducted proceedings under the Mello-Roos Community Facilities Act of 1982, set forth at Government Code sections 53311 through 53368.3 (the “ Act”), to form the “City of Sacramento Greenbriar Community Facilities District No. 2018 -03 (Improvements)” (the “ CFD”), to create two improvement areas within the CFD known as “Improvement Area No. 1 of the City of Sac ramento Greenbriar Community Facilities District No. 2018 -03 (Improvements)” (“IA-1”) and “Improvement Area No. 2 of the City of Sacramento Greenbriar Community Facilities District No. 2018-03 (Improvements)” (“IA-2”), to authorize the levy of special taxes upon the land within IA -1 and IA-2 pursuant to the rate and method of apportionment for IA -1 and for IA -2, respectively, and to issue bonds secured by the special taxes in order to finance certain public facilities, either directly or through the financi ng of governmental fees, all as described in those proceedings.

B. In 2020, at the request of the owner of all of the land in IA -1, the City Council undertook change proceedings under the Act to (1) amend the boundary map for the CFD by removing two parcels from IA-1, (2) amend and restate the rate and method of apportionment of special taxes for IA -1, and (3) decrease the indebtedness limit for IA-1.

C. In 2021, at the request of the owner of all of the land in IA -2, the City Council undertook change proceedin gs under the Act to (1) amend and restate the rate and method of apportionment of special taxes for IA -2 to increase the maximum special tax rates, modify the provisions for partial prepayment of special taxes, and make related and clarifying changes, and (2) increase the indebtedness limit for IA-2.

D. The City has received a petition, a copy of which is on file with the City Clerk, from the owner of all the land proposed for annexation to IA -2 (the “ Annexation Territory”) and all the land subject to the spe cial tax currently within IA -2 (the

2 “Existing IA-2 Territory”), requesting that the City annex the Annexation Territory to IA-2 and, in connection therewith, undertake change proceedings to adopt a further amended and restated rate and method of apportionment of special taxes for IA-2 (the “Second Amended Rate and Method”).

E. To date, the City has not issued any bonds or indebtedness secured by special taxes to be levied on taxable property within IA-2.

F. Under the Act, the City Council, as the legislative body for the CFD, has the authority to undertake proceedings to annex the Annexation Territory to IA-2 and, in connection therewith, undertake change proceedings to adopt the Second Amended Rate and Method.

G. The City Council has determined that the proposed proceedings for IA -2 are consistent with and follow the local goals and policies concerning the use of the Act that have been adopted by the City Council and are now in effect.

H. On November 28, 2023, pursuant to Resolution No. 2023-0379 (the “Resolution of Intention to Annex ”), the City Council declared its intention to annex the Annexation Territory to IA-2 and to adopt the Second Amended Rate and Method, and said Resolution of Intention to Annex incorporated a description and map of the proposed boundaries of the Annexation Territory, the facilities to be financed by the Annexation Territory (the “ Facilities”) and the special taxes to be levied within the Annexation Territory to pay for the Facilities (the “Special Taxes”), and the provisions thereof are fully incorporated herein by this reference as if fully set forth herein.

I. On January 9, 2024, the City Council held a noticed public hearing as required by the Act and the Resolution of Intention to Annex relative to the proposed annexation of the Annexation Territory to IA-2, the levy of Special Taxes within the Annexation Territory and the adoption of the Second Amended Rate and Method.

J. At such hearing all interested persons desiring to be heard on all matters pertaining to the annexation of the Annexation Territory to the CFD , the levy of the Special Taxes within the Annexation Territory and the adoption of the Second Amended Rate and Method were heard and a full and fair hearing was held.

K. Prior to the time fixed for the hearing, written protests had not been filed against the proposed annexation of the Annexation Territory to IA-2 or the proposed adoption of th e Second Amended Rate and Method by (i) 50% of more of the registered voters, or six registered voters, whichever is more, residing in the

3 Existing IA-2 Territory, or (ii) 50% or more of the registered voters, or six registered voters, whichever is more, residing in the Annexation Territory, (iii) owners of one- half or more of the area of land in Existing IA-2 Territory not exempt from special taxes, or (iv) owners of one -half or more of the area of land in the Annexation Territory not exempt from special taxes.

L. The annexation map describing the boundaries of the Annexation Territory has been filed with the City Clerk and recorded in the Office of the County Recorder of the County of Sacramento on November 30, 2023, in Book 142 at Page 27 of Maps of Assessment and Community Facilities Districts, as Document No. 2023- 11300733.

M. On January 9, 2024 pursuant to Resolution No. 2024-0008 (the “ Election Resolution”) this City Council determined to submit the question of the annexation of the Annexation Territory to IA-2 and the adoption of the Second Amended Rate and Method for IA-2 to the qualified electors at an election to be held January 16, 2024.

N. Prior to the scheduled election date and a t the request of the owner s of all of the land in the Annexation Territory and the Existing IA-2 Territory, this City Council was asked to rescind the Election Resolution and to reconsider it at a future date to be requested by such owners.

O. On February 6, 2024 , pursuant to Resolution No. 2024-0038 this City Council rescinded the Election Resolution.

P. On or about February 5, 2024 the owner s of all of the land in the Annexation Territory and the Existing IA-2 Territory requested that the election be reset.

Q. On the basis of all the foregoing, this City Council has determined to submit the question of the annexation of the Annexation Territory to IA-2 and the adoption of the Second Amended Rate and Method for IA -2 to the qualified electors at an election to be held March 5, 2024.

R. A Certificate Relative to Voters has been filed with the City Clerk, certifying that at some time during the 90 days preceding the close of the public hearing, there were residing within the Annexation Territory and within the Existing IA-2 Territory fewer than 12 persons registered to vote.

4 BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:

Section 1. The City Council finds that the statements in the Background are true.

Section 2. All prior proceedings taken by the City Council with respect to the CFD, the proposed annexation of the Annexation Territory to IA-2 and the proposed adoption of the Second Amended Rate and Method have been duly considered and are hereby determined to be valid and in conformity with the Act.

Section 3. The provisions of the Resolution of Intention to Annex and the Resolution of Formation with respect to the CFD adopted by the City Council on November 27, 2018 as Resolution No. 2018 -0459 (the “ Resolution of Formation”), are by this reference incorporate d herein, as if fully set forth herein.

Section 4. A special mailed -ballot election is hereby ordered to be held on Tuesday, March 5, 2024, in accordance with the Act, other applicable law, and this resolution, at which the questions concerning annexation of the Annexation Territory and the adoption of the Second Amended Rate and Method will be submitted to the qualified electors pursuant to a special tax ballot s in the form attached as Exhibit A to this resolution.

Section 5. The Ci ty Council hereby finds that fewer than 12 persons have been registered to vote within the Annexation Territory and within the Existing IA- 2 Territory for at least one of the 90 days preceding the close of the hearing heretofore conducted and concluded by this City Council for the purposes of these proceedings. Accordingly, and pursuant to the Act, the City Council finds that (1) for purposes of the annexation proceedings, the qualified electors are the landowners within the Annexation Territory and that t he vote shall be by said landowners, each having one vote for each acre or portion thereof such landowner owns in the Annexation Territory and (2) for purposes of the change proceedings, the qualified electors are the landowners within the Existing IA-2 Territory and that the vote shall be by said landowners, each having one vote for each acre or portion thereof such landowner owns in the Existing IA-2 Territory. The City Council further finds and determines that (1) said owners of land are the landowners set forth in the petition on file with the City Clerk; and (2) said petition correctly sets forth the amount of property owned by each such landowner so as to calculate the number of votes to which each such landowner is entitled

5 under the Act (i.e., a number of votes equal to the number of acres owned rounded up to the next whole acre).

Section 6. Pursuant the Act, the election shall be conducted by mail ballot s under Section 4000 of the California Elections Code, provided, however, that for purposes of setting the date for the election, Sections 53326 and 53327 of the Act shall govern.

Section 7. Under Section 50075.1 of the Government Code, the following accountability provisions shall apply to the Special Taxes: (a) the provision and/or acquisition of the Facilities and the incidental costs thereof, all as defined in the Resolution of Intention to Annex and the Resolution of Formation, shall constitute the specific single purpose; (b) the proceeds shall be applied only to the specific purposes iden tified in (a) above; (c) there shall be created special account(s) or funds(s) into which the proceeds shall be deposited; and (d) there shall be caused to be prepared an annual audit and report thereof.

Section 8. Pursuant to a petition on file with the City, the owners of all of the Annexation Territory and all the Existing IA -2 Territory have waived the following in connection with these proceedings, as permitted by sections 53326(a) and 53327 of the Act: all notices of hearings (other than published notices under the Act); all notices of election; all applicable waiting periods under the Act for elections; and all ballot arguments for the election. In addition, said owners have waived their right to repeal the special taxes by initiative or any other action, or to file any lawsuit or other proceeding to challenge the formation or existence of the CFD or IA-2, or the levy and collection of the special taxes.

Section 9. The City Clerk is hereby designated as the official to conduct the special mailed-ballot election in accordance with the Act, other applicable law, the provisions set forth in Section 5 above, and the following additional provisions:

(a) The special mailed -ballot election will be conducted as a mailed -ballot election (with two separate measure s) in accordance with the applicable provisions of the California Elections Code and the Act, and the City’s prior proceedings under those sections, and there will be no polling places for the special mailed-ballot election. The City Clerk shall deliver al l ballots to the qualified electors, and all voted ballots must be received at the City Clerk’s office by 5:00 p.m. on the election day, Tuesday, March 5, 2024, to

6 be counted. If, however, all qualified electors have voted before that date and time, then the special mailed-ballot election will be closed.

(b) To vote for approving the proposed measures, a qualified elector must mark a cross (X) in the blank space opposite the word “YES” on the ballot to the right of the question. To vote against approving the proposed measures, a qualified elector must mark a cross (X) in the blank space opposite the word “NO” on the ballot to the right of the question on the proposed changes. The cross (X) or similar mark may be marked with either pen or pencil.

(c) The City Cler k shall commence the canvass of the returns of the special mailed-ballot election at 5 p.m. on Wednesday, March 6, 2024, at the Office of the City Clerk, New City Hall, 915 I Street, Sacramento, California, and, at the conclusion of the canvass, shall dete rmine the results of the special election. If all the qualified electors have voted before that date and time, then the City Clerk shall close the special mailed-ballot election and proceed to canvass the returns and determine the results.

(d) The City Council shall meet at its regular meeting on Tuesday, March 12, 2024, at 5:00 p.m. at its usual meeting place and declare the results of the special mailed-ballot election and shall cause to be included in its minutes a statement of the results of the special mailed -ballot election as ascertained by the canvass.

Section 10. For the special mailed-ballot election, if at least two-thirds of the votes cast are in favor of the measure s, as determined by the City Council after reviewing the canvass of the returns of the election, then the City Council may adopt a resolution determining that the proposed annexation and change proceedings were lawfully authorized in accordance with the Act.

Section 11. Exhibit A is part of this resolution.

Section 12. This resolution takes effect when adopted.

Table of Contents:

Exhibit A – Form of Special Election Ballots

EXHIBIT A FORM OF SPECIAL ELECTION BALLOT – ANNEXATION OF TERRITORY TO IMPROVEMENT AREA NO. 2 AND CHANGE PROCEEDING RELATED THERETO

IMPROVEMENT AREA NO. 2 OF CITY OF SACRAMENTO GREENBRIAR COMMUNITY FACILITIES DISTRICT NO. 2018-03 (IMPROVEMENTS) SPECIAL ELECTION BALLOT – ANNEXATION OF TERRITORY TO IMPROVEMENT AREA NO. 2 AND CHANGE PROCEEDING RELATED THERETO (Mailed-Ballot Election) This ballot is for the use of the authorized representative of the following owner of land on the questions of (1) annexing such land to Improvement Area No. 2 of the City of Sacramento Greenbriar Community Facilities District No. 2018-03 (Improvements) (“IA-2”) and (2) approving the Second Amended Rate and Method (defined below) related thereto: Name of Landowner Number of Acres Owned Total Votes The Greenbriar Project Owner, LLC, a Delaware limited liability company 27.52 28 According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the Sacramento City Council, the above-named Landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by the Landowner that is proposed for annexation into IA-2 (the “Annexation Territory”) with respect to (1) the measure regarding the annexation of the Annexation Territory to IA-2, and (2) the measure for the City Council to undertake change proceedings to adopt a further amended and restated rate and method of apportionment of special taxes for IA-2 (the “Second Amended Rate and Method”), all as further described in that certain “Resolution Submitting Annexation of Territory to Improvement Area No. 2 of the City of Sacramento Greenbriar Community Facilities District No. 2018-03 (Improvements), Changes to Rate and Method of Apportionment of Special Taxes for said Improvement Area and Levy of Special Taxes to Qualified Electors” adopted by the City Council of the City on February 27, 2024 (the “Election Resolution”), to which reference is made for further particulars and which is part of the full-text measure being voted on. In order to be counted, this ballot must be executed and certified below and be returned to the City Clerk, by mail or in person, to be received by the City Clerk prior to 5:00 p.m. on March 5, 2024, at the Office of the City Clerk, New City Hall, 915 I Street, Sacramento, California 95814. Mailing by that time will not be sufficient. This ballot must be received by the time stated in order to be counted.

AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT. All distinguishing marks or erasures are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk and obtain another. BALLOT MEASURE #1 “Shall the measure pursuant to which the Sacramento City Council, acting through the City of Sacramento Greenbriar Community Facilities District No. 2018-03 (Improvements) (the “CFD”), is authorized to (1) annex territory to Improvement Area No. 2 of the CFD (“IA-2”), as such territory is described in the Election Resolution, and (2) levy special taxes on taxable property within the Annexation Territory to pay debt service on bonds and other debt with respect to IA-2 to finance public facilities authorized for the CFD, and the costs of administering the CFD and IA-2, as described in the List of Facilities attached hereto and made a part of this measure, which special taxes, if levied at the maximum rate and assuming full build-out of the Annexation Territory, are anticipated to raise $244,256 in Fiscal Year 2023-24 (with annual escalation thereafter), and which special taxes would be levied at the rate of $1,689/residential unit or SFD lot in Fiscal Year 2021-22 (with other property taxed at other rates) (with annual escalation thereafter) through Fiscal Year 2059-60, as described more fully in the Second Amended Rate and Method for IA-2 attached hereto and made a part of this measure, be adopted?” MARK “YES” OR “NO” WITH AN “X”: YES: NO:
BALLOT MEASURE #2 “Shall the measure pursuant to which the Sacramento City Council, acting through the City of Sacramento Greenbriar Community Facilities District No. 2018-03 (Improvements) (the “CFD”), is authorized to adopt the Second Amended Rate and Method for IA-2, pursuant to which the City Council would levy special taxes on taxable property within IA-2 to pay debt service on bonds and other debt with respect to IA-2 to finance public facilities authorized for the CFD, and the costs of administering the CFD and IA-2, as described in the List of Facilities attached hereto and made a part of this measure, which special taxes, if levied at the maximum rate and assuming full build-out of the taxable property in IA-2, are anticipated to raise $3,163,323 in Fiscal Year 2023-24 (with annual escalation thereafter), and which special taxes would be levied at the rates of $1,689 to $3,346/residential unit or SFD lot in Fiscal Year 2021-22 (with other property taxed at other rates) (with annual escalation thereafter) through Fiscal Year 2059-60, as described more fully in the Second Amended Rate and Method for IA-2 attached hereto and made a part of this measure, be adopted?” MARK “YES” OR “NO” WITH AN “X”: YES: NO:

Certification for Special Election Ballot The undersigned is the above-named Landowner or the authorized representative of the above-named Landowner and is a person legally authorized and entitled to cast this ballot on behalf of the above-named Landowner, and certifies that the Landowner 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 IA-2, and the Second Amended Rate and Method, which includes the tax rates and duration of the special tax to be placed on the Landowner’s property. Further, the undersigned, on behalf of the above-named Landowner, hereby knowingly, voluntarily and intelligently waives any and all defects in any notice, ballot, or procedure related to the conduct of the election, whether known or unknown, including any requirements set forth in The Taxpayer Protection and Government Accountability Act, which is a constitutional initiative that has qualified for the November 2024 Statewide ballot (except the right to vote and to have the ballots fairly counted), and states that the election is being expedited at the particular instance and request of the above-referenced Landowner. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed as of February ___, 2024. Signature Print Name Attachments • List of Authorized Facilities and Fees and Representative Listing of Incidental Expenses • Second Amended and Restated Rate and Method of Apportionment of Special Tax for IA2

FORM OF SPECIAL ELECTION BALLOT – IMPROVEMENT AREA NO. 2 CHANGE PROCEEDING

IMPROVEMENT AREA NO. 2 OF CITY OF SACRAMENTO GREENBRIAR COMMUNITY FACILITIES DISTRICT NO. 2018-03 (IMPROVEMENTS) SPECIAL ELECTION BALLOT – IMPROVEMENT AREA NO. 2 CHANGE PROCEEDING (Mailed-Ballot Election) This ballot is for the use of the authorized representative of the following owner of land within Improvement Area No. 2 of the City of Sacramento Greenbriar Community Facilities District No. 2018-03 (Improvements) (“IA-2”) approving the Second Amended Rate and Method (defined below): Name of Landowner Number of Acres Owned Total Votes Greenbriar Phase 2, LLC, a Delaware limited liability company 209.98 210 According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the Sacramento City Council, the above-named Landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the land subject to the special tax currently within IA-2 (the “Existing IA-2 Territory”) with respect to the measure for the City Council to undertake change proceedings to adopt a further amended and restated rate and method of apportionment of special taxes for IA-2 (the “Second Amended Rate and Method”), all as further described in that certain “Resolution Submitting Annexation of Territory to Improvement Area No. 2 of the City of Sacramento Greenbriar Community Facilities District No. 2018-03 (Improvements), Changes to Rate and Method of Apportionment of Special Taxes for said Improvement Area and Levy of Special Taxes to Qualified Electors” adopted by the City Council of the City on February 27, 2024 (the “Election Resolution”), to which reference is made for further particulars and which is part of the full-text measure being voted on. In order to be counted, this ballot must be executed and certified below and be returned to the City Clerk, by mail or in person, to be received by the City Clerk prior to 5:00 p.m. on March 5, 2024, at the Office of the City Clerk, New City Hall, 915 I Street, Sacramento, California 95814. Mailing by that time will not be sufficient. This ballot must be received by the time stated in order to be counted.

AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT. All distinguishing marks or erasures are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk and obtain another. BALLOT MEASURE #1 Not Applicable BALLOT MEASURE #2 “Shall the measure pursuant to which the Sacramento City Council, acting through the City of Sacramento Greenbriar Community Facilities District No. 2018-03 (Improvements) (the “CFD”), is authorized to adopt the Second Amended Rate and Method for IA-2, pursuant to which the City Council would levy special taxes on taxable property within IA-2 to pay debt service on bonds and other debt with respect to IA-2 to finance public facilities authorized for the CFD, and the costs of administering the CFD and IA-2, as described in the List of Facilities attached hereto and made a part of this measure, which special taxes, if levied at the maximum rate and assuming full build-out of the taxable property in IA-2, are anticipated to raise $3,163,323 in Fiscal Year 2023-24 (with annual escalation thereafter), and which special taxes would be levied at the rates of $1,689 to $3,346/residential unit or SFD lot in Fiscal Year 2021-22 (with other property taxed at other rates) (with annual escalation thereafter) through Fiscal Year 2059-60, as described more fully in the Second Amended Rate and Method for IA-2 attached hereto and made a part of this measure, be adopted?” MARK “YES” OR “NO” WITH AN “X”: YES: NO:

Certification for Special Election Ballot The undersigned is the above-named Landowner or the authorized representative of the above-named Landowner and is a person legally authorized and entitled to cast this ballot on behalf of the above-named Landowner, and certifies that the Landowner 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 IA-2, and the Second Amended Rate and Method, which includes the tax rates and duration of the special tax to be placed on the Landowner’s property. Further, the undersigned, on behalf of the above-named Landowner, hereby knowingly, voluntarily and intelligently waives any and all defects in any notice, ballot, or procedure related to the conduct of the election, whether known or unknown, including any requirements set forth in The Taxpayer Protection and Government Accountability Act, which is a constitutional initiative that has qualified for the November 2024 Statewide ballot (except the right to vote and to have the ballots fairly counted), and states that the election is being expedited at the particular instance and request of the above-referenced Landowner. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed as of February ___, 2024. Signature Print Name Attachments • List of Authorized Facilities and Fees and Representative Listing of Incidental Expenses • Second Amended and Restated Rate and Method of Apportionment of Special Tax for IA2