2026-00620 AMENDMENT MATERIALS Calling a Special Election to Make Certain Changes to Improvement Area No. 3, Deeming it Necessary to Incur Debt for Improvement Area No. 4, and Calling a Special Election to Levy a Special Tax in and Incur Debt for Improvement Area No. 4 of the Delta Shores Community Facilities District No. 2019-01 (Improvements) [Noticed 03/25/2026; Published 04/03/2026] [Updated 04/10/2026 @ 11:30 AM]

CITY COUNCIL
Kevin McCarty, Mayor
Lisa Kaplan, District 1
Roger Dickinson, District 2
Karina Talamantes, Vice Mayor, District 3
Phil Pluckebaum, District 4
Caity Maple, District 5
Eric Guerra, Mayor Pro Tem, District 6
Rick Jennings, II, District 7
Mai Vang, District 8

CHARTER OFFICERS
Mindy Cuppy, City Clerk
Gustavo Limón Martinez, City Attorney
Farishta Ahrary, City Auditor
Maraskeshia Smith, City Manager
John Colville, City Treasurer

City Council
Financing Authority
Housing Authority
Public Financing Authority
Redevelopment Agency Successor Agency
City Hall Complex
915 I Street, Sacramento, CA 95814
Published by the Office of the City Clerk
(916) 808-7200

AMENDMENT MATERIAL

Description: Attached is amendment material received after publishing the agenda. The attached staff report replaces the original staff report in its entirety.

For the Meeting of: Tuesday, April 14, 2026, at 2:00 p.m.

Agenda Item: Public Hearing Item 20

20. Calling a Special Election to Make Certain Changes to Improvement Area No. 3, Deeming it Necessary to Incur Debt for Improvement Area No. 4, and Calling a Special Election to Levy a Special Tax in and Incur Debt for Improvement Area No. 4 of the Delta Shores Community Facilities District No. 2019-01 (Improvements) [Noticed 03/25/2026; Published 04/03/2026]

File ID: 2026-00620

Location: District 8

Recommendation: Conduct a public hearing and upon conclusion: adopt 1) a Resolution calling for a special election on proposals to change 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) a Resolution deeming it necessary to incur bonded indebtedness to finance the acquisition and construction of certain public facilities in and for Improvement Area No. 4 ("IA-4") of the CFD; and 3) a Resolution calling for a special election on the proposals to levy a new special tax in IA-4 and incur debt for IA-4 to finance the acquisition and construction of certain public facilities.

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
City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2026-00620 4/14/2026
Calling a Special Election to Make Certain Changes to Improvement Area No. 3, Deeming it Necessary to Incur Debt for Improvement Area No. 4, and Calling a Special Election to Levy a Special Tax in and Incur Debt for Improvement Area No. 4 of the Delta Shores Community Facilities District No. 2019-01 (Improvements) [Noticed 03/25/2026; Published 04/03/2026] File ID: 2026-00620
Location: District 8
Recommendation: Conduct a public hearing and upon conclusion: adopt 1) a Resolution calling for a special election on proposals to change 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) a Resolution deeming it necessary to incur bonded indebtedness to finance the acquisition and construction of certain public facilities in and for Improvement Area No. 4 (“IA-4”) of the CFD; and 3) a Resolution calling for a special election on the proposals to levy a new special tax in IA-4 and incur debt for IA-4 to finance the acquisition and construction of certain public facilities.

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: Eric Frederick, Special Districts Manager, (916) 808-5129, [email protected], Department of Finance
Attachments:
1-Description/Analysis
2-Background
3-Schedule of Proceedings
4-Amended Boundary Map
5-Second Amended and Restated RMA for IA-3
6-RMA for IA-4
7-Resolution Calling Special Election for IA-3
8-Resolution Deeming it Necessary to Incur Bonded Indebtedness for IA-4 9-Resolution Calling Special Election for IA-4

Page 1 of 4 ends

File ID: 2026-00620 4/14/2026
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 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 previously petitioned the City Council to commence change proceedings to 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 also petitioned the City Council to 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.

In response to the petition, Council adopted Resolution No. 2026-0059 (Resolution of Consideration) on March 10, 2026, thereby initiating proceedings to make the requested modifications to IA-3 and to designate the new IA-4. The Resolution of Consideration also fixed April 14, 2026, as the date for a

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File ID: 2026-00620 4/14/2026
public hearing on the questions of the proposed modifications to IA-3 of the CFD and the levy of a new special tax in IA-4, and the incurrence of debt for IA-4.

To address the request to change the boundaries the CFD and designate the new IA-4, an amended CFD boundary map was included as Exhibit A to the Resolution of Consideration. This map was also recorded with the Sacramento County Clerk/Recorder’s Office on March 19, 2026, as required by the Mello-Roos Community Facilities Act of 1982 (California Government Code sections 53331 to 53339) (Act) and is included as Attachment 4 to this report for reference.

In regards to IA-3, JEN and DR Horton requested 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. The Second Amended RMA for IA-3 that includes these modifications was included as Exhibit B to the Resolution of Consideration and is included as Attachment 5 to this report for reference.

For IA-4, JEN and DR Horton requested 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, and this RMA was included as Exhibit D to the Resolution of Consideration and is included as Attachment 6 to this report for reference. 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.

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

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File ID: 2026-00620 4/14/2026
Facilities.

Economic Impacts: Not applicable.

Environmental Considerations: Under California Environmental Quality Act (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.

Rationale for Recommendation: Conducting a public hearing on the proposals mentioned above and included as part of the Resolution of Consideration is required under the Act. These actions have been requested by JEN and DR Horton as owners of land in the CFD and are permitted under the Act.

Financial Considerations: There will be no impact to the City’s General Fund as a result of this action. 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” on March 10, 2026 (Resolution No. 2026-0059), which also called for a public hearing to be held on April 14, 2026, where all interested persons will 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 Act, 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. There are currently no registered voters residing within the boundaries of the existing IA-3 or the proposed new IA-4, so the vote will be by the landowners.

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 adopted Resolution of Consideration and set a date for a Public Hearing

March 19, 2026 Amended Boundary Map Recorded

March 25, 2026 Notices of Public Hearing Mailed

April 3, 2026 Notice of Public Hearing Published

April 14, 2026 Council Holds a Public Hearing
Adopt Resolutions Calling Special Elections
Adopt Resolution Deeming it Necessary to Incur Debt
for IA-4

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

Attachment 4
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.

8.105, 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, th
e land area shown on the applicable final subdivision map, parcel map, condomini
um 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 Act of 1982, as amended, being Chap ter 2.5, Division 2 of Title 5 of the
Government Code of the State of California.
“Administrative Expens
es” 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 collecting 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 Truste e (includi
ng 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 contin
uing 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 Attachment 5

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

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 Sa cramento 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, th e 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 Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. “Administrative Expenses” means the 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 collecting 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 Truste e (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 co sts associated with the Attachment 6

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

RESOLUTION NO.

Adopted by the Sacramento City Council

April 14, 2026

Calling a Special Mailed-Ballot Election Within Improvement Area No. 3 of the Delta Shores Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California

BACKGROUND

A. The City Council conducted proceedings under and pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982, set forth at Government Code sections 53311 through 53368.3 (the “Act”), to form the Delta Shores Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California (the “CFD”), to designate within the CFD various improvement areas, including Improvement Area No. 3 (the “Improvement Area”), to authorize the levy of special taxes therein for the purpose of financing the acquisition and construction of certain public capital facilities, to establish the appropriations limit for the Improvement Area and to authorize the issuance of bonded indebtedness or other debt (as defined in the Act) (“Debt”) in and for the Improvement Area to finance such public facilities, all as set forth in Resolution No. 2019-0371 (the “Resolution of Formation”) and Resolution No. 2019-0374, each adopted by the City Council 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 the Improvement Area, (ii) increase the aggregate principal amount of Debt that may be incurred in and for the Improvement Area from $39.6 million to $63.0 million and (iii) increase the appropriations limit in and for the Improvement Area 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. On March 10, 2026, the City Council adopted its Resolution No. 2026-0059 (the “Resolution of Consideration”) in which it determined to consider, among other things, (i) replacing the existing rate and method of apportionment and manner of collection of the special tax for the Improvement Area set forth in Exhibit F to the Resolution of Formation, as previously amended, with the Second Amended and Restated Rate and Method of Apportionment of Special Tax for the Improvement Area set forth in Exhibit B to the Resolution of Consideration, (ii) changing the

aggregate principal amount of Debt that may be incurred in and for the Improvement Area from $63.0 million to $43.4 million, (iii) changing the appropriations limit in and for the Improvement Area from the amount of $63.0 million for fiscal year 2021-22 to $43.4 million for fiscal year 2025-26 and (iv) amending the public facilities that are authorized to be financed in and for the Improvement Area to be those public facilities set forth in Exhibit C to the Resolution of Consideration (collectively, the “Proposed Amendments”).

C. The Resolution of Consideration fixed April 14, 2026, at 2:00 p.m., or as soon thereafter as the City Council may reach the matter, as the date and time for a public hearing on the Proposed Amendments (the “Public Hearing”).

D. The Public Hearing has been held as scheduled and all persons interested were permitted to testify and to submit written protests to the Proposed Amendments.

At the close of the Public Hearing, the City Council determined that there was no majority protest under Section 53337 of the Act, and thus the City Council is permitted to continue with these proceedings.

E. In order for the Proposed Amendments to be effective, they must be submitted to an election of the qualified electors of the Improvement Area.

F. A Certificate Re: Registered Voters and Landowners (the “Certificate re:

Landowners”) has been filed with the City Clerk, certifying that at some time during the 90 days preceding the close of the Public Hearing, there were fewer than 12 persons registered to vote within the territory of the Improvement Area and that as of the close of the Public Hearing there were no persons registered to vote within the territory of the Improvement Area.

G. A Certificate of Clerk re: Receipt of Property Owner Waiver and Consent Forms is on file with the City Clerk stating that each owner of land within the Improvement Area, or an authorized representative of each owner, has filed with the City Clerk a properly executed Waiver, Consent, and Appointment (as defined in section 4 below) in the form attached to this resolution as Exhibit B.

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 accepts the Certificate re: Landowners and finds, in accordance therewith, that there has been a time during the 90 days preceding the close of the Public Hearing when there were fewer than twelve registered voters residing within the boundaries of the Improvement Area and that as of the close of the Public Hearing there were no persons registered to vote within the territory of the Improvement Area.

Accordingly, under section 53326(b) of the Act, the qualified electors of

the Improvement Area for the proposed special election are the owners of land within the Improvement Area.

Section 3. The City Council further finds and determines that the owners of land within the Improvement Area are the landowners set forth in the attachment to the Certificate re: Landowners and that the attachment correctly sets forth the amount of property owned by each landowner within the Improvement Area and the number of votes to which each landowner is entitled under section 53326(b) of the Act, being the number of acres owned rounded up to the next whole acre.

Section 4. The City Council approves the form of “Waiver and Consent Shortening Time Periods and Waiving Various Requirements for Conducting a Mailed-Ballot Election and Appointment of Representative to Act for Property Owner in Voting and Casting Ballot” (the “Waiver, Consent, and Appointment”) by which the time limits and related requirements respecting preparation and distribution of election materials are waived, a copy of which is attached to this resolution as Exhibit B. The City Council finds that the rights, procedures, and time periods waived in the Waiver, Consent and Appointment are solely for the protection of the qualified electors and may be waived by the qualified electors under sections 53326(a) and 53327(b) of the Act and under other provisions of law dealing with waiver generally, and that the Waiver, Consent and Appointment constitutes a full and knowing waiver, by any qualified elector who has executed the form, of those rights, procedures and time periods.

Section 5. The City Council further finds and determines, based on a Certificate of Clerk re: Receipt of Property Owner Waiver and Consent Forms, provided this date by the City Clerk, that each owner of land within the Improvement Area, or an authorized representative of each owner of land within the Improvement Area, has filed with the City Clerk a properly executed Waiver, Consent and Appointment. Accordingly, the City Council is establishing the procedures and time periods for this special mailed-ballot election without regard to statutory schedules.

Section 6. As authorized by sections 53325.7, 53326, 53338(a), 53351, 53353.5 and 53354 of the Act, the City Council hereby calls a special mailed-ballot election to be held within the boundaries of the Improvement Area on April 17, 2026, for the purpose of submitting to the qualified electors of the Improvement Area the Proposed Amendments. As authorized by section 53326 of the Act, the election will be conducted by mailed-ballot, but personal service of the ballots to authorized representatives of each landowner is permitted as set forth in the Waiver, Consent, and Appointment forms on file with the City Clerk. The City Clerk is directed to either mail or make personal service of the ballots, in the form attached to this resolution as Exhibit A, to each landowner within the Improvement

Area or, if one has been appointed under a Waiver, Consent, and Appointment, to the landowner’s authorized representative.

Section 7. The proposition to be submitted to the qualified electors of the Improvement Area is as set forth in the form of special election ballot attached to this resolution as Exhibit A.

Section 8. Under the Act and Elections Code sections 307 and 320, the City Clerk is hereby designated as the official to conduct the special mailed-ballot election in accordance with the following procedures:
(a) The special election is to be held and conducted, the votes canvassed and the returns made, and the results determined, all as provided in this resolution; and in all particulars not prescribed by this resolution, the special election shall be held and conducted and the votes received and canvassed in the manner provided by law for the holding of special elections consistent with the Act. (b) All owners of land within the Improvement Area as of the close of the Public Hearing will be qualified to vote upon the proposition to be submitted at the special election.
(c) The special election is to be conducted as a mailed-ballot election, in accordance with the provisions of the Act and the prior proceedings of the City Council taken under the Act, and there will be no polling places for the special election. All ballots shall be delivered or mailed by the City Clerk to the landowners, and all voted ballots must be received by the City Clerk not later than 5:00 p.m. on the date of the election in order to be counted. However, if at any time the City Clerk determines that all votes have been cast, the City Clerk shall immediately declare the election closed. (d) Each voter desiring to vote in favor of the proposition to be submitted at the special election shall mark a cross (x) or similar mark in the blank space next to the word “YES” on the ballot to the right of the proposition; and each voter desiring to vote against the proposition shall mark a cross (x) or similar mark in the blank space next to the word “NO” on the ballot to the right of the proposition.

The cross (x) or similar mark may be marked with either pen or pencil.
(e) The City Clerk shall commence the canvass of the returns of the special election, and report the returns to the City Council no later than the City Council meeting of April 28, 2026.
(f) The City Council may thereupon declare the results of the special election and cause to be spread upon its minutes a statement of the results of the special election as ascertained by the canvass.

Section 9. This resolution takes effect when adopted.

TABLE OF CONTENT:

EXHIBIT A – Form of Special Election Ballot - DELTA SHORES COMMUNITY FACILITIES DISTRICT NO. 2019-01 (IMPROVEMENTS), CITY OF

SACRAMENTO, COUNTY OF SACRAMENTO, STATE OF CALIFORNIA
IMPROVEMENT AREA NO. 3
EXHIBIT B – Waiver, Consent, and Appointment - WAIVER AND CONSENT SHORTENING

TIME PERIODS AND WAIVING VARIOUS REQUIREMENTS FOR

CONDUCTING A MAILED-BALLOT ELECTION AND APPOINTMENT OF

REPRESENTATIVE TO ACT FOR PROPERTY OWNER IN VOTING AND

CASTING BALLOT
DELTA SHORES COMMUNITY FACILITIES DISTRICT NO. 2019-01
(IMPROVEMENTS), CITY OF SACRAMENTO, COUNTY OF
SACRAMENTO, STATE OF CALIFORNIA IMPROVEMENT AREA NO. 3

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

OF CALIFORNIA
IMPROVEMENT AREA NO. 3

SPECIAL ELECTION BALLOT

(Mailed-Ballot Election)

This ballot is for the use of the authorized representative of the following owner of land within 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 “Improvement Area”):

Name of Landowner Number of Acres Owned Total Votes [ ] [ ] [ ]

Under the Mello-Roos Community Facilities Act of 1982 (the “Act”) and resolutions of the Sacramento City Council (the “City Council”), the above-named Landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by the Landowner.

To be counted, this ballot must be executed and certified below and be returned to the Sacramento City Clerk, by mail or in person, to be received by the City Clerk before 5:00 p.m. on April 17, 2026, at the Office of the City Clerk, 915 “I” Street, New City Hall, Fifth Floor, Sacramento, California 95814.

Mailing by that time will not be sufficient. This ballot must be received by the time stated in order to be counted.
2 An “X” or other mark will cast all votes assigned to this ballot. Distinguishing marks and erasures are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the Sacramento City Clerk and obtain another.

The amount of money to be raised annually by this measure is expected to be $2,176,104 for fiscal year 2025-26, escalating annually thereafter, and the rate and duration of the special tax is as set forth in the second amended and restated rate and method of apportionment of the special tax for the Improvement Area.

BALLOT MEASURE

“Shall the measure pursuant to which (i) the authority
previously conferred upon the Sacramento City Council,
acting solely as the legislative body with respect to
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 “Improvement Area”) as contemplated by the Act and not
as the legislative body of the City of Sacramento as a whole, is amended to modify the rates and the method of
apportionment of the special tax for the Improvement Area and to make certain related changes to the existing rate and method of apportionment and manner of collection of the special tax for the Improvement Area, as set forth in Exhibit B to the Resolution of Consideration (as defined herein), (ii) the aggregate principal amount of Debt (as defined in the Resolution of Consideration) that may be incurred in and for the Improvement Area is changed from $63.0 million to
$43.4 million, (iii) the appropriations limit in and for the Improvement Area is changed from the amount of $63.0
million for fiscal year 2021-22 to $43.4 million for fiscal year 2025-26 and (iv) the public facilities that are authorized to be financed in and for the Improvement Area are amended to be those public facilities set forth in Exhibit C to the Resolution of Consideration, all as described in the City Council’s Resolution No. 2026-0059 (the “Resolution of
Consideration”) adopted on March 10, 2026, be
adopted?”
MARK “YES” OR “NO”
WITH AN “X”:

YES: 

NO: 

Certification for Special Election Ballot

The undersigned is the above-named Landowner or the authorized representative of the above-named Landowner and is a person legally authorized and entitled to cast this ballot on behalf of the above-named Landowner.
3 I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 2026.

Signature

Print Name
4 EXHIBIT B

WAIVER AND CONSENT

SHORTENING TIME PERIODS AND WAIVING VARIOUS

REQUIREMENTS FOR CONDUCTING A MAILED-BALLOT ELECTION

AND APPOINTMENT OF REPRESENTATIVE TO ACT FOR PROPERTY OWNER

IN VOTING AND CASTING BALLOT

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

OF CALIFORNIA
IMPROVEMENT AREA NO. 3

I [We],
,
(print name[s])
(referred to in this document collectively as the “Undersigned”) declare [check one]:
_____ The Undersigned are ALL of the owners…
OR
_____ The Undersigned is the authorized representative of, and in executing this document is acting for, ALL of the owners (and has attached hereto evidence of the Undersigned’s authority to act for ALL of the owners in this regard), which owners are listed here: ________________________________________________________________ __________________________________________________________________________ ______________________________________________________________(the “Owners) of the real property listed below by Assessor’s Parcel Number (“APN”), which is within 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 “Improvement Area”). The APN’s are:

______________________________________________________________________ The Undersigned understands that a special mailed-ballot, landowner election will be held to determine whether (i) the authority to levy an annual special tax on property within the Improvement Area, including the above-numbered parcels, to finance certain public facilities, is amended to modify the rates and the method of apportionment of the special tax for the Improvement Area and to make certain related changes to the existing rate and method of apportionment and manner of collection of the special tax for the Improvement Area, (ii) the 5 aggregate principal amount of Debt (as defined in the herein-referenced Resolution of Consideration) that may be incurred in and for the Improvement Area is changed from $63.0 million to $43.4 million, (iii) the appropriations limit in and for the Improvement Area is changed from the amount of $63.0 million for fiscal year 2021-22 to $43.4 million for fiscal year 2025-26 and (iv) the public facilities that are authorized to be financed in and for the Improvement Area are amended, all as set forth in the City Council’s Resolution No. 2026-0059 (the “Resolution of Consideration”) adopted on March 10, 2026. The Undersigned, on behalf of the above-referenced Owners, requests that the election be conducted at the earliest possible date. The Undersigned is the person legally entitled and authorized to cast the ballot attributable to the above-referenced parcels in the landowner, mailed-ballot election.

The Undersigned, on behalf of the above-referenced Owners, hereby waives any and all minimum time periods relative to the election pursuant to Government Code Section 53326(a).

The Undersigned, on behalf of the above-referenced Owners, hereby waives the preparation and distribution of an impartial analysis of the ballot measure, as well as arguments in favor and against, under the authority of Government Code Section 53327(b).

The Undersigned, on behalf of the above-referenced Owners, hereby waives the requirement to publish notice of the election under Government Code Section 53352.

The Undersigned, on behalf of the above-referenced Owners, hereby waives the requirements regarding the time to mail ballots to the qualified electors under Elections Code Section 4101, and agrees that either mailed service or personal service of the ballot will be sufficient.

The Undersigned, on behalf of the above-referenced Owners, hereby waives the requirements regarding identification envelopes for the return of mailed ballots contained in Government Code Section 53327.5.

The Undersigned, on behalf of the above-referenced Owners, hereby waives any and all defects in notice or procedure in the conduct of the election, whether known or unknown (except the right to vote and to have the ballots fairly counted), and states that the election is being expedited, pursuant to this Waiver, Consent, and Appointment, at the particular instance and request of the Undersigned.

The Undersigned, on behalf of the above-referenced Owners, hereby consents to the levy and collection of the special tax on the above-referenced parcels in accordance with the second amended and restated rate and method of apportionment attached as Exhibit B to the Resolution of Consideration and hereby waives any and all rights to challenge the inclusion of the above- 6 referenced parcels in the Improvement Area and any and all other proceedings related thereto.

Finally, the Undersigned, on behalf of the above-referenced Owners, hereby authorizes ________________________ [if the Undersigned will cast the ballot, enter “N/A”] to act in all respects for the above-listed property and for the above-referenced owners in casting the votes and executing the ballot assigned to the above-listed property.

The Undersigned declare[s] under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this Appointment and Waiver and Consent is signed by each of the Undersigned on the date following each signature.

Signature: Date:

Print Name:

Signature: Date:

Print Name:

Signature: Date:

Print Name:

Signature: Date:

Print Name:

Signature: Date:

Print Name:

[Attach Notary Certificate]

RESOLUTION NO.

Adopted by the Sacramento City Council

April 14, 2026

Resolution Deeming it Necessary to Incur Bonded Indebtedness to Finance the Acquisition and Construction of Certain Public Facilities in and for Improvement Area No. 4 of the Delta Shores Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California

BACKGROUND

A. On March 10, 2026, the City Council duly adopted Resolution No. 2026-0059 (the “Resolution of Consideration”) designating “Improvement Area No. 4” of the Delta Shores Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California” (the “CFD”) under and pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982, set forth at Government Code sections 53311 through 53368.3 (the “Act”), proposing to levy a new special tax therein to finance the acquisition and construction of certain public capital facilities and declaring that the public convenience and necessity require that a bonded indebtedness or other debt (as defined in the Act) in and for Improvement Area No. 4 in a principal amount not to exceed $23.0 million (the “Debt”) be incurred to finance the acquisition and construction of the public facilities described in the Resolution of Consideration.

B. The Resolution of Consideration fixed Tuesday, April 14, 2026, at 2:00 p.m., or as soon thereafter as the City Council may reach the matter, in the City Council Chambers on the first floor of New City Hall, 915 I Street, Sacramento, California, as the time and place for a public hearing (the “Public Hearing”) to be held by the City Council to consider incurring the proposed Debt and any other matters set forth in the Resolution of Consideration.

C. On April 14, 2026, at or shortly after the time set for the Public Hearing, the City Council opened the Public Hearing to consider the incurrence of the proposed Debt and any other matters set forth in the Resolution of Consideration.

D. At the Public Hearing, all interested persons—including all persons who own property within Improvement Area No. 4 and all registered voters who reside within Improvement Area No. 4—were given an opportunity to appear and be heard, and the City Council heard and considered the testimony of all interested persons for and against the incurrence of the proposed Debt and any other matters set forth in the Resolution of Consideration.

E. All registered voters who reside within Improvement Area No. 4 and all persons who own land within Improvement Area No. 4 that is not exempt from the proposed levy of the special tax within Improvement Area No. 4 were allowed to submit written protests to any aspect of the proposals contained in the Resolution of Consideration and were permitted to withdraw their protests before the close of the Public Hearing.

F. On file with the City Clerk are (1) a proof of publication of the Notice of Public Hearing in the SACRAMENTO BULLETIN and (2) a Certificate of Mailing of Notice of Public Hearing showing mailed notice to the owners of land within Improvement Area No. 4.

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

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

Section 2. The City Council accepts the proof of publication of the Notice of Public Hearing and the Certificate of Mailing of Notice of Public Hearing and finds, based thereon, that proper notice of the Public Hearing has been given in accordance with the Act and that the Public Hearing was conducted with proper and legal notice in all respects.

Section 3. The City Council finds and determines that at the close of the Public Hearing written protests, if any, to the incurrence of the proposed Debt or any other matters set forth in the Resolution of Consideration were submitted by less than 50% of the registered voters residing within Improvement Area No. 4 or by less than six of the registered voters residing within Improvement Area No. 4, whichever is more. The City Council also finds that, at the close of the Public Hearing, written protests, if any, were submitted by the owners of less than one-half of the area of land in Improvement Area No. 4 and not exempt from the special tax.

Thus, finding that it is not precluded by the Act from proceeding further in this matter, the City Council hereby orders and determines that it has considered, and that it overrules, all protests to the incurrence of the proposed Debt and to any other matters set forth in the Resolution of Consideration that may have been submitted.

Section 4. The City Council hereby deems it necessary that the Debt be incurred to finance the acquisition and construction of the facilities described in the Resolution of Consideration. The authorization to finance the acquisition and construction of the facilities includes the following incidental expenses: the costs of planning and designing the facilities, together with the costs of environmental evaluations thereof; all costs associated with designating Improvement Area No. 4, issuing the Debt, determining the amount of any special taxes for Improvement Area No. 4, and collecting or paying any of the special taxes for Improvement Area No. 4; and any

costs otherwise incurred to carry out the authorized purposes of the CFD, together with any other expenses incidental to the acquisition and construction of the facilities. A representative list of these incidental expenses is set forth in Exhibit C to the Resolution of Formation (as defined in the Resolution of Consideration). 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 5. Only Improvement Area No. 4 will be subject to a special tax to pay for the Debt.

Section 6. The aggregate principal amount of the proposed Debt to be incurred may not exceed $23.0 million, which 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 architectural, 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.

Section 7. The maximum term of any issue of Debt may not exceed 40 years from the date of issuance of that issue of Debt.

Section 8. The maximum annual rate or rates of interest to be paid on any Debt may not exceed 12%.

Section 9. Under section 53353.5 of the Act, the authorization to levy the special tax within Improvement Area No. 4 to finance the facilities, the question of setting the appropriations limit for Improvement Area No. 4, and the question whether Improvement Area No. 4 will be authorized to incur the Debt will be combined into a single ballot question and submitted to the qualified electors of Improvement Area No. 4 at a special mailed-ballot election with ballots to be delivered to the City Clerk no later than 5:00 p.m. on April 17, 2026. If before that time the City Clerk has received all of the eligible ballots to be cast, then the City Clerk will declare the election closed.

Section 10. The election is to be conducted in accordance with the City Council’s Resolution Calling a Special Mailed-Ballot Election in Improvement Area No. 4, adopted this date, to which reference is made for further particulars.

Section 11. If the ballot proposition receives the approval of two-thirds or more of the votes cast on the proposition, then the Debt may be issued and sold for the purpose for which it was authorized, and the Debt (except where special funds are otherwise available) will be paid exclusively from the annual levy of the special tax in Improvement Area No. 4 and in any and all cases is not and may not be secured by any other taxing power or funds of the City.

Section 12. Any Debt issued will be callable (i.e., may be redeemed before its maturity date) in accordance with the Act.

Section 13. This resolution takes effect when adopted.

RESOLUTION NO.

Adopted by the Sacramento City Council

April 14, 2026

Calling a Special Mailed-Ballot Election Within Improvement Area No. 4 of the Delta Shores Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California

BACKGROUND

A. The City Council conducted proceedings under and pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982, set forth at Government Code sections 53311 through 53368.3 (the “Act”), to form the Delta Shores Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California (the “CFD”), to designate within the CFD various improvement areas, to authorize the levy of special taxes therein for the purpose of financing the acquisition and construction of certain public capital facilities, to establish the appropriations limits for the improvement areas and to authorize the issuance of bonded indebtedness or other debt (as defined in the Act) (“Debt”) in and for the improvement areas to finance such public facilities, all as set forth in Resolution No. 2019-0371 (the “Resolution of Formation”) and Resolution No. 2019-0374, each adopted by the City Council on September 24, 2019.

B. On March 10, 2026, the City Council adopted its Resolution No. 2026-0059 (the “Resolution of Consideration”) in which it, among other things, designated Improvement Area No. 4 (the “Improvement Area”) of the CFD and proposed (i) the levy of a new special tax in the Improvement Area to finance the acquisition and construction of certain public facilities, (ii) the incurrence of Debt in and for the Improvement Area in a principal amount not to exceed $23.0 million to finance the acquisition and construction of such public facilities and (iii) the establishment of the appropriations limit in and for the Improvement Area in the amount of $23.0 million for fiscal year 2025-26 (collectively, the “Proposals”).

D. The Public Hearing has been held as scheduled and all persons interested were permitted to testify and to submit written protests to the Proposals. At the close of the Public Hearing, the City Council determined that there was no majority protest under Section 53337 of the Act, and thus the City Council is permitted to continue with these proceedings.

E. At the conclusion of the Public Hearing, and as authorized by section 53351 of the Act, the City Council adopted its Resolution Deeming it Necessary to Incur Bonded Indebtedness in and for Improvement Area No. 4 (the “Resolution Deeming it Necessary to Incur Bonded Indebtedness”).

F. In order for the Proposals to be effective, they must be submitted to an election of the qualified electors of the Improvement Area. The Proposals contained in the Resolution of Consideration and the Resolution Deeming it Necessary to Incur Bonded Indebtedness may be combined into a single ballot measure under section 53353.5 of the Act.

F. A Certificate Re: Registered Voters and Landowners (the “Certificate re:

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.

Accordingly, under section 53326(b) of the Act, the qualified electors of the Improvement Area for the proposed special election are the owners of land within the Improvement Area.

Section 6. As authorized by sections 53325.7, 53326, 53338(a), 53351, 53353.5 and 53354 of the Act, the City Council hereby calls a special mailed-ballot election to be held within the boundaries of the Improvement Area on April 17, 2026, for the purpose of submitting to the qualified electors of the Improvement Area the Proposals. As authorized by section 53326 of the Act, the election will be conducted by mailed-ballot, but personal service of the ballots to authorized representatives of each landowner is permitted as set forth in the Waiver, Consent, and Appointment forms on file with the City Clerk. The City Clerk is directed to either mail or make personal service of the ballots, in the form attached to this resolution as Exhibit A, to each landowner within the Improvement Area or, if one has been appointed under a Waiver, Consent, and Appointment, to the landowner’s authorized representative.

Section 7. The proposition to be submitted to the qualified electors of the Improvement Area is as set forth in the form of special election ballot attached to this resolution as Exhibit A.

(a) The special election is to be held and conducted, the votes canvassed and the returns made, and the results determined, all as provided in this resolution; and in all particulars not prescribed by this resolution, the special election shall be held and conducted and the votes received and canvassed in the manner provided by law for the holding of special elections consistent with the Act. (b) All owners of land within the Improvement Area as of the close of the Public Hearing will be qualified to vote upon the proposition to be submitted at the special election.
(c) The special election is to be conducted as a mailed-ballot election, in accordance with the provisions of the Act and the prior proceedings of the City Council taken under the Act, and there will be no polling places for the special election. All ballots shall be delivered or mailed by the City Clerk to the landowners, and all voted ballots must be received by the City Clerk not later than 5:00 p.m. on the date of the election in order to be counted. However, if at any time the City Clerk determines that all votes have been cast, the City Clerk shall immediately declare the election closed. (d) Each voter desiring to vote in favor of the proposition to be submitted at the special election shall mark a cross (x) or similar mark in the blank space next to the word “YES” on the ballot to the right of the proposition; and each voter desiring to vote against the proposition shall mark a cross (x) or similar mark in the blank space next to the word “NO” on the ballot to the right of the proposition.

Section 9. This resolution takes effect when adopted.

TABLE OF CONTENT:

EXHIBIT A – Form of Special Election Ballot DELTA SHORES COMMUNITY FACILITIES DISTRICT NO. 2019-01 (IMPROVEMENTS), CITY OF SACRAMENTO,

COUNTY OF SACRAMENTO, STATE OF CALIFORNIA IMPROVEMENT
AREA NO. 4

EXHIBIT B – Waiver, Consent, and Appointment - WAIVER AND CONSENT SHORTENING

TIME PERIODS AND WAIVING VARIOUS REQUIREMENTS FOR

CONDUCTING A MAILED-BALLOT ELECTION AND APPOINTMENT OF

REPRESENTATIVE TO ACT FOR PROPERTY OWNER IN VOTING AND

CASTING BALLOT

DELTA SHORES COMMUNITY FACILITIES DISTRICT NO. 2019-01
(IMPROVEMENTS), CITY OF SACRAMENTO, COUNTY OF
SACRAMENTO, STATE OF CALIFORNIA IMPROVEMENT AREA NO. 4

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

OF CALIFORNIA
IMPROVEMENT AREA NO. 4

SPECIAL ELECTION BALLOT

(Mailed-Ballot Election)

This ballot is for the use of the authorized representative of the following owner of land within Improvement Area No. 4 of the Delta Shores Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California” (the “Improvement Area”):

Name of Landowner Number of Acres Owned Total Votes [ ] [ ] [ ]

The amount of money to be raised annually by this measure is expected to be $1,151,882 for fiscal year 2025-26, escalating annually thereafter, and the rate and duration of the special tax is as set forth in the rate and method of apportionment of the special tax for the Improvement Area.

BALLOT MEASURE

“Shall the measure pursuant to which (i) the Sacramento City Council, acting solely as the legislative body with respect to Improvement Area No. 4 of the Delta Shores
Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of
California (the “Improvement Area”) as contemplated by
the Act and not as the legislative body of the City of
Sacramento as a whole, is authorized to incur debt in and for the Improvement Area with a principal amount not
exceeding $23.0 million and to annually levy a special tax within the Improvement Area to finance the acquisition and construction of certain public facilities and (ii) the
appropriations limit for the Improvement Area for fiscal year 2025-26 is established in the amount of $23.0 million, all as described in the City Council’s Resolution of Consideration adopted on March 10, 2026, and Resolution Deeming it
Necessary to Incur Bonded Indebtedness in and for the
Improvement Area adopted on April 14, 2026, be
adopted?”
MARK “YES” OR “NO”
WITH AN “X”:

YES: 

NO: 

Certification for Special Election Ballot

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 2026.

Signature

Print Name
3 EXHIBIT B

WAIVER AND CONSENT

SHORTENING TIME PERIODS AND WAIVING VARIOUS

REQUIREMENTS FOR CONDUCTING A MAILED-BALLOT ELECTION

AND APPOINTMENT OF REPRESENTATIVE TO ACT FOR PROPERTY OWNER

IN VOTING AND CASTING BALLOT

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

OF CALIFORNIA
IMPROVEMENT AREA NO. 4

I [We],
,
(print name[s])
(referred to in this document collectively as the “Undersigned”) declare [check one]:
_____ The Undersigned are ALL of the owners…
OR
_____ The Undersigned is the authorized representative of, and in executing this document is acting for, ALL of the owners (and has attached hereto evidence of the Undersigned’s authority to act for ALL of the owners in this regard), which owners are listed here: ________________________________________________________________ __________________________________________________________________________ ______________________________________________________________(the “Owners) of the real property listed below by Assessor’s Parcel Number (“APN”), which is within Improvement Area No. 4 of the Delta Shores Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California (the “Improvement Area”). The APN’s are:

______________________________________________________________________ The Undersigned understands that a special mailed-ballot, landowner election will be held to determine whether the authority to levy an annual special tax on property within the Improvement Area, including the above-numbered parcels, to finance certain public facilities, and to incur indebtedness to be secured and repaid by the special tax, and to establish an appropriations limit for the Improvement Area, all as set forth in the Sacramento City Council’s Resolution No. 2026- 0059 (the “Resolution of Consideration”) adopted on March 10, 2026 and in a resolution deeming 4 it necessary to incur a bonded indebtedness in and for the Improvement Area to be considered by the Sacramento City Council on April 14, 2026, will be conferred upon the Sacramento City Council. The Undersigned, on behalf of the above-referenced Owners, requests that the election be conducted at the earliest possible date. The Undersigned is the person legally entitled and authorized to cast the ballot attributable to the above-referenced parcels in the landowner, mailed- ballot election.

The Undersigned, on behalf of the above-referenced Owners, hereby waives any and all minimum time periods relative to the election pursuant to Government Code Section 53326(a).

The Undersigned, on behalf of the above-referenced Owners, hereby waives the requirement to publish notice of the election under Government Code Section 53352.

The Undersigned, on behalf of the above-referenced Owners, hereby consents to the levy and collection of the special tax on the above-referenced parcels in accordance with the rate and method of apportionment attached as Exhibit D to the Resolution of Consideration and hereby waives any and all rights to challenge the inclusion of the above-referenced parcels in the Improvement Area and any and all other proceedings related thereto.

Finally, the Undersigned, on behalf of the above-referenced Owners, hereby authorizes ________________________ [if the Undersigned will cast the ballot, enter “N/A”] to act in all 5 respects for the above-listed property and for the above-referenced owners in casting the votes and executing the ballot assigned to the above-listed property.

Sacramento City CouncilApril 14, 2026

Sacramento City Council
April 14, 2026