2026-00540 Proposed Changes to Improvement Area No. 3, Designate a new Improvement Area No. 4 of the Delta Shores Community Facilities District No. 2019-01(Improvements), and Propose the Levy of a Special Tax in and the Incurrence of Debt for Improvement Area No. 4

City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2026-00540 3/10/2026
Proposed Changes to Improvement Area No. 3, Designate a new Improvement Area No. 4 of the Delta Shores Community Facilities District No. 2019-01 (Improvements), and Propose the Levy of a Special Tax in and the Incurrence of Debt for Improvement Area No. 4 File ID: 2026-00540
Location: District 8
Recommendation: Adopt a Resolution: 1) considering changes to the boundaries of Improvement Area No. 3 (IA-3) of the Delta Shores Community Facilities District No. 2019-01 (Improvements) (CFD) and to the Rate and Method of Apportionment (RMA) of Special Tax, the appropriations limit, the authorized amount of bonded indebtedness and the public facilities authorized to be financed in and for IA-3 of the CFD; 2) designating a new Improvement Area No. 4 (IA-4) of the CFD and proposing the levy of new special tax in IA-4 to finance the acquisition and construction of certain public facilities; and 3) declaring the necessity to incur bonded indebtedness in and for IA-4.

Contact: Jessica Steinhauer, Senior Development Project Manager, (916) 808-8243, [email protected]; Eric Frederick, Special Districts Manager, (916) 808-5129, [email protected]; Department of Finance
Presenter: None
Attachments:
1-Description/Analysis
2-Background
3-Schedule of Proceedings
4-Resolution of Consideration
5-Exhibit A (Amended Boundary Map)
6-Exhibit B (Second Amended and Restated RMA for IA-3)
7-Exhibit C (List of Authorized Facilities)
8-Exhibit D (RMA for IA-4)
Description/Analysis
Issue Detail: On September 24, 2019, City Council adopted Resolution No. 2019-0371 establishing the CFD, designating three separate improvement areas therein, Improvement Area No. 1 (IA-1), Improvement Area No. 2 (IA-2) and IA-3, and providing for the levy of a special tax within each of the

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File ID: 2026-00540 3/10/2026
three improvement areas to finance the acquisition and construction of certain public facilities. The CFD currently encompasses approximately 535 acres of the Delta Shores development project within the Delta Shores Planned Unit Development area. As part of establishing the CFD, separate RMAs were approved by Council for each of the three improvement areas that established the maximum special tax rates for each land use classification in the improvement areas.

On February 1, 2022, after receiving a petition from the owner of all of the taxable land in the CFD at that time, M & H Realty Partners VI, LP (M&H), Council adopted Resolution No. 2022-0036 to, among other things, modify the special tax rates, modify the structure of the backup special tax, and make certain other related changes to each RMA and to modify certain of the other authorizations for each of the three improvement areas.

In 2024, M&H sold most of the land that constitutes what is currently IA-3 of the CFD to JEN California 27, LLC (JEN) and, with respect to the land in IA-3 that it sold, M&H partially assigned, transferred, and conveyed its right, title and interest in, to and under the Acquisition-and-Shortfall Agreement to JEN (City Agreement #2024-0879).

In 2025, JEN sold three parcels to DR Horton CA2, Inc. (DR Horton) comprising approximately 55.6 acres of land. JEN plans to sell an additional 25.7 acres to DR Horton in the near future. It is anticipated that DR Horton will construct 397 single family homes of varying density on the land acquired, and to be acquired, from JEN.

JEN and DR Horton are now requesting that the City Council create a new IA-4 of the CFD comprised of the area where the 397 homes are planned to be constructed by DR Horton. In addition, the creation of this new IA-4 will necessitate changes to the existing IA-3, as the land that will make up IA-4 will no longer be a part of IA-3. To that end, JEN and DR Horton have requested that the City Council consider 1) changes to the boundaries of IA-3 of the CFD to exclude the area to be designated as IA-4 and related modifications to the RMA for IA-3, as well as the appropriations limit, the authorized amount of bonded indebtedness and the public facilities authorized to be financed in and for IA-3, 2) designating a new IA-4 of the CFD with a new special tax in IA-4 to finance the acquisition and construction of certain public facilities, and 3) declaring the necessity to incur bonded indebtedness in and for IA-4.

Specifically for IA-3, JEN and DR Horton request the City Council change the authorized amount of bonded indebtedness and appropriations limit from $63 million to $43.4 million. This lower amount of bonded indebtedness and appropriations limit is due solely to 60.5 acres of taxable land in IA-3 proposed to now be in IA-4, resulting in less special tax revenues being available in IA-3 under this proposal. The RMA for IA-3 was modified to reflect this change as well. Other minor and clarifying changes were made to the IA-3 RMA, but the maximum special tax rates for developed properties remain unchanged.

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File ID: 2026-00540 3/10/2026
For IA-4, JEN and DR Horton request the City Council set the authorized amount of bonded indebtedness and appropriations limit at $23.0 million. This amount is set based on the new RMA for IA-4 and the projected special tax revenues expected to be collected in IA-4. The RMA for IA-4 divides taxable property in IA-4 into three separate Tax Zones, with the proposed FY2025/26 maximum special tax rates ranging from $3,010 per unit to $3,417 per unit for properties in Tax Zone 1, from $2,391 per unit to $2,849 per unit for properties in Tax Zone 2, and from $3,424 per unit to $3,555 per unit for properties in Tax Zone 3. A map showing the location of each Tax Zone is provided in the RMA for IA-4. The FY2025/26 expected special tax revenue for IA-4 is projected to be $1,151,882 based on 397 expected taxable units at full buildout. Every July 1, the maximum special tax rates and expected revenue in IA-4 shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous fiscal year. This annual escalation is the same for all improvement areas of the CFD.

The proposed modifications are needed to address JEN’s desire to maximize the amount of special tax bonds that could be issued in the new IA-4 for the acquisition and construction of certain public facilities, and to ensure that those facilities are eligible to be financed by the CFD. In addition, modifications are needed for the IA-3 RMA to account for the proposed creation of the new IA-4.

Policy Considerations: Modifying the boundaries and RMA for IA-3 and creating the new IA-4 will allow special tax bonds to be issued in IA-4 earlier in the development process and will increase the amount of special tax proceeds available for eligible facilities. Modifying the appropriations limit, the authorized amount of bonded indebtedness and the public facilities authorized to be financed is necessary as a result of these proposed changes. In addition, based on projected future home prices, the overall tax burden for future homeowners in the proposed IA-4 is estimated to be at or 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.

Economic Impacts: Not applicable.

Environmental Considerations:

California Environmental Quality Act (CEQA): Under CEQA Guidelines, modifying the RMA of a CFD (a CFD being a financing mechanism) or of a designated improvement area therein without commitment to any specific projects which could result in significant impact to the environment does not constitute a project for purposes of CEQA and is therefore exempt from review (14 Cal. Code Regs. §15378(b)(4)).

Sustainability: Not applicable.

Commission/Committee Action: Not applicable.

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File ID: 2026-00540 3/10/2026
Rationale for Recommendation: The actions in the Resolution of Consideration have been requested by JEN and DR Horton as owners of land in the CFD and are permitted under the Mello- Roos Community Facilities Act of 1982.

Financial Considerations: There are currently no financial impacts to any City funds. It is anticipated that special tax bonds will be issued in the future to finance the acquisition and construction of certain public improvements, and those bonds will be secured solely by the levy of special taxes within each improvement area pursuant to each improvement area’s specific RMA.

Bond sales for IA-1 and IA-2 of the CFD have already occurred, and one or more bond sales will occur in IA-3 and IA-4 at some point in the future.

Local Business Enterprise (LBE): Not applicable.

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ATTACHMENT 2

BACKGROUND

The CFD currently covers approximately 535± acres of property within the Delta Shores Planned Unit Development. The Delta Shores project is proposed for single-family, multi-family, commercial, mixed-use, parks, open space, detention basins, schools, a community center, and a fire station. The Delta Shores project area is generally bounded by Freeport Boulevard to the west, the Sacramento Regional Wastewater Treatment Plant to the south and east, the Stone Beetland property and the City owned parcel known as “Meadowview 102” to the east, and Meadowview Road to the north.

Bond information

As approved by City Council, the CFD will finance, through the issuance of Mello-Roos special tax bonds or the incurrence of other debt for IA-1, IA-2 and IA-3, certain public improvements authorized for the CFD. On September 24, 2019, Council adopted Resolutions Nos. 2019-0372, 2019-0373, and 2019-0374 deeming it necessary to incur bonded indebtedness to finance the acquisition and construction of certain public facilities in each improvement area of the CFD. At that time the aggregate principal amount of debt proposed to be issued, in one or more series, on behalf of IA-1, IA-2, and IA-3 of the CFD, may not exceed $8.0 million for IA-1, $18.8 million for IA-2 and $39.6 million for IA-3.

On January 25, 2022, at elections held in CFD, the qualified electors of each improvement area therein approved proposals to replace the original RMAs of each improvement area of the CFD with amended and restated RMAs and modify the total amount of debt authorized to be issued for each improvement area. Specifically, the total amount of debt authorized to be issued increased from $8.0 million to $17.0 million in IA-1, decreased from $18.8 million to $18.0 million in IA-2, and increased from $39.6 million to $63.0 million in IA-3. The costs and improvements eligible for CFD financing did not change during this process.

On June 14, 2022, Bonds in the aggregate principal amount of $10,230,000 were issued in IA-2, and all bond proceeds have been expended to reimburse M&H for the construction of public infrastructure.

On December 19, 2024, Bonds in the aggregate principal amount of $14,480,000 were issued for IA-1 and generated approximately $12,117,000 in net proceeds available to finance the acquisition and construction of public facilities.

No Bonds have been issued to date for IA-3.

Process to Make Changes to IA-3 of the CFD and to Create a New IA-4

The process to make the proposed modifications to IA-3 and the proposed creation of the new IA-4 began with the JEN and DR Horton requesting the modifications and is now followed by Council’s adoption of a “Resolution of Consideration” calling for a public hearing where all interested persons have the opportunity to protest the proposed modifications. If, after the public hearing, Council determines to move forward, then the modifications relating to IA-3 and IA-4 will be submitted to the “qualified electors” of IA-3 and IA-4, respectively, at a special election and will be implemented only if approved by at least two-thirds of the votes cast in such special election.

Under the Mello-Roos Community Facilities Act of 1982, the “qualified electors” will be either registered voters or landowners of the related improvement area of the CFD. In this case, where there are fewer than 12 registered voters residing within either IA-3 or IA-4, the votes will be cast by the owners of land in IA-3 and IA-4, respectively, with each landowner having one vote for each acre or portion of an acre owned in the related improvement area.

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

ATTACHMENT 3

SCHEDULE OF PROCEEDINGS

DELTA SHORES COMMUNITY FACILITIES DISTRICT NO. 2019-01
(IMPROVEMENTS)
IA-3 and NEW IA-4 CHANGE PROCEEDINGS

March 10, 2026 Council adopts Resolution of Consideration Set date for Public Hearing

March 25, 2026 Record Amended Boundary Map

March 30, 2026 Mail Notices of Public Hearing

April 7, 2026 Publish Notice of Public Hearing

April 14, 2026 Council: Hold Public Hearing
Adopt Resolution Deeming it Necessary to Incur Debt (IA-4) Adopt Resolutions Calling Special Elections

April 15, 2026 Special Election Ballots Due

April 28, 2026 Council: Adopt Resolution of Change
Pass for Publication Ordinance Repealing Ordinance No.
2022-0002 and Levying Special Taxes for Fiscal Year 2026- 2027 and Following Fiscal Years

May 5, 2026 Council: Adopt Ordinance

4163-4815-3188

RESOLUTION NO.

Adopted by the Sacramento City Council
March 10, 2026
Resolution Considering Changes to the Boundaries of Improvement Area No. 3 of the Delta Shores Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California (the “Community Facilities District”) and the Rate and Method of Apportionment of Special Tax, the Appropriations Limit, the Authorized Amount of Bonded Indebtedness and the Public Facilities Authorized to be Financed in and for Improvement Area No. 3 of the Community Facilities District, Designating Improvement Area No. 4 of the Community Facilities District, Proposing the Levy of a New Special Tax in Improvement Area No. 4 of the Community Facilities District to Finance the Acquisition and Construction of Certain Public Facilities, and Declaring the Necessity to Incur Bonded Indebtedness in and for Improvement Area No. 4 of the Community Facilities District to Finance the Acquisition and Construction of Certain Public Facilities

BACKGROUND
A. The City Council conducted proceedings under and pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982, as amended (being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California), and all laws amendatory thereof or supplemental thereto (the “Act”), to form its Delta Shores Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California (the “Community Facilities District”), to designate within the Community Facilities District various improvement areas, including “Improvement Area No. 3”, to authorize the levy of a special tax within Improvement Area No. 3 for the purpose of financing the acquisition and construction of certain public facilities, to establish the appropriations limit for Improvement Area No. 3, and to authorize the issuance of bonded indebtedness or other debt (as defined in the Act) (“Debt”) in and for Improvement Area No. 3 to finance such public facilities, all as set forth in the City Council’s Resolution No. 2019-0371 (the “Resolution of Formation”) and Resolution No. 2019-0374 (the “Resolution Deeming it Necessary to Incur Bonded Indebtedness for Improvement Area No. 3”) each adopted on September 24, 2019.

B. The City Council subsequently conducted proceedings under and pursuant to the terms and provisions of the Act to, among other things, (i) make certain changes to the then-authorized rate and method of apportionment and manner of collection of the special tax for Improvement Area No. 3, (ii) increase the 2 aggregate principal amount of Debt that may be incurred in and for Improvement Area No. 3 from $39.6 million to $63.0 million and (iii) increase the appropriations limit in and for Improvement Area No. 3 from the initial amount of $39.6 million for fiscal year 2019-20 to $63.0 million for fiscal year 2021-22, all as set forth in the City Council’s Resolution No. 2021-0362 (the “2021 Resolution of Consideration”), adopted on December 14, 2021, and Resolution No. 2022-0036 (the “2022 Resolution of Change”), adopted on February 1, 2022.

C. The authorized rate and method of apportionment and manner of collection of the special tax for Improvement Area No. 3 is set forth in Exhibit F to the Resolution of Formation as such Exhibit F to the Resolution of Formation was amended and restated and replaced by the amended and restated rate and method of apportionment and manner of collection of the special tax for Improvement Area No. 3 set forth in Exhibit C to the 2021 Resolution of Consideration (Exhibit F to the Resolution of Formation, as so amended and restated and replaced by Exhibit C to the 2021 Resolution of Consideration, the “Existing Improvement Area No. 3 Rate and Method”).

D. JEN California 27 LLC and DR Horton CA2 Inc., the owners of more than 85% of the land currently subject to the special tax within Improvement Area No. 3, have requested that (i) the boundaries of Improvement Area No. 3 be amended to exclude the territory proposed to be designated as new “Improvement Area No. 4” of the Community Facilities District, (ii) the authority to levy the special tax in Improvement Area No. 3 be amended to modify the rates and the method of apportionment of the special tax for Improvement Area No. 3 and to make certain related changes to the Existing Improvement Area No. 3 Rate and Method, (iii) the aggregate principal amount of Debt that may be incurred in and for Improvement Area No. 3 be changed from $63.0 million to $43.4 million, (iv) the appropriations limit in and for Improvement Area No. 3 be changed from the amount of $63.0 million for fiscal year 2021-22 to $43.4 million for fiscal year 2025-26, and (v) the public facilities authorized to be financed in and for Improvement Area No. 3 be amended (collectively, the “Improvement Area No. 3 Proposed Amendments”).

E. JEN California 27 LLC and DR Horton CA2 Inc., the owners of certain of the land currently subject to the special tax within Improvement Area No. 3 and of all of the land proposed to be subject to the special tax within the proposed new Improvement Area No. 4, have requested that the City Council conduct proceedings to (i) designate a portion of the existing Improvement Area No. 3 as new Improvement Area No. 4, (ii) authorize the levy of a new special tax within Improvement Area No. 4 for the purpose of financing the acquisition and construction of certain public facilities, and (iii) authorize the issuance of Debt in and for Improvement Area No. 4 to finance such public facilities (collectively, the “Improvement Area No. 4 Proceedings”).
3 F. There has been no change in the name of the Community Facilities District since its formation.

G. The boundaries of the Community Facilities District and each existing improvement area within the Community Facilities District are shown on the map entitled “Proposed Boundaries of Delta Shores Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California” which map was approved by the City Council by its Resolution No. 2019-0312 adopted on August 13, 2019, and which map was recorded in the official records of the County of Sacramento on August 23, 2019, in the Book of Maps of Assessment and Community Facilities Districts maintained by the Sacramento County Clerk/Recorder in Book 129 at Page 9.

H. The proposed amended boundaries of Improvement Area No. 3 and the proposed boundaries of new Improvement Area No. 4 are shown on the map titled “Amended and Restated Boundaries of Delta Shores Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California” (the “Boundary Map”) on file in the office of the City Clerk (the “Clerk”). A reduced copy of the Boundary Map is attached as Exhibit A to this resolution.

I. The City Council is fully advised in this matter and has determined that the public convenience and necessity require the consideration of the Improvement Area No. 3 Proposed Amendments and the Improvement Area No. 4 Proceedings.

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. The City Council proposes to (i) amend the boundaries of Improvement Area No. 3 to exclude the territory proposed to be designated as new Improvement Area No. 4 of the Community Facilities District, all as set forth on the Boundary Map, (ii) replace the Existing Improvement Area No. 3 Rate and Method set forth in Exhibit F to the Resolution of Formation (as previously amended) with the Second Amended and Restated Rate and Method of Apportionment for Improvement Area No. 3 set forth in Exhibit B attached to this resolution, (iii) change the aggregate principal amount of Debt that may be incurred in and for Improvement Area No. 3 from $63.0 million to $43.4 million, (iv) change the appropriations limit in and for Improvement Area No. 3 from the amount of $63.0 million for fiscal year 2021-22 to $43.4 million for fiscal year 2025-26, and (v) amend the public facilities that are authorized to be financed in and for Improvement Area No. 3 to be those public facilities set forth in Exhibit C attached to this resolution.
4 Section 3. The City Council hereby designates Improvement Area No. 4 of the Community Facilities District under Government Code section 53350(a).

Section 4. The proposed amended boundaries of Improvement Area No. 3 and the new boundaries of Improvement Area No. 4 are more particularly described and shown on the Boundary Map on file in the office of the Clerk, a reduced copy of which is attached as Exhibit A to this resolution.

The City Council hereby approves the Boundary Map. The City Council finds that the Boundary Map is in the form and contains the matters prescribed by Streets and Highways Code sections 3110 and 3113 and directs the Clerk to certify the adoption of this resolution on the fac e of the Boundary Map. The Clerk is hereby authorized and directed to record a copy of the Boundary Map with the Sacramento County Clerk/Recorder in accordance with Streets and Highways Code sections 3111 and 3113.

Section 5. With respect to Improvement Area No. 3 and Improvement Area No. 4, the City Council intends, in accordance with the Act, to finance the acquisition and construction of the public facilities listed on Exhibit C to this resolution (the “Facilities”). All of the Facilities have an estimated useful life of five years or longer and are public facilities that— (a) the City is authorized by law to construct, own, or operate, or to which it may contribute revenue; and
(b) are necessary to meet increased demands on the City as the result of development occurring or expected to occur within Improvement Area No. 3 or Improvement Area No. 4.

Section 6. The cost of financing the acquisition and construction of the Facilities includes the incidental expenses described in the Resolution of Formation. A representative list of the types of incidental expenses is set forth in Exhibit C to the Resolution of Formation. Any references to improvement areas in the descriptions of incidental expenses in the Resolution of Formation shall also be deemed to refer to Improvement Area No. 4.

Section 7. The City Council intends that, except where funds are otherwise available, a special tax will be annually levied within Improvement Area No. 4 in amounts sufficient to finance the acquisition and construction of Facilities.

Among other things, the special tax levied within Improvement Area No. 4 will be used to make payments on bonds or other debt (as defined in the Act) to be issued to finance the acquisition and construction of Facilities, including the payment of interest on, and principal of, the bonds or debt; to make lease payments for Facilities (whether in conjunction with the issuance of certificates of participation or not); and to repay any funds the City advances for Improvement Area No. 4, including the repayment under any agreement (which will not constitute a debt or liability of the 5 City) of advances of funds or the reimbursement for the lesser of the value or cost of work in-kind provided by any person for Improvement Area No. 4.

Section 8. Upon recordation of a Notice of Special Tax Lien under Streets and Highways Code section 3114.5, a continuing lien to secure each levy of the special tax within Improvement Area No. 4 will attach to all nonexempt real property in Improvement Area No. 4, and this lien will continue in force until the applicable special-tax obligation is prepaid and permanently satisfied and the lien is cancelled in accordance with law, or until levy of the Improvement Area No. 4 special tax by the City Council, acting solely as the legislative body with respect to the Community Facilities District as contemplated by the Act and not as the legislative body of the City as a whole, ceases.

Section 9. The City Council intends that the proposed special tax in Improvement Area No. 4 will be collected through the regular secured property-tax bills of the County of Sacramento and will be subject to the same enforcement mechanism, and the same penalties and interest for late payment, as regular ad valorem property taxes. But the City Council, acting solely as the legislative body with respect to the Community Facilities District as contemplated by the Act and not as the legislative body of the City as a whole, reserves the right to use any other lawful means of billing, collecting, and enforcing the special tax in Improvement Area No. 4, including direct billing, supplemental billing, and, when lawfully available, judicial foreclosure of the special-tax lien.

Section 10. The rate and method of apportionment of the special tax, including the maximum annual special tax, for Improvement Area No. 4 is set forth on Exhibit D to this resolution. Exhibit D provides sufficient detail to allow each landowner or resident within Improvement Area No. 4 to estimate the maximum amount that the landowner or resident will have to pay.

Exhibit D also specifies the conditions under which the obligation to pay the special tax for Improvement Area No. 4 may be prepaid and permanently satisfied. As required by the Act—
(a) the maximum authorized special tax that may be levied against any parcel used for private residential purposes (which use begins no later than the date on which an occupancy permit for private residential use is issued) is specified as a dollar amount that will be calculated and thereby established no later than the date on which the parcel is first subject to the special tax because of its use for private residential purposes and will not increase by more than two percent per year;

6 (b) the special tax will not be levied after fiscal year 2065-66 against a parcel used for private residential purposes; and
(c) under no circumstances will the special tax levied in any fiscal year on a parcel used for private residential purposes be increased on the parcel because of delinquency or default by the owner of any other parcel or parcels within the Community Facilities District, 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.

Section 11. The City Council intends, under Government Code section 53340.1, to levy the special tax for Improvement Area No. 4 on the leasehold or possessory interests in property owned by a public agency (which property is otherwise exempt from the special tax), to be payable by the owner of the leasehold or possessory interests in the property.

Section 12. The City Council proposes, under Government Code section 53325.7, to establish the appropriations limit, as defined by subdivision (h) of section 8 of article XIIIB of the California Constitution, for Improvement Area No. 4 in the amount of $23.0 million for fiscal year 2025-26.

Section 13. The City Council hereby declares that the public convenience and necessity require the incurring of bonded indebtedness in and for Improvement Area No. 4 to finance the acquisition and construction of Facilities. The amount of the proposed Debt to be incurred to finance the acquisition and construction of the Facilities may not exceed $23.0 million for Improvement Area No. 4. This amount includes all costs and estimated costs incidental to, or connected with, the accomplishment of the purposes for which the Debt is proposed to be incurred, including (a) the estimated costs to acquire land and rights-of-way; (b) capacity or connection fees; (c) the costs of satisfying contractual obligations relating to expenses or the advancement of funds for expenses existing at the time the Debt is issued under the Act; (d) fees for architectura l, engineering, inspection, legal, fiscal, and financial-consultant services; (e) the costs of establishing bond-reserve and other reserve funds; (f) any underwriter’s discount; (g) interest on any Debt estimated to be due and payable within two years after issuance of the Debt; (h) payment of election costs; and (i) all costs of issuance or incurrence of the Debt , including fees for bond counsel and disclosure counsel, costs of obtaining credit ratings, bond-insurance premiums, fees for letters of credit and other credit-enhancement costs, and printing costs. The City Council intends that any Debt for Improvement Area No. 4 be callable (i.e., may be redeemed or prepaid before maturity) in accordance with the Act.

Section 14. The City Council hereby fixes Tuesday, April 14, 2026, at 2:00 p.m., or as soon thereafter as the City Council may reach the matter, as the time for a 7 public hearing to be held by the City Council to consider the Improvement Area No. 3 Proposed Amendments; the proposed rate, method of apportionment, and manner of collection of the special tax for Improvement Area No. 4; the incurrence of Debt in and for Improvement Area No. 4 to finance the acquisition and construction of Facilities; and all other matters set forth in this resolution (collectively, the “Proposals”).

The public hearing will be held in the City Council Chambers on the first floor of New City Hall, 915 I Street, Sacramento, California, and with such telephonic and electronic access as noticed by the City Clerk. At the public hearing, all interested persons, including all taxpayers, property owners and registered voters within the Community Facilities District, may appear and be heard, and the City Council will hear and consider the testimony of all interested persons, including all taxpayers, property owners and registered voters within the Community Facilities District, for or against the Proposals.

Section 15. Any protests to the Proposals may be made orally or in writing by any interested persons, taxpayers, property owners or registered voters, except that any protests pertaining to the regularity or sufficiency of these proceedings must be in writing and clearly set forth the irregularities and defects to which the objection is made. The City Council may waive any irregularities in the form or content of any written protest and at the public hearing may correct minor defects in the proceedings. All written protests not presented in person by the protestor at the public hearing must be filed with the Clerk at or before the time fixed for the public hearing in order to be received and considered. Any written protest may be withdrawn in writing at any time before the conclusion of the public hearing.

Section 16. Written protests by fifty percent (50%) or more of the registe red voters or six registered voters, whichever is more, residing within Improvement Area No. 3 or Improvement Area No. 4, as applicable, or by the owners of one- half or more of the land area within Improvement Area No. 3 or Improvement Area No. 4, as applicable, not exempt from the special tax for that improvement area, will require suspension of these proceedings in that improvement area for at least one year. If such protests are directed only against certain elements of the Proposals, only those elements need be excluded from the proceedings.

Section 17. The public hearing may be continued from time to time bu t shall be completed within thirty (30) days, except that if the City Council finds that the complexity of the Proposals or the need for public participation requires additional time, the public hearing may be continued from time to time for a period not to exceed six (6) months.

Section 18. At the conclusion of the public hearing, the City Council may abandon these proceedings or may, after passing upon all protests, determine to 8 proceed with conducting special mailed-ballot elections on the applicable Proposals within Improvement Area No. 3 and Improvement Area No. 4.

If the City Council determines at the conclusion of the public hearing to proceed with the elections, it expects that the proposed voting procedure will be by landowners voting separately in each of Improvement Area No. 3 and Improvement Area No. 4 in accordance with the Act, as the City Council is informed that during the 90 days before the date set for the hearing there have been times when fewer than 12 registered voters resided within each of Improvement Area No. 3 and Improvement Area No. 4. The City Council will require this information to be confirmed before ordering the elections.

Section 19. Notice of the time and place of such public hearing shall be given by the Clerk in the following manner:
(a) by publishing once in the SACRAMENTO BULLETIN, a newspaper of general circulation published in the area of the Community Facilities District, a Notice of Public Hearing in the form required by the Act (publication to be completed at least seven days before the date set for such public hearing); and
(b) by mailing, first-class postage prepaid, to each owner of land within each of Improvement Area No. 3 and Improvement Area No. 4 and to each registered voter residing within each of Improvement Area No. 3 and Improvement Area No. 4 (to property owners at their addresses as shown on the last equalized assessment roll and to registered voters at their addresses as shown on the records of the Sacramento County Registrar of Voters, or in either case as otherwise known to the Clerk) a Notice of Public Hearing in the form required by the Act, the mailing to be completed at least 15 days before the date set for the public hearing.

Section 20. This resolution takes effect when adopted.

Section 21. Exhibits A, B, C, and D are part of this resolution.

Table of Contents:

Exhibit A – Boundary Map
Exhibit B – Second Amended and Restated Rate and Method of App ortionment for Improvement Area No. 3
Exhibit C – List of Authorized Facilities
Exhibit D – Rate and Method of Apportionment for Improvement Area No. 4

EXHIBIT B
DELTA SHORES COMMUNITY FACILITIES DISTRICT NO. 2019-01
(IMPROVEMENTS), CITY OF SACRAMENTO, COUNTY OF SACRAMENTO, STATE

OF CALIFORNIA

SECOND AMENDED AND RESTATED

RATE AND METHOD OF APPORTIONMENT FOR
IMPROVEMENT AREA NO. 3

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 1

SECOND AMENDED AND RESTATED

RATE AND METHOD OF APPORTIONMENT FOR
DELTA SHORES COMMUNITY FACILITIES DISTRICT NO. 2019-01 (IMPROVEMENTS)

CITY OF SACRAMENTO

COUNTY OF SACRAMENTO

STATE OF CALIFORNIA
IMPROVEMENT AREA NO. 3
A Special Tax as hereinafter defined shall be levied on each Assessor's Parcel of Taxable Property within Improvement Area No. 3 of the Delta Shores Communi ty Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California and collected each Fiscal Year commencing no earlier than Fiscal Year 2021-2022 in an amount determined through the application of the procedures described below. All of the real property within Improvement Area No. 3, unless exempted by law or the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meaning:
“Accessory Dwelling Unit” means a secondary residential unit of limited size, as defined in California Government Code Section 66313 and/or meeting the criteria outlined in Sacramento City Code Section 17.228.105, as may be amended from time-to-time. “Acre or Acreage” means the land area of an Assessor’s Parcel as shown on County records, such as on an Assessor’s Parcel Map and/or in the Assessor’ s Data, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final subdivision map, parcel map, condominium plan, record of survey, or other recorded document creating or describing the parcel or calculated using available spatial data and GIS, all as determined by the CFD Administrator. The square footage of an Assessor’s Parcel is equal to the Acreage of such parcel multiplied by 43,560. “Act” means the Mello-Roos Community Facilities Ac t 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 actual or reasonably estimated costs directly related to the administration of Improvement Area No. 3 including, but not limited to, the following: the costs of computing the Special Tax and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of co llecting the Special Tax (whether by the County, the City, or otherwise); the costs of remitting the Spec ial Tax to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, Improvement Area No. 3, or any desi gnee thereof of complying with arbitrage rebate requirements or responding to questions from the IRS pertaining to any Bonds or any audit of any Bonds by the IRS; the costs to the City, Improvement Area No. 3, or any designee thereof of providing continuing disclosure regarding the Bonds pursuant to applicable state or federal securities law; the costs associated with preparing Special Tax disclosu re statements and responding to public inquiries

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 2 regarding the Special Tax; the costs of the City, Improvement Area No. 3, or any designee thereof related to any appeal of the levy or application of the Special Tax; and the costs associated with the release of funds from an escrow account, if any. Administrative Expenses shall also include amounts estimated or advanced by the City, or Improvement Area No. 3 for any other administrative purposes, including, but not limited to, attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of any delinquent installment of the Special Tax. “Airspace Parcel” means a property with an assigned A ssessor’s Parcel number that constitutes vertical space on an underlying land Parcel.
“Assessor’s Data” means the property characteristic data compiled and maintained by the County Assessor for each Assessor’s Parcel, including, but not limited to, Assessor’s Parcel Number, Use Code, and Units.
“Assessor’s Parcel” or “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 Count y Assessor designating parcels by an Assessor’s Parcel number.
“Assigned Special Tax” means the Special Tax for each Land Use Class of Developed Property, as determined in accordance with Se ction C.1.a., or the Special Tax for each Land Use Class of Final Subdivision Property, as determined in accordance with Section C.1.b. “Authorized Facilities” means the public facilities authorized to be financed, in whole or in part, by Bonds or Special Tax revenue dedicated to Pay-As-You-Go Expenditures for Improvement Area No. 3. “Backup Special Tax” means the Backup Special Tax amount set forth in Section C.1.c. “Bonds” means any bonds or other debt (as defined in the Act), whether in one or more series, issued or incurred for Improvement Area No. 3 under the Act to fund the Authorized Facilities. “Bond Year” means a one-year period beginning on September 2 nd in each year and ending on
September 1st in the following year, unless defined differently in the applicable Indenture. “Boundary Map” means that map recorded with the County Recorder’s office on ____________, 2026, in Book ___ at Page __ as Document Number ____________. “CFD Administrator” means an official of the City, or desi gnee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Tax. “CFD” means Delta Shores Community Facilities Di strict No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California.
“City” means the City of Sacramento.
“Council” means the City Council of the City, acting as legislative body with respect to the CFD as contemplated by the Act.
“County” means the County of Sacramento.

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 3 “County Assessor” means the County of Sacramento, Office of the Assessor. “Developed Property” means all Assessor’s Parcels of Taxabl e Property for which a building permit has been issued prior to June 1st preceding the Fiscal Year in which the Special Tax is being levied. “Exempt Property” means all Assessor’s Parcels that are ex empt from the Special Tax pursuant to Section E.
“Expected Revenue” means the expected Special Tax revenue from Developed Property within Improvement Area No. 3, as shown on the attached Exhibit 1. “Expected Units” means the expected number of Units on Developed Property within Improvement Area No. 3, as shown on the attached Exhibit 1.
“Final Subdivision” means a subdivision of property created by recordation of a final subdivision map, parcel map or lot line adjustment, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code Section 1352, that creates individual lots for which residential building permits may be issued without further subdivision of such property. “Final Subdivision Property” means, in any Fiscal Year, all property for which a Final Subdivision was recorded prior to June 1 st of the preceding Fiscal Year and which has not yet become Developed Property.
“Fiscal Year” means the period starting July 1st and ending on the following June 30th. “GIS”, or geographic information system , means a system designed to capture, store, manipulate, analyze, manage, and present spatial or geographic data. “High-Density Residential Property” means, in any Fiscal Year, a ll Assessor’s Parcels of Developed Property with a density of 15 or greater Units per Acre. The assignment of the High-Density Residential Property Land Use Class to an Assessor’s Parcel shall be based upon reference to Exhibit 2 to this RMA showing the Villages within Improvement Area No. 3 designated as “HDR” or similar. “Improvement Area” means any of the four improvement areas shown on the Boundary Map of the CFD.
“Improvement Area No. 3” means Improvement Area No. 3 of the Delta Shores Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California. “Indenture” means the indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Class” means any of the classes listed in Table 1 and Table 2. “Low-Density Residential Property” means, in any Fiscal Year, a ll Assessor’s Parcels of Developed Property with a density of 7 or fewer Units per Acre. The assignment of the Low-Density Residential Property Land Use Class to an Assessor’s Parcel shall be based upon reference to Exhibit 2 to this RMA showing the Villages within Improvement Area No. 3 designated as “LDR” or similar.

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 4 “Maximum Special Tax” means the maximum annual Special Tax, determined in accordance with the provisions of Section C, which may be levied in an y Fiscal Year on any Asse ssor’s Parcel of Taxable Property.
“Medium-Density Residential Property” means, in any Fiscal Year, all Assessor’s Parcels of Developed Property with a density of 8-14 Units per Acre. The assignment of the Medium-Density Residential Property Land Use Class to an Assessor’s Parcel shall be based upon reference to Exhibit 2 to this RMA showing the Villages within Improvement Area No. 3 designated as “MDR” or similar. “Minimum Taxable Acreage” means 135.20 Acres for Improvement Area No. 3. “Mixed-Use Residential Property” means, in any Fiscal Year, a ll Assessor’s Parcels of Developed Property containing structures that have a mixtur e of residential and non-residential uses. The non- residential portions of the Parcel are not subject to the Special Tax. The assignment of the Mixed-Use Residential Property to an Assessor’s Parcel shall be based upon reference to Exhibit 2 to this RMA showing the Villages within Improvement Area No. 3 designated as “MU” or similar. “Non-Residential Property” means, in any Fiscal Year, all Asse ssor’s Parcels of Developed Property not classified as Low-Density Residential Prop erty, Medium-Density Residential Property, High- Density Residential Property, or Mixed-Use Residential Property. “Open Space Property” means property within the boundaries of Improvement Area No. 3 which (a) has been designated with specific boundaries and Acreage on a Final Subdivision map as open space, a park, detention basin, or wetland restoration, (b) is classified by the County Assessor as open space, a park, detention basin, or wetland restoration, (c ) has been irrevocably offered for dedication as open space, a park, detention basin, or wetland restoration to the federal government, the State of California, the County, the City, or any other public agency or nonprofit holding a conservation easement, or (d) is encumbered by an easement or other restriction required by the City limiting the use of such property to open space, a park, detention basin, or wetland restoration. “Outstanding Bonds” mean all Bonds, which remain outstanding as defined in the Indenture pursuant to which such Bonds were issued.
“Pay-As-You-Go Expenditure” means Special Tax revenue which is used or set aside for Authorized Facilities, including for Authorized Facilities to be constructed or acquired by the CFD. Pay-As-You-Go Expenditures may be included in the Special Tax Requirement until all Authorized Facilities have been constructed or acquired.
“Property Owner Association Property” means any property within the boundaries of Improvement Area No. 3 which is (a) owned by a property owner association or (b) designated with specific boundaries and Acreage on a Final Subdivision map as property owner association property. As used in this definition, a property owner association includes any master or sub-association. “Proportionately” means for Developed Property that the ratio of the Special Tax levy to the Assigned Special Tax or the Backup Special Tax is equal for all Assessor’s Parcels of Developed Property within Improvement Area No. 3. For Final Subdivision Property, Taxable Contingent Property, Tentative Map Property, or Undeveloped Property, “Proportionately” means that the ratio of the actual Special Tax

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 5 levy per Parcel/Unit/Acre to the Maximum Annual Sp ecial Tax per Parcel/Unit/Acre is equal for all Assessor’s Parcels of Final Subdivision Property , Taxable Contingent Property, Tentative Map Property, or Undeveloped Property within Improvement Area No. 3. “Public Property” means any property within the boundaries of Improvement Area No. 3 which (a) is owned by a public agency, (b) has been irrevocably offered for dedication to a public agency, or (c) is designated with specific boundaries and Acreage on a Final Subdivision map as property which will be owned by a public agency. For purposes of this definition, a public agency includes the federal government, the State, the County, the City or any other public agency, including school districts and public utilities.
“RMA” means this Amended and Restated Rate and Method of Apportionment of Special Tax, which may be amended from time-to-time.
“Special Tax” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax Requirement. “Special Tax Requirement” means that amount of Special Tax revenue required in any Fiscal Year for Improvement Area No. 3 to: (i) pay Administrative Expenses; (ii) pay annual debt service on all Outstanding Bonds due in the Bond Year beginning in such Fiscal Year; (iii) pay other periodic costs on Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on Outstanding Bonds; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds in accordance with the Indenture, to the extent not included in a computation of the Special Tax Requirement for a previous Fiscal Year; (v) to the extent permitted by the Act, pay for reasonably anticipated delinquent installments of the Special Tax based on the delinquency rate for the Special Tax levied in the previous Fiscal Year; and (vi) account for Pay-As-You-Go Expenditures for the Authorized Facilities; 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 Contingent Property” means any Assessor’s Parcel of Non-Residential Property, Open Space Property, Property Owner Association Property, P ublic Property, or other property that would otherwise be classified as Exempt Property pursuan t to the provisions of Section E, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property located within Improvement Area No. 3 below the Minimum Taxable Acreage for Improvement Area No. 3.
“Taxable Property” means all of the Assessor’s Parcels with in the boundaries of Improvement Area No. 3 that are not exempt from the Special Tax pursuant to law or Section E below. “Tentative Map” means a map that is made for the purpose of showing the design of a proposed subdivision, including the individual lots that are expected within the subdivision, as well as the conditions pertaining thereto. A Tentative Map is not based on a detailed survey of the property within the map and is not recorded with the County recorder’s office to create legal lots. “Tentative Map Property” means, in any Fiscal Year, all Parcels which are included within a Tentative

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 6 Map that was approved prior to June 1 of the prior Fiscal Year. “Trustee” means the financial institution appointed pursu ant to an Indenture to act as the trustee, fiscal agent, or paying agent or a combination thereof to administer a series of Bonds for and on behalf of Improvement Area No. 3 and the City under such Indenture. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Final Subdivision Property, Taxable Contingent Property, or Tentative Map Property. “Unit” means an individual residential living space. The number of Units assigned to each Assessor’s Parcel may be determined by (i) referencing Assessor’s Data, (ii) site surveys and physical unit counts, and/or (iii) reviewing City building permit data. An Accessory Dwelling Unit shall not be considered a Unit for the purposes of the Special Tax.
“Use Code” means the six-digit use code assigned by the County Assessor to each Assessor’s Parcel. “Village” means an area, as shown on Exhibit 2 to the RMA, proposed for residential development for Low-Density Residential Property, Medium-Density Residential Property, High-Density Residential Property, or Mixed-Use Residential Property.
“Welfare Exempt Property” means any Parcel within the boundaries of Improvement Area No. 3 that (a) has been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code indicated in the Assessor’s Data finalized as of January 1 of the previous Fiscal Year, and (b) is exempt from the Special Tax pursuant to Section 53340(c) of the Act. During any time that Bonds are outstanding, property that was not classified as Welfare Exempt Property prior to the issuance of Bonds and was subject to the Sp ecial Tax prior to receiving the welfare exemption may no longer be categorized as Welfare Exempt Property regardless of whether the Assessor’s Parcel has been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code.

B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, all Assessor’s Parcels of Taxable Property within Improvement Area No. 3 shall be (a) classified as Developed Property, Final Subdivision Property, Taxable Contingent Property, Tentative Map Property, or Undeveloped Property and (b) shall be subject to the levy of the annual Special Tax determined pursuant to Section C below.

C. MAXIMUM SPECIAL TAX RATE

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 7 a. Assigned Special Tax for Developed Property
The Assigned Special Tax for each Assessor’s Parcel of Developed Property is shown in Table

1. TABLE 1
Assigned Special Tax for Developed Property
(Fiscal Year 2021-2022)
Land Use
Class Description
Assigned
Special Tax
1 Low-Density Residential Property $2,027 per Unit
2 Medium-Density Residential Property $1,578 per Unit
3 High-Density Residential Property $250 per Unit
4 Mixed-Use Residential Property $250 per Unit
5 Non-Residential Property $0

b. Assigned Special Tax for Final Subdivision Property
The Assigned Special Tax for each Assessor’s Parcel of Final Subdivision Property is shown in Table 2.

TABLE 2
Assigned Special Tax for Final Subdivision Property
(Fiscal Year 2021-2022)
Land Use
Class Description
Assigned
Special Tax
1 Low-Density Residential Property $2,027 per Parcel
2 Medium-Density Residential Property $1,578 per Parcel 3 High-Density Residential Property $250 per Unit 1
4 Mixed-Use Residential Property $250 per Unit 1
5 Non-Residential Property $0
1 Per Unit expected on each Parc el of Final Subdivision Property.

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 8 c. Backup Special Tax (Fiscal Year 2021-2022)
The Backup Special Tax per Village for each Assessor’s Parcel of Developed Property and Final Subdivision Property, is calculated as follows:

Backup Special Tax = Expected Revenue / Units on Developed Property and/or Units expected on Final Subdivision Property
For each Village, by reference to Exhibit 1, should the number of Units be less than the Expected Units when all Assessor’s Parcels are classified as Developed Property, the Backup Special Tax per Unit shall be adjusted so that the Backup Special Tax per Unit is sufficient to generate the Expected Revenue in any Fiscal Year. The CFD Administrator shall update Exhibit 1 with the revised Units and Expected Revenue to be derived from each Village.

Notwithstanding the foregoing, once an Assesso r’s Parcel is used for private residential purposes (as determined by the Act), the Backup Special Tax for the Assessor’s Parcel cannot be increased because of future reductions in the number of Units on other Assessor’s Parcels.

The increases to the Backup Special Tax pursuan t to Section C.1.e below would still apply to such Assessor’s Parcel.
d. Changes to Land Use Class
Prior to a bond sale, if a Land Use Class change is proposed or identified that will result in a change in the Expected Revenues, no action will be needed pursuant to this Section. Each Fiscal Year, the CFD Administrator shall update Exhibit 1 to show the revised Units and Expected Revenues if a Land Use Class has been approved.

After a Bond sale, if a Land Use Class change is proposed or identified, the following must be applied:

If the revenues calculated are higher than those reflected in Exhibit 1 or less than those calculated in Exhibit 1, but the reduction in Expected Revenues does not reduce debt service coverage below the required 110% debt service coverage, no further action is needed, and the CFD Administrator shall update Exhibit 1 to show the revised Expected Revenues.

If the revenues calculated are less than those reflected in Exhibit 1, and the CFD Administrator determines that the reductio n in Expected Revenues would reduce debt service coverage below the required 110% debt service coverage the Special Tax levied on the Parcel subject to a Land Use Class ch ange will need to be paid and one of the following shall occur: (i) The landowner requesting the Land Use Class change may make a prepayment in an amount that will ensu re that the reduced Expected Revenues are sufficient to meet the required 110% debt servic e coverage or (ii) If a prepayment is not selected, the Assigned Special Tax on the Parcel or Parcels subject to the Land Use Class change shall be increased proportionately until the Expected Revenues are sufficient to maintain the required 110% debt service coverage. Notwithstanding the foregoing, once an Assessor’s Parcel is used for private resi dential purposes (as determined pursuant to

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 9 the Act), the Maximum Special Tax for the Assessor’s Parcel cannot be increased because of future Land Use Class changes for other Assessor’s Parcels. e. Increase in the Assigned Special Tax and Backup Special Tax On each July 1, commencing on July 1, 2022, the Assigned Special Tax and the Backup Special Tax for Developed Property and Final Subdivision Property shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.

2. Taxable Contingent Property, Tentative Map Property, and Undeveloped Property a. Maximum Special Tax
The Maximum Special Tax for each Assessor’s Parcel of Taxable Contingent Property, Tentative Map Property, and Undeveloped Proper ty shall be $14,870 per Acre in Fiscal Year 2021-2022.
b. Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2022, the Maximum Special Tax for Taxable Contingent Property, Tentative Map Property, and Undeveloped Property shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing no earlier than Fiscal Year 2021-2022 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requ irement, and shall levy the Special Tax until the amount of the Special Tax equals the Special Tax Requirement. The Sp ecial Tax shall be levied each Fiscal Year as follows:

First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at a rate up to 100% of the greater of the applic able Assigned Special Tax or the applicable Backup 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 Prop ortionately on all Final Subdivision Property at a rate up to 100% of the greater of the applicable Assigned Special Tax or the applicable Backup Special Tax for Final Subdivision Property.

Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levi ed Proportionately on all Tentative Map Property at a rate up to 100% of the Maximum Special Tax for Tentative Map Property.

Fourth: If additional monies are needed to satisf y the Special Tax Requirement after the first three steps have been completed, the Special Tax shall be levied Proportionately on all Undeveloped Property at a rate up to 100% of the Maximum Special Tax for Undeveloped Property Fifth: If additional monies are needed to satisfy the Special Tax Requirement after the first four steps have been completed, then the Special Tax shall be levied Proportionately on all Taxable Contingent Property at a rate up to 100% of the Maximum Special Tax for Taxable Contingent Property.

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 10 Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor’s Parcel of Developed Property used for private re sidential purposes (as determined pursuant to the Act) in any Fiscal Year be increased as a consequence of the delinquency or default in the payment of the Special Tax by the owner or owners of any other Taxable Property by more than ten percent above the amount that would have been levied against such Assessor’s Parcel in such Fiscal Year had there been no delinquencies or defaults.

E. EXEMPTIONS

1. No Special Tax shall be levied on up to 61.83 Acres of Non-Residential Property, Open Space Property, Property Owner Association Property, and Public Property. Tax-exempt status will be assigned by the CFD Administrator in the chrono logical order in which property becomes Non- Residential Property, Open Space Property, Property Owner Association Property, or Public Property.

2. For the following property types in excess of th e 61.83 Acres exempted above, Non-Residential Property, Open Space Property, Property Owner Asso ciation Property, or Public Property that is not exempt from the Special Tax under this section, or pursuant to the Act, shall be classified as Taxable Contingent Property. Taxable Contingent Property shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the fifth step in Section D above, at up to 100% of the applicable Maximum Special Tax for Taxable Contingent Property.

3. No Special Tax shall be levied on Welfare Exempt Pr operty. If a Parcel is no longer eligible to be classified as Welfare Exempt Property that would make such Assessor’s Parcel eligible to continue to be classified as Exempt Property, such Assessor' s Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property. Any property that is granted a welfare exemption when any Bonds are outstanding and was subject to the Special Tax prior to receiving the welfare exemption shall not be considered Welfare Exempt Property.

4. The Special Tax for any Developed Property, which would change classification to Public Property upon its transfer or dedication to a public agency, shall continue to be subject to the levy of the Special Tax as Developed Property.

5. If the use of an Assessor's Parcel changes so that such Assessor's Parcel is no longer eligible to be classified as one of the uses set forth in Section E.1. above that would make such Assessor's Parcel eligible to continue to be classified as Exempt Property, such Assessor's Pa rcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property.

6. If an Assessor’s Parcel designated as Low-Density Residential Property, Medium-Density Residential Property, High-Density Residential Property, or Mixed-Use Residential Property changes to Non-Residential Property, the Special Tax shall continue to be levied on such Non- Residential Property as if the Assessor’s Parcel was still classified as Low-Density Residential Property, Medium-Density Residential Property, High-Density Residential Property, or Mixed-Use Residential Property.

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 11

7. No Special Tax shall be levied against the followi ng Assessor’s Parcels that have been designated and included into another Improvement Area:

APN APN APN APN
053-0290-006-0000 053-0310-071-0000 053-0320-052-0000 053-0330-044-0000 053-0290-015-00001 053-0310-072-0000 053-0320-053-0000 053-0330-045-0000 053-0290-016-00001 053-0310-073-0000 053-0320-054-0000 053-0330-046-0000 053-0310-001-0000 053-0310-074-0000 053-0320-055-0000 053-0330-047-0000 053-0310-002-0000 053-0310-075-0000 053-0320-056-0000 053-0340-001-0000 053-0310-003-0000 053-0310-076-0000 053-0320-057-0000 053-0340-002-0000 053-0310-004-0000 053-0310-077-0000 053-0320-058-0000 053-0340-003-0000 053-0310-005-0000 053-0310-078-0000 053-0320-059-0000 053-0340-004-0000 053-0310-006-0000 053-0310-079-0000 053-0320-060-0000 053-0340-005-0000 053-0310-007-0000 053-0310-080-0000 053-0320-061-0000 053-0340-006-0000 053-0310-008-0000 053-0310-081-0000 053-0320-062-0000 053-0340-007-0000 053-0310-009-0000 053-0310-082-0000 053-0320-063-0000 053-0340-008-0000 053-0310-010-0000 053-0310-083-0000 053-0320-064-0000 053-0340-009-0000 053-0310-011-0000 053-0310-084-0000 053-0320-065-0000 053-0340-010-0000 053-0310-012-0000 053-0310-085-0000 053-0320-066-0000 053-0340-011-0000 053-0310-013-0000 053-0310-086-0000 053-0320-067-0000 053-0340-012-0000 053-0310-014-0000 053-0310-087-0000 053-0320-068-0000 053-0340-013-0000 053-0310-015-0000 053-0310-088-0000 053-0320-069-0000 053-0340-014-0000 053-0310-016-0000 053-0310-089-0000 053-0320-070-0000 053-0340-015-0000 053-0310-017-0000 053-0310-090-0000 053-0320-071-0000 053-0340-016-0000 053-0310-018-0000 053-0310-091-0000 053-0320-072-0000 053-0340-017-0000 053-0310-019-0000 053-0310-092-0000 053-0320-073-0000 053-0340-018-0000 053-0310-020-0000 053-0320-001-0000 053-0320-074-0000 053-0340-019-0000 053-0310-021-0000 053-0320-002-0000 053-0320-075-0000 053-0340-020-0000 053-0310-022-0000 053-0320-003-0000 053-0320-076-0000 053-0340-021-0000 053-0310-023-0000 053-0320-004-0000 053-0320-077-0000 053-0340-022-0000 053-0310-024-0000 053-0320-005-0000 053-0320-078-0000 053-0340-023-0000 053-0310-025-0000 053-0320-006-0000 053-0320-079-0000 053-0340-024-0000 053-0310-026-0000 053-0320-007-0000 053-0320-080-0000 053-0340-025-0000 053-0310-027-0000 053-0320-008-0000 053-0320-081-0000 053-0340-026-0000 053-0310-028-0000 053-0320-009-0000 053-0330-001-0000 053-0340-027-0000 053-0310-029-0000 053-0320-010-0000 053-0330-002-0000 053-0340-028-0000 053-0310-030-0000 053-0320-011-0000 053-0330-003-0000 053-0340-029-0000 053-0310-031-0000 053-0320-012-0000 053-0330-004-0000 053-0340-030-0000 053-0310-032-0000 053-0320-013-0000 053-0330-005-0000 053-0340-031-0000

1 No Special Tax within Improvement Area No. 3 shall be levied against Parcel A, as shown on the Certificate of Compliance for Lot Line Adjustment recorded with the County on August 13, 2025, as Document Number 202508130320. Parcel B, as shown on such Certificate of Compliance, shall continue to be subject to the Special Tax within Improvement Area No. 3.

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 12

APN APN APN APN
053-0310-033-0000 053-0320-014-0000 053-0330-006-0000 053-0340-032-0000 053-0310-034-0000 053-0320-015-0000 053-0330-007-0000 053-0340-033-0000 053-0310-035-0000 053-0320-016-0000 053-0330-008-0000 053-0340-034-0000 053-0310-036-0000 053-0320-017-0000 053-0330-009-0000 053-0340-035-0000 053-0310-037-0000 053-0320-018-0000 053-0330-010-0000 053-0340-036-0000 053-0310-038-0000 053-0320-019-0000 053-0330-011-0000 053-0340-037-0000 053-0310-039-0000 053-0320-020-0000 053-0330-012-0000 053-0340-038-0000 053-0310-040-0000 053-0320-021-0000 053-0330-013-0000 053-0340-039-0000 053-0310-041-0000 053-0320-022-0000 053-0330-014-0000 053-0340-040-0000 053-0310-042-0000 053-0320-023-0000 053-0330-015-0000 053-0340-041-0000 053-0310-043-0000 053-0320-024-0000 053-0330-016-0000 053-0340-042-0000 053-0310-044-0000 053-0320-025-0000 053-0330-017-0000 053-0340-043-0000 053-0310-045-0000 053-0320-026-0000 053-0330-018-0000 053-0340-044-0000 053-0310-046-0000 053-0320-027-0000 053-0330-019-0000 053-0340-045-0000 053-0310-047-0000 053-0320-028-0000 053-0330-020-0000 053-0340-046-0000 053-0310-048-0000 053-0320-029-0000 053-0330-021-0000 053-0340-047-0000 053-0310-049-0000 053-0320-030-0000 053-0330-022-0000 053-0340-048-0000 053-0310-050-0000 053-0320-031-0000 053-0330-023-0000 053-0340-049-0000 053-0310-051-0000 053-0320-032-0000 053-0330-024-0000 053-0340-050-0000 053-0310-052-0000 053-0320-033-0000 053-0330-025-0000 053-0340-051-0000 053-0310-053-0000 053-0320-034-0000 053-0330-026-0000 053-0340-052-0000 053-0310-054-0000 053-0320-035-0000 053-0330-027-0000 053-0340-053-0000 053-0310-055-0000 053-0320-036-0000 053-0330-028-0000 053-0340-054-0000 053-0310-056-0000 053-0320-037-0000 053-0330-029-0000 053-0340-055-0000 053-0310-057-0000 053-0320-038-0000 053-0330-030-0000 053-0340-056-0000 053-0310-058-0000 053-0320-039-0000 053-0330-031-0000 053-0340-057-0000 053-0310-059-0000 053-0320-040-0000 053-0330-032-0000 053-0340-058-0000 053-0310-060-0000 053-0320-041-0000 053-0330-033-0000 053-0340-059-0000 053-0310-061-0000 053-0320-042-0000 053-0330-034-0000 053-0340-060-0000 053-0310-062-0000 053-0320-043-0000 053-0330-035-0000 053-0340-061-0000 053-0310-063-0000 053-0320-044-0000 053-0330-036-0000 053-0340-062-0000 053-0310-064-0000 053-0320-045-0000 053-0330-037-0000 053-0340-063-0000 053-0310-065-0000 053-0320-046-0000 053-0330-038-0000 053-0340-064-0000 053-0310-066-0000 053-0320-047-0000 053-0330-039-0000 053-0340-065-0000 053-0310-067-0000 053-0320-048-0000 053-0330-040-0000 053-0340-066-0000 053-0310-068-0000 053-0320-049-0000 053-0330-041-0000 053-0340-067-0000 053-0310-069-0000 053-0320-050-0000 053-0330-042-0000 053-0340-068-0000 053-0310-070-0000 053-0320-051-0000 053-0330-043-0000

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 13 F. SPECIAL TAX APPEALS
Any property owner may file a written appeal of the Special Tax with the CFD Administrator claiming that the amount or application of the Special Tax is not correct. The appeal must be filed not later than one calendar year after having paid the Specia l Tax that is disputed, and the appellant must be current in all payments of the Special Tax. In addition, during the term of the appeal process, any Special Tax levied must be paid on or before the payment date established when the levy was made.

The appeal must specify the reasons why the appella nt claims the amount of the Special Tax is not correct. 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 property owner disagrees with the CFD Administrator’s decision relative to the appeal, the owner may then file a written appeal with the Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the CFD Administrator or subsequent decision by the Council requires the Special Tax to be modified or changed in favor of the property owner, no cash refund shall be made for the prior years’ Special Tax, but an adjustment shall be made to credit future Special Tax levies.

G. INTERPRETATIONS
The City may, by resolution or ordinance, interpret, clarify and/or revise this RMA to correct any inconsistency, vagueness, or ambiguity as it relate s to the Special Tax, method of apportionment, classification of Parcels, or any definition used he rein, as long as such correction does not materially affect the levy and collection of the Special Tax. In addition, the interpretation and application of any section of this document shall be at the City’s discretion.

H. MANNER OF COLLECTION
The annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the CFD Administrator may, at the sole discretion of the City, directly bill the Special Tax, may collect th e Special Tax at a different time or in a different manner as necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on Assessor's Parcels of Taxable Property that are delinquent in the payment of the Special Tax.

I. PREPAYMENT OF SPECIAL TAX OBLIGATION
The following definitions apply to this Section I:
“CFD Public Facilities” means those public facilities authorized to be financed by Improvement Area No. 3.
“CFD Public Facilities Costs” means either $7,103,090 in costs for completed facilities/land dedications in 2026 dollars; plus $25,334,463 in costs for pending facilities/land dedications in 2026 dollars, which shall increase by the Construction Cost Index on July 1, 2026, and on each July 1 thereafter, or such lower number as shall be de termined either by (a) the CFD Administrator as

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 14 sufficient to finance the CFD Public Facilities, or (b ) the Council concurrently with a covenant that it will not issue any more Bonds to be secured by Special Taxes levied under this RMA. “Construction Cost Index” means the annual percentage change in the Engineering News-Record Construction Cost Index for the City of San Francisco, measured as of June in the previous Fiscal Year.

In the event this index ceases to be published, th e Construction Cost Index shall be another index as determined by the CFD Administrator that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of San Francisco.
“Construction Fund” means an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct the CFD Public Facilities. “Future Facilities Costs” means the CFD Public Facilities Costs minus the portion of the CFD Public Facilities Costs previously funded from (a) procee ds of all previously issued Bonds, (b) interest earnings on the Construction Fund actually earned prior to the date of prepayment and (c) proceeds of the Special Tax dedicated to Pay-As-You-Go Expe nditures. In no case, shall the Future Facilities Costs be less than zero.
“Outstanding Bonds” means all previously issued Bonds which will remain outstanding after the first principal payment date following the then current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax obligations.

1. Prepayment in Full
The Special Tax obligation of an Assessor's Parcel of Developed Property, Final Subdivision Property, Taxable Contingent Property, Tentative Map Property, or Undeveloped Property may be prepaid and permanently satisfied as described herein; provided that there are no delinquent installments of the Special Tax 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 45 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount of such Assessor's Parcel.

Prepayment must be made not less than 75 days pr ior 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. The CFD Administrator may charge a fee for providing this service.

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

Bond Redemption Amount
plus Future Facilities Amount
plus Redemption Premium
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Prepayment Amount

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 15 As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be calculated as follows:

Step Number:

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

2. For Assessor’s Parcels of Developed Property other than Non-Residential Property, compute the Assigned Special Tax and Backup Special Tax. For Assessor’s Parcels of Final Subdivision Property, Tentative Map Property, and Undevelo ped Property 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 number of Expected Units to be developed on that Assessor’s Parcel.

3. a. Divide the Assigned Special Tax computed pursuant to Step 2 by the total estimated Assigned Special Tax for Improvement Area No. 3 based on the Developed Property Special Tax which could be charged in the current Fiscal Year on all Expected Units through buildout of Improvement Area No. 3, excluding any Assessor’s Parcels which have prepaid the Special Tax obligation in full pursuant to Section I.1.
b. Divide the Backup Special Tax computed pursuant to Step 2 by the total estimated Backup Special Tax for Improvement Area No. 3 based on the Developed Property Special Tax which could be charged in the current Fiscal Year on all Expected Units through buildout of Improvement Area No. 3, excluding any Assessor’s Parcels which have prepaid the Special Tax obligation in full pursuant to Section I.1.

4. Multiply the larger quotient computed pursuant to Step 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”).

5. Compute the current Fu ture Facilities Costs.

6. Multiply the larger quotient co mputed pursuant to Step 3.a or 3.b by the total Future Facilities Costs to compute the amount of the Future Facilities Amount to be retired and prepaid (the “Future Facilities Amount”).

7. Multiply the Bond Redemption Amount computed pursuant to Step 4 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “ Redemption Premium”).

8. Compute the amount needed to pay interest on the Bond Redemption Amount on the earliest redemption date for the Outstanding Bonds.

9. Compute the amount the Administrator reasonab ly expects to derive from the reinvestment of the Prepayment Amount less the Future Facilities Amount and the Administrative Fees and Expenses from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment.

10. Subtract the amount computed pursuant to Step 9 from the amount computed pursuant to

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 16 Step 8 (the “Defeasance Amount”).

11. Verify the administrative fees and expenses, including the costs of computation of the prepayment, the costs to invest the prepay ment proceeds, the costs of redeeming the Outstanding Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the “Administrative Fees and Expenses”).

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

13. 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 multip lying the larger quotient computed pursuant to Steps 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”).

14. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to Steps 4, 6, 7, 10 and 11, less the amount computed pursuant to Steps 12 and 13 (the “ Prepayment Amount”).

15. From the Prepayment Amount, the amounts computed pursuant to Steps 4, 7, 10, and 13 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds and make debt service payments. Th e amount computed pursuant to Step 6 shall be deposited into the Construction Fund. The amount computed pursuant to Step 11 shall be retained by the City for the payment of Administrative Fees and Expenses.

The Prepayment Amount may be sufficient to re deem other than a $5,000 increment of Bonds. In such cases, the increment amount th at is not $5,000 or integral mult iple 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.

Any current-year Special Tax that has been placed on the County tax roll will remain on the tax roll.

Notwithstanding the foregoing, no prepayment w ill be allowed unless the amount of the Maximum Special Taxes that may be levied on Taxable Property both prior to and after the proposed prepayment is at least 1.1 times the annual debt service on all Outstanding Bonds in each succeeding Bond Year.

2. Prepayment in Part
The Special Tax obligation of an Assessor's Parcel of Developed Property, Final Subdivision Property, Tentative Map Property, or Undeveloped Property for which a building permit has been issued may be partially prepaid in increments of 25%, 50%, or 75% of the Prepayment Amount calculated according to Section I.1, minus Administrative Fees and Expenses calculated according to Section I.1.

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 17 A partial prepayment can only occur once per Assessor’s Parcel. The amount of the prepayment shall be calculated as in Section I.1; except that a partial prepayment sh all be calculated according to the following formula:

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

PP = the Partial Prepayment Amount
PE = the Prepayment Amount calculated according to Section I.1 A = the Administrative Fees and Expenses calculated according to Section I.1 F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax obligation.

The owner of an Assessor’s Parcel who desires to partially prepay the Special Tax obligation shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax obligation, (ii) the amount of partial prepayment expre ssed in increments of 25%, 50%, or 75% of the Prepayment Amount calculated a ccording to Section I.1, minus Administrative Fees and Expenses calculated according to Section I.1, and (iii) the company or agency that will be acting as the escrow agent, if applicable. Partial prepayment must be made not less than 75 days prior to the next occurring date that notice of redemption of Bonds from the proceeds of such partial prepayment may be given to the Trustee pursuant to the Indenture. The CFD Administrator may charge a fee for providing this service.

With respect to any Assessor’s Parcel that is partially prepaid, the CFD Administrator shall (i) distribute the funds remitted to it according to Step 15 of Section I.1, and (ii) indicate in the records of Improvement Area No. 3 that there has been a partial prepayment of the Special Tax obligation and that a portion of the Special Tax obligation equal to the outstanding percentage (1.00 - F) of the remaining Special Tax obligation shall continue to be authorized to be levied on such Assessor’s Parcel pursuant to Section D.

Notwithstanding the foregoing, no partial prep ayment will be allowed unless the amount of Maximum Special Taxes that may be levied on Taxable Property both prior to and after the proposed partial prepayment is at least 1. 1 times the annual debt service on all Outstanding Bonds in each succeeding Bond year.

J. TERM OF SPECIAL TAX
The Special Tax shall be levied commencing in Fisc al Year 2021-2022 to the extent necessary to fully satisfy the Special Tax Requirement and shall not be levied after the 2065-2066 Fiscal Year.

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 18 EXHIBIT 1

EXPECTED UNITS/REVENUE PER VILLAGE FOR DEVELOPED PROPERTY (FISCAL YEAR 2021-22)
Land Use Class Village 2
Expected
Units 3
Expected
Revenue 4
2 MDR-3 107 $168,846
2 MDR-4 111 175,158
2 MDR-10 101 159,378
2 MDR-11 108 170,424
2 MDR-12 66 104,148
2 MDR-13 60 94,680
2 MDR-14 86 135,708
2 MDR-15 100 157,800
2 MDR-16 26 41,028
2 MDR-17 165 260,370
2 MDR-18 119 187,782
2 MDR-19 129 203,562
3 HDR-2 175 43,750
3 HDR-3 123 30,750
3 HDR-4 84 21,000

2 As shown on Exhibit 2 to this RMA.
3 There is a total of 1,784 Expected Units within Improvement Area No. 3. 4 The total Expected Revenue within Improvement Area No. 3 is $2,010,384, stated in Fiscal Year 2021-2022 dollars. On each July 1, commencing on July 1, 2022, the Expected Revenue shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 19 Land Use Class Village 2
Expected
Units 3
Expected
Revenue 4
3 HDR-10 N 103 25,750
3 HDR-11 121 30,250
TOTALS 1,784 $2,010,384

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 20 EXHIBIT 2
MAP OF VILLAGES WITHIN IMPROVEMENT AREA NO. 3

EXHIBIT C
DELTA SHORES COMMUNITY FACILITIES DISTRICT NO. 2019-01
(IMPROVEMENTS), CITY OF SACRAMENTO, COUNTY OF SACRAMENTO, STATE

OF CALIFORNIA
IMPROVEMENT AREA NO. 3 AND IMPROVEMENT AREA NO. 4

LIST OF AUTHORIZED FACILITIES
Identified by Incremental Portions Budgeted Amounts* Status of Completion Backbone Improvements
Roadway
I
-5/Cosumnes River Blvd Enhancements $1,140,698
D
elta Shores Circle South 1A $8,085,270 NOC 7/5/17
D
elta Shores Circle North 1B $2,121,296 NOC 5/13/23
D
elta Shores Circle North PH 1 Villages 1, 2 & 3 $7,668,034 2026 D
elta Shores Circle North PH 4 Village MDR 16 $366,000 2027/28 24t
h Street Ph 4A $4,387,238 2026/27
24t
h Street Signals $1,905,693 2026/27
M
eadowview 102 Ph 4A Access Street $1,162,070 2026/27
24t
h Street Ph 4B $2,693,036 2027/28
$29,529,335
Sewer
Delta Shores Circle South 1A $1,408,416 NOC 7/5/17
Delta Shores Circle North 1B $683,890 NOC 5/13/23
Interconnections 1C $742,997 NOC 1/24/18
Regional Sewer Lift Station $10,856,213 2025/26
Regional Sewer Force Main $13,249,765 2025/26
Delta Shores Circle North PH 1 Villages 1, 2 & 3 $3,237,810 2025/26 Delta Shores Circle North PH 4 Village MDR 16 $102,480 2027/28 24th Street Ph 4A $875,321 2026/27
Meadowview 102 Ph 4A Access Street $165,750 2026/27
24th Street Ph 4B $3,963,036 2027/28
$35,285,678
Storm Drainage
Drainage - 2 Regional Basins & 3 WQ Ponds $3,576,515 Complete Drainage Conveyance $1,156,779 Complete
Delta Shores Circle South 1A $2,123,473 NOC 7/5/17
Delta Shores Circle North 1B $558,008 NOC 5/13/23
Interconnections 1C $1,069,658 NOC 1/24/18
Drainage Trunk Line 1D $1,156,126
Delta Shores Circle North PH 1 Villages 1, 2 & 3 $3,847,535 2025/26 Delta Shores Circle North PH 4 Village MDR 16 $87,840 2027/28 24th Street Ph 4A $916,025 2026/27
Meadowview 102 Ph 4A Access Street $305,370 2026/27
24th Street Ph 4B $571,632 2027/28
$15,368,961
Water
Transmission Main (Franklin to Freeport) $5,648,197
Delta Shores Circle South 1A $1,093,187 NOC 7/5/17
Delta Shores Circle North 1B $447,880 NOC 5/13/23
Delta Shores Circle North PH 1 Villages 1, 2 & 3 $1,527,046 2025/26 Delta Shores Circle North PH 4 Village MDR 16 $73,200 2027/28 24th Street Ph 4A $952,933 2026/27
Meadowview 102 Ph 4A Access Street $159,575 2026/27
24th Street Ph 4B $779,494 2027/28
24th Street 24" WM Extension to Meadowview Drive $2,500,000 2027/28 $13,181,512
Subtotal Backbone Improvements $93,365,486

EXHIBIT C

LIST OF AUTHORIZED FACILITIES AND FEES
Improvements and Budgeted Amounts
The description of authorized facilities which follows in this Exhibit C is intended to serve as a guide in determining the public facilities which are authorized to be wholly or partially financed with the proceeds of the special taxes and bonds of the CFD. Any public facilities of a similar nature to those described below, constructed by the Developer and for which plans and specifications have been approved by the City, shall be authorized facilities of the CFD, provided that they have an estimated useful life of five (5) years or greater and are consistent with City policy and further provided that the Developer requests that bond proceeds be used for reimbursement. All statements below in this Exhibit C pertaining to sizes, quantities and locations of public facilities shall be regarded as current best estimates, subject to modification either during the review/approval process of the plans and specifications pertaining thereto or during actual construction thereof.

Nothing in this Exhibit C shall be construed as committing the City or CFD to provide for the acquisition or reimbursement of all of the authorized facilities, which acquisition or reimbursement shall remain subject to satisfaction of the terms and conditions of an Acquisition and Shortfall Agreement between the City and Developer pertaining thereto and further subject to the limitations of financial feasibility and the availability of proceeds of special taxes or bonds of the CFD.

Identified by Incremental Portions Budgeted Amounts* Status of Completion Public Facilities - May be constructed or purchased by the City Fire Station and Equipment $15,917,815
Subtotal Public Facilities $15,917,815
Land Dedications
Open Space (29.4 acres)

6. 83 acres $1,366,000 Accepted by City

22. 57 acres $4,514,000
$5,880,000
Detention (31.7 acres)

17.02 acres $3,404,000 Accepted by City

9.30 acres $1,860,000 Accepted by City
Basin O (1.51 acres) $302,000 Functional, not yet dedicated Basin N (1.38 acres) $276,000 2026/27
Phase 4 Basin (2.50 acres) $500,000 2026/27
$6,342,000
Subtotal Land Dedication $12,222,000
Total $121,505,301
*Budgeted amounts are estimates. The actual amounts paid for each improvement or portion of an improvement will be the acquisition price determined in accordance with the terms and conditions of an Acquisition and Shortfall Agreement between the City and Developer.

EXHIBIT D
DELTA SHORES COMMUNITY FACILITIES DISTRICT NO. 2019-01
(IMPROVEMENTS), CITY OF SACRAMENTO, COUNTY OF SACRAMENTO, STATE

OF CALIFORNIA

RATE AND METHOD OF APPORTIONMENT FOR
IMPROVEMENT AREA NO. 4

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 4 Page 1

RATE AND METHOD OF APPORTIONMENT FOR
DELTA SHORES COMMUNITY FACILITIES DISTRICT NO. 2019-01 (IMPROVEMENTS)

CITY OF SACRAMENTO

COUNTY OF SACRAMENTO

STATE OF CALIFORNIA
IMPROVEMENT AREA NO. 4
A Special Tax as hereinafter defined shall be levied on each Assessor's Parcel of Taxable Property within Improvement Area No. 4 of the Delta Shores Communi ty Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California and collected each Fiscal Year commencing no earlier than Fiscal Year 2025-2026 in an amount determined through the application of the procedures described below. All of the real property within Improvement Area No. 4, unless exempted by law or the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meaning:
“Accessory Dwelling Unit” means a secondary residential unit of limited size, as defined in California Government Code Section 66313 and/or meeting the criteria outlined in Sacramento City Code Section 17.228.105, as may be amended from time-to-time. “Acre or Acreage” means the land area of an Assessor’s Parcel as shown on County records, such as on an Assessor’s Parcel Map and/or in the Assessor’ s Data, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final subdivision map, parcel map, condominium plan, record of survey, or other recorded document creating or describing the parcel or calculated using available spatial data and GIS, all as determined by the CFD Administrator. The square footage of an Assessor’s Parcel is equal to the Acreage of such parcel multiplied by 43,560. “Act” means the Mello-Roos Community Facilities Ac t 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 actual or reasonably estimated costs directly related to the administration of Improvement Area No. 4 including, but not limited to, the following: the costs of computing the Special Tax and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of co llecting the Special Tax (whether by the County, the City, or otherwise); the costs of remitting the Spec ial Tax to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, Improvement Area No. 4, or any desi gnee thereof of complying with arbitrage rebate requirements or responding to questions from the IRS pertaining to any Bonds or any audit of any Bonds by the IRS; the costs to the City, Improvement Area No. 4, or any designee thereof of providing continuing disclosure regarding the Bonds pursuant to applicable state or federal securities law; the costs associated with preparing Special Tax disclosu re statements and responding to public inquiries regarding the Special Tax; the costs of the City, Improvement Area No. 4, or any designee thereof related to any appeal of the levy or application of the Special Tax; and the costs associated with the

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 4 Page 2 release of funds from an escrow account, if any. Administrative Expenses shall also include amounts estimated or advanced by the City, or Improvement Area No. 4 for any other administrative purposes, including, but not limited to, attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of any delinquent installment of the Special Tax. “Airspace Parcel” means a property with an assigned A ssessor’s Parcel number that constitutes vertical space on an underlying land Parcel.
“Assessor’s Data” means the property characteristic data compiled and maintained by the County Assessor for each Assessor’s Parcel, including, but not limited to, Assessor’s Parcel Number, Use Code, and Units.
“Assessor’s Parcel” or “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 Count y Assessor designating parcels by an Assessor’s Parcel number.
“Assigned Special Tax” means the Special Tax for each Land Use Class of Developed Property, as determined in accordance with Sections C.1.a., C.1.c, and C.1.e, or the Special Tax for each Land Use Class of Final Subdivision Property, as determined in accordance with Sections C.1.b., C.1.d, and C.1.f. “Authorized Facilities” means the public facilities authorized to be financed, in whole or in part, by Bonds or Special Tax revenue dedicated to Pay-As-You-Go Expenditures for Improvement Area No. 4. “Backup Special Tax” means the Backup Special Tax amount set forth in Section C.1.g. “Bonds” means any bonds or other debt (as defined in the Act), whether in one or more series, issued or incurred for Improvement Area No. 4 under the Act to fund the Authorized Facilities. “Bond Year” means a one-year period beginning on September 2 nd in each year and ending on September 1st in the following year, unless defined differently in the applicable Indenture. “Boundary Map” means that map recorded with the County Recorder’s office on ____________, 2026, in Book ___ at Page __ as Document Number ____________. “Building Square Feet” or “BSF” means all of the square footage within the perimeter of a structure, not including any carport, walkway, garage, overha ng, patio, enclosed patio, or similar area. The determination of Building Square Feet shall be ma de by reference to the Assessor’s Data, building permit(s) issued for such structure, or other records of the City, as determined by the CFD Administrator.
“CFD Administrator” means an official of the City, or desi gnee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Tax. “CFD” means Delta Shores Community Facilities Di strict No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California.
“City” means the City of Sacramento.

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 4 Page 3 “Council” means the City Council of the City, acting as legislative body with respect to the CFD as contemplated by the Act.
“County” means the County of Sacramento.
“County Assessor” means the County of Sacramento, Office of the Assessor. “Developed Property” means all Assessor’s Parcels of Taxabl e Property for which a building permit has been issued prior to June 1st preceding the Fiscal Year in which the Special Tax is being levied. “Exempt Property” means all Assessor’s Parcels that are ex empt from the Special Tax pursuant to Section E.
“Expected Revenue” means the expected Special Tax revenue from Developed Property within Improvement Area No. 4, as shown on the attached Exhibit 1. “Expected Units” means the expected number of Units on Developed Property within Improvement Area No. 4, as shown on the attached Exhibit 1.
“Final Subdivision” means a subdivision of property created by recordation of a final subdivision map, parcel map or lot line adjustment, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code Section 1352, that creates individual lots for which residential building permits may be issued without further subdivision of such property. “Final Subdivision Property” means, in any Fiscal Year, all property for which a Final Subdivision was recorded prior to June 1 st of the preceding Fiscal Year and which has not yet become Developed Property.
“Fiscal Year” means the period starting July 1st and ending on the following June 30th. “GIS”, or geographic information system , means a system designed to capture, store, manipulate, analyze, manage, and present spatial or geographic data. “High-Density Residential Property” means, in any Fiscal Year, a ll Assessor’s Parcels of Developed Property with a density of 15 or greater Units per Acre. The assignment of the High-Density Residential Property Land Use Class to an Assessor’s Parcel shall be based upon reference to Exhibit 2 to this RMA showing the Villages within Improvement Area No. 4 designated as “HDR” or similar. “Improvement Area” means any of the four improvement areas shown on the Boundary Map of the CFD.
“Improvement Area No. 4” means Improvement Area No. 4 of the Delta Shores Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California. “Indenture” means the indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Class” means any of the classes listed in Tables 1 through Table 6.

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 4 Page 4 “Low-Density Residential Property” means, in any Fiscal Year, a ll Assessor’s Parcels of Developed Property with a density of 7 or fewer Units per Acre. The assignment of the Low-Density Residential Property Land Use Class to an Assessor’s Parcel shall be based upon reference to Exhibit 2 to this RMA showing the Villages within Improvement Area No. 4 designated as “LDR” or similar. “Maximum Special Tax” means the maximum annual Special Tax, determined in accordance with the provisions of Section C, which may be levied in an y Fiscal Year on any Asse ssor’s Parcel of Taxable Property.
“Medium-Density Residential Property” means, in any Fiscal Year, all Assessor’s Parcels of Developed Property with a density of 8-14 Units per Acre. The assignment of the Medium-Density Residential Property Land Use Class to an Assessor’s Parcel shall be based upon reference to Exhibit 2 to this RMA showing the Villages within Improvement Area No. 4 designated as “MDR” or similar. “Minimum Taxable Acreage” means 60.29 Acres for Improvement Area No. 4. “Mixed-Use Residential Property” means, in any Fiscal Year, a ll Assessor’s Parcels of Developed Property containing structures that have a mixtur e of residential and non-residential uses. The non- residential portions of the Parcel are not subject to the Special Tax. The assignment of the Mixed-Use Residential Property to an Assessor’s Parcel shall be based upon reference to Exhibit 2 to this RMA showing the Villages within Improvement Area No. 4 designated as “MU” or similar. “Non-Residential Property” means, in any Fiscal Year, all Asse ssor’s Parcels of Developed Property not classified as Low-Density Residential Prop erty, Medium-Density Residential Property, High- Density Residential Property, or Mixed-Use Residential Property. “Open Space Property” means property within the boundaries of Improvement Area No. 4 which (a) has been designated with specific boundaries and Acreage on a Final Subdivision map as open space, a park, detention basin, or wetland restoration, (b) is classified by the County Assessor as open space, a park, detention basin, or wetland restoration, (c ) has been irrevocably offered for dedication as open space, a park, detention basin, or wetland restoration to the federal government, the State of California, the County, the City, or any other public agency or nonprofit holding a conservation easement, or (d) is encumbered by an easement or other restriction required by the City limiting the use of such property to open space, a park, detention basin, or wetland restoration. “Outstanding Bonds” mean all Bonds, which remain outstanding as defined in the Indenture pursuant to which such Bonds were issued.
“Pay-As-You-Go Expenditure” means Special Tax revenue which is used or set aside for Authorized Facilities, including for Authorized Facilities to be constructed or acquired by the CFD. Pay-As-You-Go Expenditures may be included in the Special Tax Requirement until all Authorized Facilities have been constructed or acquired.
“Property Owner Association Property” means any property within the boundaries of Improvement Area No. 4 which is (a) owned by a property owner association or (b) designated with specific boundaries and Acreage on a Final Subdivision map as property owner association property. As used in this definition, a property owner association includes any master or sub-association.

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 4 Page 5 “Proportionately” means for Developed Property that the ratio of the Special Tax levy to the Assigned Special Tax or the Backup Special Tax is equal for all Assessor’s Parcels of Developed Property within Improvement Area No. 4. For Final Subdivision Property, Taxable Contingent Property, Tentative Map Property, or Undeveloped Property, “Proportionately” means that the ratio of the actual Special Tax levy per Parcel/Unit/Acre to the Maximum Annual Sp ecial Tax per Parcel/Unit/Acre is equal for all Assessor’s Parcels of Final Subdivision Property , Taxable Contingent Property, Tentative Map Property, or Undeveloped Property within Improvement Area No. 4. “Public Property” means any property within the boundaries of Improvement Area No. 4 which (a) is owned by a public agency, (b) has been irrevocably offered for dedication to a public agency, or (c) is designated with specific boundaries and Acreage on a Final Subdivision map as property which will be owned by a public agency. For purposes of this definition, a public agency includes the federal government, the State, the County, the City or any other public agency, including school districts and public utilities.
“RMA” means this Rate and Method of Apportionment of Special Tax, which may be amended from time-to-time.
“Special Tax” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax Requirement. “Special Tax Requirement” means that amount of Special Tax revenue required in any Fiscal Year for Improvement Area No. 4 to: (i) pay Administrative Expenses; (ii) pay annual debt service on all Outstanding Bonds due in the Bond Year beginning in such Fiscal Year; (iii) pay other periodic costs on Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on Outstanding Bonds; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds in accordance with the Indenture, to the extent not included in a computation of the Special Tax Requirement for a previous Fiscal Year; (v) to the extent permitted by the Act, pay for reasonably anticipated delinquent installments of the Special Tax based on the delinquency rate for the Special Tax levied in the previous Fiscal Year; and (vi) account for Pay-As-You-Go Expenditures for the Authorized Facilities; 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 Contingent Property” means any Assessor’s Parcel of Non-Residential Property, Open Space Property, Property Owner Association Property, P ublic Property, or other property that would otherwise be classified as Exempt Property pursuan t to the provisions of Section E, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property located within Improvement Area No. 4 below the Minimum Taxable Acreage for Improvement Area No. 4.
“Taxable Property” means all of the Assessor’s Parcels with in the boundaries of Improvement Area No. 4 that are not exempt from the Special Tax pursuant to law or Section E below. “Tax Zone” means an area encompassing one or more V illages, as shown on Exhibit 2 to the RMA,

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 4 Page 6 proposed for residential development for Low- Density Residential Property, Medium-Density Residential Property, High-Density Residential Property, or Mixed-Use Residential Property. “Tentative Map” means a map that is made for the purpose of showing the design of a proposed subdivision, including the individual lots that are expected within the subdivision, as well as the conditions pertaining thereto. A Tentative Map is not based on a detailed survey of the property within the map and is not recorded with the County recorder’s office to create legal lots. “Tentative Map Property” means, in any Fiscal Year, all Parcels which are included within a Tentative Map that was approved prior to June 1 of the prior Fiscal Year. “Trustee” means the financial institution appointed pursu ant to an Indenture to act as the trustee, fiscal agent, or paying agent or a combination thereof to administer a series of Bonds for and on behalf of Improvement Area No. 4 and the City under such Indenture. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Final Subdivision Property, Taxable Contingent Property, or Tentative Map Property. “Unit” means an individual residential living space. The number of Units assigned to each Assessor’s Parcel may be determined by (i) referencing Assessor’s Data, (ii) site surveys and physical unit counts, and/or (iii) reviewing City building permit data. An Accessory Dwelling Unit shall not be considered a Unit for the purposes of the Special Tax.
“Use Code” means the six-digit use code assigned by the County Assessor to each Assessor’s Parcel. “Village” means an area, as shown on Exhibit 2 to the RMA, proposed for residential development for Low-Density Residential Property, Medium-Density Residential Property, High-Density Residential Property, or Mixed-Use Residential Property.
“Welfare Exempt Property” means any Parcel within the boundaries of Improvement Area No. 3 that (a) has been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code indicated in the Assessor’s Data finalized as of January 1 of the previous Fiscal Year, and (b) is exempt from the Special Tax pursuant to Section 53340(c) of the Act. During any time that Bonds are outstanding, property that was not classified as Welfare Exempt Property prior to the issuance of Bonds and was subject to the Sp ecial Tax prior to receiving the welfare exemption may no longer be categorized as Welfare Exempt Property regardless of whether the Assessor’s Parcel has been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code.

B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, all Assessor’s Parcels of Taxable Property within Improvement Area No. 4 shall be (a) classified as Developed Property, Final Subdivision Property, Taxable Contingent Property, Tentative Map Property, or Undeveloped Property and (b) shall be subject to the levy of the annual Special Tax determined pursuant to Section C below.

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 4 Page 7 C. MAXIMUM SPECIAL TAX RATE

1. Developed Property and Final Subdivision Property
The Maximum Special Tax for each Assessor’s Parcel of Developed Property and Final Subdivision Property shall be the greater of (1) the Assigned Special Tax described in Sections C.1.a, C.1.b, C.1.c, C.1.d, C.1.e, and C.1.f or (2) the Backup Special Tax computed pursuant to Section C.1.g. a. Assigned Special Tax for Developed Property – Tax Zone 1 The Assigned Special Tax for each Assessor’s Parcel of Developed Property in Tax Zone No. 1 is shown in Table 1.

TABLE 1
Assigned Special Tax for Developed Property
(Fiscal Year 2025-2026)
Land Use
Class Description BSF Range
Assigned
Special Tax
1 Low-Density Residential Property Greater than
2,600 BSF $3,417 per Unit
2 Low-Density Residential Property 2,401 – 2,600
BSF $3,354 per Unit
3 Low-Density Residential Property 2,200 – 2,400
BSF $3,214 per Unit
4 Low-Density Residential Property Less than 2,200
BSF $3,010 per Unit
5 Medium-Density Residential Property n/a $0 per Unit
6 High-Density Residential Property n/a $0 per Unit
7 Mixed-Use Residential Property n/a $0 per Unit
8 Non-Residential Property n/a $0

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 4 Page 8 b. Assigned Special Tax for Final Subdivision Property – Tax Zone 1 The Assigned Special Tax for each Assessor’s Parcel of Final Subdivision Property in Tax Zone No. 1 is shown in Table 2.

TABLE 2
Assigned Special Tax for Final Subdivision Property
(Fiscal Year 2025-2026)
Land Use
Class Description
Assigned
Special Tax
1 Low-Density Residential Property $3,240 per Parcel
2 Low-Density Residential Property $3,240 per Parcel
3 Low-Density Residential Property $3,240 per Parcel
4 Low-Density Residential Property $3,240 per Parcel
5 Medium-Density Residential Property $0 per Parcel
6 High-Density Residential Property $0 per Unit 1
7 Mixed-Use Residential Property $0 per Unit 1
8 Non-Residential Property $0
1 Per Unit expected on each Parcel of Final Subdivision Property.

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 4 Page 9 c. Assigned Special Tax for Developed Property – Tax Zone 2 The Assigned Special Tax for each Assessor’s Parcel of Developed Property in Tax Zone No. 2 is shown in Table 3.

TABLE 3
Assigned Special Tax for Developed Property
(Fiscal Year 2025-2026)
Land Use
Class Description BSF Range
Assigned
Special Tax
9 Low-Density Residential Property Greater than
2,000 BSF $2,849 per Unit
10 Low-Density Residential Property 1,801 – 2,000
BSF $2,600 per Unit
11 Low-Density Residential Property 1,600 – 1,800
BSF $2,453 per Unit
12 Low-Density Residential Property Less than 1,600
BSF $2,391 per Unit
13 Medium-Density Residential Property n/a $0 per Unit
14 High-Density Residential Property n/a $0 per Unit
15 Mixed-Use Residential Property n/a $0 per Unit
16 Non-Residential Property n/a $0

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 4 Page 10 d. Assigned Special Tax for Final Subdivision Property – Tax Zone 2 The Assigned Special Tax for each Assessor’s Parcel of Final Subdivision Property in Tax Zone No. 2 is shown in Table 4.

TABLE 4
Assigned Special Tax for Final Subdivision Property
(Fiscal Year 2025-2026)
Land Use
Class Description
Assigned
Special Tax
9 Low-Density Residential Property $2,559 per Parcel
10 Low-Density Residential Property $2,559 per Parcel
11 Low-Density Residential Property $2,559 per Parcel
12 Low-Density Residential Property $2,559 per Parcel
13 Medium-Density Residential Property $0 per Parcel
14 High-Density Residential Property $0 per Unit 1
15 Mixed-Use Residential Property $0 per Unit 1
16 Non-Residential Property $0
1 Per Unit expected on each Parcel of Final Subdivision Property.

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 4 Page 11 e. Assigned Special Tax for Developed Property – Tax Zone 3 The Assigned Special Tax for each Assessor’s Parcel of Developed Property in Tax Zone No. 3 is shown in Table 5.

TABLE 5
Assigned Special Tax for Developed Property
(Fiscal Year 2025-2026)
Land Use
Class Description BSF Range
Assigned
Special Tax
17 Low-Density Residential Property Greater than
2,800 BSF $3,555 per Unit
18 Low-Density Residential Property 2,600 – 2,800
BSF $3,450 per Unit
19 Low-Density Residential Property Less than 2,600
BSF $3,424 per Unit
20 Medium-Density Residential Property n/a $0 per Unit
21 High-Density Residential Property n/a $0 per Unit
22 Mixed-Use Residential Property n/a $0 per Unit
23 Non-Residential Property n/a $0

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 4 Page 12 f. Assigned Special Tax for Final Subdivision Property – Tax Zone 3 The Assigned Special Tax for each Assessor’s Parcel of Final Subdivision Property in Tax Zone No. 3 is shown in Table 6.

TABLE 6
Assigned Special Tax for Final Subdivision Property
(Fiscal Year 2025-2026)
Land Use
Class Description
Assigned
Special Tax
17 Low-Density Residential Property $3,488 per Parcel
18 Low-Density Residential Property $3,488 per Parcel
19 Low-Density Residential Property $3,488 per Parcel
20 Medium-Density Residential Property $0 per Parcel
21 High-Density Residential Property $0 per Unit 1
22 Mixed-Use Residential Property $0 per Unit 1
23 Non-Residential Property $0
1 Per Unit expected on each Parcel of Final Subdivision Property.

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 4 Page 13 g. Backup Special Tax (Fiscal Year 2025-2026)
The Backup Special Tax per Village for each Assessor’s Parcel of Developed Property and Final Subdivision Property, is calculated as follows:

The increases to the Backup Special Tax pursuan t to Section C.1.i below would still apply to such Assessor’s Parcel.
h. Changes to Land Use Class
For each Village, prior to a bond sale, if a Land Use Class change is proposed or identified that will result in a change in the Expected Revenues , no action will be needed pursuant to this Section. Each Fiscal Year, the CFD Administrato r shall update Exhibit 1 to show the revised Units and Expected Revenues if a Land Use Class has been approved.

For each Village, after a Bond sale, if a Land Use Class change is proposed or identified, the following must be applied:

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 4 Page 14 the Act), the Maximum Special Tax for the Assessor’s Parcel cannot be increased because of future Land Use Class changes for other Assessor’s Parcels. i. 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 for Developed Property and Final Subdivision Property shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.

2. Taxable Contingent Property, Tentative Map Property, and Undeveloped Property a. Maximum Special Tax
The Maximum Special Tax for each Assessor’s Parcel of Taxable Contingent Property, Tentative Map Property, and Undeveloped Proper ty shall be $18,323 per Acre in Fiscal Year 2025-2026.
b. Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2026, the Maximum Special Tax for Taxable Contingent Property, Tentative Map Property, and Undeveloped Property shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing no earlier than Fiscal Year 2025-2026 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requ irement, and shall levy the Special Tax until the amount of the Special Tax equals the Special Tax Requirement. The Sp ecial Tax shall be levied each Fiscal Year as follows:

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 4 Page 15 Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor’s Parcel of Developed Property used for private re sidential purposes (as determined pursuant to the Act) in any Fiscal Year be increased as a consequence of the delinquency or default in the payment of the Special Tax by the owner or owners of any other Taxable Property by more than ten percent above the amount that would have been levied against such Assessor’s Parcel in such Fiscal Year had there been no delinquencies or defaults.

E. EXEMPTIONS

1. No Special Tax shall be levied on up to 4.09 Acres of Non-Residential Property, Open Space Property, Property Owner Association Property, and Public Property. Tax-exempt status will be assigned by the CFD Administrator in the chrono logical order in which property becomes Non- Residential Property, Open Space Property, Property Owner Association Property, or Public Property.

2. For the following property types in excess of the 4.09 Acres exempted above, Non-Residential Property, Open Space Property, Property Owner Asso ciation Property, or Public Property that is not exempt from the Special Tax under this section, or pursuant to the Act, shall be classified as Taxable Contingent Property. Taxable Contingent Property shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the fifth step in Section D above, at up to 100% of the applicable Maximum Special Tax for Taxable Contingent Property.

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 4 Page 16 F. SPECIAL TAX APPEALS
Any property owner may file a written appeal of the Special Tax with the CFD Administrator claiming that the amount or application of the Special Tax is not correct. The appeal must be filed not later than one calendar year after having paid the Specia l Tax that is disputed, and the appellant must be current in all payments of the Special Tax. In addition, during the term of the appeal process, any Special Tax levied must be paid on or before the payment date established when the levy was made.

I. PREPAYMENT OF SPECIAL TAX OBLIGATION
The following definitions apply to this Section I:
“CFD Public Facilities” means those public facilities authorized to be financed by Improvement Area No. 4.
“CFD Public Facilities Costs” means either $3,759,741 in costs for completed facilities/land dedications in 2026 dollars; plus $13,409,803 in costs for pending facilities/land dedications in 2026 dollars, which shall increase by the Construction Cost Index on July 1, 2026, and on each July 1 thereafter, or such lower number as shall be de termined either by (a) the CFD Administrator as

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 4 Page 17 sufficient to finance the CFD Public Facilities, or (b ) the Council concurrently with a covenant that it will not issue any more Bonds to be secured by Special Taxes levied under this RMA. “Construction Cost Index” means the annual percentage change in the Engineering News-Record Construction Cost Index for the City of San Francisco, measured as of June in the previous Fiscal Year.

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

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 4 Page 18 As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be calculated as follows:

Step Number:

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

3. a. Divide the Assigned Special Tax computed pursuant to Step 2 by the total estimated Assigned Special Tax for Improvement Area No. 4 based on the Developed Property Special Tax which could be charged in the current Fiscal Year on all Expected Units through buildout of Improvement Area No. 4, excluding any Assessor’s Parcels which have prepaid the Special Tax obligation in full pursuant to Section I.1.
b. Divide the Backup Special Tax computed pursuant to Step 2 by the total estimated Backup Special Tax for Improvement Area No. 4 based on the Developed Property Special Tax which could be charged in the current Fiscal Year on all Expected Units through buildout of Improvement Area No. 4, excluding any Assessor’s Parcels which have prepaid the Special Tax obligation in full pursuant to Section I.1.

4. Multiply the larger quotient computed pursuant to Step 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”).

5. Compute the current Fu ture Facilities Costs.

7. Multiply the Bond Redemption Amount computed pursuant to Step 4 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “ Redemption Premium”).

8. Compute the amount needed to pay interest on the Bond Redemption Amount on the earliest redemption date for the Outstanding Bonds.

10. Subtract the amount computed pursuant to Step 9 from the amount computed pursuant to

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 4 Page 19 Step 8 (the “Defeasance Amount”).

14. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to Steps 4, 6, 7, 10 and 11, less the amount computed pursuant to Steps 12 and 13 (the “ Prepayment Amount”).

Any current-year Special Tax that has been placed on the County tax roll will remain on the tax roll.

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 4 Page 20 A partial prepayment can only occur once per Assessor’s Parcel. The amount of the prepayment shall be calculated as in Section I.1; except that a partial prepayment sh all be calculated according to the following formula:

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

With respect to any Assessor’s Parcel that is partially prepaid, the CFD Administrator shall (i) distribute the funds remitted to it according to Step 15 of Section I.1, and (ii) indicate in the records of Improvement Area No. 4 that there has been a partial prepayment of the Special Tax obligation and that a portion of the Special Tax obligation equal to the outstanding percentage (1.00 - F) of the remaining Special Tax obligation shall continue to be authorized to be levied on such Assessor’s Parcel pursuant to Section D.

J. TERM OF SPECIAL TAX
The Special Tax shall be levied commencing in Fisc al Year 2025-2026 to the extent necessary to fully satisfy the Special Tax Requirement and shall not be levied after the 2065-2066 Fiscal Year.

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 4 Page 21 EXHIBIT 1

EXPECTED UNITS/REVENUE PER VILLAGE FOR DEVELOPED PROPERTY (FISCAL YEAR 2025-2026)
Tax Zone 11 Village 1
Land Use
Class
Special
Tax Rate
Expected
Units 2
Expected
Revenue 3
1 LDR-4
1 $3,417 8 $27,336
2 3,354 11 36,894
3 3,214 13 41,782
4 3,010 12 36,120
Subtotals LDR-4 44 $142,132
1 LDR-5
1 $3,417 17 $58,089
2 3,354 22 73,788
3 3,214 19 61,066
4 3,010 21 63,210
Subtotals LDR-5 79 $256,153
1 LDR-9
1 $3,417 5 $17,085
2 3,354 5 16,770
3 3,214 6 19,284
4 3,010 5 15,050
Subtotals LDR-9 21 $68,189
2 LDR-3
9 $2,849 10 $28,490
10 2,600 4 10,400
11 2,453 17 41,701
12 2,391 5 11,955
Subtotals LDR-3 36 $92,546
2 LDR-6
9 $2,849 7 $19,943
10 2,600 6 15,600
11 2,453 15 36,795
12 2,391 6 14,346
Subtotal LDR-6 34 $86,684
2 LDR-7
9 $2,849 13 $37,037
10 2,600 10 26,000
11 2,453 22 53,966
12 2,391 9 21,519
Subtotals LDR-7 54 $138,522

1 As shown on Exhibit 2 to this RMA.
2 There is a total of 397 Expected Units within Improvement Area No. 4. 3 The total Expected Revenue within Improvement Area No. 4 is $1,151,882, stated in Fiscal Year 2025-2026 dollars. On each July 1, commencing on July 1, 2026, the Expected Revenue shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 4 Page 22 Tax Zone 11 Village 1
Land Use
Class
Special
Tax Rate
Expected
Units 2
Expected
Revenue 3
2 LDR-10
9 $2,849 11 $31,339
10 2,600 6 15,600
11 2,453 21 51,513
12 2,391 10 23,910
Subtotals LDR-10 48 $122,362
2 LDR-11
9 $2,849 10 $28,490
10 2,600 5 13,000
11 2,453 17 41,701
12 2,391 8 19,128
Subtotals LDR-11 40 $102,319
3 LDR-8
17 $3,555 17 $60,435
18 3,450 14 48,300
19 3,424 10 34,240
Subtotals LDR-8 41 $142,975
TOTALS 397 $1,151,882

City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 4 Page 23 EXHIBIT2
MAP OF TAX ZONES AND VILLAGES WITHIN IMPROVEMENT AREA NO. 4

Sacramento City CouncilMarch 10, 2026

Sacramento City Council
March 10, 2026