Agenda packet — San Marcos City Council, March 24, 2026 (part 2 of 2)

sufficient to finance the public services and the administration of the Improvement Area , and set a time and place for a public hearing relating to the designation of the Improvement Area and annexation of territory thereto; and

WHEREAS, certain portions of the Territory proposed for annexation into the Improvement Area is included within either the City’s existing Community Facilities District No. 98-02 (Lighting, Landscaping, Open Space and Preserve Maintenance) or Landscaping and Lighting Maintenance District No. 1 (the “Prior Districts”), as applicable; and

WHEREAS, it is the intention of the City Council that services be provided through the CFD instead of the Prior Districts for ease of administration and as such upon annexation into the Improvement Area, the applicable portions of the Territory will be detached from the Prior Districts and a notice of cessation of special tax/assessment lien will be recorded against such portions of the Territory concurrently with these annexation proceedings.

NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAN MARCOS AS FOLLOWS:

Section 1. Recitals. The foregoin
g recitals are true and correct , are incorporated herein by this reference, and the City Council hereby accepts the petition of the landowners to proceed with the annexation of the Improvement Area.

Section 2. Annexation Authorization . These proceedings for annexation are initiated by this City Council pursuant to section 53339.2 of the Government Code of the State of California.

Section 3. Proposed Improvement Area. The improvement area proposed to be designated within the CFD shall be known as “Improvement Area No. F-59 of Community Facilities District No. 98- 02 (Lighting, Landscaping, Open Space, and Preserve Maintenance), City of San Marcos, County of San Diego, State of California.”

Section 4. Necessity. The City Council hereby determines that the public convenience and necessity requires that the Improvement Area is designated within the CFD and the Territory is annexed to the Improvement Area. The City Council further declares its intention to provide future annexation for future territory.

Section 5. Description and Map of Boundaries . A general description of the existing CFD territory is as follows:

All that property and territory as origina lly included within the CFD and subsequently annexed to the CFD , as such property was shown on maps as approved by this City Council designated by t he name of the original CFD, copies of which are on file in the Office of the City Clerk, as well as copies file d in the Office of the County Recorder.
184
Resolution No. 2026-XXXX

Page 3 ends

T
he boundaries of the proposed Annexation No. 161 and designation of the Improvement Area are shown on the map entitled “Map of Proposed Boundaries of Improvement Area No. F -59 of Community Facilities District No. 98 -02 (Lighting, Landscaping, Open Space, and Preserve Maintenance) , City of San Marcos , County of San Diego, State of California” which is on file with the City Clerk of the City Council (the “City Clerk”), and attached hereto as Exhibit “C” and incorporated herein by this reference.

Said map is hereby approved and, pursuant to section 3110 of the California Streets and Highways Code, the City Clerk shall, after conforming with the other requirements of section 3111 of the California Streets and Highways Code, record the original of said map in the office of the City Clerk, and within 15 days of the adoption of this Resolution but not later than 15 days prior to the date of the public hearing set forth in section 10 hereof, shall file a copy of said boundary map with the County Clerk -Recorder of the County of San Diego.

S
ection 6. Types of Services; Incidental Expenses . It is the intention of the City Council that the Improvement Area finance the municipal services generally described in Exhibit “A” (the “Services”) attached hereto and incorporated herein by this reference and all costs associated with the annexation of the Improvement Area, administration thereof, the determination of the amount of any special taxes to be levied, the costs of collecting any special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the Improvement Area and CFD.

T
o the extent possible and practicable, it is the City Council’s further intention that any common services be complete together at the same time and under the same contracts, to the extent services are contracted to third- parties, for any similar services and at shared facilities, in common with the existing CFD and the Improvement Area.

The City Council hereby finds and determines that the public interest will not be served by allowing the property owners in the Improvement Area to enter a contract in accordance with section 53329.5(a) of the Act.

S
ection 7. Special Taxes. It is the intention of the City Council that, except where funds are otherwise available, a special tax sufficient to pay for the Services and related incidental expenses authorized by the Act, secured by the recordation of a continuing lien against all non-exempt real property in the Improvement Area, shall be annually levied within the boundaries of the Improvement Area pursuant to the Rate and Method (defined below).

P
articulars as to the rate and method of apportionment of the proposed special tax are set forth in the attached Exhibit “B” (the “Rate and Method”), which is incorporated herein by this reference and which sets forth in sufficient detail the rate and method of apportionment of the special taxes to allow each landowner or resident within the proposed Improvement Area to clearly estimate the maximum amount that such person will have to pay.

Th
e special tax proposed to pay for the Services to be supplied within the Territory shall be equal to any special tax levied to pay for the same services in the existing CFD, except that a higher or lower special tax may be levied within the T erritory proposed to 185

Resolution No. 2026-XXXX

Page 4 ends

be annexed or territory to be annexed in the future to the extent that th e actual cost of providing the Services in that territory is higher or lower than the cost of providing those services in the existing CFD . This section shall not be construed to limit the levy of a special tax within the T erritory to be annexed or territory to be annexed in the future to provide new or additional services beyond those supplied within the existing CFD.

The maximum special tax rate of the existing CFD shall not be increased as a result of any annexation proceeding. The special tax obligation for any parcel may be prepaid pursuant to the terms described in Section 9 of the Rate and Method.

The special taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided however, that the Improvement Area may collect special taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent assessor’s parcels as permitted by the Act.

Upon recordation of a notice of special tax lien pursuant to sections 3117.5 and 3114.5 of the California Streets and Highways Code, a continuing lien to secure the levy of special taxes shall attach to all non-exempt real property in the Improvement Area, and that lien shall continue in force and effect until the collection of the special taxes ceases.

The City Council hereby finds that the provisions of sections 53313.6, 53313.7 and 53313.9 of the Act (relating to adjustments to ad valorem property taxes and schools financed by a community facilities district) are inapplicable to the proposed Improvement Area.

Section 8. Exempt Properties. Pursuant to section 53340 of the Act, and except as provided in section 53317.3 of the Act, properties or entities of the state, federal, and local governments shall be exempt from the levy of special taxes. Additionally, a ny property receiving a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code shall be exem pt from the special tax to the extent of such welfare exemption. The Rate and Method describes property exempt from the special tax for the Improvement Area. If a portion of the property within the Improvement Area becomes exempt for any reason, wholly or in part, from the levy of the special tax, the City Council will, on behalf of the Improvement Area, increase the levy to the extent necessary upon the remaining property within the Improvement Area that is not exempt in order to yield the annual expenses of the Improvement Area, if any, subject to the provisions of the Rate and Method and the Act regarding limitations on maximum annual special tax rates and annual increases in the annual special tax levy.

Section 9. Necessity. It is further determined by the City Council that the Services are necessary to meet increased demands and needs placed upon the City as a result of development within the boundaries of the Improvement Area.

Section 10. Hearing. A public hearing will be held by the City Council to consider the annexation of the Improvement Area to the CFD, the proposed levy of special taxes therein, the proposed rate, method of appointment, and manner of collection of the special taxes, and all other matters as set forth in this Resolution at 6:00 p.m. on April 28 , 2026 186

Resolution No. 2026-XXXX

Page 5 ends

in the City Council Chamber, 1 Civic Center Drive, San Marcos, California 92069. At such hearing, any persons interested, including all taxpayers, property owners, and registered voters within the Improvement Area, may appear and be heard, and the testimony of all interested persons or taxpayers for or against the annexation of t he Territory to the Improvement Area, the levy of the special taxes, or the extent of the Improvement Area, or the establishment of an appropriations limit therefor, or on any other matters set forth in this Resolution, will be heard and considered.

Any protests to the proposals in this Resolution may be made orally or in writing by any interested persons or taxpayers, except that any protests pertaining to the regularity or sufficiency of such proceedings shall be in writing and shall clearly set for th the irregularities and defects to which the objection is made. The City Council may waive any irregularities in the form or content of any written protest and at such public hearing may correct minor defects in such proceedings. All written protests not presented in person by the protester at the public hearing shall be field with the City Clerk on or before the time fixed for the public hearing in order to be received and considered. Any written protest may be withdrawn in writing at any time before the conclusion of such public hearing.

If fifty percent (50%) or more of the registered voters, or six registered voters, whichever is more, residing within the T erritory proposed to be included in the Improvement Area and not exempt from the levy of special taxes, or the owners of one- half or more of the area of the land in said T erritory, file written protests against the annexation of the Improvement Area to the CFD, and protests are not withdrawn so as to reduce the value of the protest to less than a majority, no further proceedings to designate the Improvement Area or to levy the specified special taxes shall be taken for a period of one year from the date of the decision of the City Council. If a majority protest of the registered voters or of the landowners are only against the furnishing of a specified type or ty pes of Services within the Improvement Area , those types of Services will be eliminated from the resolution completing the annexation of the Improvement Area to the CFD.

The public hearing may be continued from time to time, but shall be completed within sixty (60) days, except that if the City Council finds that the complexity of the Improvement Area or the need for public participation requires additional time, the public hearing may be continued from time to time for a period not to exceed six (6) months.

At the conclusion of the public hearing, the City Council may abandon the proposed annexation or may, after passing upon all protests, determine to proceed with annexing the Improvement Area to the CFD.

Section 11. Notice. The City Clerk shall publish a notice of the time and place of said public hearing as required by s ection 53339.4 of the Act, and may also give notice of the time and place of said hearing by first -class mail to each registered voter and to each landowner within the proposed boundaries of the Improvement Area as prescribed by section 53339.4 of the Act. Said notice shall be published in a newspaper of general circulation within the boundaries of the Improvement Area at least seven (7) days before 187

Resolution No. 2026-XXXX

Page 6 ends

the date of the public hearing, and may be mailed, first -class postage prepaid, to each owner of land and each registered voter residing within the boundaries of the Improvement Area at least fifteen (15) days prior to the date of the public hearing, and shall contain the information required by said section 53339.4.

Section 12. Description of Voting Procedures . The voting procedures to be followed shall be pursuant to section 53339.7 of the Act and pursuant to the applicable provisions of the California Election Code. If the City Council determines at the conclusion of the public hearing to proceed with the annexation of the Improvement Area to the CFD, it expects that the proposed voting will be by the landowners voting in accordance with the Act, as the City Council is informed that during the ninety (90) days prior to the date set for the hearing, there have been fewer than twelve (12) registered voters residing in the proposed boundaries of the Improvement Area. The City Council hereby requires this information to be confirmed before ordering the election.

Section 13. Report. The officers of the City who are responsible for providing the proposed types of S ervices to be provided within and financed by the proposed Improvement Area, if it is established, are hereby directed, pursuant to the requirements of Section 53321.5 of the California Government Code to study the proposed Improvement Area and, at or before the time of said hearing, file or cause to be filed a report with the City Council contain ing a brief description of the S ervices by type, which will in their op inion be required to adequately meet the needs of the proposed Improvement Area and an estimate of the fair and reasonable cost of providing those Services and the incidental expenses to be incurred in connection therewith. All such reports shall be made a part of the record of the hearing to be held pursuant to Section 10 hereof.

Section 14 . Severability . If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable.

Section 15. Effective Date. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED, and ADOPTED by the City Council of the City of San Marcos, California, this 24th day of March, 2026.

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

188

Resolution No. 2026-XXXX

Page 7 ends

________________________________
Rebecca D. Jones, Mayor
City of San Marcos
ATTEST:

Phillip Scollick, City Clerk
City of San Marcos

189

A-1

EXHIBIT “A”
IMPROVEMENT AREA NO. F-59 OF COMMUNITY FACILITIES
DISTRICT NO. 98-02 (LIGHTING, LANDSCAPING, OPEN SPACE, AND

PRESERVE MAINTENANCE), CITY OF SAN MARCOS, COUNTY OF

SAN DIEGO, STATE OF CALIFORNIA

Authorized Services

The types of services generally provided in the existing CFD include, but are not limited to, the maintenance, repair, removal, replacement, operation, and management of:

1. Public lighting and appurtenant facilities, including, but not limited to street lighting and traffic signals;

2. Median landscaping and appurtenant facilities such as irrigation;

3. Parkway landscaping and appurtenant facilities such as irrigation;

4. Public or private property required by the City of San Marcos to be maintained as passive open space areas, including, but not limited to, passive open space areas, habitat preservation areas, slope areas and earthen/natural drainage channels and appurtenant facilities such as drainage pipes and systems; and

5. Active open space areas including parks and trails and appurtenances such as signage.

For a full and complete description of the public services, reference is made to the final Special Tax Report for the CFD, a copy of which is on file in the Office of the City Clerk.

The types of services generally provided in the Improvement Area include, but are not limited to, the maintenance services described above provided by the CFD, plus the maintenance, repair, removal, replacement, rehabilitation, operation, and management of the following types of services:

1. Storm drain and stormwater treatment facilities, including but not limited to storm drain systems, permanent storm water quality BMPs, low impact development (LID) BMPs, detention facilities, and access to such facilities;

2. Parks including but not limited to habitat/biological open space, recreational open space, play areas, picnic areas, signage, restrooms, sports fields, pedestrian and field lighting, and other appurtenant facilities;

190

A-2

3. Trails including but not limited to multi -use trails, urban trails, Class I bicycle facilities, shared pedestrian and bicycle facilities, trail surfaces, amenities such as fencing, signage, overlooks, gates, and other appurtenant facilities, and access to such facilities;

4. Enhanced facilities in public places including but not limited to the following facilities:

• Active Transportation Plan (ATP) facilities, street furniture, bus stops, and appurtenant facilities;
• Landscaped areas, including but not limited to slopes, parkways, medians, street trees, hardscape, signage, best management practices (BMP) facilities, irrigation, and other appurtenant facilities; • Enhanced pedestrian facilities including decorative amenities, placemaking facilities, pedestrian safety enhancements, and appurtenant facilities;
• Enhanced bicycle facilities including Class IV bicycle facilities, bicycle amenities, bicycle safety enhancements, intersection treatments, and appurtenant facilities;
• Multi-model facilities including transit, bicycle, and pedestrian- oriented facilities, ATP nodes and amenities, and appurtenant facilities; and • Paseos or non-motorized access paths including hardscape, landscape, amenities, and other appurtenant facilities.

5. Any other services authorized under the Act.

Administrative Expenses:

In addition, the following costs will also be funded by the special taxes levied within the Improvement Area.

1. Administrative Expenses including costs incurred to determine, levy and collect the special taxes, including compensation of City employees for administrative work performed in relation to the Improvement Area and a proportionate amount of the City’s general administrative overhead related thereto, the fees of consultants and legal counsel, the costs of collecting installments of the special taxes upon the general tax rolls, preparation of required reports, and any other costs incurred for the administration of the Improvement Area and the CFD by the City;

2. Any amounts needed for operating reserves and reserves for repairs, removals, replacements, and rehabilitation; and

3. Any amounts needed to cure actual or estimated delinquencies in special taxes for the current or previous fiscal years.
191

B-1
COMMUNITY FACILITIES DISTRICT NO. 98-02
(LIGHTING, LANDSCAPING, OPEN SPACE

AND PRESERVE MAINTENANCE)
IMPROVEMENT AREA NO. F-59

Exhibit B

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX

Section 1. Introduction

Special Taxes shall be annually levied on all Assessor's Parcels (as hereinafter defined) in that territory included within Improvement Area No. F-59 (the "Territory") of Community Facilities District No. 98-02 of the City of San Marcos, County of San Diego, State of California (the "District"), in accordance with this Rate and Method of Apportionment of Special Tax (the "RMA") hereinafter set forth. All of the property within the Territory, unless otherwise exempted by law or the express provisions of the RMA, shall be taxed to the extent and in the manner provided below.

Section 2. Definitions

Acre: means 43,560 square feet of land.

Acreage: The area of an Assessor's Parcel as shown on the latest map of the County Assessor of the County of San Diego, or if the area of an Assessor's Parcel is not shown on such a map, the area shown on a current recorded subdivision map, parcel map, record of survey or other recorded document creating or describing the Assessor's Parcel. If the preceding maps are not available, the area shall be determined by the City Engineer. The Acreage attributable to the non- residential portion of a mixed-use building, with mixed-use meaning both residential and non-residential uses located within the same building, shall be the lesser of (i) the Acreage for the Assessor's Parcel on which such building is or is to be located or (ii) the non-residential building square footage multiplied by three and then divided by 43,560. If such non-residential building square footage is subdivided into one or more Condominiums pursuant to a Condominium Plan, then the Acreage for each such Condominium for purposes of (i) above shall be equal to the Acreage of the common interest property for such Condominium as determined by the City Engineer. Notwithstanding the foregoing, the Acreage attributable to a residential Condominium shall be computed by dividing the sum of the land area for the lot on which such Condominium is or will be located by the approved number of Condominiums for such lot.

Act: means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California. 192

B-2
Administrative Expenses: Costs incurred to determine, levy and collect the special taxes, including compensation of City employees for administrative work performed in relation to the Improvement Area and a proportionate amount of the City's general administrative overhead related thereto, the fees of consultants and legal counsel, the costs of collecting installments of the special taxes upon the general tax rolls, preparation of required reports, and any other costs incurred for the administration of the Improvement Area or Community Facilities District No. 98- 02 by the City.

Approved Property: Assessor's Parcels that have been annexed to the District and the Territory and for which a final subdivision map or a Condominium Plan has been recorded prior to the January 1 preceding the Fiscal Year for which the S pecial Tax is being levied but for which a building permit has not been issued by the City by the January 1 preceding the Fiscal Year for which the Special Tax is being levied.

Assessor's Parcel: A parcel of land or Condominium in the Territory designated and assigned a discrete identifying number on an Assessor's Parcel Map of the County Assessor of the County of San Diego.

Assessor's Parcel Map : An official map of the County Assessor of the County of San Diego designating parcels by Assessor's Parcel number.

Authorized Services: The Authorized Services means the Citywide Services and Improvement Area Services as described below:

(i) Citywide Services means Zone A – Street Lighting, Zone B – Traffic Signals, Zone D – Citywide Parks, and Zone E – Citywide Trails, as described in the "Special Tax Report Community Facilities District No. 98-02 City of San Marcos Mello-Roos Community Facilities Act of 1982 Citywide Landscaping and Lighting" dated August 25, 1998; and (ii) Improvement Area Services means the Improvement Area Services as described in the "Special Tax Report Community Facilities District No. 98-02, Improvement Area F-59, City of San Marcos Mello-Roos Community Facilities Act of 1982 Citywide Landscaping and Lighting."

City: The City of San Marcos.

Condominium: A condominium as defined in California Civil Code Section 4125, as may be amended.

Condominium Plan: A condominium plan pursuant to California Civil Code Sections 4120 and 4285, as may be amended.

Developed Property: Assessor's Parcels that have been annexed to the District and the Territory and for which a building permit and/or a conditional use permit , director 's permit, or other equivalent permit has been issued by the City after the Territory was created but prior to the March 193

B-3
1 preceding the Fiscal Year for which the Special Tax is being levied. Notwithstanding the preceding sentence, in the case of redeveloped property, only that portion of such Assessor's Parcel that has been redeveloped , as determined by the City, shall be classified as Developed Property for purposes of this RMA.

District: Community Facilities District No. 98 -02 (Lighting, Landscaping, Open Space and Preserve Maintenance) of the City.

Equivalent Dwelling Unit(s) or EDU(s): Residential dwelling units are assigned an EDU value of one. The EDUs for the portion of an Assessor's Parcel that is classified as Non- Residential are calculated by multiplying the Acreage classified as Non-Residential by 2.65.

Exempt Property: Property owned by, conveyed, dedicated, or irrevocably offered for dedication to a public agency; land that is in the public right -of-way; utility easements that are not occupied on a regular basis by employees of the benefiting utility and which make utilization of the property encumbered by such easement for purposes other than that set forth in the grant of such easement impractical; private ly owned, common area property, streets and parks, and open space lots including, but not limited to, such property owned by a property owners association; property zoned as open space; and property used as a golf course, other than clubhouse facilities. Pursuant to Section 53340(i) of the Act, properties receiving a welfare exemption under Revenue and Taxation Code Section 214 shall be exempt from the special tax and shall be classified as Exempt Property unless a waiver of such exemption is executed by t he applicable property owner.

Furthermore, property owned by a public agency but leased to an end-user for purposes other than public use will not be classified as exempt.

Extraordinary Special Tax: That special tax levied as applicable pursuant to the provisions of Section 7 below.

Fiscal Year: The period beginning on July 1 and ending on the following June 30.

Index: The Consumer Price Index for the San Diego Region as published by the United States Department of Labor, Bureau of Labor Statistics.

Maximum Annual Special Tax : The maximum special tax that can be levied on any Assessor's Parcel in any Fiscal Year.

Maximum Annual Special Tax Rate : The maximum annual special tax rate or rates as set forth in Section 4 below.

Operating Reserve: As applicable, a fund established and maintained from Special Taxes in an amount not to exceed the following (the "Operating Reserve Requirement"): 150% of the Special Tax Requirement, or such lower amounts which may be determined at the discretion of the City.

Property Classification: A classification of property specified in Section 3 below. 194

B-4

Reserve for Repairs, Removals, Replacements, and Rehabilitation: A s applicable, a fund established and maintained from Special Taxes in addition to the Operating Reserve for repairs, removals, replacements, and rehabilitation of the facilities to be maintained, operated, and managed pursuant to the Authorized Services.

Reserve Fund: As applicable, a fund or funds established and maintained from Special Taxes for purposes of the Operating Reserve and Reserve for Repairs, Removals, Replacements, and Rehabilitation.

Reserve Fund Requirement: The Operating Reserve Requirement plus the required Reserves for Repairs, Removals, Replacements, and Rehabilitation as determined by the City.

Revenue and Taxation Code : means the Revenue and Taxation Code of the State of California, as amended.

Special Tax: The special tax levied on each Assessor's Parcel pursuant to this RMA for any Fiscal Year to meet the Special Tax Requirement. The Special Tax is comprised of the Citywide Special Tax and the Improvement Area Special Tax as described below:

(i) Citywide Special Tax means the Special Tax determined by the application of the Maximum Annual Special Tax Rates for Citywide Services; and (ii) Improvement Area Special Tax means the Special Tax determined by the application of the Maximum Annual Special Tax Rates for Improvement Area Services.

Special Tax Requirement: The amount sufficient (i) to pay the Territory's proportional share of direct costs to the City, the District, and their contractors, agents , or assigns associated with providing the Authorized Services, (ii) to pay for the Administrative Expenses allocable to the Territory and associated with providing the Authorized Services, and (iii) to establish and replenish the Reserve Fund balance to the Reserve Fund Requirement. Citywide Services shall be funded from the Special Taxes produ ced by the application of the Maximum Annual Special Tax Rate s for Citywide Services and Improvement Area Services shall be funded from the Special Taxes produced by the application of the Maximum Annual Special Tax Rate for Improvement Area Services. In addition, the Special Taxes collected by the application of the Maximum Annual Special Tax Rates for Citywide Services may be expended for any of the Citywide Services, including applicable Administrative Expenses and Reserve Funds, and the Special Taxes collected by the application of the Maximum Annual Special Tax Rate for Improvement Area Services may be expended for any of the Improvement Area Services, including applicable Administrative Expenses and Reserve Funds.

Taxable Assessor's Parcel : An Assessor's Parcel all or a portion of which is classified as Developed, Approved, or Undeveloped Property and that is not Exempt Property.

195

B-5
Undeveloped Property : All Taxable Assessor's Parcel s which are not classified as Developed Property or Approved Property.

Zone: An area consisting of a group of Assessor's Parcels, which may or may not be contiguous, which will participate in the cost of providing a particular facility or service.

Section 3. Property Classifications

The Property Classifications to which Assessor's Parcels in the Territory shall be assigned are Developed Property, Approved Property, Undeveloped Property, and Exempt Property. As of July 1 of each Fiscal Year, commencing with July 1, 2025, using the definitions in Section 2 above, the District shall cause each Assessor's Parcel to be classified into one of the Property Classifications noted above.

Section 4. Maximum Annual Special Tax Rates

The EDUs for each Property Classification will be determined in accordance with Table 1 below. The Maximum Annual Special Tax R ates are specified in T able 2 below. The Maximum Annual Special Tax for a Taxable Assessor's Parcel shall be equal to the EDUs applicable to such Assessor's Parcel as determined from Table 1 below multiplied by the Maximum Annual Special Tax rates in Table 2 below. Notwithstanding the assignment of an Assessor's Parcel to one of the four Property Classifications above, each Assessor's Parcel may be comprised of residential as well as non- residential land uses , in which case the Maximum Annual Special Tax for the Assessor's Parcel shall be the sum of the Maximum Annual Special Taxes for both land uses, with non-residential based upon the proportion of the acreage applicable to the non-residential land use.

TABLE 1

EQUIVALENT DWELLING UNITS

PROPERTY

CLASSIFICATION

CITYWIDE

SERVICES

ZONES A, D, AND E

CITYWIDE

SERVICES
ZONE B

IMPROVEMENT
AREA

SERVICES
Developed Property
Residential 1 EDU/Residential Unit 1 EDU/Residential Unit 1 EDU/Residential Unit Non-Residential
Commercial 2.65 EDUs/Acre 40.00 EDUs/Acre 2.65 EDUs/Acre Industrial 2.65 EDUs/Acre 10.00 EDUs/Acre 2.65 EDUs/Acre All Others 2.65 EDUs/Acre 10.00 EDUs/Acre 2.65 EDUs/Acre 196

B-6
TABLE 1

EQUIVALENT DWELLING UNITS

PROPERTY

CLASSIFICATION

CITYWIDE

SERVICES

ZONES A, D, AND E

CITYWIDE

SERVICES
ZONE B

IMPROVEMENT
AREA

SERVICES
Approved Property1
Residential 1 EDU/Residential Unit 1 EDU/Residential Unit 1 EDU/Residential Unit Non-Residential
Commercial 2.65 EDUs/Acre 40.00 EDUs/Acre 2.65 EDUs/Acre Industrial 2.65 EDUs/Acre 10.00 EDUs/Acre 2.65 EDUs/Acre All Others 2.65 EDUs/Acre 10.00 EDUs/Acre 2.65 EDUs/Acre Undeveloped Property1
Residential 1 EDU/Residential Unit 1 EDU/Residential Unit 1 EDU/Residential Unit Non-Residential
Commercial 2.65 EDUs/Acre 40.00 EDUs/Acre 2.65 EDUs/Acre Industrial 2.65 EDUs/Acre 10.00 EDUs/Acre 2.65 EDUs/Acre All Others 2.65 EDUs/Acre 10.00 EDUs/Acre 2.65 EDUs/Acre Exempt Property NA NA NA

TABLE 2

MAXIMUM ANNUAL SPECIAL TAX RATES
FISCAL YEAR 2025-2026

AUTHORIZED SERVICE

MAXIMUM ANNUAL

SPECIAL TAX RATE
PER EDU2
Citywide Services
Zone A $45.27
Zone B $14.34
Zone C NA
Zone D $253.24
Zone E $14.12
Improvement Area Services $651.67

4.1 Assignment of Maximum Annual Special Tax: A Maximum Annual Special Tax will be assigned to all Taxable Assessor's Parcels classified as Developed Property , Approved

1 For Approved Property and Undeveloped Property, the City in its discretion will determine the number of anticipated or planned residential units and non -residential Acres for an Assessor's Parcel from the applicable zoning, tentative map, or conditional or other development permit.
2 The FY 2025-2026 Maximum Annual Special Tax Rates in Table 2 have been rounded to the nearest penny. 197

B-7
Property, or Undeveloped Property as of July 1 of the Fiscal Year in which such classification occurs.

4.2 Increasing the Maximum Annual Special Tax : Beginning with Fiscal Year 2026- 2027 the Maximum Annual Special Tax Rates set forth above may be increased annually by the greater of the annual percentage change in the Index or two percent (2.00%).

Section 5. Determination of Special Tax Requirement

The City shall annually determine the Special Tax Requirement for each Fiscal Year, commencing with Fiscal Year 2026-2027. The Special Tax Requirement for each Fiscal Year shall include the cost of those Authorized Services that the City is or will be responsible to provide during all or any portion of such Fiscal Year; the proportionate share of the related Administrative Expenses allocable to the Territory; and the funding or replenishment of the Reserve Fund to the Reserve Fund Requirement. The initial funding of the Reserve Fund shall be accomplished only through the levy of Special Taxes on Developed Property or Extraordinary Special Taxes on Approved Property and/or Undeveloped Property as provided for herein.

In any Fiscal Year during which a developer, builder, or property owner is or will be responsible for providing any Improvement Area Services, the Special Tax Requirement for such Fiscal Year shall include the Developed Properties' proportionate share of the estimated cost of providing the Improvement Area Services by the Cit y from the estimated date following the end of the developer's warranty period upon which the City will assume such maintenance responsibility to the next date thereafter on which the C ity will receive Special Taxes to finance such Improvement Area Services. For example, assume that in preparing the Fiscal Year 2026- 2027 Special Tax Requirement, the District determines that the City will become responsible for providing certain Improvement Area Services commencing on May 1, 2027. Assume that from that date the City is responsible for such maintenance costs until the end of Fiscal Year 2026-2027 (i.e., May 1, 2027 to June 30, 2027), the City's share of the cost of providing services is $2,500.

In addition, assume that the cost of providing services during Fiscal Year 2027-2028 is $10,000 such that the cost of providing services for Fiscal Year 2027-2028 until the first receipt of Special Taxes (i.e., July 1, 2027 to December 31, 2027) is $5,000. On May 1, 2027, the City will need to have on deposit $7,500 to f und the services from May 1, 2027 until December 31, 2027. To accomplish this, the Special Tax Requirement for Fiscal Year 2026 -20276 shall include this additional $7,500.

Section 6. Method of Apportionment of Special Taxes

6.1. As of July 1 of each Fiscal Year, commencing with July 1, 2026 all Taxable Assessor 's
Parcels within the Territory shall be assigned to one of the Property Classifications specified in Section 3.

6.2. The City shall determine for each Fiscal Year the Special Tax Requirement.

198

B-8

6.3. The City shall levy the Special Taxes for each Fiscal Year, commencing on July 1, 2025, in the following order of priority to fund the Special Tax Requirement for such Fiscal Year:

(a) Levy the Special Tax proportionately up to the Maximum Annual Special Tax upon all Developed Property to generate Special Taxes to fund the Special Tax Requirement;

(b) If, after levying Special Taxes pursuant to (a) above, additional Special Taxes are needed to generate sufficient Special Taxes to fund the Special Tax Requirement, then levy the Special Tax proportionately up to the Maximum Annual Special Tax upon all Approved Property; and

(c) If, after levying Special Taxes pursuant to (a) and (b) above, additional Special Taxes are needed to generate sufficient Special Taxes to fund the Special Tax Requirement, then levy the Special Tax proportionately up to the Maximum Annual Special Tax upon all Assessor
's Parcels of Undeveloped Property which are subject to the levy of Special Taxes.

Section 7. Extraordinary Special Tax

Prior to the acceptance by the City of areas or improvements to be maintained as a part of the Improvement Area Services and assumption by the City of responsibility for providing such Improvement Area Services, the District shall determine, if applicable, (i) the amount, if any, in addition to those funds received from the levy of the Special Taxes on Developed Properties which are allocated to pay for Improvement Area Services, which the City will need to pay for such Improvement Area Services from the date following the end of the developer's warranty period upon which the City will assume such maintenance responsibility to the next date thereafter on which the City will receive Special Taxes to finance such Improvement Area Services and (ii) the amount, if any, in addition to those funds received from the levy of Special Taxes on Developed Properties which are allocated t o funding the Reserve Fund, which will be necessary to increase the amount on deposit in the Reserve Fund to the Reserve Fund Requirement at the commencement of the Fiscal Year following the date of the assumption by the City of responsibility for providing such Improvement Area Services. Subject to the limitations on the Maximum Annual Special Tax contained in Section 4 above, the sum of (i) and (ii) above shall be levied as an Extraordinary Special Tax by direct billing on all remaining Approved Property and Undeveloped Property and such amount shall become due and payable within sixty (60) calendar days from and after the date of such direct billing.

The City shall not accept any areas or improvements or assume responsibility for providing those Improvement Area Services for which an Extraordinary Special Tax has been levied until such Special Tax has been received by the District. No further building permits shall be issued for Assessor's Parcels within the Territory if any Extraordinary Special Tax levied pursuant to this Section 7 is not paid within the time period set forth in the preceding paragraph.

199

B-9
Section 8. Manner of Collection of Special Taxes

With the exception of the Extraordinary Special Tax which shall be billed directly, the Special Taxes levied in each Fiscal Year shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes; provided, however, the City Council may, by resolution, establish and adopt an alternative or supplemental collection procedure, including direct billing. The Special Taxes when levied shall be secured by the lien imposed pursuant to Section 3115.5 of the Streets and Highways Code. This lien shall be a continuing lien and shall secure each levy of Special Taxes. The lien of the Special Taxes shall continue in force and effect until the Special Tax ceases to be levied in the manner provided by Section 53330.5 of the Government Code.

Section 9. Prepayment of Special Tax

The Maximum Annual Special Tax for an individual Assessor's Parcel within the Territory of the District may be discharged through the prepayment of the special tax obligation provided that there are no delinquent special taxes with respect to that Assessor's Parcel at the time of prepayment.

Proof of payment of delinquent taxes will be provided to the City prior to the discharge of the special tax obligation. An owner of an Assessor's Parcel intending to prepay the Maximum Annual Special Tax shall provide the District with a written notice of intent to prepay. Within 30 days of receipt of such written notice, the District shall notify such owner of the prepayment amount of such Assessor's Parcel.

The Prepayment Amount shall be calculated as the present value of the Maximum Annual Special Tax escalated at 2%, through each fiscal year which is seventy -five years from the fiscal year in which the prepayment shall be made plus the current fiscal year special tax obligation, an amount to cover the administrative fees and expenses of the District, as calculated by the City, including, but not limited to, the costs of computation of the prepayment, the costs of removing any special taxes from the Roll, and the costs of recording a notice of special tax lien release and any additional actions required to evidence the prepayment. The assumptions to be used when calculating the present value of the Maximum Annual Special Tax are as follows:

 The discount rate shall be equal to the rate of return earned on the City's general fund investment portfolio for the preceding twelve months.

 A 360-day year.

 The Maximum Annual Special Tax will be discounted from July 1 of each Fiscal year.

The payment in full of the amount calculated, plus the applicable administrative expenses and recording fee, fully discharges any further obligation of the parcel for the improvements funded within the District.
200

B-10

The City shall cause a suitable notice to be recorded in compliance with the Act within 30 days of receipt of such prepayment of the Maximum Annual Special Tax, to indicate the prepayment of the Maximum Annual Special Tax and the release of the special lien on such Assessor's Parcel.

Section 10. Appeals

Any landowner or resident may file a written appeal of the Special Tax on his/her property with the Finance Director, provided that the appellant is current in his/her payments of Special Taxes.

During the pendency of an appeal, all Special Taxes must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The Finance Director shall review the appeal, meet with the appellant if the Finance Director deems necessary, and advise the appellant of its determination. If the Finance Director agrees with the appellant, the Finance Director shall eliminate or reduce the Special Tax on the appellant 's property and/or provide a refund to the appellant. If the Finance Director disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has thirty (30) days in which to appeal to the City Council by filing a written notice of appeal with the City Clerk, provided that the appellant is current in his/her payments of Special Taxes. The second appeal must specify the reasons for the appellant's disagreement with the Finance Director's determination.

Section 11. Interpretations

Interpretations may be made by resolution of the City Council for purposes of clarifying any vagueness or ambiguity as it relates to any provision of this RMA. 201

BOUNDARY MAP
COMMUNITY FACILITIES DISTRICT NO. 98-02

AREAS FOR LIGHTING, LANDSCAPING, OPEN SPACE AND PRESERVE MAINTENANCE

CITY OF SAN MARCOS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA ANNEXATION NO. 161
SPECIAL IMPROVEMENT AREA NO. F-59
EXHIBIT "C"
2l92005800
2192004700
FILED IN THE OFFICE OF THE CITY CLERK THIS __ DAY OF ______ 2026.

PHILLIP SCOLLICK

CITY CLERK

CITY OF SAN MARCOS, STATE OF CALIFORNIA

I HEREBY CERTIFY THAT THE MAP SHOWING BOUNDARIES AND TERRITORIES TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 98-02, CITY OF SAN MARCOS,

COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, WAS APPROVED BY THE CITY COUNCIL

OF THE CITY OF SAN MARCOS AT A REGULAR MEETING THEREOF HELD ON THE ___ DAY OF _______ , 2026 BY ITS RESOLUTION NO. 2026-___ _

PHILLIP SCOLLICK

CITY CLERK

CITY OF SAN MARCOS, STATE OF CALIFORNIA
FILE NO. 2026-------
FILED THIS ____ DAY OF ______ , 2026 AT____ _ __ O'CLOCK IN BOOK ___ , PAGE ___ OF MAPS OF ASSESSMENT AND COMMUNITY DISTRICTS

IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA.

JORDAN Z. MARKS,

COUNTY RECORDER
BY: DEPUTY COUNTY RECORDER

BOOK PG ---- ----
N
Legend
� CORE ANNEXATION AREA BOUNDARY

CITY OF SAN MARCOS
2026------------
202

D-1

EXHIBIT “D”
IMPROVEMENT AREA NO. F-59 OF COMMUNITY FACILITIES
DISTRICT NO. 98-02 (LIGHTING, LANDSCAPING, OPEN SPACE, AND

PRESERVE MAINTENANCE), CITY OF SAN MARCOS, COUNTY OF

SAN DIEGO, STATE OF CALIFORNIA

Assessor’s Parcel Numbers
Owner APN
Paloma Townhomes, LLC 219-152-70-00;
219-152-76-00;
219-152-77-00; and
219-152-79-00.

SB-HS Lot Option Pool 01, L.P 219-200-47-00
SB-HS Lot Option Pool 02, L.P 219-200-57-00; and
219-200-58-00.

203

C-1
COMMUNITY FACILITIES DISTRICT NO. 98-02
(LIGHTING, LANDSCAPING, OPEN SPACE

AND PRESERVE MAINTENANCE)
IMPROVEMENT AREA NO. F-59

Attachment C

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX

Section 1. Introduction

Section 2. Definitions

Acre: means 43,560 square feet of land.

Act: means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California. 204

C-2
Administrative Expenses: Costs incurred to determine, levy and collect the special taxes, including compensation of City employees for administrative work performed in relation to the Improvement Area and a proportionate amount of the City's general administrative overhead related thereto, the fees of consultants and legal counsel, the costs of collecting installments of the special taxes upon the general tax rolls, preparation of required reports, and any other costs incurred for the administration of the Improvement Area or Community Facilities District No. 98- 02 by the City.

Assessor's Parcel Map : An official map of the County Assessor of the County of San Diego designating parcels by Assessor's Parcel number.

Authorized Services: The Authorized Services means the Citywide Services and Improvement Area Services as described below:

City: The City of San Marcos.

Condominium: A condominium as defined in California Civil Code Section 4125, as may be amended.

Condominium Plan: A condominium plan pursuant to California Civil Code Sections 4120 and 4285, as may be amended.

C-3
1 preceding the Fiscal Year for which the Special Tax is being levied. Notwithstanding the preceding sentence, in the case of redeveloped property, only that portion of such Assessor's Parcel that has been redeveloped , as determined by the City, shall be classified as Developed Property for purposes of this RMA.

District: Community Facilities District No. 98 -02 (Lighting, Landscaping, Open Space and Preserve Maintenance) of the City.

Furthermore, property owned by a public agency but leased to an end-user for purposes other than public use will not be classified as exempt.

Extraordinary Special Tax: That special tax levied as applicable pursuant to the provisions of Section 7 below.

Fiscal Year: The period beginning on July 1 and ending on the following June 30.

Index: The Consumer Price Index for the San Diego Region as published by the United States Department of Labor, Bureau of Labor Statistics.

Maximum Annual Special Tax : The maximum special tax that can be levied on any Assessor's Parcel in any Fiscal Year.

Maximum Annual Special Tax Rate : The maximum annual special tax rate or rates as set forth in Section 4 below.

Property Classification: A classification of property specified in Section 3 below. 206

C-4

Reserve Fund: As applicable, a fund or funds established and maintained from Special Taxes for purposes of the Operating Reserve and Reserve for Repairs, Removals, Replacements, and Rehabilitation.

Reserve Fund Requirement: The Operating Reserve Requirement plus the required Reserves for Repairs, Removals, Replacements, and Rehabilitation as determined by the City.

Revenue and Taxation Code : means the Revenue and Taxation Code of the State of California, as amended.

Special Tax Requirement: The amount sufficient (i) to pay the Territory's proportional share of direct costs to the City, the District, and their contractors, agents , or assigns associated with providing the Authorized Services, (ii) to pay for the Administrative Expenses allocable to the Territory and associated with providing the Authorized Services, and (iii) to establish and replenish the Reserve Fund balance to the Reserve Fund Requirement. Citywide Services shall be funded from the Special Taxes produced by the application of the Maximum Annual Special Tax Rate s for Citywide Services and Improvement Area Services shall be funded from the Special Taxes produced by the application of the Maximum Annual Special Tax Rate for Improvement Area Services. In addition, the Special Taxes collected by the application of the Maximum Annual Special Tax Rates for Citywide Services may be expended for any of the Citywide Services , including applicable Administrative Expenses and Reserve Funds, and the Special Taxes collected by the application of the Maximum Annual Special Tax Rate for Improvement Area Services may be expended for any of the Improvement Area Services, including applicable Administrative Expenses and Reserve Funds.

Taxable Assessor's Parcel : An Assessor's Parcel all or a portion of which is classified as Developed, Approved, or Undeveloped Property and that is not Exempt Property.

207

C-5
Undeveloped Property : All Taxable Assessor's Parcel s which are not classified as Developed Property or Approved Property.

Zone: An area consisting of a group of Assessor's Parcels, which may or may not be contiguous, which will participate in the cost of providing a particular facility or service.

Section 3. Property Classifications

Section 4. Maximum Annual Special Tax Rates

TABLE 1

EQUIVALENT DWELLING UNITS

PROPERTY

CLASSIFICATION

CITYWIDE

SERVICES

ZONES A, D, AND E

CITYWIDE

SERVICES
ZONE B

IMPROVEMENT
AREA

C-6
TABLE 1

EQUIVALENT DWELLING UNITS

PROPERTY

CLASSIFICATION

CITYWIDE

SERVICES

ZONES A, D, AND E

CITYWIDE

SERVICES
ZONE B

IMPROVEMENT
AREA

TABLE 2

MAXIMUM ANNUAL SPECIAL TAX RATES
FISCAL YEAR 2025-2026

AUTHORIZED SERVICE

MAXIMUM ANNUAL

SPECIAL TAX RATE
PER EDU2
Citywide Services
Zone A $45.27
Zone B $14.34
Zone C NA
Zone D $253.24
Zone E $14.12
Improvement Area Services $651.67

4.1 Assignment of Maximum Annual Special Tax: A Maximum Annual Special Tax will be assigned to all Taxable Assessor's Parcels classified as Developed Property , Approved

C-7
Property, or Undeveloped Property as of July 1 of the Fiscal Year in which such classification occurs.

Section 5. Determination of Special Tax Requirement

The City shall annually determine the Special Tax Requirement for each Fiscal Year, commencing with Fiscal Year 2026-2027. The Special Tax Requirement for each Fiscal Year shall include the cost of those Authorized Services that the City is or will be responsible to provide during all or any portion of such Fiscal Year; the proportionate share of the related Administrative Expenses allocable to the Territory; and the funding or replenishment of the Reserve Fund to the Reserve Fund Requirement. The initial f unding of the Reserve Fund shall be accomplished only through the levy of Special Taxes on Developed Property or Extraordinary Special Taxes on Approved Property and/or Undeveloped Property as provided for herein.

Section 6. Method of Apportionment of Special Taxes

6.2. The City shall determine for each Fiscal Year the Special Tax Requirement.

210

C-8

6.3. The City shall levy the Special Taxes for each Fiscal Year, commencing on July 1, 2025, in the following order of priority to fund the Special Tax Requirement for such Fiscal Year:

(a) Levy the Special Tax proportionately up to the Maximum Annual Special Tax upon all Developed Property to generate Special Taxes to fund the Special Tax Requirement;

Section 7. Extraordinary Special Tax

211

C-9
Section 8. Manner of Collection of Special Taxes

Section 9. Prepayment of Special Tax

The Prepayment Amount shall be calculated as the present value of the Maximum Annual Special Tax escalated at 2%, through each fiscal year which is seventy -five years from the fiscal year in which the prepayment shall be made plus the current fiscal year special tax obligation, an amount to cover the administrative fees and expenses of the District, as calculated by the City, including, but not limited to, the costs of computation of the prepayment, the costs of removing any special taxes from the Roll, and the costs of recording a notice of special tax lien release and any additional actions required to evidence the pr epayment. The assumptions to be used when calculating the present value of the Maximum Annual Special Tax are as follows:

 The discount rate shall be equal to the rate of return earned on the City's general fund investment portfolio for the preceding twelve months.

 A 360-day year.

 The Maximum Annual Special Tax will be discounted from July 1 of each Fiscal year.

C-10

Section 10. Appeals

Any landowner or resident may file a written appeal of the Special Tax on his/her property with the Finance Director, provided that the appellant is current in his/her payments of Special Taxes.

Section 11. Interpretations

Interpretations may be made by resolution of the City Council for purposes of clarifying any vagueness or ambiguity as it relates to any provision of this RMA. 213
City of San Marcos
Staff Report
1 Civic Center Drive
San Marcos, CA 92069
File #:26-2828
Staff Report
MEETING DATE:

MARCH 24, 2026
SUBJECT:

RESOLUTION NO. 2026-9559 - INTENTION TO ANNEX TERRITORY IN THE FUTURE TO IMPROVEMENT AREA NO. F-59 OF COMMUNITY FACILITIES DISTRICT NO. 98-02 (LIGHTING, LANDSCAPING, OPEN

SPACE, AND PRESERVE MAINTENANCE)
Recommendation
ADOPT a resolution declaring intention to annex territory in the future to Improvement Area No. F-59 of Community Facilities District No. 98-02 (Lighting, Landscaping, Open Space, and Preserve Maintenance), City of San Marcos, County of San Diego, State of California (the “CFD No. 98-02”) and other actions related thereto.

Board or Commission Action
Not applicable
Executive Summary
This item is a concurrent item for consideration to initiate proceedings to annex certain territory to be known as Annexation No. 161 (“Annexation No. 161”) and to designate Improvement Area No. F-59 (“IA No. F-59”) of Community Facilities District No. 98-02 (Lighting, Landscaping, Open Space, and Preserve Maintenance), City of San Marcos, County of San Diego, State of California (the “CFD No. 98-02”). These proceedings are intended to authorize future annexations to IA No. F-59.

Discussion
CFD No. 98-02 was formed pursuant to the Mello-Roos Community Facilities Act of 1982, commencing with California Government Code section 53311 et seq. (the “Act”)and the City of San Marcos Community Facilities District Procedural Ordinance enacted pursuant to the powers reserved by the City of San Marcos under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California to provide funding necessary for the maintenance of the City’slighting, landscaping, parks, medians, open space, and preserve space. Special improvement areas are formed as separate zones within CFD No. 98-02 to provide special tax funding necessary for the maintenance of development improvements and impacts above and beyond what is normally maintained by the City.

It is the intention of the City to annex additional property to IA No. F-59 in the future. This proceeding authorizes the City to complete such annexations without having to conduct the two meetings as is needed to establish a community facilities district. The single meeting proceedings may be completed, following successful completion of this future annexation authorization proceeding, with the unanimous approval of all property owners subject to the future annexation.

The map of the proposed future annexation boundaries of IA No. F-59 is attached as Attachment A.

City of San Marcos Printed on 3/20/2026Page 1 of 3
powered by Legistar™
214
File #:26-2828
City staff has determined that creating IA No. F-59 for new development, and potential redevelopment of certain properties, provides a benefit to the property owners by consolidating the maintenance services into a single district rather than utilizing multiple existing or future special districts, each of which provide only partial maintenance of the required services. IA No. F-59 also provides a benefit to the City by reducing the administrative burden of having to administer multiple districts to provide the combined services required to be maintained by the properties. Authorizing future annexations to IA No. F-59 further reduces the City’s administrative burden by authorizing single meeting proceedings for all future annexations to IA No. F-59.

To initiate the future annexation authorization proceedings, the City Council must approve the attached Resolution of Intention (Attachment B). By adopting the attached Resolution of Intention the City Council will establish the date and time for the public hearing to authorize future annexations to IA No. F-59.

The special taxes proposed for future annexations to IA No. F-59 will be levied at the rates shown in the Rate and Method of Apportionment (“RMA”)attached to this staff report (Attachment C). The taxes levied ensure sufficient funding to maintain the proposed services into perpetuity. Notwithstanding the foregoing, if the actual cost of providing the services to territory within any proposed future annexation area is higher or lower than the cost of providing such services within the existing IA No. F-59 annexations, a higher or lower special tax may be levied within such territory, to the extent the actual cost of providing the services in the annexation territory is higher or lower than the costs of providing those services in the existing IA No. F-59 annexations, subject to the unanimous approval and election of the owner or owners of such territory. In any such circumstance, the RMA may be revised to reflect the higher or lower special tax, as applicable. The maximum special tax rate in the existing CFD and IA No. F-59 may not be increased as a result of any annexation proceeding. The proposed services to be maintained by IA No. F-59 are included in Exhibit “A”of the resolution of intention attached as Attachment B.

Environmental Review
The proposed annexation is not a project subject to the California Environmental Quality Act (CEQA) as per Section 15378 of the State CEQA Guidelines, as it is an organizational activity of government and there is no potential to result in a physical change in the environment. Even if the annexation can be considered a project subject to CEQA, it is categorically exempt per State CEQA Guidelines Section 15301 (Existing Facilities), as it does not involve changes to approved development. The annexation is also categorically exempt per State CEQA Guidelines Section 15319 (Annexations), as the properties contain private structures developed to existing zoning and utilities to the sites will only have capacity to serve the existing structures. Finally, the annexation is exempt per Section 15061(b)(3) because it can be seen with certainty that there is no possibility it would have a significant effect on the environment. None of the exceptions to the categorical exemptions in State CEQA Guidelines Section 15300.2 apply to the annexation.

Fiscal Impact
The Community Facilities Districts provide ongoing funding for city services. The funds levied will fund the ongoing maintenance of various elements of city infrastructure and provide critical revenues to ensure a well- maintained city.

The maximum special tax for IA No. F-59 for Fiscal Year 2025-26 will be $651.67 per equivalent dwelling unit.

The maximum special tax is the maximum amount that can be levied in any given tax year. It is escalated every fiscal year based on the Consumer Price Index (CPI) or 2.0%, whichever is greater. Details and the breakdown of special taxes have been provided within the RMA in Attachment C.

Attachment(s)
Attachment A: IA No. F-59 Future Annexation Boundary Map Attachment B: City Council Resolution of Intention
City of San Marcos Printed on 3/20/2026Page 2 of 3
powered by Legistar™
215
File #:26-2828
Attachment C: Rate and Method of Apportionment
Prepared by: Song LeBaron, Sr. Management Analyst
Submitted by: Song LeBaron, Sr. Management Analyst
Reviewed by: Isaac Etchamendy, Director of Development Services/City Engineer Approved by: Michelle Bender, City Manager
City of San Marcos Printed on 3/20/2026Page 3 of 3
powered by Legistar™
216

BOUNDARY MAP
COMMUNITY FACILITIES DISTRICT NO. 98-02

AREAS FOR LIGHTING, LANDSCAPING, OPEN SPACE AND PRESERVE MAINTENANCE

CITY OF SAN MARCOS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA

FUTURE ANNEXATION AREA
SPECIAL IMPROVEMENT AREA NO. F-59
..... et C.\f
(.0"'
-
�e\'(fl
s
.£!, Kirl<.Wa\\ Or
�
"'-
Q<
"'
;i.
"
:"14 :?-.
'¥ J,,,,. '£ ,,, • :!
?
A "' "1>, 0�
"', :1
ll)ol, •s,
�
FILED IN THE OFFICE OF THE CITY CLERK THIS ___ DAY OF ______ 2026.

PHILLIP SCOLLICK

CITY CLERK

CITY OF SAN MARCOS, STATE OF CALIFORNIA

I HEREBY CERTIFY THAT THE MAP SHOWING BOUNDARIES AND TERRITORIES TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 98-02, CITY OF SAN MARCOS,

COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, WAS APPROVED BY THE CITY COUNCIL

OF THE CITY OF SAN MARCOS AT A REGULAR MEETING THEREOF HELD ON THE ___ DAY OF _______ , 2026 BY ITS RESOLUTION NO. 2026-____ _

PHILLIP SCOLLICK

CITY CLERK

CITY OF SAN MARCOS, STATE OF CALIFORNIA
FILE NO. 2026---------
FILED THIS ____ DAY OF ______ , 2026 AT____ _ __ O'CLOCK IN BOOK ___ , PAGE ___ OF MAPS OF ASSESSMENT AND COMMUNITY DISTRICTS

IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA.

JORDAN Z. MARKS,

COUNTY RECORDER
BY: DEPUTY COUNTY RECORDER

BOOK PG ----- -----
SHEET 1 OF 10
N
Legend

I I FUTURE ANNEXATION AREA BOUNDARY
w A CORE ANNEXATION AREA BOUNDARY

CITY OF SAN MARCOS
2026---------------
217

BOOK ---
APN
2191633300
2191633400
2191634700
2191633500
2191634200
2191725200
2191725400
2191722700
2190961300
2190961400
2190961500
2190961600
2190961700
2190961800
2190962100
2190911000
2192215300
2192215400
2192215200
2190961900
2190962000
2190961200
2192216300
2190981400
2190950300
2190880300
2190821400
2190950900
2191525700
2190981800
2190982000
2190730300
2191301900
2191304000
2191404500
2190981600
2191804700
2191804800
2191804900
2191806100
2191807100
2191805500
2191522100
2191522200
2191524800
2191400300
2191401300
2191402300
PG ---

BOUNDARY MAP
COMMUNITY FACILITIES DISTRICT NO. 98-02

AREAS FOR LIGHTING, LANDSCAPING, OPEN SPACE AND PRESERVE MAINTENANCE

CITY OF SAN MARCOS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA

FUTURE ANNEXATION AREA
SPECIAL IMPROVEMENT AREA NO. F-59
APN
2191404400
2191404100
2191405000
2191807400
2191523700
2191527000
2191803400
2190822200
2190831001
2190831005
2190831002
2190831004
2190831007
2190831008
2190831010
2190831009
2190831006
2190831003
2190830900
2190990900
2190822300
2190822600
2191527300
2191302500
2191153000
2191161600
2191161500
2191161701
2191161708
2191161704
2191161706
2191161707
2191161702
2191161703
2191161705
2210614500
2210617100
2210612300
2210615100
2210616100
2210616400
2190931900
2210513300
2201200200
2201201200
2201201300
2191726300
2190880500
SHEET 2 OF10
APN
2192211200
2192211300
2191401600
2191403800
2191403900
2190950400
2190950500
2190950600
2190981500
2190740700
2190741400
2194902500
2192231000
2191402200
2192211400
2192211500
2192213000
2191401700
2191526900
2192211600
2192211700
2192213200
2192214300
2192214400
2192215500
2192215600
2194902300
2194902400
2192002800
2194902600
2190850600
2190950800
2190951000
2190951100
2190991400
2193700500
2193700600
2193700700
2193700800
2193700900
2193701000
2193701300
2193701400
2193701500
2193701600
2193702200
2192102300
2192102600
2026---------
218

BOOK ---
APN
2192102900
2192103000
2191305200
2191403400
2191403500
2191401200
2191160356
2191160371
2191160367
2191160370
2191160372
2191160310
2191160312
2191160321
2191160328
2191160334
2191160345
2191160360
2191160362
2191160303
2191160324
2191160325
2191160340
2191160342
2191160353
2191160314
2191160329
2191160330
2191160332
2191160341
2191160348
2191160364
2191160365
2191160320
2191160322
2191160344
2191160357
2191160359
2191160306
2191160309
2191160317
2191160333
2191160336
2191160339
2191160302
2191160315
2191160323
2191160326
PG ---

BOUNDARY MAP
COMMUNITY FACILITIES DISTRICT NO. 98-02

AREAS FOR LIGHTING, LANDSCAPING, OPEN SPACE AND PRESERVE MAINTENANCE

CITY OF SAN MARCOS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA

FUTURE ANNEXATION AREA
SPECIAL IMPROVEMENT AREA NO. F-59
APN
2191160331
2191160347
2191160350
2191160352
2191160369
2191160343
2191160346
2191160349
2191160354
2191160355
2191160361
2191160368
2191160301
2191160308
2191160313
2191160316
2191160319
2191160304
2191160305
2191160311
2191160318
2191160327
2191160335
2191160337
2191160338
2191160351
2191160358
2191160363
2191160366
2190990800
2191150800
2210415700
2210416500
2210412000
2191636400
2191722600
2191161300
2210413600
2210413800
2210413900
2210414200
2210415800
2190741600
2190741700
2190741800
2190741900
2210412600
2194001100
SHEET 3 OF10
APN
2194001200
2194001300
2194001400
2191722900
2191723600
2191723700
2191723800
2191723900
2191724100
2191724700
2191724800
2191724900
2190962200
2194901200
2194901300
2194901400
2194101900
2194901600
2194901500
2194902700
2191153200
2191162100
2190932000
2190931800
7601678200
7609801400
2194102200
2194100400
2194102300
2194102400
2190973700
2190730200
2190981300
2190980100
2190973400
2190730400
2190731000
2191621800
2191636501
2191636502
2191636503
2191636505
2191636504
2190730900
2190981900
2190730800
2190730700
2190730600
2026---------
219

BOOK ---
APN
2190741500
2190741300
2190830200
2190850100
2191634500
2201200300
2191634300
2190861000
2190851101
2190851106
2190851103
2190851104
2190851105
2190851102
2191161900
2191162000
2191162200
2194104600
2191621200
2190991300
2190990700
2190822500
2191304900
2191302000
2190821200
2190821300
2190822400
2191635500
2190860300
2191633600
7601676400
2190870700
2191634600
2191722500
2191404600
2190880400
2191405100
2191405300
2191726400
2191725300
2193703000
2193702900
2193702800
2193702700
2193702400
2191526000
2191724000
2191722200
PG ---

BOUNDARY MAP
COMMUNITY FACILITIES DISTRICT NO. 98-02

AREAS FOR LIGHTING, LANDSCAPING, OPEN SPACE AND PRESERVE MAINTENANCE

CITY OF SAN MARCOS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA

FUTURE ANNEXATION AREA
SPECIAL IMPROVEMENT AREA NO. F-59
APN
2192220100
2191723000
2191725500
2191401500
2191526800
2191724200
2192220200
2191403300
2192520600
2192520700
2192520800
2192520900
2192521000
2192521100
2191722800
2193820600
2193820500
2193820400
2192213800
2193820300
2193820200
2193820100
2193810600
2193810700
2193810800
2193810900
2193811000
2193811100
2194002100
2191805000
2191805600
2191807000
2191806000
2192232200
2210616800
2190730100
2192702200
2192704100
2192322220
2192322224
2192322206
2192322208
2192322213
2192322223
2192322210
2192322217
2192322219
2210612900
SHEET 4 OF10
APN
2192323306
2192323307
2192323309
2192323313
2192323316
2192323310
2192323317
2192323319
2192323301
2192323311
2192323304
2192323305
2192323315
2192323320
2192323318
2192323330
2192323331
2192323381
2192323322
2192323324
2192323361
2192323325
2192323342
2192323357
2192323328
2192323334
2192323341
2192323352
2192323354
2192323363
2192323368
2192323375
2192323359
2192323362
2192323373
2192323376
2192323378
2192323382
2192323346
2192323348
2192323351
2192323379
2192323314
2192323340
2192323347
2192323349
2192323355
2192323371
2026---------
220

BOOK ---
APN
2192323327
2192323329
2192323332
2192323345
2192323366
2192323367
2192323369
2192323372
2192323374
2192323333
2192323338
2192323353
2192323356
2192323358
2192323364
2192323365
2192103200
2210615400
2192322808
2192322813
2192322815
2192322823
2192322825
2192322812
2192322822
2192322802
2192322826
2192322801
2192322806
2192322811
2192322819
2192322821
2192322804
2192322807
2192322818
2192322828
2192322824
2192322827
2192322803
2192322805
2192322810
2192322816
2192322820
2192322809
2192322814
2192322817
2210513800
2210615300
PG ---

BOUNDARY MAP
COMMUNITY FACILITIES DISTRICT NO. 98-02

AREAS FOR LIGHTING, LANDSCAPING, OPEN SPACE AND PRESERVE MAINTENANCE

CITY OF SAN MARCOS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA

FUTURE ANNEXATION AREA
SPECIAL IMPROVEMENT AREA NO. F-59
APN
2210615200
2210415900
2210412400
2192104300
2210416000
2192102200
2210415600
2210415300
2210415200
2210415100
2210416400
2210513400
2210415500
2210415400
2210417200
2210610600
2210616000
2210616700
2191305100
2191401400
2191405200
2191524900
2191401000
2192213900
2192220300
2191803700
2191805400
2191805900
2192705700
2192706300
2192705800
2190870600
2190870400
2190870200
2190870500
2193703900
2193704000
2193704100
2193704200
2193704400
2193704300
2192214800
2192510500
2192510600
2192510700
2192510800
2192510900
2192511000
SHEET 5 OF10
APN
2191806900
2191806800
2191807300
2201704300
7601679500
7601678400
7601678500
7601678900
7601679100
7601678600
7601678700
7601679000
7601678100
7601670000
7601677900
7601679600
7601677200
7601678000
7601679200
7601678800
2201704500
2192705600
2192702000
2210612200
2192701900
2210613500
2192700300
2210617200
2210615900
2210615000
2210615800
2210615700
2210615600
2210616900
2210613400
2201703900
7602484700
7602484800
7601677100
7601677600
7601679400
7601679300
7602485502
7601677400
2210516300
2210615500
2210513600
2192100500
2026---------
221

BOOK ---
APN
2192003900
2192003800
2192002304
2192002309
2192002314
2192002307
2192002317
2192002305
2192002315
2192002308
2192002318
2192002301
2192002303
2192002306
2192002311
2192002313
2192002316
2192002320
2192002322
2192002319
2192002302
2192002310
2192002312
2192002321
2194902200
2192004200
2194902100
2194902000
2192004000
2194901900
2192002000
2210514600
2210514700
2191803800
2190890200
2193702600
2193702500
2192212600
2200220600
2210411000
2192104700
2191726200
2192103100
2192103400
2192004400
2210413300
7722105060
7722105061
PG ---

BOUNDARY MAP
COMMUNITY FACILITIES DISTRICT NO. 98-02

AREAS FOR LIGHTING, LANDSCAPING, OPEN SPACE AND PRESERVE MAINTENANCE

CITY OF SAN MARCOS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA

FUTURE ANNEXATION AREA
SPECIAL IMPROVEMENT AREA NO. F-59
APN
7722105063
7722105068
7722105001
7722105003
7722105008
7722105011
7722105036
7722105058
7722105066
7722105015
7722105030
7722105033
7722105038
7722105072
7722105074
7722105077
7722105006
7722105016
7722105022
7722105024
7722105027
7722105029
7722105042
7722105044
7722105047
7722105049
7722105062
7722105064
7722105067
7722105045
7722105051
7722105065
7722105076
7722105002
7722105021
7722105028
7722105041
7722105055
7722105070
7722105071
7722105010
7722105013
7722105018
7722105052
7722105054
7722105057
7722105059
7722105025
SHEET 6 OF10
APN
7722105032
7722105034
7722105037
7722105039
7722105004
7722105005
7722105007
7722105009
7722105012
7722105014
7722105017
7722105026
7722105035
7722105046
7722105050
7722105053
7722105019
7722105020
7722105023
7722105031
7722105040
7722105043
7722105048
7722105056
7722105069
7722105075
7722105073
2210416300
2210614700
7721911168
7721911178
7721911184
7721911182
7721911185
7721911191
7721911193
7721911163
7721911166
7721911169
7721911173
7721911177
7721911174
7721911181
7721911183
7721911186
7721911189
7721911179
7721911188
2026---------
222

BOOK ---
APN
7721911113
7721911117
7721911128
7721911152
7721911155
7721911164
7721911187
7721911190
7721911170
7721911192
7721911194
7721911195
7721911122
7721911124
7721911142
7721911144
7721911151
7721911153
7721911156
7721911159
7721911175
7721911180
7721911105
7721911107
7721911115
7721911130
7721911139
7721911148
7721911154
7721911101
7721911103
7721911123
7721911127
7721911132
7721911134
7721911110
7721911135
7721911143
7721911160
7721911171
7721911176
7721911108
7721911118
7721911125
7721911145
7721911147
7721911150
7721911161
PG ---

BOUNDARY MAP
COMMUNITY FACILITIES DISTRICT NO. 98-02

AREAS FOR LIGHTING, LANDSCAPING, OPEN SPACE AND PRESERVE MAINTENANCE

CITY OF SAN MARCOS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA

FUTURE ANNEXATION AREA
SPECIAL IMPROVEMENT AREA NO. F-59

APN
7721911102
7721911104
7721911112
7721911114
7721911120
7721911131
7721911133
7721911136
7721911106
7721911109
7721911116
7721911119
7721911138
7721911157
7721911162
7721911165
7721911172
7721911121
7721911126
7721911129
7721911137
7721911140
7721911141
7721911146
7721911149
7721911158
2191160200
2191621900
2191626000
2192103500
2192103600
2192005100
2192215700
2192706000
2210413700
2191807200
2193314300
2191405400
2192216000
2192216100
2192215900
2192004700
2192005200
2193310600
2193310700
2193310800
2193310900
2193311000
SHEET 7 OF10
APN
2193311100
2193311200
2193311800
2193311900
2193313000
2193313100
2193313200
2193313300
2193313400
2193313500
2193310100
2193310200
2193310300
2193310500
2193310400
2193311400
2193314416
2193314418
2193314407
2193314408
2193314413
2193314404
2193314405
2193314417
2193314406
2193314412
2193314419
2193314401
2193314409
2193314411
2193314415
2193314403
2193314410
2193314414
2193311700
2193312000
2193312100
2193314515
2193314501
2193314504
2193314502
2193314514
2193314519
2193314516
2193314518
2193314503
2193314509
2193314517
2026---------
223

BOOK ---
APN
2193314520
2193314508
2193312500
2193312600
2193312700
2193312800
2193312900
2190861100
2190860700
2191806700
2191153500
2191153400
2191531000
2191531100
2191531200
2210412700
2210416700
2191530800
2191530900
2191531500
2191531600
2192103800
2191531400
2191530700
2191530500
2191530600
2191531300
2192706700
2210417300
2192706600
2192706800
2192706500
2190860900
2191636300
2191636200
2192707200
2190861200
2210516400
2190742200
2192707100
2192707300
2192706900
2192707400
2192707000
2191636600
2190742507
2190742508
2190742506
PG ---

BOUNDARY MAP
COMMUNITY FACILITIES DISTRICT NO. 98-02

AREAS FOR LIGHTING, LANDSCAPING, OPEN S PACE AND PRESERVE MAINTENANCE

CITY OF SAN MARCOS, COUNTY OF SAN DIEGO, S TATE OF CALIFORNIA

FUTURE ANNEXATION AREA
SPECIAL IMPROVEMENT AREA NO. F-59

APN
2190742505
2190742600
2190742504
2190742502
2190742501
2190742503
2210515800
2210516100
2210515500
2210515100
2210510400
2210510300
2210515900
2210516200
2210516000
2210514400
2210514800
2210515400
2210514900
2210515200
2210512600
2210513100
2210513200
2210616600
2192216200
2191526100
2191524500
2191524200
2191525100
7602484300
2190812800
2190811200
2190810900
2190811000
2190811100
2210515700
2210515600
2210512100
2193313800
2191527200
2191526300
2191526400
2210616500
2210611000
7602482300
2193314600
2191523400
2191527500
SHEET 8 OF10
APN
2191522700
2191527800
2191524400
2191527100
2191527600
2191527700
2191527900
2190812700
2190812400
2190812200
2193314700
2191305400
2191626200
2191626100
2191153300
2192005700
2192005500
2192005400
2192005800
2192005600
2191528100
2191528200
2191528000
2194003900
2194004000
2194004100
2194004200
2194004300
2194001800
2192322711
2192322716
2192322707
2192322708
2192322712
2192322713
2192322705
2192322706
2192322709
2192322714
2192322718
2192322702
2192322703
2192322710
2192322704
2192322701
2192322717
2192322715
2194001600
2026---------
224

BOOK ---
APN
2194001700
2194001000
2194002200
2194002300
2194002400
2194002500
2194002600
2192213700
2192230600
2192231600
2192215100
2192230900
2192231700
2194800700
2194800100
2194800200
2194800300
2194001500
2194002000
2194001900
2192231500
2194800600
2194800400
2194800500
2192231100
2192232000
2192320600
2192321800
2192321905
2192321914
2192321922
2192321929
2192321901
2192321906
2192321908
2192321917
2192321926
2192321928
2192321920
2192321918
2192321925
2192321910
2192321912
2192321919
2192321927
2192321902
2192321909
2192321915
PG ---

BOUNDARY MAP
COMMUNITY FACILITIES DISTRICT NO. 98-02

AREAS FOR LIGHTING, LANDSCAPING, OPEN SPACE AND PRESERVE MAINTENANCE

CITY OF SAN MARCOS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA

FUTURE ANNEXATION AREA
SPECIAL IMPROVEMENT AREA NO. F-59
APN
2192321923
2192321907
2192321913
2192321924
2192321904
2192321911
2192321916
2192321903
2192321921
2192321943
2192321930
2192321932
2192321939
2192321953
2192321963
2192321967
2192321934
2192321941
2192321948
2192321950
2192321952
2192321960
2192321935
2192321933
2192321942
2192321949
2192321951
2192321956
2192321931
2192321936
2192321938
2192321954
2192321964
2192321965
2192321974
2192321937
2192321940
2192321944
2192321945
2192321946
2192321962
2192321970
2192321972
2192321947
2192321955
2192321959
2192321969
2192321975
SHEET 9 OF 10
APN
2192321973
2192321957
2192321958
2192321968
2192321961
2192321966
2192321971
2192323400
2192232100
2192232300
2192321500
2192322205
2192322202
2192322203
2192322201
2192322204
2192322215
2192322218
2192322221
2192322207
2192322209
2192322211
2192322214
2192322216
2192322212
2192322222
2192323370
2192323377
2192323323
2192323326
2192323343
2192323303
2192323308
2192323336
2192323337
2192323339
2192323350
2192323302
2192323312
2192323321
2192323344
2192323360
2192323380
2192323335
2192220400
2192240900
7601673300
7601671100
2026---------
225

BOOK ---
APN
2192321010
2192321027
2192321032
2192321035
2192321046
2192321083
2192321012
2192321014
2192321002
2192321004
2192321009
2192321015
2192321020
2192321001
2192321006
2192321022
2192321025
2192321034
2192321039
2192321041
2192321043
2192321048
2192321050
2192321060
2192321021
2192321023
2192321026
2192321017
2192321008
2192321011
PG ---

BOUNDARY MAP
COMMUNITY FACILITIES DISTRICT NO. 98-02

AREAS FOR LIGHTING, LANDSCAPING, OPEN SPACE AND PRESERVE MAINTENANCE

CITY OF SAN MARCOS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA

FUTURE ANNEXATION AREA
SPECIAL IMPROVEMENT AREA NO. F-59
APN
2192321016
2192321024
2192321029
2192321019
2192321057
2192321067
2192321073
2192321077
2192321080
2192321005
2192321013
2192321003
2192321007
2192321031
2192321033
2192321036
2192321038
2192321040
2192321052
2192321030
2192321051
2192321053
2192321056
2192321058
2192321061
2192321063
2192321066
2192321047
2192321070
2192321082
SHEET10 OF10
APN
2192321084
2192321055
2192321062
2192321064
2192321028
2192321037
2192321054
2192321059
2192321074
2192321079
2192321085
2192321087
2192321068
2192321071
2192321076
2192321078
2192321069
2192321072
2192321075
2192321065
2192321018
2192321042
2192321081
2192321086
2192321044
2192321045
2192321049
2192231900
2026---------
226

RESOLUTION NO. 2026-XXXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN

MARCOS, CALIFORNIA, DECLARING INTENTION TO ANNEX
TERRITORY IN THE FUTURE TO IMPROVEMENT AREA NO. F -59 OF COMMUNITY FACILITIES DISTRICT NO. 98 -02 (LIGHTING,

LANDSCAPING, OPEN SPACE, AND PRESERVE MAINTENANCE), CITY

OF SAN MARCOS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA,

AND TAKING OTHER ACTIONS RELATED THERETO
WHEREAS, the City Council (the “City Council”) of the City of San Marcos (the “City”) has previously established Community Facilities District No. 98- 02 (Lighting, Landscaping, Open Space, and Preserve Maintenance), City of San Marcos, County of San Diego, State of California (the “CFD”), pursuant t o Chapter 2.5 (commencing with section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the “Mello-Roos Community Facilities Act of 1982” (the “Act”) for the purpose of financing certain public services which are necessary to meet increased demands placed upon the City as a result of the development of real property within the territory to be included in the community facilities district; and WHEREAS, the City Council has initiated proceedings for the annexation of territory and the designation of an improvement area to the CFD to be known as “Improvement Area No. F -59 of Community Facilities District No. 98-02 (Lighting, Landscaping, Open Space, and Preserve Maintenance) , City of San Marcos , County of San Diego, State of California” (the “Improvement Area”); and WHEREAS, the City Council desires to provide the authorization to annex territory in the future to the Improvement Area pursuant to the terms and provisions of the Act , and specifically Article 3.5 thereof; and
WHEREAS, it is determined to be within the public interest and convenience to establish a procedure to allow and provide for future annexations to the Improvement Area and further to specify the amount of special tax that would be levied and set forth the terms and conditions for certification of any annexation in the future; and WHEREAS, the territory proposed to be annexed in the future shall be known and designated as the “Future Annexation Area to Improvement Area No. F-59 of Community Facilities District No. 98- 02” (the "Future Annexation Area"), and a map designated as "Future Annexation Area to Improvement Area No. F-59 of Community Facilities District No. 98-02 (Lighting, Landscaping, Open Space, and Preserve Maintenance), City of San Marcos, County of San Diego, State of California" showing the territory proposed to be annexed in the future is on file in the Office of the City Clerk and shall be kept with the transcript of these proceedings and attached hereto as Exhibit “C” and incorporated herein by this reference.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAN MARCOS AS FOLLOWS:
227

Resolution No. 2026-XXXX

Page 2 ends

Section 1. Recitals. The above recitals are all true and correct and incorporated herein by this reference.

Section 2. Authorization. These proceedings for future annexations are authorized and initiated by this City Council pursuant to the authorization of the Act and specifically section 53339.2 of the Government Code of the State of California.

Section 3. Public Convenience and Necessity . This City Council hereby determines that the public convenience and necessity requires a procedure to allow and authorize territory to be annexed in the future to the CFD in order to finance the costs and expenses for the authorized services.

Section 4. Boundaries of the CFD and Territory Proposed to be Annexed in the Future. A general description of the territory included in the CFD is hereinafter described as follows:

All that property and territory as previously included within the CFD, as said property was shown on a map designated as
"Map of Proposed Boundaries of Improvement Area No. F-59 of Community Facilities District No. 98 -02 (Lighting,
Landscaping, Open Space, and Preserve Maintenance), City of San Marcos, County of San Diego, State of California ," a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection.

A description of the boundaries and territory proposed to be annexed in the future is as follows:

All that property and territory proposed to be annexed in the future to the Improvement Area, as said property is shown on the map designated as “ Future Annexation Area to
Improvement Area No. F -59 of Community Facilities District No. 98-02 (Lighting, Landscaping, Open Space, and Preserve Maintenance), City of San Marcos , County of San Diego, State of California,” a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection.

Future annexation proceedings may only be completed with the unanimous consent of the owner or owners of any parcel or parcels proposed for annexation.

Section 5. Name of the Improvement Area and Future Annexation Area. The name of the Improvement Area is "Improvement Area No. F -59 of Community Facilities District No. 98-02 (Lighting, Landscaping, Open Space, and Preserve Maintenance), City of San Marcos, County of San Diego, State of California" and the designation for the Future Annexation Area shall be “Future Annexation Area to Improvement Area No. F-59 of Community Facilities District No. 98-02.”
228

Resolution No. 2026-XXXX

Page 3 ends

Section 6. Authorized Services. It is the intention of the City Council that the Improvement Area finance the municipal services generally described in Exhibit “A” (the “Services”) attached hereto and incorporated herein by this reference and all costs associated with the annexation of t he Improvement Area, administration thereof, the determination of the amount of any special taxes to be levied, the costs of collecting any special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the Improvement Area and CFD.

To the extent possible and practicable, it is the City Council’s further intention that any common services be complete together at the same time and under the same contracts, to the extent services are contracted to third-parties, for any similar services and at shared facilities, in common with the existing CFD and the Improvement Area.

The Authorized Services to be financed by the levy of special taxes to be levied on specific territory within the Future Annexation Area to be annexed to the Improvement Area may include some or all of such Authorized Services or may include alternatives to the Authorized Services.

The Authorized Services shall to the maximum extent practicable, taking into account budgetary and operational demands of the City, be provided in common within the Improvement Area and the Future Annexation Area.

The City Council finds that the Authorized Services described in this section 6 hereof are necessary to meet increased demands placed upon the City as a result of new development occurring within the boundaries of the Improvement Area and the Future Annexation Area.

Section 7. Special Tax. It is hereby further proposed that, except where funds are otherwise available, a special tax sufficient to finance the Authorized Services (the "Special Tax") to be provided in the territory of the Future Annexation Area upon the annexation of such ter ritory to the Improvement Area and related incidental expenses authorized by the Act, secured by recordation of a continuing lien against all non-exempt real property in the Future Annexation Area that annexes to the Improvement Area, will be levied annually within the boundaries of the territory within the Future Annexation Area upon the annexation of such territory to the Improvement Area. For further particulars as to the rates and method of apportionment of the proposed Special Tax, reference is made to the attached and incorporated Exhibit “B” (the "Rate and Method"), which sets forth in sufficient detail the rate and method of apportionment of the Special Tax to allow each landowner or resident within the territory in the proposed Future Annexation Area to clearly estimate the maximum amount of the Special Tax that such person will have to pay for the Authorized Services upon the annexation of such territory to the Improvement Area. The special tax obligation for any parcel may be prepaid pursuant to the terms described in Section 9 of the Rate and Method.
229

Resolution No. 2026-XXXX

Page 4 ends

Notwithstanding the foregoing, if the actual cost of providing Authorized Services to territory within any proposed Future Annexation Area is higher or lower than the cost of providing such services within the existing Improvement Area, a higher or lower special tax may be levied within such territory , to the extent the actual cost of providing the services in the annexation territory is higher or lower than the costs of providing those services in the existing Improvement Area , subject to the unanimous approval and election of the owner or owners of such territory. In any such circumstance, the Rate and Method may be revised to reflect the higher or lower special tax, as applicable. The maximum special tax rate in the existing CFD and Improvement Area may not be increased as a result of any annexation proceeding.

The Special Tax herein authorized, to the extent possible, shall be collected in the same manner as ad valorem property taxes or in such other manner as this City Council or its designee shall determine, including direct billing of the affected property owners.

Such Special Tax shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency as applicable for ad valorem taxes. Any Special Tax that may not be collected on the County tax roll shall be collected through a direct billing procedure by the City.

Pursuant to Government Code section 53340 and except as provided in Government Code section 53317.3, properties of entities of the state, federal, and local governments shall be exempt from the levy of the Special Tax. Additionally, any property receiving a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code shall be exempt from the special tax to the extent of such welfare exemption.

Section 8. Effective Date of Future Annexation . Annexation of territory in the future shall be effective upon the unanimous approval and election of the owner or owners of any such parcel or parcels authorizing the levy of the Special Tax upon such parcel or parcels following the annexation to the Improvement Area, and no further public hearings or additional proceedings will be required to accomplish such annexation.

Section 9. Public Hearing. Notice is given that on April 28 , 2026, at 6:00 p.m., in the regular meeting place of the City Council being 1 Civic Center Drive, San Marcos, California 92069, a public hearing will be held where this City Council will consider the authorization of annexation of certain territory in the future to the Improvement Area, the proposed rate and method of apportionment of the special tax to be levied within said proposed Future Annexation Area and all other matters as set forth in this Resolution of Intention. Any interested persons may appear and be heard, and written protests shall be filed on or before the time fixed for the public hearing.

Section 10. Notice. Notice of the time and place of the public hearing shall be given by the City Clerk by causing the publication of a Notice of Public Hearing in the legally designated newspaper of general circulation, such publication pursuant to Section 6061 of the Government Code, with such publication to be completed at least seven (7) days prior to the date set for the public hearing.
230

Resolution No. 2026-XXXX

Page 5 ends

Section 11 . Severability . If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable.

Section 12 . Effective Date . This resolution shall become effective upon its adoption.

PASSED, APPROVED, and ADOPTED by the City Council of the City of San Marcos, California, this 24th day of March, 2026.

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

________________________________
Rebecca D. Jones, Mayor
City of San Marcos
ATTEST:

Phillip Scollick, City Clerk
City of San Marcos

231

A-1

EXHIBIT “A”
IMPROVEMENT AREA NO. F-59 OF COMMUNITY FACILITIES
DISTRICT NO. 98-02 (LIGHTING, LANDSCAPING, OPEN SPACE, AND

PRESERVE MAINTENANCE), CITY OF SAN MARCOS, COUNTY OF

SAN DIEGO, STATE OF CALIFORNIA
Authorized Services
The types of services generally provided in the existing CFD include, but are not limited to, the maintenance, repair, removal, replacement, operation, and management of:

1. Public lighting and appurtenant facilities, including, but not limited to street lighting and traffic signals;

2. Median landscaping and appurtenant facilities such as irrigation;

3. Parkway landscaping and appurtenant facilities such as irrigation;

5. Active open space areas including parks and trails and appurtenances such as signage.

For a full and complete description of the public services, reference is made to the final Special Tax Report for the CFD, a copy of which is on file in the Office of the City Clerk.

3. Trails including but not limited to multi -use trails, urban trails, Class I bicycle facilities, shared pedestrian and bicycle facilities, trail surfaces, amenities such as 232

A-2

fencing, signage, overlooks, gates, and other appurtenant facilities, and access to such facilities;

4. Enhanced facilities in public places including but not limited to the following facilities:
• Active Transportation Plan (ATP) facilities, street furniture, bus stops, and appurtenant facilities;
• Landscaped areas, including but not limited to slopes, parkways, medians, street trees, hardscape, signage, best management practices (BMP) facilities, irrigation, and other appurtenant facilities; • Enhanced pedestrian facilities including decorative amenities, placemaking facilities, pedestrian safety enhancements, and appurtenant facilities;
• Enhanced bicycle facilities including Class IV bicycle facilities, bicycle amenities, bicycle safety enhancements, intersection treatments, and appurtenant facilities;
• Multi-model facilities including transit, bicycle, and pedestrian- oriented facilities, ATP nodes and amenities, and appurtenant facilities; and • Paseos or non-motorized access paths including hardscape, landscape, amenities, and other appurtenant facilities.

5. Any other services authorized under the Act.

Administrative Expenses:

In addition, the following costs will also be funded by the special taxes levied within the Improvement Area.

1. Administrative Expenses including costs incurred to determine, levy and collect the special taxes, including compensation of City employees for administrative work performed in relation to the Improvement Area and a proportionate amount of the City’s general administrative overhead related thereto, the fees of consultants and legal counsel, the costs of collecting installments of the special taxes upon the general tax rolls, preparation of required reports, an d any other costs incurred for the administration of the Improvement Area by the City;

2. Any amounts needed for operating reserves and reserves for repairs, removals, replacements, and rehabilitation; and

3. Any amounts needed to cure actual or estimated delinquencies in special taxes for the current or previous fiscal years.
233

B-1
COMMUNITY FACILITIES DISTRICT NO. 98-02
(LIGHTING, LANDSCAPING, OPEN SPACE

AND PRESERVE MAINTENANCE)
IMPROVEMENT AREA NO. F-59

Exhibit B

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX

Section 1. Introduction

Section 2. Definitions

Acre: means 43,560 square feet of land.

Act: means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California. 234