Wildomar City Council
December 14, 2022

VI. FINANCIAL INFORMATION:

A. Proposed Project/Activity/Service Budget
Complete the following annual program budget to begin July 1, 2022. If your proposed City funded activity will start on a date other than July 1, 2022, please indicate starting date. If these budget line items are not applicable to your activity, please attach an appropriate budget.

Provide total Budget information and distribution of CDBG funds in the proposed budget.

The budgeted items are for the activity for which you are requesting CDBG funding - not for the budget of the entire organization or agency.

Total Project
Activity Service
Budget Wildomar Funds
(Include CDBG Funds) Requested
I. Personnel
A. Salaries & Wages $ _______________ $ _______________ B. Fringe Benefits $ _______________ $ ________________ C. Consultants & Contract Services $ ________________ $ ________________ SUB-TOTAL: $ ________________ $ ________________
II. Non-Personnel
A. Space Costs $ _________________ $ _______________
B. Rental, Lease or Purchase of Equip. $ _________________ $ _______________ C. Consumable Supplies $ _________________ $ ________________ D. Travel $ _________________ $ ________________
E. Telephone $ _________________ $ ________________
F. Utilities $ _________________ $ ________________
G. Other Costs $ _________________ $ ________________
SUB-TOTAL: $ ________________ $ ________________
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III. Other
A. Architectural/Engineering Design $ _________________ $ ________________ B. Acquisition of Real Property $ _________________ $ ________________ C. Construction/Rehabilitation $ _________________ $ ________________ D. Indirect Costs $ _________________ $ ________________ SUB-TOTAL: $ ________________ $ ________________
GRAND TOTAL: $ __________________ $ ___________________ 274

APPLICATION CERTIFICATION
Undersigned hereby certifies that (check the box after reading each statement, provide the authorized person’s name, and sign the document):

The information contained in the project application is complete and accurate.

The applicant agrees to comply with all Federal and City policies and requirements imposed on the project funded in full or part.

The applicant acknowledges that the Federal assistance made available through the City’s one-time funding program will not be used to substantially reduce prior levels of local (NONCDBG) financial support for community development activities.

The applicant fully understands that any facility built, or equipment purchased with these City funds shall be maintained and/or operated for the approved use throughout its economic life.

If City funds are approved by Council, the applicant acknowledges that sufficient funds are available or will be available to complete the project as described within a reasonable timeframe.

On behalf of the applying organization, I have obtained authorization to submit this application for City funding. (Documentation Attached = Minute Action and/or written Board Approval signed by the Board President).

Print Name/Title
Authorized Representative: ______________________________________________________ Signature: ____________________________________________________________________ DATE: __________________ 10/24/2022
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Applicant’s Check-list:

Please check the box for each required document that is attached. Any missing documentation to the application will be cause for the application to be reviewed as INELIGIBLE.

Slum Blight Documentation
Articles of Incorporation and Bylaws
Project Activity Map
Project Description
Project Benefit, Category 1, Benefit to low income persons, Documentation Project Benefit, Category 2, Area Benefit, Census Tracts/Block Groups Project Benefit, Category 3, Slum Blight Prevention, Slum/Blight Documentation Income and Expense Statement
Management Capacity
Board Written Authorization approving submission of application 276
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Revised: 2002
Amended: May 4, 2021
Filed by Consultant: May 10, 2021
BYLAWS
OF
ASSISTANCE LEAGUE® OF TEMECULA VALLEY
a nonprofit public benefit corporation
Article 1 Name and Headquarters

1.01 Name. The name of this corporation is Assistance League of Temecula Valley, a chartered chapter of National Assistance League®.

1.02 Principal Office. The principal office for the transaction of business of this organization is hereby fixed and located at 28720 Via Montezuma, Temecula, CA 92590-2510.

Article 2 Purpose and Policies

2.01 Purpose. The purpose of this organization shall be as stated in its Articles of Incorporation:
to administer, carry on and control at least one (1) program of philanthropic work in the community.

2.02 Policies.
(a) This organization is a tax-exempt, charitable corporation, exempt from Federal income tax under Section 501(c)(3) of the Internal Revenue Code of 1986 (or the corresponding provision of any future United States Internal Revenue Law), and shall be nonprofit, nonsectarian and nonpolitical in all its policies and activities and not organized for the private gain of any individual or entity. (b) This organization shall not carry on any other activities not permitted to be carried on by an organization exempt from Federal income tax under Section 501(c)(3) of the Internal Revenue Code of 1986 (or the corresponding provision of any future United States Internal Revenue Law), or by corporation contributions which are deductible under Section 170(c)(2) of the Internal Revenue Code of 1986 (or the corresponding provision of any future United States Internal Revenue Law). (c) This organization shall provide in its Articles of Incorporation that its income, assets and property are irrevocably dedicated to charitable purposes and no part of the net income, assets or property of the chapter shall ever inure to the benefit of any member thereof, or to the benefit of any private persons. (d) Upon the dissolution and winding up of this organization, after paying or adequately providing for the debts and obligations of the organization, the remaining assets shall be distributed to a nonprofit fund, foundation or corporation organized and operated exclusively for the purposes specified in Section 501(c)(3) of the Internal Revenue Code and which has established its tax exempt status under that section. (e) No substantial part of the activities of this organization shall consist of the carrying on of propaganda, or otherwise attempting to influence legislation, nor shall the 282
2 organization participate or intervene in any political campaign including publishing or distribution of statements on behalf of or in opposition to any candidate for public office.
(f) This organization shall be subject to the following limitations and restrictions:
(1) This organization shall distribute its income for each taxable year at a time and in manner that will not subject the corporation to the tax on undistributed income imposed by Section 4942 of the Internal Revenue Code of 1986. (2) This organization shall not engage in any act of self-dealing as defined in Section 4941(d) of the Internal Revenue Code of 1986.
(3) This organization shall not retain any excess business holdings as defined in Section 4943(c) of the Internal Revenue Code of 1986.
(4) This organization shall not make any investments that will subject it to tax under Section 4944 of the Internal Revenue Code of 1986. (5) This organization shall not make any taxable expenditure as defined in Section 4945(d) of the Internal Revenue Code of 1986.
(g) This organization shall support the purpose of National Assistance League and comply with its laws, policies, procedures and standards. (h) The activities of this organization shall be conducted without financial benefit to any member.

Article 3 Membership

3.01 Composition. This organization shall have members that shall be called voting members and may also have nonvoting members. Membership as a voting or nonvoting member is open without discrimination to all individuals as long as they comply with the responsibilities and standards of membership.

3.02 Responsibilities and Standards.
(a) Members shall comply with the responsibilities and standards of membership, including: maintaining conduct that enhances the image and reputation of the organization and does not cause it embarrassment; behaving in a civil manner; supporting the harmony, mission and welfare of the organization; and complying with the organization's required policies.
(b) Other responsibilities and standards of membership shall be defined in the standing rules.
(c) The Board of Directors, hereinafter referred to as the Board, has the right in its sole and absolute discretion to:
(1) Deny membership to any person who has demonstrated a disregard for or an unwillingness or inability to comply with the responsibilities and standards of membership; and
(2) Terminate the membership of any member who, after allowing the member to be heard, is determined by the Board to have failed to comply with the responsibilities and standards of membership.
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3 3.03 Suspension of Membership. The Board has the right in its sole and absolute discretion to suspend a member from all privileges and rights of membership who the Board determines has not complied with the responsibilities of membership. Such action may be taken only after a hearing by the Board following fifteen (15) days written notice to the member involved of the time and place of such hearing. Suspension of membership may not take effect for at least five (5) days after such hearing. A member’s membership in Assistance League may be suspended for a period not to exceed ninety (90) days.

3.04 Termination of Membership. Following the period of suspension, a member who fails to comply with bylaws, policies and standards of Assistance League may have membership terminated by a three-fourths (3/4) vote of the Board, if such action is deemed in the best interest of the organization. Such action may be taken only after a hearing by the Board following fifteen (15) days written notice to the member involved of the time and place of such hearing. Termination of membership may not take effect for at least five (5) days after such hearing. All rights and privileges of a member shall cease on the termination of membership.

3.05. Age Limit. This organization shall have no age requirements; however, it may be so organized that the membership may be divided into various groups of age compatibility in accordance with applicable law.

3.06 Leave of Absence. The Membership Committee may grant or deny requests for temporary leaves of absence to voting members for travel, illness or to meet emergency needs. While on leave of absence, a voting member shall continue to pay dues and may attend chapter meetings and vote and shall be counted in the quorum when present. Other financial obligations shall be optional with the chapter.

3.07 Penalties. Any member who is more than sixty (60) days delinquent in any chapter obligation, without reasons deemed sufficient by the Board, shall, by action of the Board, forthwith be suspended from all privileges of the chapter. The Secretary shall notify such member, in writing, of the suspension. Upon satisfactory discharge of the delinquent chapter obligations within thirty (30) days after notice of suspension, all privileges of chapter membership shall be restored. If delinquent chapter obligations are not met within thirty (30) days after notice of suspension, the membership of such member shall be terminated.

3.08 Dual Membership. Chapter members may hold membership in more than one (1) chapter and/or auxiliary. Such members shall declare a primary chapter and/or auxiliary.

Article 4 Board

4.01 Governing Body. The Board shall be the governing body of this organization. It shall be composed of the Officers and the Elective Standing Committee chairmen. Only elected members of the Board shall attend Board meetings and have a vote. The Parliamentarian shall attend Board meetings in a nonvoting capacity.

4.02 Powers. The Board shall be subject to the powers and functions as prescribed by the bylaws.

4.03 Policies and Standards. The Board shall have the power to establish and maintain policies and standards.

4.04 Management. The Board shall have the responsibility for the general management of the corporation and the power to act for the corporation between meetings of the membership. 284
4 4.05 Terms of Office. Members of the Board shall hold office for a term of one (1) year or until their successors are elected and assume office. They shall assume office at the close of the May Joint Board meeting. No member shall be eligible to serve more than four (4) consecutive terms in the same office.

4.06 Meetings. Regular meetings of the Board shall be held on the third (3rd) Tuesday of each month unless otherwise directed by the Board.

4.07 Conduct of Meetings. Members of the Board may participate in a meeting through electronic means including through the use of telephonic and/or video teleconferencing, including but not limited to electronic meetings, so long as all members participating in such meeting can communicate with one another. Final discussion and vote shall be by simultaneous aural communication among all participating members. Such participation shall constitute personal presence at the meeting.

4.08 Special Meetings. Special meetings of the Board may be called by the President and shall be called upon the written request of five (5) members of the Board, provided notice of such special meetings shall have been given to each Board member at least three (3) days prior thereto.

4.09 Quorum. A majority of the Board shall constitute a quorum.

4.10 Vacancies. Vacancies on the Board, except in the office of President, shall be filled by majority vote of the Board. The office of President shall be filled by the Vice President Membership, and the Board shall fill the vacancy thus created.

4.11 Executive Committee. The Executive Committee shall be composed of the officers of the Board. This committee shall have the power of the Board between meetings of the Board.

Four (4) members shall constitute a quorum. The Parliamentarian shall attend Executive Committee meetings in a nonvoting capacity.

Article 5 Nominations and Elections

5.01 Nominating Committee. In October and November, the Nominating Committee shall be elected. Two (2) members and one (1) alternate shall be elected by and from the Board at the October Board meeting and a minimum of three (3) members and one (1) alternate elected by and from the voting membership at the November regular meeting. A member nominated at the November meeting must be present to accept or decline the nomination.

The chairman and vice chairman shall be elected by and from the Nominating Committee.

No member shall be eligible to serve two (2) consecutive years. The Secretary shall call the first meeting of the Nominating Committee.

5.02 Slate. In March, the Nominating Committee shall submit its slate of nominees for offices on the Board. Only one (1) nominee shall be elected to each office. These offices are:

President, Vice President Membership, Vice President Philanthropic Programs, Vice President Finance, Secretary, Treasurer, Assisteens® Liaison, Bylaws Chairman, Chapter House Manager, Education Chairman, Marketing Communications Chairman, Strategic Planning Chairman, Thrift Shop Manager.

5.03 Notice. The committee chairman shall submit a copy of the slate of nominees to the Secretary and to each voting member at least one (1) month prior to the election meeting or at the previous regular meeting.
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5 5.04 Petition Process. Ten percent (10%) or more of chapter members eligible to vote may nominate, by signed petition, an additional nominee for an office on the Board by mailing such petition together with the written consent of the nominee to the Secretary at least ten (10) days prior to the election meeting. No member shall sign more than one (1) nominating petition in a year.

5.05 Election Meeting. The Board shall be elected at the election meeting in April.

5.06 Voting. Elections shall be by voice vote, except when a nominating petition shall have been received, in which event the vote for the contested office shall be by ballot.

Article 6 Officers and Their Duties

6.01 President. The President shall:
(a) Be chief executive officer of the corporation;
(b) Preside at meetings of the Board and membership;
(c) Appoint, with Board approval, the chairmen of Appointive Standing Committees, unless otherwise provided in these bylaws;
(d) Appoint special committees by direction of the Board or membership; (e) Appoint a Parliamentarian;
(f) Sign legal documents with the Secretary;
(g) Be authorized to open and close accounts at all chapter financial institutions with the Secretary and Treasurer;
(h) Be authorized to sign checks with the Vice President Membership, Vice President Philanthropic Programs and Secretary;
(i) Be, ex-officio, a member of all committees except the Nominating Committee; (j) Shall serve on the Bylaws and Membership Committees the year after the presidency; (k) Present an annual report of corporate activities to the membership; (l) Submit to the national office the Chapter Year-End Summary within thirty (30) days following the end of the corporation’s fiscal year;

(m) Confirm that appropriate Chapter Hub updates have been made to the Board roster within 30 days following the election and for any changes throughout the year; and (n) Serve as delegate to the annual and special meetings of National Assistance League.

6.02 Vice President Membership.
(a) Shall be chairman of the Membership Committee;
(b) Shall be a member of the Hospitality, Strategic Planning, Education, Bylaws, and Assisteens Committees;
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6 (c) Be authorized to sign checks with the President, Vice President Philanthropic Programs and Secretary;
(d) Serve as second delegate to represent the chapter at the annual and special meetings of National Assistance League; and
(e) Shall appoint, with Board approval, the Historian, Hospitality, Placement/Hours, Sunshine Appointive Standing Committee chairmen.

6.03 Vice President Philanthropic Programs.
(a) Shall be chairman of the Philanthropic Programs Committee; (b) Shall be a member of each philanthropic program, Strategic Planning, Risk Management and Grants Committees;
(c) Be authorized to sign checks with the President, Vice President Membership and Secretary;
(d) Serve as first alternate to represent the chapter at the annual and special meetings of National Assistance League; and
(e) Shall appoint, with Board approval, the chairmen of all philanthropic programs of the chapter.

6.04 Vice President Finance.
(a) Shall be chairman of the Finance Committee;
(b) Shall be responsible for the overall financial planning of the chapter (c) Shall recommend finance policies for the chapter;
(d) Shall appoint, with Board approval, the chairmen of the Grants and Risk Management Committees, Circle Fund Chairman and the Assistant Treasurers. (e) Shall be a member of the Grants Committee, Risk Management Committee and the Strategic Planning Committee; and
(f) Shall review correspondence with the chapter’s CPA.

6.05 Presiding Officer of Meetings. In the absence of the President, the Vice Presidents shall serve in the order of their office.

6.06 Secretary. The Secretary shall:
(a) Record the minutes of the Board and regular meetings and permanently maintain the original minutes;
(b) Be custodian of the records of the corporation, excluding financial records; (c) Sign legal documents with the President;
(d) Be authorized to open and close accounts at all chapter financial institutions with the President and Treasurer;
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7 (e) Certify, immediately following receipt of the call to the annual or special meeting of National Assistance League, the names of the chapter delegate and alternate to the National Secretary; and
(f) Be authorized to sign checks with the President, Vice President Membership, and Vice President Philanthropic Programs.

6.07 Treasurer. The Treasurer shall:
(a) Be chief financial officer of the corporation;
(b) Be responsible for monitoring the collection and disbursement of all funds; (c) Be responsible for the financial records of the corporation; (d) Be authorized to open and close accounts at all chapter financial institutions with the President and Secretary;
(e) Be responsible for the filing of required tax forms; (f) Be a member of the Finance and Strategic Planning Committee; (g) Confirm that appropriate Chapter Hub updates have been made by June 1 and throughout the year; and
(h) Submit to the National office within four and one-half (4½) months following the end of the fiscal year the required documents in compliance with National Policies for Chapters.

Article 7 Indemnification

7.01 Indemnification of Officers, Directors, Employees and Agents. To the extent allowed by state law, the Board of the chapter shall have the authority to indemnify any officer, director or agent duly authorized by the Board who was or is made a party to any proceeding in any action, other than an action brought by or on behalf of the national organization or the chapter, by reason of the fact that such person was such an officer, director or agent, at the time of the occurrence constituting the cause of action, against all expenses, judgments, settlements and/or liability reasonably incurred in connection with the proceeding. The authority to indemnify shall be exercised by the Board on the basis of each such occurrence. Indemnification shall not include reasonable attorneys’ fees paid or incurred by such persons if the Board agrees to and does provide an attorney to defend such action at the expense of the chapter.

7.02 Indemnification of National Assistance League. The chapter agrees to defend and indemnify and hold National Assistance League, and its officers, directors, members, employees and agents (collectively, “National Assistance League Indemnified Parties”) harmless against any charges, damages, costs and expenses (including reasonable attorney’s fees and court costs), liability or loss which any National Assistance League Indemnified Party may suffer, sustain or become subject to as a result of or arising out of any action or inaction of such chapter. In any action or proceeding relating to the foregoing indemnity, and brought against any National Assistance League Indemnified Party, the National Assistance League Indemnified Party shall have the right to (a) participate in the defense of such action or proceeding with attorneys of its own choosing or (b) defend itself in any action or proceeding with attorneys of its own choosing. 288
8 Article 8 Standing and Special Committees

8.01 Committee Composition. Committees shall be open to any interested member unless otherwise provided in these bylaws. The composition of a committee shall include those who serve by virtue of office as specified in the bylaws and/or members as deemed necessary. Ex Officio members of committees are voting members of the committee. No membership vote is needed to approve committee members.

8.02 Elective Standing Committees.
(a) Membership Committee. The Vice President Membership shall be chairman of this committee. The committee shall be composed of the Historian, Hospitality Chairman, Placement and Hours Chairman, Sunshine Chairman, Education Chairman, Orientation Chairman, Chapter Hub Administrator, Assisteens Liaison, immediate past President and members as may be deemed necessary. The committee shall establish goals and implement plans for membership stability and growth. It shall inform prospective members of the responsibilities and commitment of membership. The committee shall be in charge of membership events for the membership and for prospective members. (b) Philanthropic Programs Committee. The Vice President Philanthropic Programs shall be chairman of this committee. The committee shall be composed of the chairmen of each philanthropic program of the chapter and members as may be deemed necessary.

This committee shall be responsible for developing and supervising philanthropic programs that have been approved by the Board and the membership. This committee shall research and develop new philanthropic programs based on community need. (c) Assisteens Committee. The Assisteens Liaison shall be the chairman of this committee. The committee shall be composed of the Assisteens Coordinator, Assistant Treasurer, Vice President Membership and members as may be deemed necessary.

The Assisteens Liaison shall appoint, with Board approval, the Assisteens Coordinator.

The Assisteens Liaison shall serve on the Membership, Education, Bylaws, Chapter House and Risk Management Committees. This committee shall oversee the Assisteens Auxiliary.
(d) Bylaws Committee. The Bylaws Chairman shall be the chairman of this committee.

The committee shall be composed of the Parliamentarian, Vice President Membership, Education Chairman, Assisteens Liaison, immediate past President and members as may be deemed necessary. The committee shall be responsible for keeping the chapter bylaws current by yearly review. The committee shall review and revise chapter bylaws, standing rules and policies as directed by appropriate vote of the membership or Board. (e) Chapter House Committee. The Chapter House Manager shall be the chairman of this committee. The committee shall be composed of the Thrift Shop Manager, Risk Management Chairman and members as may be deemed necessary. The committee shall supervise the maintenance and repairs of the chapter house and shall maintain a current inventory of chapter property. The chairman shall present maintenance and repair considerations to the Board. The chairman shall serve on the Risk Management and Thrift Shop Committees.
(f) Education Committee. The Education Chairman shall be the chairman of this committee. The Education Chairman shall appoint the Orientation chairman. The committee shall be composed of the Orientation Chairman, Vice President Membership, Newsletter Editor, Marketing Communications Chairman, Assisteens Liaison and members as may be deemed necessary. This committee shall be responsible for the 289
9 education and training of new voting members and shall keep the Orientation Handbook current. The committee shall establish training and education programs for the Board, committee chairmen, membership and maintain resource information and materials for member use. The chairman shall serve on the Membership, Orientation, Strategic Planning, Bylaws and Risk Management Committees.
(g) Finance Committee. The Vice President of Finance shall be the chairman of this committee. The Vice President of Finance shall appoint the Circle Fund Chairman. The committee shall be composed of the Treasurer, former Treasurers and/or Assistant Treasurers, past Presidents, members with financial, investment or banking knowledge, Grants, Risk Management, Strategic Planning and Circle Fund Committee chairmen.

This committee shall create an annual budget of income and expenses for Board and membership approval, shall be responsible for the overall financial planning of the chapter; recommending finance policies for the chapter; reviewing engagement letters from the CPA; reviewing annual financial statements and management letter comments from the CPA; assisting in complying with National Policies for Chapters, Finance.

Annual corporate and auxiliary budgets (operating and capital expenditures) shall be approved by the Board and membership prior to the beginning of the fiscal year.

Annual auxiliary budgets shall be approved by the auxiliary governing body and membership and presented to the chapter Finance Committee to be included in the annual corporate budgets. The chairman shall serve on the Grants, Risk Management and Strategic Planning Committees.
(h) Marketing Communications Committee. The Marketing Communications Chairman shall be the chairman of this committee. The Marketing Communications Chairman shall appoint, with Board approval, the Newsletter Editor. The committee shall be composed of the Newsletter Editor and members as may be deemed necessary. This committee shall release press and media notices of the chapter and shall adhere to the established policies of this chapter and those established by the national organization.

This committee shall keep a press book of published releases. The chairman shall serve on the Education Committee.

(i) Strategic Planning Committee. The Strategic Planning Chairman shall be the chairman of this committee. The committee shall be composed of two (2) past Presidents, Vice President Membership, Vice President Philanthropic Programs, Vice President Finance, Treasurer, Education Chairman and two (2) additional members.

This committee shall facilitate the development of a strategic plan to ensure achievement of the chapter’s vision and mission. The committee shall oversee monitoring and evaluation of the plan on an ongoing basis and make recommendations to the Board. The chairman will serve on the Finance Committee. (j) Thrift Shop Committee. The Thrift Shop Manager shall be the chairman of this committee. The Thrift Shop Manager shall appoint the Thrift Shop Scheduling Chairman. The committee shall be composed of Day Managers, Thrift Shop Scheduling Chairman, Chapter House Manager and as many members as may be deemed necessary. This committee shall be responsible for the operation of the thrift shop and recommend policies for its operation subject to the approval of the Board and membership. The Thrift Shop Manager shall serve on the Chapter House, Risk Management and Finance Committees.

8.03 Appointive Standing Committees.
(a) Assistant Treasurer. The Assistant Treasurer shall perform routine duties for the Treasurer such as deposits and reconciliations. These duties may be delegated as 290
10 needed. The Assistant Treasurer shall serve on the Finance and Strategic Planning committees.
(b) Assisteens Coordinator Committee. The Assisteens Coordinator shall be the chairman of this committee. This committee shall be composed of the Assisteens Liaison, Vice President Membership and members as deemed necessary. This committee shall provide a forum for education and leadership, oversee Assisteens philanthropic programs, thrift shop volunteer hours, fundraising events and facilitate social activities.
(c) Circle Fund. The Circle Fund Chairman shall understand the purpose and value of Circle and support the goals and initiatives of the annual Circle campaign. Circle Fund Chairman shall represent and obtain donations to Circle. The Circle Fund Chairman shall serve on the Finance Committee.
(d) Grants Committee. The Grants Chairman shall be the chairman of this committee.

This committee shall be composed of a chairman, Vice President Finance, Vice President Philanthropic Programs, Operation School Bell® Chairman and members as deemed necessary. The committee shall be responsible for researching, identifying and submitting grants necessary to meet requirements of the budget. The Grants Chairman shall serve on the Finance Committee.
(e) Historian. The Historian shall keep current the written and pictorial history of the chapter and maintain a current scrapbook for the chapter and president. The chairman shall serve on the Membership Committee.
(f) Hospitality Committee. The Hospitality Chairman shall be chairman of this committee.

This committee shall be composed of a chairman, Vice President Membership and members as deemed necessary. The committee shall be responsible for management and development of social functions and special physical arrangements and refreshments for chapter meetings. The chairman shall serve on the Membership Committee.
(g) Newsletter Editor. The Newsletter Editor shall prepare and distribute the chapter newsletter, be responsible for the publication of the yearly membership directory and its distribution at the September meeting and shall be responsible for internal communications (via e-mail).
(h) Operation Bear Hug Committee. The Operation Bear Hug Committee Chairman shall be chairman of this committee. This committee shall be composed of a chairman, Vice President Philanthropic Programs and members as deemed necessary. The committee shall provide bears to outside agencies who will distribute them during a time of need.

The chairman shall serve on the Philanthropic Programs Committee. (i) Operation Foster Youth Committee. The Operation Foster Youth Committee Chairman shall be chairman of this committee. This committee shall be composed of a chairman, Vice President Philanthropic Programs and members as deemed necessary.

The committee will facilitate the collaboration with local foster care homes and foster family agencies to provide needed assistance. The chairman shall serve on the Philanthropic Programs Committee.
(j) Operation Nonprofit Partnerships Committee. The Operation Nonprofit Partnerships Committee Chairman shall be chairman of this committee. This committee shall be composed of a chairman, Vice President Philanthropic Programs and members as deemed necessary. The committee will form partnerships with community nonprofit 291
11 organizations to assist in providing needed services to the community. Partnership service needs are defined as the provision of goods and services that the chapter determines meet a need in the community, and that the chapter has no philanthropic program in place to meet these needs. The chairman shall serve on the Philanthropic Programs and Risk Management Committees.
(k) Operation Scholarships Committee. The Operation Scholarships Committee Chairman shall be chairman of this committee. This committee shall be composed of a chairman, Vice President Philanthropic Programs and members as deemed necessary.

The committee shall plan and execute high school scholarships and teacher grants. The chairman shall serve on the Philanthropic Programs Committee.

(l) Operation School Bell Committee. The Operation School Bell Committee Chairman shall be chairman of this committee. This committee shall be composed of a chairman, Vice President Philanthropic Programs and members as deemed necessary. The committee shall plan and execute the provision of new clothing to identified students in our service area. The chairman shall serve on the Philanthropic Programs and Grants Committees.
(m) Operation SHADES Committee. The Operation SHADES Committee Chairman shall be chairman of this committee. This committee shall be composed of a chairman, Vice President Philanthropic Programs and members as deemed necessary. The committee shall be responsible for organizing and implementing a series of four financial literacy classes within the chapter’s service area. The chairman shall serve on the Philanthropic Program Committee.
(n) Orientation Committee. The Orientation Committee shall be chairman of this committee. This committee shall be composed of a chairman, Vice President Philanthropic Programs, the Education chairman and members as deemed necessary.

The committee shall educate and train new members using Assistance League resources. The chairman shall serve on the Education and Membership Committees. (o) Parliamentarian. The Parliamentarian shall advise the presiding officer of a meeting on matters of parliamentary procedure and confer with the President as needed. The Parliamentarian shall serve on the Bylaws Committee.
(p) Placement and Hours Committee. The Placement and Hours Committee Chairman shall be chairman of this committee. The Placement and Hours Chairman shall record membership participation and hours served. The chairman shall serve on the Membership Committee.
(q) Risk Management Committee. The Risk Management Committee Chairman shall be chairman of this committee. This committee shall be composed of a chairman, Vice President Philanthropic Programs, Operation Nonprofit Partnerships Chairman, Education Chairman, Chapter House Manager, Thrift Shop Manager, Vice President Finance, Assisteens Liaison and additional members as needed who may attend to areas of responsibility assigned to the committee. The committee shall identify, analyze, assess and minimize risk areas for the safety and security of members and guests on the chapter’s premises. The chairman shall serve on the Chapter House and Finance Committees.
(r) Sunshine Committee. The Sunshine Committee Chairman shall be chairman of this committee. The Sunshine Chairman shall conduct all social correspondence of the chapter. The Sunshine Chairman shall serve on the Membership Committee.

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12 (s) Thrift Shop Scheduling Committee. The Thrift Shop Scheduling Committee Chairman shall be chairman of this committee. The Thrift Shop Scheduling Chairman shall be responsible for preparing the monthly thrift shop work schedule and recording absences and substitutions. The chairman shall serve on the Thrift Shop Committee. (t) Chapter Hub Administrator. Maintain member information on Chapter Hub including Assisteens. Submit to the Treasurer and VP Membership updated membership reports on or before June 1 and throughout the fiscal year as necessary. Update chapter Board positions within 30-days of their election.

8.04 Special Committees. The President shall appoint special committees by direction of the Board or membership.

8.05 Committee Quorum. A majority of the committee members shall constitute a quorum. Ex officio members are not counted when constituting or determining a quorum.

Article 9 Meetings

9.01 Regular Meetings. Regular meetings shall be held on the first Tuesday of each month, unless otherwise directed by the Board, with membership approval.

9.02 Election and Annual Meetings. The regular meeting in April shall be known as the election meeting, and the regular meeting in May shall be known as the annual meeting.

9.03 Conduct of Meetings. Members of governing bodies and committees, may participate in a meeting through electronic means, including through the use of telephonic and/or video teleconferencing, including but not limited to electronic meetings, so long as all members participating in such meeting can communicate with one another. Final discussion and vote shall be by simultaneous aural communications among all participating members. Such participation shall constitute personal presence at the meeting.

9.04 Special Meetings. Special meetings may be called by the President and shall be called upon the written request of one-third (1/3) voting members. The purpose of the meeting shall be stated in the call. Except in emergencies, at least three (3) days’ notice shall be given.

9.05 Voting Rights. There shall be no vote by proxy.

9.06 Quorum. One-third (1/3) of the voting members shall constitute a quorum.

9.07 Action by Vote by Mail or Electronic Transmission. The Board may determine that membership vote on an issue(s) should be conducted by vote by mail or electronic transmission rather than through discussion and vote at a regular or special meeting of the membership. If the Board determines to move forward with such action, the following procedure shall be followed:
(a) The Board may pass a motion to implement this provision to conduct business, including the election of officers and other board members, through use of a vote by mail or electronic transmission conducted in accordance with applicable provisions of the state Corporations Code instead of through an in-person meeting of members. The option shall include a fixed date that shall be treated as the date of the meeting of members for all purposes under these bylaws and a fixed date when the ballots will be distributed.
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13 (b) The corporation shall distribute a written ballot to every voting member who is entitled to vote on the matter. It is permissible for the ballot and any related material to be sent by electronic transmission and for responses (votes) to be returned to the corporation by electronic transmission. The ballot shall set forth the proposed action, provide an opportunity to specify approval or disapproval of any proposal, and provide a reasonable tine within which to return the ballot to the corporation.
(c) Approval of the written ballot pursuant to this provision shall be valid only when the number of votes cast by ballot within the time period specified equals or exceeds the quorum required to be present at a meeting authorizing the action, and the number of approvals equals or exceeds the number of votes that would be required to approve at a meeting at which the total number of votes cast was the same as the number of votes cast by ballot.
(d) Ballots shall be solicited in a manner consistent with any requirements of the state Corporations Code. All such solicitations shall indicate the number of responses needed to meet the quorum requirement and, with respect to ballots other than for the election of officers and board members, shall state the percentage of approvals necessary to pass the measure submitted. The solicitation must specify the time by which the ballot must be received in order to be counted. (e) A ballot that has been submitted may not be revoked. (f) With regard to the filing of a nominating petition in accordance with Section 5.04 such petition must be submitted to the (Recording) Secretary by mail or electronic transmission not later than ten (10) days prior to the date specified in the notice for distribution of the ballots.
(g) If there is any vote required other than election of the officers and board members, or if a qualifying nominating petition has been received by the (Recording) Secretary, the corporation shall provide an appropriate means for members to ask questions and/or seek additional information from the Board and to share comments with other voting members. It is permissible for this to be accomplished either:

1. Through an information meeting(s) that can be held in person or through electronic means, including through the use of telephonic and/or video teleconferencing, so long as all members participating in such meeting(s) can communicate with one another; or

2. Through periodic email updates from the Board to the membership or through posting of updates to the chapter website.

Article 10 Finance

10.01 Fiscal Year. The fiscal year of this organization shall be from June 1 through May 31.

10.02 Dues and Fees. Annual dues shall be payable on or before April 1 and delinquent on April

25. 294
14 VOTING:

Voting $85.00
NONVOTING:

Nonvoting $150.00
Community Contributor $300.00
Assisteens $35.00; New Members $45.00
Dues for new members joining after December 1 shall be reduced by one-half (1/2) and shall include National Assistance League pro rata per capita dues of twenty dollars ($20) and five ($5) for Assisteens. Dues for new members joining between March 1 and May 31 shall be ten dollars ($10).

Members holding membership in more than one (1) chapter shall pay National Assistance League dues only to primary chapter or auxiliary.

10.03 National Assistance League Dues. Annually, the corporation shall pay to National Assistance League per capita dues of forty dollars ($40) and ten dollars ($10) per capita Assisteens. The corporation shall pay to National Assistance League per capita pro rata dues of twenty dollars ($20) and five dollars ($5) per capita Assisteens for members joining after December 1. Per capita dues shall be waived for all new members joining between March 1 and May 31.

10.04 Requirements. The corporation shall maintain a sound financial position and shall have a Certified Public Accountant audit or review its financial statements annually. The corporation shall submit an annual report to members, as required by state Corporations Code.

10.05 Delegates and Alternates. The chapter, at its own expense, shall send its delegate and may send its alternate to the annual meeting and special meetings of National Assistance League.

10.06 Proposed Expenditures. Proposed unbudgeted expenditures in excess of five thousand dollars ($5,000) or ten percent (10%), whichever is less, shall be presented to the Board and membership for approval.

10.07 Fundraising. The corporation shall plan fundraising events and activities in compliance with National Policies for Chapters.

10.08 Fundraising Agent. The corporation shall not act as a fundraising agent for individuals or other organizations.

Article 11 Auxiliaries

11.01 Formation and Purpose. The chapter may form auxiliaries. An auxiliary name shall identify the auxiliary as an auxiliary of the chapter. Auxiliaries shall support chapter programs and activities.

11.02 Administration and Procedures.
(a) Each auxiliary shall have its own governing body for administrative purposes. An auxiliary shall be governed by the bylaws of the corporation. Auxiliary policies and standards shall not be in conflict with the bylaws, policies, procedures and standards of National Assistance League and the chapter. 295
15 (b) Each auxiliary shall establish Policies for Adult Auxiliaries or Policies for Assisteens Auxiliaries. These policies shall set forth procedures to:
(1) Nominate and elect members of the governing body;
(2) Conduct governing body meetings;
(3) Establish and operate committees;
(4) Conduct meetings of the membership; and
(5) Ensure fiscal compliance.
(c) Policies for Adult Auxiliaries and Policies for Assisteens Auxiliaries, and any proposed amendments thereto, shall be written by the auxiliary and submitted to the chapter Board for approval prior to a vote of the auxiliary membership. (d) Adoption of Policies for Adult Auxiliaries or Policies for Assisteens Auxiliaries, and any amendments thereto, by the auxiliary, shall be by majority vote of the members of the auxiliary.
(e) A current copy of auxiliary policies shall be on file at the national office.

11.03 Board Representative. Each auxiliary shall have a voting representative on the Board, either a Chapter Liaison to Auxiliary, elected by and from the chapter, or a member, elected by and from auxiliary.

11.04 Assisteens Auxiliary. The use of the name “Assisteens Auxiliary” shall be approved by the National Board, and it shall include the words, “an auxiliary of Assistance League of Temecula Valley.” Members may be in seventh (7th) through twelfth (12th) grades. It shall be represented on the Board by the Assisteens Coordinator or by the Chapter Liaison to Auxiliary, and the Assisteens Coordinator and/or Chapter Liaison to Auxiliary shall be a member of the Assisteens governing body and all Assisteens committees.

Article 12 Advisory Council

12.01 Advisory Council. An Advisory Council, composed of representative members of the community, including an attorney, shall serve the corporation in an advisory capacity.

Members, recommended by the Community Ambassadors Committee, shall be elected by the Board at its June meeting. Vacancies on this council shall be filled from recommendations of the Community Ambassadors Committee by vote of the Board.

Article 13 National Assistance League

13.01 Determining Delegates. Unless otherwise provided in these bylaws, the chapter shall elect at its election meeting, to serve for one (1) year, a voting delegate, and an alternate thereto, for up to one hundred (100) of the chapter’s membership (but not less than one (1) voting delegate and with the membership rounded off to the next highest hundred for such determination), to represent the chapter at annual and special meetings of National Assistance League. Additional delegates/alternates shall be elected for each one hundred (100) additional members, and if there are additional members in excess of those divisible by one hundred (100), one additional delegate/alternate shall be elected if there are fiftyone (51) or more additional members. 296
16 13.02 Delegate Vacancies. Should neither the delegate nor the alternate be available to serve, the Board may elect another delegate who shall be certified to the National Secretary at least twenty-four (24) hours prior to the annual meeting and special meetings of National Assistance League.

13.03 Votes per Member-Delegates. The chapter shall be entitled to that number of votes equal to its number of delegates.

Article 14 Bylaws and Amendments

14.01 Bylaws for Chapters. The chapter shall be governed by these bylaws. The bylaws shall not be in conflict with the Bylaws of National Assistance League, any federal laws or with the laws of the state in which the corporation is incorporated. Conflicts unresolved by a standing committee to be determined by the National Board shall be referred to the National Board for resolution, and the decision of this body shall be final. In the event of any conflict, the laws of the state shall prevail.

14.02 Amendments and Revisions. These bylaws may be amended or new bylaws adopted by a two-thirds (2/3) vote at any regular meeting, or at any special meeting called for that purpose provided that written notice of each proposed amendment or the proposed new bylaws shall have been given to each voting member at least thirty (30) days prior to the date of any such meeting, or at the previous regular meeting.

14.03 Conforming. When amendment of these bylaws shall become necessary by action of National Assistance League, the Bylaws Committee of the chapter is authorized to conform these bylaws in accordance therewith, and such amendment shall have the same force and effect as if adopted by the members of the chapter in accordance with the provisions of

14.02 of this Article.

14.04 Filing. Current bylaws, standing rules and auxiliary policies shall be on file at the national office.

Article 15 Parliamentary Authority

15.01 Parliamentary Authority. The rules contained in the current edition of Roberts Rules of Order shall govern the chapter in all cases to which they are applicable and in which they are not inconsistent with or in conflict with these bylaws, the Articles of Incorporation, the Bylaws of National Assistance League, the law including the law of the State of California, and any special rules or order the chapter may adopt. * * *
297

ASSISTANCE LEAGUE OF TEMECULA VALLEY

FINANCIAL STATEMENTS
AND INDEPENDENT AUDITOR’S REPORT
For the Fiscal Year Ended
May 31, 2022
(With Summarized Comparative Information
for May 31, 2021)
298

ASSISTANCE LEAGUE OF TEMECULA VALLEY
For the Fiscal Year Ended May 31, 2022
Table of Contents
Page
Independent Auditor’s Report ................................................................................................................................................................ 2 Basic Financial Statements:

Statement of Financial Position ..................................................................................................................................................... 3 Statement of Activities ....................................................................................................................................................................... 4 Statement of Cash Flows ................................................................................................................................................................... 5 Statement of Functional Expenses ............................................................................................................................................ 6-7 Notes to the Financial Statements .................................................................................................................................................. 8-16 Supplemental Consolidating Schedule of Activities ..................................................................................................................... 17 299
2 INDEPENDENT AUDITOR’S REPORT
To the Board of Directors of
Assistance League of Temecula Valley
Temecula, California
Report on the Financial Statements
I have audited the accompanying financial statements of Assistance League of Temecula Valley (a nonprofit organization), which comprise the statements of financial position as of May 31, 2022, and the related statements of activities, cash flows, and functional expenses for the fiscal year then ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility
My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, I express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Opinion
In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Assistance League of Temecula Valley as of May 31, 2022, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

My audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The supplemental schedule on page 17 is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In my opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

Murrieta, California
September 13, 2022
41880 Kalmia Ste. Ste 170
Murrieta, CA 92562
PH: 951-698-2260 FAX: 951-698-2272
Member: California Society of CPAs/American Institute of Certified Public Accountants 300
See accompanying notes and auditor’s report. 3

ASSISTANCE LEAGUE OF TEMECULA VALLEY
Statement of Financial Position
(With Summarized Comparative Information for May 31, 2021) May 31, 2022
2022 2021
ASSETS
Current assets:

Cash and cash equivalents 313,357 $ 455,443 $
Grants and other receivables 26,518 28,350
Prepaid expenses 241,128 25,820
Inventory 151,247 156,673
Total current assets 732,250 666,286
Non-current assets:

Property and equipment
Depreciable assets 1,247,369 1, 235,359
Less accumulated depreciation (1,067,485) (1, 038,365)
Total property and equipment (net) 179,884 196,994
Land 140,197 140,197
Construction in progress 16,934 -
Total non-current assets 337,015 337,191
Total Assets 1,069,265 $ 1,003,477 $

LIABILITIES AND NET ASSETS
Liabilities
Current liabilities:

Accounts payables and accrued expenses 39,367 $ 15,202 $ Deferred dues and other revenue 88,310 77,628
Total current liabilities 127,677 92,830
Total Liabilities 127,677 92,830
Net Assets
Without donor restrictions:

Undesignated 915,070 882,297
With donor restrictions 26,518 28,350
Total Net Assets 941,588 910,647
Total Liabilities and Net Assets 1,069,265 $ 1,003,477 $ May 31,
301
See accompanying notes and auditor’s report. 4

ASSISTANCE LEAGUE OF TEMECULA VALLEY
Statement of Activities
(With Summarized Comparative Information for May 31, 2021) For the Fiscal Year Ended May 31, 2022
2021
Without Donor With Donor
Restrictions Restrictions Total Total

REVENUES AND OTHER SUPPORT
Fundraising:

Thrift shop revenue:

Contributions of merchandise sold 349,237 $ - $ 349,237 $ 259,411 $ Sales of contributed merchandise 349,237 - 349,237 259,411 Less: Value of merchandise sold (349,237) - (349,237) (259,411) Net revenue from thrift shop 349,237 - 349,237 259,411
Membership dues and member event revenue,
net of cost of direct benefits to attendees 5,078 - 5,078 5,220 Contributions 21,211 75,258 96,469 53,727
Grants - 159,315 159,315 120,851
Gift-in-kind donations 80,525 - 80,525 20,930
Interest income 87 - 87 127
Other miscellaneous income 1,203 - 1,203 2,510
Net assets released from restrictions 236,405 (236,405) - - Total Revenues and Other Support 693,746 (1,832) 691,914 462,776

EXPENSES
Program expenses:

Operation School Bell 196,504 - 196,504 116,229
Operation Non Profit Partnership 125,396 - 125,396 65,881 Operation Scholarship 86,261 - 86,261 31,782
Operation Bear Hug 16,023 - 16,023 345
Operation Foster Youth 36,255 - 36,255 12,589
Other programs 21,759 - 21,759 11,801
Total program service expenses 482,198 - 482,198 238,627 Supporting Services:

Thrift shop 141,825 - 141,825 128,552
Management and general 27,992 - 27,992 25,940
Membership development 2,345 - 2,345 2,410
Fundraising expenses 6,613 - 6,613 4,958
Total supporting services expenses 178,775 - 178,775 161,860 Total Expenses 660,973 - 660,973 400,487
Change in Net Assets 32,773 (1,832) 30,941 62,289
Net Assets:

Beginning of year 882,297 28,350 910,647 848,358
End of year $ 915,070 $ 26,518 $ 941,588 $ 910,647
For the Fiscal Year Ended May 31,
2022
302
See accompanying notes and auditor’s report. 5

ASSISTANCE LEAGUE OF TEMECULA VALLEY
Statement of Cash Flows
(With Summarized Comparative Information for May 31, 2021) For the Fiscal Year Ended May 31, 2022
2022 2021

CASH FLOWS FROM OPERATING ACTIVITIES
Change in net assets 30,941 $ 62,289 $
Adjustments to reconcile increase (decrease) in net
assets to net cash provided (used) by operating activities:

Depreciation expense 29,120 30,025
(Increase) decrease in operating assets:

Grants receivable 1,832 (27,017)
Prepaid expenses (215,308) 13,973
Inventory 5,426 2,725
Increase (decrease) in operating liabilities:

Accounts payable and accrued liabilities 24,165 13,777
Deferred dues revenue 10,682 66,658
Net cash provided (used) by operating activities (113,142) 162,430

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets (12,010) (7,850)
Costs incurred for construction in progress (16,934) -
Net cash provided (used) by investing activities (28,944) (7,850)

Net increase (decrease) in Cash (142,086) 154,580
Cash and Cash Equivalents
Beginning of year 455,443 300,863
End of year $ 313,357 $ 455,443
SUPPLEMENTAL DISCLOSURE:

Interest Paid $ - $ -
For the Fiscal Year Ended May 31,
303
See accompanying notes and auditor’s report. 6

ASSISTANCE LEAGUE OF TEMECULA VALLEY
Statement of Functional Expenses
(With Summarized Comparative Information for May 31, 2021) For the Fiscal Year Ended May 31, 2022
Total
Operation Non Profit Operation Operation Operation Other Program School Bell Partnership Scholarships Bear Hug Foster Youth Programs Expenses Accounting $ - $ - $ - $ - $ - $ - $ -
Advertising and public relations - - - - - - -
Automobile expense - - - - - - -
Bank charges - - - - - - -
Clothing and Five Point expenses 181,377 - - - - 181,377 - Contributed merchandise 29,000 - - - - 29,000 -
Direct program expenses 13,465 44,648 15,800 - 36,036 20,566 130,515 Donated use of facility 51,525 - - - - 51,525 -
Education and training - - - - - - -
Equipment rental and maintenan 143 143 143 143 141 - 713 Fundraiser indirect expenses - - - - - - -
Grant writing - - - - - - -
Hospitality and courtesy - - - - - - -
Liability insurance - - - - - - -
National dues - - - - - - -
Occupancy expense: - - - - - - -
Depreciation 291 - - - - 292 583
Property insurance 36 - - - - 37 73
Property management 40 - - - - 41 81
Property taxes 173 - - - - 173 346
Repairs and maintenance 306 - - - - 307 613
Security monitoring 40 - - - - 41 81
Utilitites 230 - - - - 260 490
Office expenses - - - - - - -
Outside labor - - - - - - -
Postage and shipping - - - - - - -
Printing and publications 281 - - - - - 281
Scholarships - 86,038 - - - 86,038 -
Supplies - - - - - - -
Telephone 42 - - - - 42 84
Travel and conference 80 80 80 80 78 - 398
Total Expenses 196,504 125,396 86,261 16,023 36,255 21,759 482,198 Less expenses included with revenue
on statement of activities - - - - - - -

TOTAL EXPENSES PER
STATEMENT OF ACTIVITIES 196,504 $ $ 125,396 $ 86,261 $ 16,023 $ 36,255 $ 21,759 $ 482,198 For the Fiscal Year Ended May 31, 2022
Program Services
304
See accompanying notes and auditor’s report. 7

ASSISTANCE LEAGUE OF TEMECULA VALLEY
Statement of Functional Expenses
(With Summarized Comparative Information for May 31, 2021) For the Fiscal Year Ended May 31, 2022
2021
Summarized
Total
Thrift Special Management Membership Supporting Total Total Store Events & General Development Fundraising Services Expenses Expenses Accounting - $ - $ 9,654 $ - $ - $ 9,654 $ 9,654 $ 8,615 $ Advertising and public relations 7,998 - - 1,821 799 10,618 10,618 5,416 Automobile expense 1,934 - - - - 1,934 1,934 1,103
Bank charges 8,545 - - - - 8,545 8,545 6,090
Clothing and Five Point expenses - - - - - - 181,377 107,119 Contributed merchandise 349,237 - - - - 349,237 378,237 280,341 Direct program expenses - - - - - - 130,515 75,330
Donated use of facility - - - - - - 51,525 -
Education and training - - - 242 - 242 242 467
Equipment rental and maintenan - 713 1,427 - - 2,140 2,853 2,676 Fundraiser indirect expenses - - - - 163 163 163 146
Grant writing - - - - 5,651 5,651 5,651 4,673
Hospitality and courtesy - 4,453 - 2,692 - 7,145 7,145 3,625 Liability insurance 5,653 - 2,336 - - 7,989 7,989 6,993 National dues - - - 5,733 - 5,733 5,733 5,763
Occupancy expense:

Depreciation 26,790 - 1,747 - - 28,537 29,120 30,025
Property insurance 3,324 - 217 - - 3,541 3,614 4,540
Property management 3,709 - 242 - - 3,951 4,032 4,032
Property taxes 15,910 - 1,038 - - 16,948 17,294 16,278
Repairs and maintenance 28,172 - 1,837 - - 30,009 30,622 26,249 Security monitoring 3,710 - 242 - - 3,952 4,033 1,716
Utilitites 21,138 - 1,381 - 22,519 - 23,009 23,532
Office expenses - - 7,448 - - 7,448 7,448 7,785
Outside labor 1,779 - - - - 1,779 1,779 1,313
Postage and shipping - - 215 - - 215 215 131
Printing and publications - - - 282 - 282 563 811
Scholarships - - - - - 86,038 - 31,570
Supplies 8,576 - - - - 8,576 8,576 8,095
Telephone 3,874 - 208 - - 4,082 4,166 4,267
Travel and conference - - - - - - 398 585
Total Expenses 491,062 4,453 27,992 10,770 6,613 540,890 1,023,088 669,286 Less expenses included with revenue
on statement of activities (349,237) (4,453) (8,425) - (362,115) - (362,115) (268,799)

TOTAL EXPENSES PER
STATEMENT OF ACTIVITIES 141,825 $ -$ $ 27,992 $ 2,345 $ 6,613 $ 178,775 $ 660,973 $ 400,487 For the Fiscal Year Ended May 31, 2022
Supporting Services
305
8 ASSISTANCE LEAGUE OF TEMECULA VALLEY
Notes to the Financial Statements
May 31, 2022
NOTE 1 – NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Nature of Activities
The Assistance League of Temecula Valley (the “Chapter”) incorporated in 1989 and is a chartered chapter of the National Assistance League. The accompanying financial statements include the activities of the Assistance League of Temecula Valley and its auxiliary; Assisteens (collectively, the “Chapter”). The Chapter is a not-for-profit organization under the Internal Revenue Code Section 501(c)(3) and is dedicated to a program of diversified philanthropies through volunteer services of its members.

Five Points: The Chapter’s philanthropic programs are structured under an Operation School Bell umbrella referred to as “Five Points”. Funds from this program are available to support and supplement the Chapter’s other philanthropic programs focusing on clothing, food, health, literacy, and supplies.

Operation School Bell®:

First adopted in 1989, is the main Philanthropic Program of Assistance League and requires the largest portion of the annual budget. This program provides the basic need of clothing for schoolchildren (grades TK-12) in the defined service area, who might otherwise not have adequate clothing to attend school. New clothing increases children’s incentive for regular school attendance, high academic performance and enhances self-esteem.

Chapters for Children:

This program falls under Operation School Bell. In conjunction with six other Chapters, the Chapter provides clothing to school age children who live on base at Camp Pendleton. The Chapter provides the boys with pants, shorts, or jeans.

Save Our Students (SOS):

This program also falls under Operation School Bell and provides duffle bags with emergency supplies and changes of clothing to Head Start and State preschools in the Chapter’s service area.

Operation Scholarships:

This program provides yearly grants to selected teachers in the five school districts in the Chapter’s service area.

Teachers present applications for class project that meet state guidelines for classroom enhancement.

Graduating high school seniors in the Temecula, Murrieta and Lake Elsinore Unified School Districts apply for scholarships to continue their education. Additionally, the Chapter awards scholarships to socio-economically disadvantaged students who are continuing their education.

Operation Bear Hug:

This program provides teddy bears to injured and traumatized children through local hospital emergency rooms and Trauma Intervention Programs. These bears are used to provide comfort and aid in communication.

Operation Foster/Homeless Youth:

This program facilitates collaboration with local foster care homes and foster family agencies to provide service in the form of the basic essentials of clothing and necessary supplies for children entering the foster care system.

This program also provides assistance to foster and homeless youth for their high school expenses and to nonminor dependents as they move into independent living.

Operation Nonprofit Partnership:

This program provides community assistance to other 501(c)(3) organizations by supporting and assisting in needed services that are not duplicated by other organizations. This includes school districts, local food pantries and foster family agencies, including transitional housing. The Chapter provide in-kind donations of clothing and supplies to individuals and families in need. The use of the Chapter’s meeting facilities is available to approximately 15 other non-profit organizations at no cost to them. 306
9 ASSISTANCE LEAGUE OF TEMECULA VALLEY
Notes to the Financial Statements
May 31, 2022
NOTE 1 – NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ‐

CONTINUED
A. Nature of Activities ‐ continued
The Assisteens Auxiliary® provides provides volunteer opportunities for today’s youth. Membership into the auxiliary is open to young people in grades 7-12. The aims of participation are to develop a sense of community responsibility, self-reliance, personal responsibility, poise, public speaking and leadership skills. Assisteens support the Chapter’s philanthropic programs.

The Chapter’s support and revenues come primarily from contributions and other fundraising efforts including grant writing and the operation of a thrift store.

B. Basis of Presentation and Accounting
The financial statements of the Chapter have been prepared on the accrual basis in accordance with accounting principles generally accepted in the United States of America. The financial statements are presented in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 958 dated August 2016, and the provisions of the American Institute of Certified Public Accountants (AICPA) “Audit and Accounting Guide for Not-for-Profit Organizations” (the “Guide”).

ASC 958-205 was effective January 1, 2018 and addresses general-purpose external financial statements appropriate for not-for-profit organizations.

Under the provisions of the ASC 958-205, net assets and revenues, and gains and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, the net assets of the Chapter and changes therein are classified as follows:

Net assets without donor restrictions: Net assets that are not subject to donor-imposed restrictions and may be expended for any purpose in performing the primary objectives of the Organization. The Organization’s board may designate assets without restrictions for specific operational purposes from time to time.

Net assets with donor restrictions: Net assets subject to stipulations imposed by donors, and grantors. Some donor restrictions are temporary in nature; those restrictions will be met either by the actions of the not-for-profit organization to satisfy a particular purpose restriction, or by the passage of time. Some donor restrictions are perpetual (or permanent) in nature, whereby the donor has stipulated the funds be maintained in perpetuity, whereby the corpus of the donation must remain unspent.

C. New Accounting Pronouncement
In August 2016, FASB issued Accounting Standards Update (ASU) 2016-14, Not‐for‐Profit Entities (Topic 958): Presentation of Financial Statements of Not‐for‐Profit Entities, which makes several changes to the current reporting model for Not-for-Profit entities (NFPs). The standard is effective for fiscal years beginning after December 15, 2017. The ASU has been applied retrospectively to all periods presented. A summary of the most significant changes includes:

1. Net Asset Categories
As opposed to three classes of net assets, the new reporting standard presents two classes of net assets: those with donor-imposed restrictions and those without. Details of restrictions on use of resources will be presented in the notes. Any board designation of net assets must also be presented disclosed.
307
10 ASSISTANCE LEAGUE OF TEMECULA VALLEY
Notes to the Financial Statements
May 31, 2022
NOTE 1 – NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C. New Accounting Pronouncement (continued)

2. Liquidity and Availability of Resources
Not-for-profit organizations must provide information about the liquidity of assets or maturity of liabilities, including the effects of restrictions and internal appropriations, by:
a. Ordering assets according to nearness of conversion to cash and liabilities according to nearness of use of cash due to maturity.
b. Classifying assets and liabilities as current and noncurrent. c. Disclosing any additional information regarding liquidity or maturity of assets and liabilities.

Also, qualitative and quantitative information about the management of liquid resources to meet cash needs for general expenditures within one year of the date of the statement of financial position must be disclosed.

3. Expense Reporting
According to ASU 2016-14, all not-for-profit organizations must now disclose information as to the nature and function of expenses. Natural classifications must be disclosed separately from functional classifications.

4. Statement of Cash Flows
Prior to the implementation of ASU 2016-14, if the direct method of presenting the statement of cash flows was used, there was a requirement to also disclose the indirect method. That requirement no longer exists. There are no other changes as to the classification of cash flows by operating, investing and financing categories.

5. Investment Return
Gross investment revenues (dividends, interest, gains/losses) must now be reported net of related expenses (internal and external) on the face of the Statement of Activities.

D. Revenue Recognition
The Chapter has also adopted FASB ASC 958-605. The “Contributions Received” subsections of that standard provides guidance for contributions of cash and other assets received, including promises to give. Contributions, including sponsorships, are recognized as revenue at the earlier of the period promised or earned and received. Contributions received with the presence of donor-imposed restrictions are reported in the Statement of Activities in the column ‘with donor restrictions,’ subject to time, purpose or other conditionality. Once restrictions have been satisfied, amounts are reclassified to ‘without donor restrictions.’ If donor-imposed restrictions are satisfied within the same accounting period as revenue is earned, the Chapter’s policy is to present the amounts as without donor restrictions.

Grants are recognized during the period the contract is entered and related services have been performed. Program fees and events revenues are recognized upon completed services performed. 308
11 ASSISTANCE LEAGUE OF TEMECULA VALLEY
Notes to the Financial Statements
May 31, 2022
NOTE 1 – NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) E. Donated Materials and Supplies
Donated materials and supplies are recorded as contributions at their estimated fair market value, in accordance with FASB ASC 958-605-30, at the date the contribution is made. Such donations are reported as increases in net assets without donor restrictions unless the donor has restricted the donated asset to a specific purpose.

F. Contributed Services
The Chapter follows the recognition criteria for contributed services as stated in FASB ASC 958-605-25. A significant portion of the Chapter’s program services, fundraising, and administrative functions are conducted by unpaid volunteers. The value of this contributed time is not reflected in the accompanying financial statements since the services do not require specialized skills. During the year ended May 31, 2022, these volunteers donated approximately 23,692 hours, with an approximate value of $704,126.

This value is based upon the average hourly earnings of $29.72 by nonagricultural workers for this time period, as determined by the U.S. Department of Labor’s Bureau of Labor Statistics, plus 12% for estimated fringe benefits.

G. Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

H. Fair Value Measurements
In accordance with fair value measurements, as stated in FASB ASC 820, the Chapter categorizes its assets and liabilities measured at fair value into a three-level hierarchy based on the priority of the inputs to the valuation technique used to determine fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used in the determination of the fair value measurement fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement.

Financial assets and liabilities recorded on the statement of financial position are categorized based on the inputs to the valuation techniques as follows:

Level 1 – Inputs that reflect unadjusted quoted prices in active markets for identical investments, such as stocks, corporate and government bonds. The Chapter has the ability to access the holding and quoted prices as of the measurement date.

Level 2 – Inputs, other than quoted prices, that are observable for the asset or liability either directly or indirectly, including inputs from markets that are not considered to be active.

Level 3 – Inputs that are unobservable. Unobservable inputs reflect the Chapter's own assumptions about the factors market participants would use in pricing an investment and is based on the best information available in the circumstances.

I. Cash and Cash Equivalents
The Chapter considers cash on hand, certificates of deposit with original maturity dates of three months or less at the date of investment, as well as money market funds and other similar instruments readily convertible to cash to be cash and cash equivalents.
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12 ASSISTANCE LEAGUE OF TEMECULA VALLEY
Notes to the Financial Statements
May 31, 2022
NOTE 1 – NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) J. Custodial Credit Risk
The Chapter maintains its cash at several financial institutions. Cash balances are insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC). At various times during the year, the amount on deposit with a single financial institution may exceed federal depository insurance limits and be exposed to custodial credit risk. At May 31, 2022, the Chapter had no funds which were exposed to this risk.

K. Comparative Financial Information
The financial statements include certain prior-year summarized comparative information in total, but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the Chapter’s financial statements for the year ended May 31, 2021 from which the summarized information was derived.

L. Deferred Revenue
Membership dues, contributions, and grants received prior to the fiscal year to which they apply are deferred and recognized over the periods to which the dues, contributions, and grants relate. Revenue deferred for collection of membership dues are classified as deferred dues revenues, while all other deferred revenues are reported separately.

M. Promises to Give
Contributions are recognized when the donor makes a promise to give to the Chapter that is, in substance, unconditional. Donor-restricted contributions are reported as increases in net assets with donor restrictions depending on the nature of the restrictions. When a restriction expires, net assets with donor restrictions are reclassified to net assets without donor restrictions.

N. Thrift Shop Inventory and Donated Materials
The Chapter maintains an inventory of used clothing and household items donated by chapter members and community individuals and businesses. The value of this inventory is stated at its estimated fair value. These donated items are held for resale at the thrift shop operated by the Chapter.

O. Philanthropic Inventory
The Chapter maintains a limited inventory of items for use in several philanthropic programs including backpacks, school supplies, clothing, teddy bears, and books. Inventories are stated at the lower of cost or market using first-in, first out inventory valuation method.

P. Property and Equipment
It is the Chapter’s policy to capitalize property and equipment over $1,000. Purchased property and equipment is capitalized at cost. Donations of property and equipment are recorded as contributions at their estimated fair value. Such donations are reported as unrestricted contributions unless the donor has restricted the donated asset to a specific purpose or time of use. Property and equipment are depreciated using the straight-line method of depreciation over the estimated useful life of the related assets of five to forty years.
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13 ASSISTANCE LEAGUE OF TEMECULA VALLEY
Notes to the Financial Statements
May 31, 2022
NOTE 1 – NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Q. Income Taxes
The Chapter is a non-profit public-benefit corporation and has been recognized as tax-exempt pursuant to Section 501(c)(3) of the Internal Revenue Code and Section 23701d of the California Revenue and Taxation Code. Accordingly, no provision has been made for income taxes. Management has evaluated its tax positions and the certainty as to whether those positions will be sustained in the event of an audit by taxing authorities at the federal and state levels.

The primary tax positions evaluated are related to the Chapter's continued qualification as a tax-exempt Chapter and whether there are unrelated business income activities conducted that would be taxable.

Management has determined that all income tax positions are more likely than not of being sustained upon potential audit or examination; therefore, no disclosures of uncertain income tax positions are required. The Chapter files informational returns in the U.S. federal jurisdiction and the state of California.

R. Functional Expenses
The financial statements report certain categories of expenses that are attributable to more than one program or supporting function, as shown in the Statement of Functional Expenses. Therefore, these expenses require allocation on a reasonable basis that is consistently applied. Such allocations are determined by management on an equitable basis. The expenses that are allocated include the following:

Expense Method of Allocation
Salaries and benefits Time and effort
Occupancy / rent Facilities square footage
Insurance Policy type and nature of coverage
Utilities Facilities square footage
Supplies Time and effort
Depreciation Facilities square footage
NOTE 2 – LIQUIDITY AND AVAILABLE RESOURCES
The Chapter’s financial assets available within one year of the Statement of Financial Position date for general expenditure are as follows:

Cash and cash equivalents $ 313,357
Grants and other receivables 26,518
Inventory 151,247
Financial assets available within one year 491,122
The Chapter’s policy for liquidity management requires that it structure its financial assets to be available as its general expenditures, liabilities and other obligations come due. Cash in excess of daily requirements is invested in short-term investments. The amounts above have been reduced by amounts not available for general use because of the donor-imposed restrictions within one year of the financial statement date. 311
14 ASSISTANCE LEAGUE OF TEMECULA VALLEY
Notes to the Financial Statements
May 31, 2022
NOTE 3 – CASH AND CASH EQUIVALENTS
Cash and cash equivalents at May 31, 2022, consisted of the following:

Cash and Cash Equivalents:

Cash on hand $ 500
Checking accounts:

Chase Bank 72,038
Provident Bank 42,628
PayPal 4,767
Wells Fargo 140,459
Total checking accounts 259,892
Savings accounts:

Provident Bank 52,965
Total 312,857 $
NOTE 4 – PROMISES TO GIVE
At May 31, 2022, Promises to Give consisted of the following:

Unrestricted $ -
Restricted for Operation School Bell 28,350
Total promises to give 28,350
Less discounts to net present value -
Less allowance for uncollectible promises -
Total promises to give, net $ 28,350

All Promises to give at May 31, 2022, are due in less than one year.

NOTE 5 – PROPERTY AND EQUIPMENT
Property and equipment as of May 31, 2022 consisted of the following:

Balance, Balance,
June 1, 2021 Additions Retirements May 31, 2022
Property and equipment:

Equipment 140,215 - - 140,215
Vehicles 19,062 - - 19,062
Buildings and improvements 1,076,082 12,010 - 1,088,092 Total property and equipment being depreciated 12,010 1,235,359 - 1,247,369 Accumulated depreciation:

Equipment (111,799) (8,434) - (120,233)
Vehicles (18,289) (774) - (19,063)
Buildings and improvements (908,277) (19,912) - (928,189) Total accumulated depreciation (1,038,365) (29,120) - (1,067,485) Total property and equipment, net $ 196,994 $ (17,110) $ - $ 179,884 312
15 ASSISTANCE LEAGUE OF TEMECULA VALLEY
Notes to the Financial Statements
May 31, 2022
NOTE 6 – INVENTORY
Inventory at May 31, 2022 was comprised of the following:

Thrift Shop inventory $ 146,212
Philanthropic Programs inventory 5,035
Total Inventory $ 151,247
NOTE 7 – DEFERRED REVENUES
The deferred dues and other revenue balance at May 31, 2022 reflects 2022-23 membership dues of $10,450 and funds and grants totaling $77,860 restricted for the next fiscal year, received before May 31, 2022.

NOTE 8 – NET ASSETS
At May 31, 2022 net assets were restricted by donors or designated by the Chapter as follows:

Without Donor Restriction:

Reserve maintained for one year's operating expenses 882,297 $ With Donor Restriction:

Subject to expenditure for specific purpose:

Operation School Bell® program 28,350
Subject to the passage of time - for periods after May 31, 2021:- Subject to spending policy and appropriation: -
Total $ 910,647
Net assets released from donor restrictions by incurring expenses satisfying the restricted purpose or by occurrence of the passage of time or other events specified by donors during fiscal year ended May 31, 2022 are as follows:

Purpose restrictions accomplished:

Operation School Bell® program 235,905 $
Operation Foster/Homeless Youth 500
Total 236,405 $
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16 ASSISTANCE LEAGUE OF TEMECULA VALLEY
Notes to the Financial Statements
May 31, 2022
NOTE 9 – OPERATING LEASE COMMITMENT
The Chapter leases a copy machine on a month-to-month basis. The monthly standard charge is $181.78 plus tax which includes 5,500 copies. The Chapter pays additional fees depending on the amount of usage over the allowed number of copies monthly. During the fiscal year ended May 31, 2022 the Chapter recorded $2,853 in equipment rental expense associated with the copy machine lease.

NOTE 10 – NONCASH CONTRIBUTIONS
During the year ended May 31, 2022, in additions to contributions of merchandise sold to the Chapter’s thrift shop, the Chapter received other noncash contributions of materials, clothing and supplies as follows:

Use of facilities $ 51,525
Clothes and furniture 29,000
Total $ 80,525
NOTE 11 – DIRECT PROGRAM EXPENSES
Expenses incurred for the direct operation of other non-major programs in the amount of $20,566 at May 31, 2022 are detailed as follows:

Operation SHADES $ 3,755
Celebrate the Seasons 1,770
Operation Bookworm 2,265
Helping SMART Moms 1,224
Honoring Our Veterans 3,093
Various other expenses 8,459
Total $ 20,566
NOTE 12 – SUBSEQUENT EVENTS
Events subsequent to May 31, 2022, have been evaluated through September 13, 2022, the date at which the Chapter’s audited financial statements were available to be issued. No events requiring disclosures have occurred through this date.

At the end of the first quarter of calendar year 2020, the United States and global economy suffered a major decline due to the impact of the COVID-19 virus. The direct affect to the Chapter during the most recent fiscal year resulted in complete/partial closure of the Thrift Shop and a significant decline in the number of volunteers. The Chapter has since re-opened the Thrift Shop and has resumed full operations.

On May 16, 2022, the Chapter experienced flood damage to a sizable portion of it’s facilities. As a result, the Thrift Shop remained closed for an extended period of time to allow for flood remediation and repairs.

Management expects that this closure will have a significant impact on current year financial results.

However, the exact amount of the impact to the Chapter is unknown at this time. 314
17 ASSISTANCE LEAGUE OF TEMECULA VALLEY
Supplemental Consolidating Schedule of Activities
For the Fiscal Year Ended May 31, 2022
Chapter Assisteens Total

REVENUES AND OTHER SUPPORT
Fundraising:

Thrift shop revenue:

Contributions of merchandise sold $ 310,428 $ 38,809 $ 349,237 Sales of contributed merchandise 310,428 38,809 349,237 Less: Value of merchandise sold (310,428) (38,809) (349,237) Net revenue from thrift shop 310,428 38,809 349,237
Fundraising events and activities:

Fundraising revenue - - -
Less: Direct costs - - -
Membership dues and member event revenue,
net of cost of direct benefits to attendees 3,886 1,192 5,078 Contributions 96,469 - 96,469
Grants 159,315 - 159,315
Gift-in-kind donations 80,525 - 80,525
Interest income 87 - 87
Other miscellaneous income 1,203 - 1,203
Net assets released from restrictions - - -
Total Revenues and Other Support 651,913 40,001 691,914

EXPENSES
Program expenses:

Operation School Bell 184,328 12,176 196,504
Operation Non Profit Partnership 125,396 - 125,396
Operation Scholarship 86,261 - 86,261
Operation Bear Hug 16,023 - 16,023
Operation Foster Youth 36,255 - 36,255
Other programs 21,759 - 21,759
Total program service expenses 470,022 12,176 482,198
Supporting Services:

Thrift shop 141,825 - 141,825
Management and general 27,992 - 27,992
Membership development 2,345 - 2,345
Fundraising expenses 6,613 - 6,613
Total supporting services expenses 178,775 - 178,775
Total Expenses 648,797 12,176 660,973
Change in Net Assets 3,116 27,825 30,941
Net Assets:

Beginning of year 798,511 112,136 910,647
End of year $ 801,627 $ 139,961 $ 941,588
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316

ASSISTANCE LEAGUE OF TEMECULA VALLEY

BOARD OF DIRECTORS
JUNE 2022-MAY 2023
OFFICERS:

VP Membership: Aubrey Nicometo Graphic Designer
31085 Corte Arroyo Vista Print Shop Manager
Temecula, CA. 92592
[email protected]
951-970-8027
VP Philanthropic Programs Annette Sheehy Educator
39612 Clos Du Val Elementary School
Murrieta, CA. 92563
[email protected]
951-852-1822
VP Finance Michelle Stiles Associate Dean, MBA, EdD
39100 Hidden Creek Lane Finance, Accounting,
Temecula, CA. 92591 Budgeting, Operations
[email protected]
7l4-501-5339

Treasurer Marilyn Rule College/Career Counselor
38532 Quail Ridge Drive Accounting Manager
Murrieta, CA. 92562
[email protected]
805-368-7521

President: Mary Murphy Educator (MS ED)
29835 Corte Granada PAEMST Awardee 2000
Temecula, CA. 92591
[email protected]
361-9877-4452

Secretary Cheryl Medin
31387 Royal Oaks Drive Rehabilitation Music Therapist
Temecula, CA. 92591
[email protected]
951-526-1234
317

ASSISTANCE LEAGUE OF TEMECULA VALLEY

BOARD OF DIRECTORS
JUNE 2022-MAY 2023
ELECTIVE STANDING COMMITTEES:

Chapter House Manager: Cindy Jasperson Information Technology 41395 De Anna Ranch Rd Regional Retail Manager
Murrieta, CA. 92562
[email protected]
951-698-3055
Assisteen Liaison: Electra Demos Educator, High School
31004 Wellington Circle
Temecula, CA. 92591
[email protected]
951-541-4429
Bylaws Chairman: Sue Sampson Educator
30789 East Green Drive Elementary School
Murrieta, CA. 92563
[email protected]
714-330-6063
Marketing Communications Diane Koirth Orange County TA
Committee: 29633 Pebble Beach Drive Transportation
Sun City, CA. 92586
[email protected]
949-230-8429
Education Chairman: Diana Elizondo Educator
39628 Clos Du Val Elementary School
Murrieta, CA. 92563
[email protected]
951-852-3387
Strategic Planning Chairman Ann Reese Paralegal
39423 Napa Creek Drive
Murrieta, CA. 92563
[email protected]
951-972-2343

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ALTV Volunteers Primarily Responsible for Implementation and Completion of Operation School Bell 2022-2023
1) Annette Sheehy
Vice President of Philanthropic Programs
(951) 852-1822
Annette is a retired educator who joined ALTV in 2004. Since that time, she has served on the Board nine times as well as chaired various committees. This is her fifth consecutive year as Vice President of Philanthropic Programs. In this role, she is responsible to oversee ALTV’s seven philanthropic programs that are in place at this time. All programs are operating successfully.
2) Diana Elizondo
Operation School Bell Chairman
(951) 852-3387
Diana is a retired educator who has also chaired many committees and programs at ALTV for the last 18 years. She is currently responsible for day-to-day management of the Operation School Bell program. The program has operated and continues to operate very efficiently and successfully under her leadership. 319
INDEX OF ATTACHMENTS for Assistance League of Temecula Valley City of Wildomar 2022-2023 Non-Profit Public Service Funding Application Document Section of Application
➢ Current Board of Directors Organizational History
➢ Articles of Incorporation & By-Laws Organizational History ➢ CDBG Award Letters 2022-2023 Leveraging

1. City of Lake Elsinore

2. City of Menifee

3. City of Temecula

4. City of Murrieta

5. County of Riverside
➢ Audited Financial Statement FYE 2021-2022 Leveraging
➢ Primarily Responsible to Implement OSB Management Capacity ➢ OSB Detailed Org Chart Management Capacity
➢ Project Activity Map Attachments
➢ Board Approval to Submit Application Attachments
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June 28, 2022
Assistance League of Temecula Valley
Attn: Denise Lanier
28720 Via Montezuma
Temecula, CA 92590
SUBJECT: Award Letter for 2022/2023 CDBG Funding
Dear Ms. Lanier:

On behalf of the City of Menifee, I would like to thank you for your submittal to the City’s eleventh program year Community Development Block Grant (CDBG) Public Services program.

Your application was considered eligible under the public services requirements of the CDBG Program (Code of Federal Regulations, Title 24 Housing and Urban Development, Section 570.201(e) Basic Eligible Activities/24 CFR 570.201). The City of Menifee is pleased to announce that the Assistance League of Temecula Valley has been allocated $10, 335 for program year 22/23
Again congratulations, we look forward to working with you organization in the coming year!
Please do not hesitate to contact me should you have any questions.

Sincerely,
Edna I. Lebrón
Edna I. Lebrón, Sr. Management Analyst
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Michelle Stiles <[email protected]>
Fwd: Update - CDBG FY 2022/23 Funding
1 message
Denise Lanier <[email protected]> Thu, Jan 20, 2022 at 6:29 PM To: Sitar Diane <[email protected]>, Elizondo Diana <[email protected]>, Stiles Michelle <[email protected]>, ALTV Annette Sheehy <[email protected]> FYI - not sure if everyone of you received this email.

Denise
Sent from my iPhone
Begin forwarded message:

From: "Lacasella, Louie" <[email protected]>
Date: January 20, 2022 at 5:36:33 PM PST
Cc: "Vega, Rosa" <[email protected]>
Subject: Update - CDBG FY 2022/23 Funding
Good evening Non-profits,
Congratulations on being selected by the Murrieta City Council to receive funding for the upcoming FY 2022/23 Community Development Block Grant (CDBG) funding cycle. As you may know, below are the allocations that the City Council approved on December 7, 2021:

Community Food Pantry of Murrieta – $29,250
Assistance League of Temecula Valley – $29,250
SAFE Family Justice Centers – $10,000
Michelle’s Place Cancer Resources Center – $10,000
Boys and Girls Club of Southwest County – $5,000
Cultivating Inclusion Inc. – $5,000
The next step in the process is the City receiving notification from the County of Riverside that your applications, submitted by the City, are eligible for CDBG funding, which we expect to be the case. Once the 328
City receives notification from the County, we will reach out to each non-profit to enter into sub-recipient agreements, the County provides the City with the latest template agreement. As you may know, if the non-profit is already receiving CDBG funding directly from the County, no additional sub-recipient agreement will be required for the City.

Once the City receives your signed sub-recipient agreement along with other documentation, we will provide instructions to each non-profit for how to incur expenses associated with the eligible project activity and how to submit to the City for reimbursement.

Please let me know if you have any questions. I have also copied Rosa Vega who assists with the program as well. Thank you for the important work you do! :)
Louie
LOUIE F. LACASELLA, MPA, CLRM, ENV SP | Assistant to the City Manager
CITY OF MURRIETA | T: 951.461.6008
1 Town Square | Murrieta, CA 92562
[email protected] | www.MurrietaCA.gov
2021 - 2022 MMASC Director of Finance
Connect with us on social media:

Facebook | Twitter | Instagram | LinkedIn
Please note that email correspondence with the City of Murrieta, along with attachments, may be subject to the California Public Records Act, and therefore may be subject to disclosure unless otherwise exempt. The City of Murrieta shall not be responsible for any claims, losses or damages resulting from the use of digital data that may be contained in this email.
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Board of Directors
VP Finance
Grants
Coordinator
Grants
Committee
VP Philanthropic
Programs
Operation
School Bell
Chairman
Administrative
Data Entry
Reconciliation
Store Team,
Store Leader,
Scheduler
Treasurer
Operation School Bell Management Capacity Org Chart
330
Project Activity Map
331
332
333
CD202 -11/19/2021 HTTPS://D.DOCS.LIVE.NET/9B288DBCBF40DA78/DESKTOP/TEMECULA AWARD LETTERS ^0 AGREEMENTS/CDBG AWARD LETTER ALTV.DOCX City of Temecula
Community Development
41000 Main Street • Temecula, CA 92590
Phone (951) 694-400 • TemeculaCA.gov
June 9, 2022
Michelle Stiles, VP Finance
Assistance League of Temecula Valley
28720 Via Montezuma
Temecula, CA 92592
Re: 2022-23 Funding of Community Development Block Grant (CDBG) Programs Dear Ms. Stiles:

On April 26, 2022, the Temecula City Council held a public hearing to determine which projects would be funded using Community Development Block Grant (CDBG) funds during the 2022-23 Program Year. We are pleased to inform you that the City Council has instructed staff to include your program for funding in the City of Temecula 2022-23 Action Plan and submit such to the U.S. Department of Housing and Urban Development (HUD) for approval.

Your agency has been approved for funding in the amount of $7,226 for the (Operation School Bell) Program. Accompanying this award letter is your agreement and Exhibit A for the implementation of your program for the 2022-23 program year. The following actions are required to proceed with funding your program.

1. Please print out three (3) full copies of each (Agreement and Exhibit A).

2. Provide two (2) wet/original signatures on the signature page of your agreement for all three (3) copies.

3. Please return all (3) copies of your agency’s agreement and Exhibit A’s to:

City of Temecula
Attn: Brandon Rabidou, Senior Management Analyst
41000 Main Street,
Temecula, CA 92590
These completed documents must be submitted by 4:59 p.m. on June 24, 2022.

If you have any questions regarding this matter, please do not hesitate to contact me at (951) 693-3928 or at [email protected].

Sincerely,
Frank Perez
CDBG Program Consultant
cc: Luke Watson, Director of Community Development
Brandon Rabidou, Senior Management Analyst
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Attachment A

Index of Exhibits
2Q22/2023 Application Attachment
Community Outreach Ministry

1. Angel Tree Christmas Party Budget 2022, $18,288. for 200 Prisoner's Children in Southwest Riverside County

2. Starting September - December 2022 Requesting $2268. from City of Wildomar for 25 Prisoner's Children in Wildomar to be carved out of the $18,288. (4 months) 352
Mail Address: 23905 Clinton Keith • Suite 114#116 • Wildomar, Ca 92595 • Phone: 951.698.7650 E-mail: [email protected] • Web: www.communityoutreachministry.org Angel Tree Christmas Party Budget 2022
200 Prisoner’s Kids in Southwest Rivco $18288.
25 Prisoner’s Kids in City of Wildomar$ 2286.

Activities Related To Project:

Security (3hrs @ $25.00) $ 75.00
500 Bottles of Water (15 bottles in a case- 35 case @ $3.95) $ 150.00 City Permit $ 153.00
Sound Equipment $ 200.00
Photographers/Booth $ 200.00
Cup Cakes / Cake $ 260.00
Telephone / Internet $ 290.00
Postage $ 300.00
Wrapping Paper, Tape and Family Bags $ 350.00
Guide One insurance about $ 435.00
Plates, Napkins, Utensils and Table Clothes $ 450.00
Multi Media / Videographer and Collage $ 500.00
Auto Gas $ 550.00
Printing, Copies $ 625.00
Office Supplies $ 250.00
Hot Lunch $ 2,500.00
200 Fun x $2.00 $ 5,000.00
200 Clothes x $25.00 $ 6,000.00
TOTAL $18288.00
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BOB DAVIES, PRESIDENT/CEO AND WIFE DR. MONA SALOMODAVIES, SECRETARY; CO-FOUNDERS

MEET OUR BOARD OF DIRECTORS
Community Outreach Ministry
Community Outreach Ministry is a 501C3 nonprofit public charity incorporated in 2000 in Wildomar. The ministry is helping at-risk children break the cycle of incarceration in Southwest Riverside County. The mission is to divert at-risk kids from poverty, illiteracy, school dropout, drugs, gangs, delinquency, and incarceration. By means of research, the Davies’ designed the “Breaking the Cycle of Incarceration” model and in 2017 published “Children’s Liberation from Incarceration Breaking Cycles New Beginnings.” Early intervention increases a child's capabilities to become a first generation high school graduate, skilled worker, and earn a legal salary. In response, the Davies’ implemented the Mentor Protégé Workshops as a form of intervention and they provide resource lists to the families to acquire comprehensive community support services to reduce recidivism. These programs are “Giving at-risk kids a second chance to be winners and champions.”

YOLANDA BURGESS, TREASURER
Yolanda is the Bookkeeper with twenty+ years of banking experience. She is trained in QuickBooks for non-profits and provides financial reports.

DENISE RONZELLO, MEMBER
Denise has been a Hair Stylist for 40+ years and has introduced the Davies to local legislators who have provided the organization with grants. Denise collects gifts and donations for the Annual Angel Tree Christmas Party and year-round projects.

NORMA BRUNETTE, MEMBER
Norma has held a real estate license since 1993 and has 18 years of banking experience at Bank of America. She participates in fundraising and enjoys manning booths at events.

MARILYN K. BROWN, MEMBER
Marilyn retired from the United States Air Force after 20 years of service as a Physician Assistant. She participates in the ministry’s Mentor Protégé Workshops and supports outreaches in the community and schools.
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Timeline For Project Implementation
Sept. 1 / Dec. 1, Locating sponsors, donations, and volunteers (3 volunteers) Sept. 1/ Dec. 1, Recording and reporting of income and expenses (2 volunteers) Sept. 1/ Dec. 1, Friendly Reminders - US Forest Firefighters, CHP (1) Sept. 1/ Dec. 1, Music and Entertainment (6 volunteers) September 15
October 25, "
October 26, "
October 27,
October 31, "
Flyers, and Response cards (4 volunteers)
Receiving names from Prison Fellowship, 211 & schools (3 volunteers) Downloading Participation forms (2 volunteer) Update
Updating Software with on-going status (3 volunteers)
Assigning Family codes (2 volunteers)
October 30, " Contacting Caregivers for wish lists and verifying addresses (3 volunteers) Nov. 3 I 22, "
" Nov. 8 / 22,
Nov. 5 /
Dec. 5 I 8,
Dec. 6 I10,
Dec. 6/ 10,
Dec. 9 /10,
Dec. 11,
Dec. 11,
Dec. 11,
Dec. 11,
Dec. 11,
Dec. 11,
Dec. 11,
Dec. 11,
Dec. 11,
Dec; 12 / 24
Dec. 15 / 30
Filling in Angel Tree tags with wish lists (3 volunteers) Creating invitations and labeling bags by family code (5 volunteers) Angel Tree tags to sponsors, or shoppers and money (2 volunteers) Gathering all gifts from sponsors and shoppers (6 volunteers) Organizing, wrapping, bagging gifts by child/family (6+ volunteers) Shopping for food, utensils, plates, forks, cloths, etc. (3 volunteers) Packaging crafts and festive treats (6 volunteers)
Loading trailer (8 volunteers)
Tables for food, drinks and cupcakes (8 volunteers)
Space for Fire Truck (3 Volunteers)
Space CHP Cruiser (3 Volunteers)
Unloading truck and organizing gifts (12 + volunteers)
Tables PF, COM, Camp Agape, VCC (6 volunteers)
Distributing gifts to children (15 volunteers)
Registration, Waivers, passport (6 Volunteers)
Photographers and Booth/ Videographer (4 volunteers)
Reloading truck (8 volunteers)
Delivering gifts to children not at the party (4 volunteers) Demographics, Thank you Sponsors/Volunteers, Press Releases (3 volunteers) 368
I'
I
, Community L� "'1' Outreach i � ' I Ministry
"GIDiiq.At-Qsa klda.A Stt.0ld aha
W>bl.�a.dObipas"
501 c 3 Non-profit
EIN 33-0924013
Management Capacity
Dr. Mona Salomo-Davies - Cell phone (951)231-5515 co-founder of Community Outreach Ministry is primarily responsible for the implementation and completion of the proposed Project 22nd Annual Angel Tree Christmas Party. Qualifications include serving as the Prison Fellowship (PF) Angel Tree (P/F AT) Coordinator for two decades. Goal is to connect children at the party to Community Outreach Ministry' year-round programs:
caring, sharing, and saving lives by giving at-risk kids a second chance to be winners and champions.

Endorsement:

I am pleased to endorse Children 's Liberation from
Incarceration "Breaking the Cycle of Incarceration" model with support from Washington, DC-based Prison Fellowship International ·Mr. Frank J. Lofaro, Chief Executive Officer
- Riverside County Board of Supervisors District Three - Proclamation to . Coach Bob Davies and Dr. Mona Salomo-Davies in April 2021 Volunteers of the Year A ward.
- Dr. Salomo-Davies is County Board of Supervisor District 1 Representative on Riverside County Probation Department - Juvenile Justice Coordinating Council (JJCC) voting member, and Subcommittee Team Leader.

Coach Bob Davies-(951)249-4897 co-founder of Community Outreach Ministry is enhancing children's capacities in Science, Technology, Engineering, and Mathematics through the "Gearing Up For STEM" Mentor Protege Workshops and Technology Day Camps elevating their expectations in engineering skills building robots.

Yolanda Burgess-(951)265-9788 staffer and bookkeeper with experienced in Banking for 20+ years. Burgess has served as Operations Chair for the Annual Angel Tree Christmas Party for two decades.

Mail Address: 23905 Clinton Keith Road Suite 114 #116 Wildomar, CA 92595 • Phone: 951-698-7650 Office: 951-231-5515 Mobile•
E-mail: [email protected] • Website: www.communityoutreachministry.org Facebook & Instagram: @CommunityOutreachMinistry • Vimeo: Community Outreach Ministry 369
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CITY OF WILDOMAR

PRESS RELEASE
23873 Clinton Keith Road,
Suite 110
Wildomar, CA 92595
Phone (951) 677-7751
Fax (951) 698-1463
www.cityofwildomar.org

APPROVED FOR IMMEDIATE RELEASE
BY: Dan York, City Manager
Date: August 23, 2022

WILDOMAR NOTICE OF FUNDING AVAILABILITY (NOFA)

FOR NON-PROFIT PUBLIC SERVICE ORGANIZATIONS
FOR FISCAL YEAR 2022/23
WILDOMAR, CA – The Wildomar City Council has initiated a special one-time funding program for Fiscal Year 2022/23 for non-profit public service organizations. This program will replace the City’s typical Community Development Block Program (CDBG) funding cycle for this next fiscal year only. Applications will be accepted from August 24, 2022 to September 22, 2022 (by 4 pm).

Eligible non-profit organizations (501(c)(3)) are invited to apply for the funding. The funding application package can be downloaded by clicking on the following link:
https://wildomar.sharefile.com/d-s5f2478bcb2a44f3988968d31f942ef21.

The City will only accept electronic copies of your proposal packages (PDF format only). When you are ready submit your application proposal package, you may use the following link to upload your application package: https://wildomar.sharefile.com/rre36d25a53c134b2f81019a94b7d7e6c6. The City will be automatically notified when the application package is submitted.

To be eligible for this one-time, in-lieu funding program, your program must still satisfy one of the standard HUD national objectives, including: 1) provide a benefit to low- and moderateincome persons, 2) prevent or eliminate slums and blight, or 3) meet other urgent community development needs due to natural disasters or other emergencies. Application packages not meeting this criteria will not be considered for funding.

The City Council will review program applications with special emphasis given to projects that have a direct/specific benefit to the City of Wildomar and its residents. The funding is limited to a total amount of $17,500. Final determination will be made by the City Council at a regular meeting tentatively scheduled for October 12, 2022.
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CITY OF WILDOMAR – PRESS RELEASE PAGE 2
About the City of Wildomar: Wildomar is located along Interstate 15 in Southwest Riverside County. Wildomar is a growing community with a population of just over 37,000, comfortably nestled in a valley bordered by a mountain range on the west and rolling hills to the east. For more information regarding the City of Wildomar, visit www.cityofwildomar.org.

For additional information call Robert Howell at 951-677-7751, Extension 212, or email [email protected].
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“We can do all this through Him who gives us strength.” Philippians 4:13 Board of Directors
July 27, 2021
Brett Masters, Chair
Kara Vega, Treasurer
Aubrey Masters, Recording Secretary
Bob Guilliams, Member
Edwin Rodriguez, Member
David Baker, Member
Chuck Searer, Member-at-Large
Cathy Cook Templeton, Member-at-Large
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CITY OF WILDOMAR

CC - REGULAR MEETING

CONSENT CALENDAR
Agenda Staff Report # 1.13
Meeting Date: December 14, 2022
SUBJECT: City Holiday Calendar for 2023
SUBMITTED BY: Robert Howell
PREPARED BY: Robert Howell, Administrative Service Director ACTION:

Receive and file the 2023 City Holiday Calendar
SUMMARY:

Rule XI, Section C of the City's Personnel Rules states that in December the City Manager will send a list of dates that holidays will be observed for the upcoming calendar year. City Hall and the Cemetery District Office will be closed on the dates highlighted on the calendar.

The 2023 New Year's Day will be celebrated on Monday, January 2nd.

Although city offices will be closed the last week of December, permitted construction may be allowed in accordance with Wildomar Municipal Code 15.04.010 by obtaining prior approval from the City Building Official or City Engineer except on the days observed for Christmas Eve, Christmas, and New Year's Day.

ATTACHMENTS:
2023 Holiday Calendar.pdf
416
Holiday Calendar
Christmas Holiday
Christmas Holiday
Christmas Holiday
Christmas Holiday
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January February March April
May June July August
November 23 Thanksgiving Day
November 24 Day after Thanksigiving
September 4 Labor Day December 29
May 29 Memorial Day December 27
July 4 Independence Day December 28
January 2 New Year's Day (observed)
February 20 Presidents Day December 26
January 16 Civil Rights Day December 25 Christmas Day
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CITY OF WILDOMAR

CC - REGULAR MEETING

CONSENT CALENDAR
Agenda Staff Report # 1.14
Meeting Date: December 14, 2022
SUBJECT: Right-of-Way Settlement Agreements for the Bundy Canyon Rd. Improvement Project (Segment 1), CIP 026-1
SUBMITTED BY: Jason Farag
PREPARED BY: Cameron Luna, Associate Engineer
ACTION:

Authorize the City Manager to execute two Settlement Agreements related to right-of-way impacts caused by the Bundy Canyon Rd. Improvement Project, Segment 1.

SUMMARY:

Construction of the Bundy Canyon Rd. Improvement Project, Segment 1 (Project) required removal of some private property improvements on adjacent properties. The City is required to restore those private improvements to pre-construction conditions. For two of the impacts, staff is recommending that the City provide compensation to the property owners as resolution/restoration, in-lieu of reconstructing the improvements.

BACKGROUND:

Prior to construction of the Bundy Canyon Road Widening Improvement Project - Segment 1 (CIP 026-1), the City Council authorized the execution of various right-of-way agreements with Property Owners (Owners) adjacent to the project boundaries. The right-of-way agreements included Temporary Construction Easements (TCE) and Right-of-Entry (ROE) agreements that provide permission for the City's contractor to temporarily enter upon and use adjacent private property to provide room for the construction of the new roadway improvements.

Two properties adjacent to the Project (34002 Walnut Creek Road and 22527 Elbow Creek Trail) had existing permanent structures located within their TCE/ROE areas which could not be relocated, and which conflicted with the new soundwall alignment. The structures, which included portions of a lattice patio cover fixed to the ground and a planter wall fixed to the prior block wall being removed, were not identified in the original right-of-way agreements or the Project's improvement plans. Ultimately, both conflicts required the City's contractor to remove 418
a portion of the Owners' structures to construct the soundwall.

DISCUSSION:

Included in each TCE agreement executed between the City and the Owners is a section stating that "[u]pon completion of the improvements for the project, the Grantee ("City") shall repair and/or restore the TCE area to a reasonably similar condition that existed prior to use by the City." Similarly, included in each ROE agreement is a section stating that "[t]he City shall leave the property in as close to its current condition as is reasonably possible." After the soundwall was constructed, staff worked with both Owners to restore the structures to a reasonable condition. The City obtained several estimates from contractors to repair and/or reconstruct the structures. Based on the type of improvements to be repaired, it was determined that it would be in the City's best interest to compensate the property owners for the repair costs rather than hire a contractor to complete the repairs. The Owners have indicated their concurrence with this approach. The estimates the City received from the various contractors were used to determine a reasonable value for repairing/restoring the structures. Staff recommends the City provide compensation to the Owners, based upon the estimated value, as final resolution for the impacts incurred to their structures due to the soundwall construction, consistent with the terms of the TCE/ROE agreements.

A Settlement Agreement for each Owner has been prepared to identify the impacts to the property, the compensation to be provided by the City as resolution for the impacts, and the Owner's acceptance of the resolution. The Settlement Agreements are in are included as Attachment A. Staff recommends that the City Council authorize the City Manager to execute these two Settlement Agreements.

FISCAL IMPACT:

The combined cost for the two Settlement Agreements is $13,500. The expenditures are TUMF eligible construction costs. There is no impact to the General Fund.

ACCOUNT CODE:

TUMF: 503-909
ATTACHMENTS:

A - Settlement Agreements
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Attachment A
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IRV #4816-9182-0653 v4

SETTLEMENT AGREEMENT AND RELEASE
The parties to this Settlement Agreement and Releases (“Agreement”) are the City of Wildomar (“City”), a municipal organization and general law city, organized and existing under the laws of the State of California, and Ricardo Verduzco and Jacline Gonzalez (“Owner”), a resident of the City of Wildomar. City and Owner are referred to collectively as the “Parties.”

1. OVERVIEW: This Agreement is made with reference to the following facts, which the Parties agree are true and correct:

1.1 City is currently under construction for the Bundy Canyon Road Widening Project (“Project”) which required the installation of sound walls on the property located at 22527 Elbow Creek Trail, Wildomar, CA, identified as Assessor Parcel Number 366-411-014 (“Property”).

1.2 A Temporary Construction Easement was acquired for the removal of existing fencing and installation of the Project soundwall.

1.3 During construction, the City’s contractor was required to remove a portion of the Owner’s existing patio cover to allow enough clearance for the soundwall and Owner is seeking compensation for damages (“Claim”).

1.4 City obtained three estimates for repairs and/or reconstruction of the patio and desires to provide compensation to Owner for the Claim.

2. CONSIDERATION:

For a final resolution of the Claim, the City shall pay Owner a total of Nine Thousand Dollars and 0/100 ($9,000.00) (“Settlement Payment”). The City shall deliver the Settlement Payment to the Owner within thirty (30) of the execution of this Agreement.

3. RELEASES:

In consideration of the fulfillment of the terms and conditions contained herein, and for other good and valuable consideration, the receipt of which is acknowledged by each party hereto, the Parties promise, agree, and release as follows:

3.1 Owner Release. Except as to such rights of claims as may be created by this Agreement, Owner hereby releases and discharges the City and its respective agents, , employees, representatives, predecessors, successors, assigns, parents, subsidiaries, related entities, sureties, consultants, advisors, officers, directors, council members, board members, administrators, executors, shareholders, attorneys, and insurers, and each of them from, and relinquishes, extinguishes and waives as to such parties, any and all claims, disputes, demands, liabilities, controversies, causes of action, damages, costs, expenses and attorneys’ fees of any kind or nature, whether legal or equitable, in tort or contract, actual or contingent, known or unknown, asserted or unasserted, that Owner ever had, now has, or may have that in any way arise out of or relate, directly or indirectly, to the Claims and construction of the Project.

3.2 Owner specifically and expressly waive the benefit of the provisions of Section 1542 of the Civil Code of the State of California as follows:
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IRV #4816-9182-0653 v4
“A GENERAL RELEASE DOES NOT EXTEND TO

CLAIMS WHICH THE CREDITOR DOES NOT KNOW

OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT

THE TIME OF EXECUTING THE RELEASE, WHICH IF

KNOWN BY HIM OR HER MUST HAVE

MATERIALLY AFFECTED HIS OR HER
SETTLEMENT WITH THE DEBTOR.”

3.3 Owner understands and acknowledges the significance and consequence of this specific waiver of the provisions of Section 1542 and hereby assume full responsibility for any damage, loss, or liability that they may hereafter incur by reason of such waiver.

4. REPRESENTATIONS AND WARRANTIES: Each of the Parties to this Agreement represents and warrants to, and agrees with, each other party hereto, as follows:

4.1 Each party has been represented or has had an opportunity to be represented by legal counsel of its choosing, has received independent legal advice from its legal counsel with respect to the advisability of making the settlement provided for in this Agreement, with respect to the advisability of executing this Agreement, and with respect to the meaning of California Civil Code, Section 1542.

4.2 Each of the Parties represents that it has the authority to enter into this Agreement.

4.3 This Agreement is integrated and contains the entire agreement and understanding concerning the subject matter between the Parties, and supersedes and replaces all prior negotiations, proposed agreements, and agreements, written or oral. No party (nor any officer, agent, employee, representative, or attorney of or for any party) has made any statement or representation to any other party regarding any fact relied upon in entering into this Agreement. Each party expressly does not rely upon any statement, representation or promise of any other party (or of any officer, agent, employee, representative, or attorney for any other party) in executing this Agreement, or in making the settlement provided for in this Agreement, except as expressly stated in this Agreement.

4.4 Each of the Parties to this Agreement has made an extensive independent investigation of the facts pertaining to the provisions of this Agreement, and of all the matters pertaining thereto, as it deems necessary.

4.5 No party has assigned, transferred, hypothecated, or granted, or purported to assign, transfer, hypothecate, or grant, any of the claims, demands, causes of action or rights of appeal disposed of or assigned by this Agreement or its exhibits except as provided herein.

4.6 Each term of this Agreement is contractual and not merely a recital.

4.7 Each party is aware that it may hereafter discover claims, defenses, or facts in addition to or different from those it now knows or believes to be true with respect to the matters related to the Claims or this Agreement. By executing this Agreement, the Parties intend to fully, finally, and forever settle such matters, and all 422
IRV #4816-9182-0653 v4
claims, disputes, demands, liabilities, controversies, causes of action, damages, costs, expenses and attorneys’ fees of any kind or nature relative to the Claims, which do exist, may exist, or heretofore have existed between them. In furtherance of the Parties’ intent, the releases given herein will be, and remain, in effect as full and complete releases of all such matters, notwithstanding the discovery or existence of any additional or different claims, defenses, or facts relative to the Claims.

5. MISCELLANEOUS:

5.1 Voluntarily Executed. This Agreement is being entered into and executed by the Parties voluntarily.

5.2 No Waiver. The waiver of any term, condition or covenant by any party, or breach thereof, shall not constitute a waiver with respect to that term at any future time or with respect to any other term, condition or covenant, or breach thereof, except as otherwise provided in this Agreement.

5.3 Severability. Should any part, term, or provision of this Agreement be decided or declared by the Courts to be, or otherwise found to be, illegal or in conflict with any laws of the State of California or the United States, or otherwise be rendered unenforceable, or ineffectual, the validity of the remaining parts, terms, portions, or provisions shall be deemed severable and will not be effected thereby, providing such remaining parts, terms, portions or provisions can be construed in substance to constitute the agreement that the Parties hereto intended to enter into in the first instance.

5.4 No Adverse Construction of Agreement. This Agreement is the product of negotiation and preparation by and among each party and their respective attorneys. The Parties acknowledge and agree that this Agreement shall not be deemed prepared or drafted by one party or the other and should be construed accordingly.

5.5 Governing Law. In the event of litigation relating to this Agreement, California law shall govern this Agreement. The venue for any disputes shall be the Riverside County Superior Court.

5.6 Effective Date of Agreement. This Agreement is made and entered into on and as of the last date executed herein, which will be the Agreement’s Effective Date.

5.7 Counterparts. This Agreement may be signed in counterparts, which together shall constitute the entire Agreement. Each party may sign this document and transmit its signature by means of facsimile or .pdf sent by electronic mail, which signature shall be binding for all purposes.
(Signatures on following page)
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IRV #4816-9182-0653 v4
DATED: _____________, 2022 CITY OF WILDOMAR
By:_______________________

Title:___________________
APPROVED AS TO FORM:

By:_______________________
Tom Jex, City Attorney

DATED: _____________, 2022 Ricardo Verduzco and Jacline Gonzalez By: _______________________
Ricardo Verduzco

By: _______________________
Jacline Gonzalez
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IRV #4816-9182-0653 v4

SETTLEMENT AGREEMENT AND RELEASE
The parties to this Settlement Agreement and Releases (“Agreement”) are the City of Wildomar (“City”), a municipal organization and general law city, organized and existing under the laws of the State of California, and Arthur Chavez and Alicia Chavez (“Owner”), a resident of the City of Wildomar. City and Owner are referred to collectively as the “Parties.”

1. OVERVIEW: This Agreement is made with reference to the following facts, which the Parties agree are true and correct:

1.1 City is currently under construction for the Bundy Canyon Road Widening Project (“Project”) which required the installation of sound walls on the property located at 34002 Walnut Creek Rd, Wildomar, CA, identified as Assessor Parcel Number 367-432-001 (“Property”).

1.2 A Temporary Construction Easement was acquired for the removal of existing block wall and installation of the Project soundwall.

1.3 During construction, the City’s contractor was required to remove a portion of the Owner’s existing planter wall and artificial turf to allow enough clearance for the soundwall and Owner is seeking compensation for damages (“Claim”).

1.4 Owner and City obtained three estimates for repairs and/or reconstruction of the patio and desires to provide compensation to Owner for the Claim.

2. CONSIDERATION:

For a final resolution of the Claim, the City shall pay Owner a total of Four Thousand Five Hundred Dollars and 0/100 ($4,500.00) (“Settlement Payment”). The City shall deliver the Settlement Payment to the Owner within thirty (30) following City Council approval of the Settlement Payment.

3. RELEASES:

In consideration of the fulfillment of the terms and conditions contained herein, and for other good and valuable consideration, the receipt of which is acknowledged by each party hereto, the Parties promise, agree, and release as follows:

3.1 Owner Release. Except as to such rights of claims as may be created by this Agreement, Owner hereby releases and discharges the City and its respective agents, , employees, representatives, predecessors, successors, assigns, parents, subsidiaries, related entities, sureties, consultants, advisors, officers, directors, council members, board members, administrators, executors, shareholders, attorneys, and insurers, and each of them from, and relinquishes, extinguishes and waives as to such parties, any and all claims, disputes, demands, liabilities, controversies, causes of action, damages, costs, expenses and attorneys’ fees of any kind or nature, whether legal or equitable, in tort or contract, actual or contingent, known or unknown, asserted or unasserted, that Owner ever had, now has, or may have that in any way arise out of or relate, directly or indirectly, to the Claims and construction of the Project.

3.2 Owner specifically and expressly waive the benefit of the provisions of Section 1542 of the Civil Code of the State of California as follows:
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IRV #4816-9182-0653 v4
“A GENERAL RELEASE DOES NOT EXTEND TO

CLAIMS WHICH THE CREDITOR DOES NOT KNOW

OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT

THE TIME OF EXECUTING THE RELEASE, WHICH IF

KNOWN BY HIM OR HER MUST HAVE

MATERIALLY AFFECTED HIS OR HER
SETTLEMENT WITH THE DEBTOR.”

3.3 Owner understands and acknowledges the significance and consequence of this specific waiver of the provisions of Section 1542 and hereby assume full responsibility for any damage, loss, or liability that they may hereafter incur by reason of such waiver.

4. REPRESENTATIONS AND WARRANTIES: Each of the Parties to this Agreement represents and warrants to, and agrees with, each other party hereto, as follows:

4.1 Each party has been represented or has had an opportunity to be represented by legal counsel of its choosing, has received independent legal advice from its legal counsel with respect to the advisability of making the settlement provided for in this Agreement, with respect to the advisability of executing this Agreement, and with respect to the meaning of California Civil Code, Section 1542.

4.2 Each of the Parties represents that it has the authority to enter into this Agreement.

4.3 This Agreement is integrated and contains the entire agreement and understanding concerning the subject matter between the Parties, and supersedes and replaces all prior negotiations, proposed agreements, and agreements, written or oral. No party (nor any officer, agent, employee, representative, or attorney of or for any party) has made any statement or representation to any other party regarding any fact relied upon in entering into this Agreement. Each party expressly does not rely upon any statement, representation or promise of any other party (or of any officer, agent, employee, representative, or attorney for any other party) in executing this Agreement, or in making the settlement provided for in this Agreement, except as expressly stated in this Agreement.

4.4 Each of the Parties to this Agreement has made an extensive independent investigation of the facts pertaining to the provisions of this Agreement, and of all the matters pertaining thereto, as it deems necessary.

4.5 No party has assigned, transferred, hypothecated, or granted, or purported to assign, transfer, hypothecate, or grant, any of the claims, demands, causes of action or rights of appeal disposed of or assigned by this Agreement or its exhibits except as provided herein.

4.6 Each term of this Agreement is contractual and not merely a recital.

4.7 Each party is aware that it may hereafter discover claims, defenses, or facts in addition to or different from those it now knows or believes to be true with respect to the matters related to the Claims or this Agreement. By executing this Agreement, the Parties intend to fully, finally, and forever settle such matters, and all 427
IRV #4816-9182-0653 v4
claims, disputes, demands, liabilities, controversies, causes of action, damages, costs, expenses and attorneys’ fees of any kind or nature relative to the Claims, which do exist, may exist, or heretofore have existed between them. In furtherance of the Parties’ intent, the releases given herein will be, and remain, in effect as full and complete releases of all such matters, notwithstanding the discovery or existence of any additional or different claims, defenses, or facts relative to the Claims.

5. MISCELLANEOUS:

5.1 Voluntarily Executed. This Agreement is being entered into and executed by the Parties voluntarily.

5.2 No Waiver. The waiver of any term, condition or covenant by any party, or breach thereof, shall not constitute a waiver with respect to that term at any future time or with respect to any other term, condition or covenant, or breach thereof, except as otherwise provided in this Agreement.

5.3 Severability. Should any part, term, or provision of this Agreement be decided or declared by the Courts to be, or otherwise found to be, illegal or in conflict with any laws of the State of California or the United States, or otherwise be rendered unenforceable, or ineffectual, the validity of the remaining parts, terms, portions, or provisions shall be deemed severable and will not be effected thereby, providing such remaining parts, terms, portions or provisions can be construed in substance to constitute the agreement that the Parties hereto intended to enter into in the first instance.

5.4 No Adverse Construction of Agreement. This Agreement is the product of negotiation and preparation by and among each party and their respective attorneys. The Parties acknowledge and agree that this Agreement shall not be deemed prepared or drafted by one party or the other and should be construed accordingly.

5.5 Governing Law. In the event of litigation relating to this Agreement, California law shall govern this Agreement. The venue for any disputes shall be the Riverside County Superior Court.

5.6 Effective Date of Agreement. This Agreement is made and entered into on and as of the last date executed herein, which will be the Agreement’s Effective Date.

5.7 Counterparts. This Agreement may be signed in counterparts, which together shall constitute the entire Agreement. Each party may sign this document and transmit its signature by means of facsimile or .pdf sent by electronic mail, which signature shall be binding for all purposes.
(Signatures on following page)
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IRV #4816-9182-0653 v4
DATED: _____________, 2022 CITY OF WILDOMAR
By:_______________________

Title:___________________
APPROVED AS TO FORM:

By:_______________________
Tom Jex, City Attorney

DATED: _____________, 2022 Arthur Chavez and Alicia Chavez By: _______________________
Arthur Chavez

By: _______________________
Alicia Chavez
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CITY OF WILDOMAR

CC - REGULAR MEETING

PUBLIC HEARING
Agenda Staff Report # 2.1
Meeting Date: December 14, 2022
SUBJECT: Consideration of Territory to be Annexed to Community Facilities District No. 2022-1 (Services), Calling an Election, Ordering the Levy and Collection of Special Taxes, and
Declaring the Election Results for CFD 2022-1 (Services), Annexation No. 2
SUBMITTED BY: Emily Stadnik
PREPARED BY: Ninette Eva, Associate Engineer
ACTION:

1. Open the public hearing;

2. Take testimony;

3. Close the public hearing;

4. Adopt Resolution entitled:

RESOLUTION NO. 2022 - _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR, CALIFORNIA,

CALLING AN ELECTION TO SUBMIT TO THE QUALIFIED ELECTORS THE QUESTION OF

LEVYING A SPECIAL TAX WITHIN THE AREA PROPOSED TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2022-1 (SERVICES) (ANNEXATION NO. 2)

5. Hold the election;

6. Canvass the election; and

7. Adopt a Resolution entitled:

RESOLUTION NO. 2022 - _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR, CALIFORNIA, DECLARING ELECTION RESULTS FOR COMMUNITY FACILITIES DISTRICT NO. 2022-1 (SERVICES) (ANNEXATION NO. 2)
BACKGROUND:

On November 9, 2022, the City Council adopted Resolution No. 2022-55, declaring its 430
intention to annex territory to Community Facilities District No. 2022-1 (Services) (the “CFD No. 2022-1” or “CFD”) and commence the annexation proceedings for the territory to be annexed, also known as Annexation No. 2. A public hearing has been set for December 14, 2022 to conduct an election for the landowners and to declare the results of that election.

As required by the Resolution of Intention, an annexation map was recorded on November 15, 2022, at 10:44 a.m. in Book 90, Page 8, Document No. 2022-0470816 of Maps of Assessment and Community Facilities Districts with the Riverside County Recorder.

The Resolution of Intention was adopted by the City Council in response to a petition filed by the property owner, KB Home Coastal Inc., of TR 37476 containing 15.4 gross acres within the City and has requested that the City assist them in annexing territory into CFD No. 2022-1 (Services) to cover the costs associated with the maintenance of public improvements. The improvements proposed to be maintained include items such as landscaping, lighting, street maintenance, drainage, parks, trails and graffiti abatement.

In addition to maintaining public improvements the CFD No. 2022-1 will include a special tax to provide for financing of certain public services to meet increased demands of police and fire protection services as a result of the new developments that annex into the CFD.

The area proposed within Annexation No. 2 will encompass 77 detached residential lots in TR 37476, with a maximum annual tax of $1,275 per unit, per year. The tract proposed to be annexed into CFD No. 2022-1 will be included in Tax Zone 2. The property is located east of the I-15 North, at the southeast intersection of Monte Vista Dr and Summer Sage Way. This tax rate includes a Maximum Special Tax A of $583 per unit per year for maintenance services of public facilities, and Maximum Special Tax B of $430 per unit per year for safety services and a Special Tax C (Contingent) of $262 per unit per year. All of these tax rates are proposed to escalate each year. Maximum Special Tax A will increase by the greater of Consumer Price Index (CPI) or 2%, Special Tax B will increase by the greater of CPI or 5% and Special Tax C will increase by the greater of CPI or 2%, all not to exceed 6%. KB Home Coastal Inc., has agreed to the annexation into the CFD and submitted a "Consent and Waiver" form on file in the City Clerk's Office, to initiate and conduct proceedings pursuant to the Mello-Roos Act in 1982, requesting the annexation of property to CFD No. 2022-1 (Services) and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election.

FISCAL IMPACT:

The projected levy for FY 2022-23 is $44,928 for the first year of maintenance services.

Special Tax B will generate $33,110 once all 77 residential units are developed. Special Tax C, if needed, will generate $20,198.

The City has incurred costs for Legal Notices for the formation of and annexations into the District. A budget amendment in the amount of $5,000 is needed to properly account for 431
these expenses in the FY 2022-23 budget.

ACCOUNT CODE:

Revenues:

Fund 220 - CFD 2022-1 Special Tax A
Fund 219 - CFD 2022 Special Tax B
Expenses:
220-450-4500-52020 - Legal Notices
ATTACHMENTS:

Assembled Exhibits.pdf
Mayor's Script - CFD 2022-1 Annexation No. 2.docx
Notice of PH Annex 2.pdf
Resolution Calling an Election.docx
Resolution Declaring Election Results.docx
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RATES AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2022‐1 (SERVICES)

OF THE CITY OF WILDOMAR
Special Taxes (defined below) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2022‐1 (Services) of the City of Wildomar (the “CFD No. 2022‐1” or “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2022, in an amount determined by the City Council of the City of Wildomar, acting ex officio as the legislative body of CFD No. 2022‐1, by applying the rates and method of apportionment set forth below.

All of the real property in CFD No. 2022‐1, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.

A. DEFINITIONS
“Accessory Dwelling Unit” means a residential unit of limited size including a smaller second unit that shares an Assessor’s Parcel as a Single Family Residential Property with a stand‐alone Residential Unit. “Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator.
“Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2022‐1 including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the coststo the City, CFD No. 2022‐1, or any designee thereof associated with fulfilling the CFD No. 2022‐1 disclosure requirements; the costs associated with responding to public inquiriesregarding the Special Taxes; the costs of the City, CFD No. 2022‐1 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees and third party expenses.

Administrative Expenses shall also include amounts estimated or advanced by  the City or CFD No. 2022‐ 1 for any other administrative purposes of CFD No. 2022‐1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. “Administrator” means the City Manager of the City of Wildomar, or his or her designee. “Approved Property” means all Assessor’s Parcels of Taxable Property that are included in a Final Map that was recorded prior to the March 1 of preceding the Fiscal Year in which the Special Tax is being levied and for which no building permit for new construction has been issued on or prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. “Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” meansthat identification number assigned to a parcel by the County Assessor of the County.
"Building Permit" means the first legal document issued by the City giving official permission for new 433
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construction. For purposes of this definition, “Building Permit” may or may not include expired or cancelled building permits, or any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator
“Building Square Footage” or “BSF” means the floor area square footage reflected on the original construction building permit issued for construction of a building of Non‐Residential Property and any Building Square Footage subsequently added to a building of such Taxable Property after issuance of a building permit for expansion or renovation of such building. "Calendar Year" meansthe period commencing January 1 of any year and ending the following December

31. “CFD” or “CFD No. 2022‐1” means Community Facilities District No. 2022‐1 (Services) of the City of Wildomar.
“City” means the City of Wildomar.
“Contingent Services” means services permitted under the Mello‐Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2022‐1 as set forth in the documents adopted by the City Council at the time the CFD was formed to be provided by the City in the event the Administrator makes a determination pursuant to Section C(3) that a Property Owners’ Association fails to adequately provide such services.
“County” means the County of Riverside.
“Developed Property” means all Assessor’s Parcels that: (i) are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) have an Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) a Building Permit for new construction was issued on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied. “Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section G.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 6624 that creates individual lots for which building permits may be issued without further subdivision. “Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th.
“Land Use Category” or “LUC” means, any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor’s Parcel as of March 1 preceding the Fiscal Year in which the Special Tax is being levied. “Maximum Special Tax” means the Maximum Special Tax A, Maximum Special Tax B, and/or Maximum Special Tax C (Contingent), as applicable.
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“Maximum Special Tax A” means the Maximum Special Tax A, as determined in accordance with Section C, below, that can be levied in any Fiscal Year on any Assessor's Parcel within CFD No. 2022‐1. “Maximum Special Tax B” means the Maximum Special Tax B, as determined in accordance with Section C, below, that can be levied in any Fiscal Year on any Assessor's Parcel within CFD No. 2022‐1. “Maximum Special Tax C (Contingent)” means for each Assessor’s Parcel and each Fiscal Year, the maximum Special Tax C (Contingent), as determined in accordance with Section C below that can be levied on such Assessor’s Parcel in such Fiscal Year.
“Multi‐Family Residential Property” or “MFR” means any Assessor’s Parcel of residential property that consists of a building or buildings comprised of attached Residential Units available for rental, but not purchase, by the general public and under common management. “Non‐Residential Property” or “NR” means, all Assessor's Parcels of Taxable Property for which a building permit(s) was issued for a non‐residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non‐Residential Property.
“Property Owner’s Association” or “POA” means the property owner’s association or homeowner’s association established to maintain certain services within a Tax Zone. “Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property, and (iii) Undeveloped Property that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre isthe same for all Parcels of Undeveloped Property. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator.  An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this RMA.
“Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units. “RMA" means this Rate and Method of Apportionment of Special Taxes. “Service(s)” means services permitted under the Mello‐Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2022‐1 as set forth in the documents adopted by the City Council at the time the CFD was formed. “Single Family Residential Property” or “SFR” means any residential property that consists of a building comprised of attached or detached residential units available for purchase or rent by the general public. “Special Tax(es)” means the Special Tax A and/or Special Tax B and/or Special Tax C (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property. “Special Tax A” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax A Requirement. 435
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"Special Tax A Requirement" meansthat amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2022‐1 in the next Fiscal Year. The costs to be covered shall be the direct costsfor maintenance servicesincluding but not limited to (i) maintenance and lighting of parks, parkways, streets, roads, and open space, (ii) maintenance and operation of water quality improvements, (iii) public street sweeping, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax A Requirement include funds for bonds or other forms of indebtedness. “Special Tax B” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Developed Property to fund the Special Tax B Requirement. "Special Tax B Requirement" means that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2022‐1 in the next Fiscal Year. The costs to be covered shall be the direct costs for (i) police protection services, (ii) fire protection and suppression services, (iii) fund an operating reserve for the costs of Services as determined by the Administrator, and (iv) Administrative Expenses. Under no circumstances shall the Special Tax B Requirement include funds for bonds or other forms of indebtedness.
“Special Tax C (Contingent)” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax C (Contingent) Requirement, if required. “Special Tax C (Contingent) Requirement” means that amount required in any Fiscal Year, if the POA is unable to maintain the Contingent Service(s) to: (i) pay the costs of Contingent Services incurred or otherwise payable in the Calendar Year commencing in such Fiscal Year; (ii) fund an operating reserve for the  costs  of  Contingent Services  as determined by the Administrator; less a credit for funds available to reduce the annual Special Tax C (Contingent) levy as determined by the Administrator. Under no circumstances shall the Special Tax C (Contingent) Requirement include funds for bonds or other forms of indebtedness..
"Taxable Property" means all Assessor’s Parcels within CFD No. 2022‐1, which are not Exempt Property. “Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre. "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may be levied pursuant to this Rate and Method of Apportionment of Special Tax. "Tax Zone Original" means the geographic area the specific area identified on the CFD Boundary Map as Tax Zone Original.
"Tract(s)" means an area of land within a subdivision identified by a particular tract number on a Final Map approved for the subdivision.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property.

B. ASSIGNMENT TO LAND USE CATEGORIES
For each Fiscal Year, all Assessor’s Parcels of Taxable Property within CFD No. 2022‐1 shall be classified as Developed Property, Approved Property, or Undeveloped Property, and shall be subject to the levy of Special Taxes as determined pursuant to Sections C and D below. Assessor’s Parcels of Developed Property 436
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and Approved Property shall be classified as either Residential Property or Non‐Residential Property.

Residential Property shall be further classified as Single Family Residential Property or Multi‐Family Residential Property and the number of Residential Units shall be determined by the Administrator.

C. MAXIMUM SPECIAL TAX RATES
For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Residential Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or shown on the building permit(s) issued or Final Map as determined by the Administrator.  Once a single family attached or multi‐family building or buildings have been built on an Assessor's Parcel, the Administrator shall determine the actual number of Residential Units contained within the building or buildings, and the Special Tax A and Special Tax C (Contingent) levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax per Residential Unit for the Tax Zone below or as included in Appendix A as each annexation occurs.

For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Non‐Residential Property, all such Assessor’s Parcels shall be assigned the number of Building Square Footage or Acres as shown on the Final Map as determined by the Administrator.  Once the Administrator determines the actual number of Building Square Footage or Acres for the Assessor’s Parcels, the Special Tax A, Special Tax B, and Special Tax C (Contingent) levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the number of Building Square Footage or Acres by the Maximum Special Tax per Taxable Unit identified for the applicable Tax Zone below or as included in Appendix A as each annexation occurs.

1. Special Tax A
a. Developed Property
(i) Maximum Special Tax A
The Maximum Special Tax A for each Assessor’s Parcel of Developed Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2022‐1, Appendix A to this RMA shall be updated to reflect the Maximum Special Tax A for Developed Property for the Tract or Tracts annexed and the Special Tax A shall be levied up to the Maximum Special Tax A for Developed Property for such Tract or Tracts as specified in such updated Appendix A for the annexed property which shall reflect the Maximum Special Tax for the Tract or Tracts annexed. The Maximum Special Tax A for Fiscal Year 2022‐2023 for a Residential Unit of Developed Property within the Tax Zone Original are identified in Table 1 below:
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TABLE 1

MAXIMUM SPECIAL TAX A RATES

DEVELOPED PROPERTY
FISCAL YEAR 2022‐2023
Tax
Zone  Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
Original TR 36672
Single Family Residential Property RU $408
Multi‐Family Residential Property RU $408
Non‐Residential Property Acre $5,267
(ii) Increase in the Maximum Special Tax A
On each July 1, commencing on July 1, 2023 with respect to Tax Zone Original, the Maximum Special Tax A for Developed Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside‐San Bernardino‐Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by two percent (2.0%), whichever is greater.
(iii) Multiple Land Use Categories
In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax A that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax A that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage ofsuch Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final. b. Approved Property
The Maximum Special Tax A for each Assessor’s Parcel of Approved Property in Table 2 is specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2022‐1, the Appendix A to this rate and method shall be updated to reflect the Maximum Special Tax A for Approved Property for the Tract or Tracts annexed and the Special Tax A shall be levied up to the Maximum Special Tax A for Approved Property for such Tract or Tracts as specified in such updated Appendix A. The Maximum Special Tax A for Fiscal Year 2022‐2023 per Residential Unit for Approved Property within Tax Zone Original is identified in Table 2 below:
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TABLE 2

MAXIMUM SPECIAL TAX A RATES

APPROVED PROPERTY
FISCAL YEAR 2022‐2023
Tax
Zone  Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
Original TR 36672
Single Family Residential Property RU $408
Multi‐Family Residential Property RU $408
Non‐Residential Property Acre $5,267
On each July 1, commencing on July 1, 2023 with respect to Tax Zone Original, the Maximum Special Tax A for Approved Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumersfor the Riverside‐San Bernardino‐Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by two percent (2.0%), whichever is greater.
c. Undeveloped Property
The Maximum Special Tax A for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2022‐1, Appendix A to this rate and method adopted shall be updated to reflect the Maximum Special Tax A for Undeveloped Property for the Tract or Tracts annexed and the Special Tax A shall be levied up to the Maximum Special Tax A for Undeveloped Property for such Tract or Tracts as specified in such updated Appendix A. The Maximum Special Tax A for Fiscal Year 2022‐2023 per acre of Undeveloped Property within Tax Zone Original is identified in Table 3 below:

TABLE 3

MAXIMUM SPECIAL TAX A RATES

UNDEVELOPED PROPERTY
FISCAL YEAR 2022‐2023
Tax Zone Tracts Taxable Unit Maximum Special Tax A
Original TR 36672 Acre $5,267
On each July 1, commencing on July 1, 2023 with respect to Tax Zone Original, the Maximum Special Tax A for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside‐San Bernardino‐Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by two percent (2.0%), whichever is greater.

2. Special Tax B
The Special Tax B is an annual Special Tax that shall be levied on Developed Property to fund the Special Tax B Requirement.
a. Developed Property
(i) Maximum Special Tax B
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The Maximum Special Tax B for Fiscal Year 2022‐2023 for each Land Use Category within Tax Zone Original is shown in Table 4. When additional property is annexed into CFD No. 2022‐1, Appendix A to this rate and method shall be updated to reflect the Maximum Special Tax B for the Tract or Tracts annexed and the Special Tax B shall be levied up to the Maximum Special Tax B for Developed Property for such Tract or Tracts as specified in such updated Appendix A.

TABLE 4

MAXIMUM SPECIAL TAX B RATES

DEVELOPED PROPERTY
FISCAL YEAR 2022‐2023
Land Use Category Unit Maximum Special Tax B
Single Family Residential Property RU $430
Multi‐Family Residential Property RU $305
On each July 1, commencing on July 1, 2023 with respect to Tax Zone Original, the Maximum Special Tax B for Developed Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside‐San Bernardino‐Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by five percent (5.0%), whichever is greater.

The Special Tax B shall not be levied on Approved or Undeveloped Property.

3. Special Tax C (Contingent)
The City Council shall levy Special Tax C (Contingent) only in the event the POA defaults in its obligation to maintain the Contingent Services, which default shall be deemed to have occurred, as determined by the Administrator, in each of the following circumstances:
(a) The POA files for bankruptcy;
(b) The POA is dissolved;
(c) The POA ceases to levy annual assessments for the Contingent Services; or (d) The POA fails to provide the Contingent Services at the same level asthe City providessimilar services and maintainssimilar improvementsthroughout the City and within ninety (90) days after written notice from the City, or such longer period permitted by the City Manager, fails to remedy the deficiency to the reasonable satisfaction of the City Council. a. Developed Property
(i) Maximum Special Tax C (Contingent)
The Maximum Special Tax C (Contingent) for each Assessor’s Parcel of Taxable Property shall be specific to each Tax Zone within the CFD.  When additional property is annexed into CFD No. 2022‐ 1, Appendix A to this rate and method shall be updated to reflect Maximum Special Tax C (Contingent) for the Tract or Tracts annexed and the Special Tax C (Contingent) shall be levied up to the Maximum Special Tax C (Contingent) for Developed Property forsuch Tract or Tracts asspecified in such updated Appendix A.  The Maximum Special Tax C (Contingent) for Fiscal Year 2022‐2023 within Tax Zone Original is identified in Table 5 below:
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TABLE 5

MAXIMUM SPECIAL TAX C (CONTINGENT) RATES

DEVELOPED PROPERTY
FISCAL YEAR 2022‐2023
Tax
Zone  Tract Land Use Category
Taxable
Unit
Maximum
Special Tax C
(Contingent)
Original TR 36672
Single Family Residential Property RU $261
Multi‐Family Residential Property RU $261
Non‐Residential Property Acre $3,372
(ii) Increase in the Maximum Special Tax C (Contingent) On each July 1, commencing on July 1, 2023 with respect to Tax Zone Original, the Maximum Special Tax C (Contingent) for Developed Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside‐San Bernardino‐Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by two percent (2.0%), whichever is greater. (iii) Multiple Land Use Categories
In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Category.  The Maximum Special Tax C (Contingent) that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax C (Contingent) that can be levied for each Land Use Category located on that Assessor's Parcel.  For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel.  The Administrator's allocation to each type of property shall be final.
b. Approved Property
The Maximum Special Tax C (Contingent) for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zone within the CFD.  When additional property is annexed into CFD No. 2022‐ 1, Appendix A to this rate and method shall be updated  to reflect the Maximum Special Tax C (Contingent) for the Tract or Tracts annexed and the Special Tax C (Contingent) shall be levied up to the Maximum Special Tax C (Contingent) for Approved Property for such Tract or Tracts as specified in such updated Appendix A.  The Maximum Special Tax C (Contingent) for Fiscal Year 2022‐2023 within Tax Zone Original is identified in Table 6 below:
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TABLE 6

MAXIMUM SPECIAL TAX C (CONTINGENT) RATES

APPROVED PROPERTY
FISCAL YEAR 2022‐2023
Tax
Zone  Tract Land Use Category
Taxable
Unit
Maximum
Special Tax C
(Contingent)
Original TR 36672
Single Family Residential Property RU $261
Multi‐Family Residential Property RU $261
Non‐Residential Property Acre $3,372
On each July 1, commencing on July 1, 2023 with respect to Tax Zone Original, the Maximum Special Tax C (Contingent) for Approved Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside‐San Bernardino‐Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by two percent (2.0%), whichever is greater. c. Undeveloped Property
The Maximum Special Tax C (Contingent) for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD.  When additional property is annexed into CFD No. 2022‐1, Appendix A to this rate and method shall be updated to reflect the Maximum Special Tax C (Contingent) for the Tract or Tracts annexed and the Special Tax C (Contingent) shall be levied up to the Maximum Special Tax C (Contingent) for Undeveloped Property for such Tract or Tracts as specified in such updated Appendix A.  The Maximum Special Tax C (Contingent) for Fiscal Year 2022‐2023 within Tax Zone Original is identified in Table 7 below:

TABLE 7

MAXIMUM SPECIAL TAX C (CONTINGENT) RATES

UNDEVELOPED PROPERTY
FISCAL YEAR 2022‐2023
Tax Zone Tract Taxable Unit
Maximum Special
Tax C (Contingent)
Original TR 36672 Acre $3,372
On each July 1, commencing on July 1, 2023 with respect to Tax Zone Original, the Maximum Special Tax C (Contingent) for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside‐San Bernardino‐Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by two percent (2.0%), whichever is greater.

D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX

1. Special Tax A
Commencing with Fiscal Year 2022‐2023 and for each following Fiscal Year in which Special Tax A is authorized to be levied, the Council shall determine the Special Tax A Requirement and shall levy 442
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the Special Tax A on all Assessor’s Parcels of Taxable Property until the aggregate amount of Special Tax A equals the Special Tax A Requirement. The Special Tax A shall be levied for each Fiscal Year within each Tax Zone as follows:

First: The Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax A to satisfy the Special Tax A Requirement;
Second: If additional moneys are needed to satisfy the Special Tax A Requirement after the firststep has been completed, the Special Tax A shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax A for Approved Property; Third: If additional monies are needed to satisfy the Special Tax A Requirement after the first two steps has been completed, the Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax A for Undeveloped Property.

2. Special Tax B
Commencing with Fiscal Year 2022‐2023 and for each following Fiscal Year, the Council shall determine the Special Tax B Requirement and shall levy the Special Tax B until the aggregate amount of Special Tax B equals the Special Tax B Requirement.

The Special Tax B shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax B to satisfy the Special Tax B Requirement.

3. Special Tax C (Contingent)
Commencing with the first Fiscal Year in which Special Tax C (Contingent) is authorized to be levied and for each following Fiscal Year, the City Council shall determine the Special Tax C (Contingent) Requirement for each Tax Zone, if any, and shall levy the Special Tax on all Assessor’s Parcels of Taxable Property within such Tax Zone until the aggregate amount of Special Tax C (Contingent) equalsthe Special Tax C (Contingent) Requirement forsuch Tax Zone.  The Special Tax C (Contingent) shall be levied for each Fiscal Year as follows:

First:  The Special Tax C (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax C (Contingent) to satisfy the Special Tax C (Contingent) Requirement;
Second:  If additional moneys are needed to satisfy the Special Tax C (Contingent) Requirement after the first step has been completed, the Special Tax C (Contingent) shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax C (Contingent) for Approved Property;
Third:  If additional monies are needed to satisfy the Special Tax C (Contingent) Requirement after the first two steps has been completed, the Special Tax C (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax C (Contingent) for Undeveloped Property.
443
City of Wildomar 12
Community Facilities District No. 2022‐1 (Services)
E. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2022‐1 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services.

Based on this analysis, the property to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned to the appropriate Maximum Special Tax rate for the Tract or Tracts when annexed.

F. TERM OF SPECIAL TAX
For each Fiscal Year, the Special Taxes shall be levied as long as the Services are being provided.

G. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2022‐1, any Assessor’s Parcel in any of the following categories; (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public uses; or (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined by the Administrator.  No Special Tax shall be levied on property which, at the time of adoption of the Resolution of Formation for CFD No. 2022‐1, is an Exempt Property.

H. APPEALS
Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax(es) that is disputed. A representative(s) of CFD No. 2022‐1 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative’s decision requiresthat the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).

I. MANNER OF COLLECTION
The Special Tax(es) shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2022‐1 may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations. 444
City of Wildomar 13
Community Facilities District No. 2022‐1 (Services)

APPENDIX A

CITY OF WILDOMAR
COMMUNITY FACILITIES DISTRICT NO. 2022‐1 (SERVICES)

COST ESTIMATE
Special Tax A Services – The estimate breaks down the costs of providing one year’s maintenance services for FY 2022‐2023. These services are being funded by the levy of Special Tax A for Community Facilities District No. 2022‐1 (Services).

TAX ZONE 2 – SPECIAL TAX A
TR 37476
Item Description Estimated Cost
1 Landscaping $8,809
2 Lighting $2,227
3 Streets $19,413
4 Drainage $1,927
5 Parks $1,455
6 Trails $3,320
7 Graffiti $164
8 Reserves $3,732
9 Admin $3,881
Total   $44,928
Special Tax B Services – It is estimated that the cost of providing Police and Fire Protection services being funded by Special Tax B for the Community Facilities District No. 2022‐1 (Services) as outlined in Exhibit “B” hereto, will be as follows for the first year:

TAX ZONE 2 – SPECIAL TAX B
TR 37476
Land Use Category Unit Maximum Special Tax B
Single‐Family Residential Property RU $430
Special Tax C (Contingent) Services – The estimate in the table below breaks down the costs of providing one year’s contingent maintenance services for Fiscal Year 2022‐23. If necessary, these services will be funded by the levy of Special Tax C (Contingent) for Community Facilities District No. 2022‐1 (Services).

TAX ZONE 2 – SPECIAL TAX C (Contingent)
TR 37476
Item Description Estimated Cost
1 Drainage $16,706
2 Reserves $1,671
3 Admin $1,821
Total   $20,198

445
City of Wildomar 14
Community Facilities District No. 2022‐1 (Services)
TAX ZONE 2
TR 37476
FY 2022‐2023 MAXIMUM SPECIAL TAX RATES
Taxable
Property
Land Use
Category
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Maximum
Special Tax C
(Contingent)
Developed Property Single‐Family Residential RU $583 $430 $262 Approved Property Single‐Family Residential RU $583 N/A $262 Undeveloped Property N/A Acre $2,912 N/A $1,309
446
City of Wildomar 15
Community Facilities District No. 2022‐1 (Services)

MAXIMUM SPECIAL TAXES ASSIGNED TO EACH TAX ZONE

FOR DEVELOPED PROPERTY
Tax
Zone
Fiscal
Year
Included  Tract
No. of
Taxable
Units LUC
Taxable
Unit
Maximum
Special
Tax A
Maximum
Special
Tax B
Maximum
Special Tax C
(Contingent) Subdivider
Original 2022‐23 TR 36672 136 SFR RU $408 $430 $261 Lennar Homes 1 2022‐23 PP 13‐0089 170 MFR RU $203 $305 $0 Villa Siena Property LLC 2 2022‐23 TR 37476 77 SFR RU $583 $430 $262 KB Home Coastal Inc.

ESCALATION OF MAXIMUM SPECIAL TAXES
Maximum Special Tax A ‐ On each July 1, the Maximum Special Tax A for Developed Property, Approved Property and Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside‐San Bernardino‐Ontario California Standard Metropolitan Statistical Area  since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by two percent (2.0%), whichever is greater.

Maximum Special Tax B ‐ On each July 1, the Maximum Special Tax B for Developed Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside‐San Bernardino‐Ontario California Standard Metropolitan Statistical Area  since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by five percent (5.0%), whichever is greater.

Maximum Special Tax C (Contingent) ‐ On each July 1, the Maximum Special Tax C (Contingent) for Developed Property, Approved Property and Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside‐San Bernardino‐Ontario California Standard Metropolitan Statistical Area  since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by two percent (2.0%), whichever is greater.

447
City of Wildomar 16
Community Facilities District No. 2022‐1 (Services)

EXHIBIT B

CITY OF WILDOMAR
COMMUNITY FACILITIES DISTRICT NO. 2022‐1 (SERVICES)

DESCRIPTION OF AUTHORIZED SERVICES
The services which may be financed with proceeds of the special tax of CFD No. 2022‐1, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right‐ of‐ways, public landscaping, public open spaces and othersimilar landscaped areas officially dedicated for public use. In addition, the services which may include some or all costs attributable to police protection, and fire services. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and
(b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right‐of‐way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing; or both of the water quality basin improvements within flood control channel improvements; and
(c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2022‐1; as well as local roads within residential subdivisions located within CFD No. 2022‐1; and any portions adjacent to the properties within CFD No. 2022‐1; and (d) police protection services, including but not limited to criminal justice services, and fire protection and suppression services.

In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.

The above services shall be limited to those provided within the boundaries of CFD No. 2022‐1 or for the benefit of the properties within the boundaries of CFD No. 2022‐1, asthe boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2022‐1 only to the extent that they are in addition to those provided in the territory of CFD No. 2022‐1 before CFD No. 2022‐1 was created.

448
City of Wildomar 17
Community Facilities District No. 2022‐1 (Services)

EXHIBIT C

CITY OF WILDOMAR
COMMUNITY FACILITIES DISTRICT NO. 2022‐1 (SERVICES)

PROPOSED BOUNDARIES
449
450
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ENGINEER CITY PRACTICES H: V:
451
452

SPECIAL TAX ELECTION

CITY OF WILDOMAR

ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2022-1 (SERVICES)
ANNEXATION NO. 2
(December 14, 2022)
This ballot is for the use of the authorized representative of the following owner of land within Annexation No. 2 of the Community Facilities District No. 2022-1 (Services) (“CFD No. 2022-1”) of the City of Wildomar:

Name of Landowner Number of Acres Owned Total Votes
KB Home Coastal Inc. 15.43 16
According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of Wildomar (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.

This special tax ballot is for the use of the property owner of the parcels identified below, which parcels are located within the territory proposed to be annexed to the CFD No. 2022-1, City of Wildomar, County of Riverside, State of California.

Please advise the City Clerk, at (951) 677-7751 x 210 if the name set forth below is incorrect or if you are no longer one of the owners of these parcels. This special tax ballot may be used to express either support for or opposition to the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows:

Mail
Delivery: If by mail, place ballot in the return envelope provided, and mail no later than November 30, 2022, two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted.

Personal
Delivery: If in person, deliver to the City Clerk at any time up to 6:00 p.m. on December 14, 2022, at the Clerk’s office at 23873 Clinton Keith Road, Suite 201 Wildomar, CA 92595.

However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on December 14, 2022.

Very truly yours,
Janet Morales
City Clerk
City of Wildomar
453
TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

OFFICIAL SPECIAL TAX BALLOT
Name & Address of Property Owner: Assessor’s Parcel Number(s):

KB Home Coastal Inc.

Attn: Scott Hansen
36310 Inland Valley Drive
Wildomar, CA 92595
367-140-008 and 367-140-010

ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2022-1 (SERVICES)
ANNEXATION NO. 2
MARK AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT SPECIAL TAX BALLOT MEASURE MARK “YES” OR “NO”
WITH AN “X”:

Shall the City Council of the City of Wildomar be authorized to levy a special tax on an annual basis at the rates and apportioned as described in Exhibit C to the Resolution Declaring its Intention to Annex Territory to Community Facilities District No. 2022-1 (Services) adopted by the City Council on November 9, 2022 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 2 of Community Facilities District No. 2022-1 (Services) City of Wildomar” to finance certain services as set forth in Section 4 to the Resolution (including incidental expenses) and shall an appropriation limit be established for Community Facilities District No. 2022-1 (Services) in the amount of special taxes collected?
YES
NO
Certification for Special Election Ballot
The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on _________________________________, 20___________.

KB Home Coastal Inc.

Scott Hansen
VP Forward Planning
Signature
Print Name
Title
454

CITY OF WILDOMAR
COMMUNITY FACILITIES DISTRICT NO. 2022-1 (SERVICES)
ANNEXATION NO. 2

CERTIFICATE OF ELECTION RESULTS
I, the undersigned, being the Deputy City Clerk or the City Clerk, as the case may be, hereby certify:

In connection with the special mailed-ballot election called by the City Council (the “City Council”) of the City of Wildomar (the “City”) on this same date in the proceedings of the City Council for the annexation of territory to the above-entitled community facilities district, I personally received (a) a signed and dated waiver and consent form and (b) a signed, dated and marked election ballot(s) on behalf of the owner(s) listed below, the entity named as the sole landowner of the land within the boundary of the above-entitled community facilities district in the Certificate Regarding Registered Voters and Landowners, dated November 11, 2022, and on file in the office of the City Clerk of the City in connection with the City Council actions on that date. Copies of the completed waiver and consent form and the completed ballot received by me and on file in my office are attached hereto.

Following such receipt, I have personally, and in the presence of all persons present, reviewed the ballot to confirm that it is properly marked and signed, and I hereby certify the result of that count to be that the ballot was cast in favor of the measure.

Based upon the foregoing, all votes that were cast having been cast “Yes”, in favor of the ballot measure, the measure has therefore passed.

Landowner
Qualified
Landowner Votes Votes Cast YES NO
KB Home Coastal Inc, 16 16
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 2022.

Janet Morales
City Clerk
City of Wildomar
By:

(Attach completed copies of Waiver/Consent and Ballots) 455
456
457
458


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COMMUNITY FACILITIES DISTRICT NO. 2022-1
§¨¦
(SERVICES)

OF THE CITY OF WILDOMAR,

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
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THIS MAP SHOWS THE BOUNDARIES OF AREAS TO BE ANNEXEDTO COMMUNITY FACILITIES DISTRICT NO. 2022-1 (SERVICES)OF THE CITY OF WILDOMAR, COUNTY OF RIVERSIDE, STATEOF CALIFORNIA. THE BOUNDARIES OF WHICH COMMUNITY FACILITIES DISTRICTARE SHOWN AND DESCRIBED ON THE MAP THEREOF WHICHWAS PREVIOUSLY RECORDED ON APRIL 19, 2022, IN BOOK 88OF MAPS OF ASSESSMENT AND COMMUNITY FACILITY DISTRICTSAT PAGE 77 AND AS INSTRUMENT NO. 2022-0183915IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OFRIVERSIDE, STATE OF CALIFORNIA. I HEREBY CERTIFY THAT THE WITHIN MAP OR AREAS TO BE ANNEXEDTO COMMUNITY FACILITIES DISTRICT NO. 2022-1 (SERVICES)OF THE CITY OF WILDOMAR, COUNTY OF RIVERSIDE, STATE OFCALIFORNIA, WAS APPROVED BY THE CITY COUNCIL OF THECITY OF WILDOMAR AT A REGULAR MEETING THEREOF,HELD ON ______ DAY OF ______, 20___, BY RESOLUTION NO. _______________ ___________________________________CITY CLERK CITY OF WILDOMAR FILED IN THE OFFICE OF THE CITY CLERK, CITY OF WILDOMAR,THIS ____ DAY OF ________, 20____. ______________________________ CITY CLERK CITY OF WILDOMAR RECORDED THIS ____ DAY OF _______________, 20____ ATTHE HOUR OF ____ O'CLOCK __M IN BOOK _____PAGE _____ OF MAPS OF ASSESSMENT AND COMMUNITYFACILITIES DISTRICTS IN THE OFFICE OF THE COUNTYRECORDER, IN THE COUNTY OF RIVERSIDE, STATE OFCALIFORNIA. FEE: _____________ NO.: ______________________ PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDERBY: _______________________________ DEPUTY
 7$;=21(


THIS BOUNDARY ,1&/8'(6 /276 7+528*+ 2)75$&70$3 12  5(&25'(' 6(37(0%(5   $6'2&80(1712 
459
CFD 2022-1 (Services), Annexation No. 2

1. PUBLIC HEARINGS - 6:00 P.M.

This portion of the agenda is for advertised public hearing items where formal public testimony on each individual item is accepted prior to City Council action.

A. Public Hearing for the consideration of territory to be annexed to Community Facilities District 2022-1 (Services), Annexation No. 2.

1. “I will now open the public hearing regarding the proposed annexation of territory to Community Facilities district No. 2022-1 (Services) and the levy of special taxes”.

2. Ask Dan York, City Manager/City Engineer for a report regarding the matters before the Council.

3. “Are there any persons wishing to provide testimony/public comment?”
Public comment or if none:

4. “City Clerk, have you received any written protests?” City Clerk responds.

5. “City Clerk, are there any persons registered to vote in the territory proposed to be annexed into the District?”
City Clerk responds.

6. “City Clerk, have the owners of all of the taxable property in the District consented to holding the special election on December 14, 2022, immediately following the public hearing?”
City Clerk responds.

7. “City Clerk, do you agree to hold the special election immediately following the public hearing?”
City Clerk responds

8. “I will now close the public hearing.”

9. “Are there any Council comments?”
Council discussion or if none:

10. “I would like to ask for Staff’s recommendation.”
Staff responds.
460

11. “Do I have a motion to adopt Resolution No. 2022-____ of the City Council of the City of Wildomar calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 2022-1 (Services) (Annexation No. 2)?”
Council Votes

12. “City Clerk, did you receive the official ballot and other election materials from the land-owners who can cast their votes on behalf of the owners of all of the property included in the territory proposed to be annexed into Community Facilities District No. 2022-1 (Services)?”
City Clerk responds.

13. “I declare the election results as ascertained by the canvass of the returned ballots.”

14. “Do I have a motion to adopt Resolution No. 2022-______ of the City Council of the City of Wildomar declaring election results for Community Facilities District No. 2022-1 (Services), annexation No. 2”
Council Votes
461

NOTICE OF PUBLIC HEARING ON RESOLUTION OF INTENTION TO ANNEX

TERRITORY TO AN EXISTING COMMUNITY FACILITIES DISTRICT
(ANNEXATION NO. 2)
NOTICE IS HEREBY GIVEN that the City Council of the City of Wildomar on November 9, 2022 adopted its Resolution No. 2022-55, in which it declared its intention to annex territory to existing Community Facilities District No. 2022-1 (Services) (the "CFD No. 2022-1"), and to levy a special tax to pay for certain maintenance services, all pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be annexed and describes the rate and method of apportionment of the proposed special tax.

No change in the tax levied in the existing CFD No. 2022-1 is proposed.

NOTICE IS HEREBY FURTHER GIVEN that the City Council has fixed 6:00 p.m., or as soon thereafter as practicable, Wednesday, December 14, 2022 in the City Council Chambers located at 23873 Clinton Keith Rd., Wildomar, California 92595, as the time and place when and where the City Council will conduct a public hearing on the establishment of CFD No. 2022-1. At the hearing, the testimony of all interest persons for or against the annexation of the territory or the levying of the special taxes will be heard.

DATED: ____________, 20___ _________________________________________ City Clerk of the City of Wildomar
462
RESOLUTION NO. 2022-_________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF WILDOMAR, CALIFORNIA, CALLING AN ELECTION

TO SUBMIT TO THE QUALIFIED ELECTORS THE

QUESTION OF LEVYING A SPECIAL TAX WITHIN THE

AREA PROPOSED TO BE ANNEXED TO COMMUNITY
FACILITIES DISTRICT NO. 2022-1 (SERVICES)
(ANNEXATION NO. 2)
WHEREAS, on April 13, 2022, the City Council (the “City Council”) of the City of Wildomar (the “City”) approved Resolution No. 2022-11 declaring the City’s intention to establish Community Facilities District No. 2022-1 (Services) of the City of Wildomar, County of Riverside, State of California (the "CFD No. 2022-1") for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property; and WHEREAS, the City Council set a public hearing for June 8, 2022, after which the Council adopted Resolution No. 2022-30 forming the CFD No. 2022-1 and calling a special election at which the questions of levying a special tax and establishing an appropriations limit with respect to the CFD No. 2022-1 were submitted to the qualified electors within the CFD No. 2022-1; and
WHEREAS, on June 8, 2022, the City Council adopted Resolution No. 2022-31 declaring the results of the special election and finding that more than two-thirds (2/3) of all votes cast at the special election were cast in favor of the proposition presented, and such proposition passed; and
WHEREAS, the City Council is authorized by Article 3.5 (commencing with Section 53339) of Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code as amended (the "Act"), to annex territory into an existing community facilities district by complying with the procedures set forth in said Article 3.5; and WHEREAS, the City Council on November 9, 2022, duly adopted Resolution No. 2022- 55 (the “Resolution of Intention”) declaring its intention to annex certain territory to CFD No. 2022-1 (Services) and to levy a special tax within that territory to pay for certain services and setting a time and place for the public hearing on the proposed annexation for December 14, 2022; and
WHEREAS, the territory proposed to be annexed is identified in the map entitled "Annexation Map No. 2 Community Facilities District No. 2022-1 (Services)" a copy of which was recorded, on November 15, 2022, in Book 90 of Maps of Assessment and Community Facilities Districts at Page 8, in the office of the Riverside County Recorder; and
WHEREAS, pursuant to the Act and the Resolution of Intention, a notice of public hearing was convened by the City Council on December 14, 2022, not earlier than the 463
hour of 6:00 p.m. at the City Hall located at 23873 Clinton Keith Road, Wildomar, California 92595, relative to the proposed annexation of said territory to CFD No. 2022- 1; and
WHEREAS, written protests have not been filed by fifty percent (50%) or more of the registered voters residing within the CFD No 2022-1, or by fifty percent (50%) or more of the registered voters residing within the territory to be annexed, or by the owners of one-half (1/2) or more of the area within the CFD No. 2022-1, or by the owners of onehalf (1/2) or more of the territory to be annexed; and WHEREAS, the City Council has determined that there are fewer than twelve registered voters residing in the territory proposed to be annexed to the CFD No. 2022-1 and that the qualified electors in such territory are the landowners; and WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to call an election to authorize the annexation of territory to the CFD No. 2022-1 and the levying of a special tax as described in Exhibit A hereto; and WHEREAS, the City Council has received a written instrument from each landowner in the territory proposed to be annexed to the CFD No. 2022-1 consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election; and WHEREAS, the City Clerk has concurred in the election date set forth herein.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF

WILDOMAR, ACTING EX OFFICIO AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT 2022-1 (SERVICES) OF THE CITY OF WILDOMAR, DETERMINE AND ORDER AS FOLLOWS:

Section 1 Recitals. The foregoing recitals are true and correct.

Section 2. Conformation of Finding in Resolution of Intention. The City Council reconfirms all of its findings and determinations as set forth in the Resolution of Intention.

Section 3. Findings Regarding Protests. The City Council finds and determines that written protests to the proposed annexation of territory to the CFD No. 2022-1 and the levy of the special tax within such territory are insufficient in number and in amount under the Act, and the City Council hereby further orders and determines that all such protests are hereby overruled.

Section 4. Findings Regarding Prior Proceedings. The City Council finds and determines that all prior proceedings had and taken by the City Council with respect to the annexation of territory to CFD No. 2022-1 are valid and in conformity with the requirements of the Act.
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Section 5. Levy of Special Tax. As stated in the Resolution of Intention, except where funds are otherwise available, subject to the approval of the qualified electors of territory proposed to be annexed to CFD No. 2022-1, a special tax sufficient to pay the costs of the Services (including incidental expenses as described in the Resolution of Intention), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2022-1, will be levied annually in CFD No. 2022-1. The rate and method of apportionment, and manner of collection of the special tax are specified in Exhibit A hereto.

Section 6. Apportionment of Tax. The special tax as apportioned to each parcel is based on the cost of making the Services available to each parcel, or other reasonable basis, and is not based on or upon the ownership of real property.

Section 7. Tax Roll Preparation. The office of the Public Works Director, 23873 Clinton Keith Road., City of Wildomar, is hereby designated as the office that will be responsible for annually preparing a current roll of special tax levy obligations by assessor’s parcel number and that will be responsible for estimating future special tax levies pursuant to Government Code section 53340.2. The Public Works Director may cause these functions to be performed by his or her deputies, assistants, or other designated agents.

Section 8. Accountability Measures. Pursuant to Section 50075.1 of the California Government Code, the City shall create a separate account into which tax proceeds will be deposited; and the Public Works Director annually shall file a report with the City Council that will state (a) the amount of funds collected and expended and (b) the status of the Services financed in CFD No. 2022-1.

Section 9. Special Election; Voting Procedures. The City Council hereby submits the questions of levying the special tax within the territory proposed to be annexed to the qualified electors, in accordance with and subject to the Act. The special election shall be held on December 14, 2022, and shall be conducted as follows:
(a) Qualified Electors. The City Council hereby determines that the Services are necessary to meet increased demands placed upon the City as a result of development occurring within the boundaries of CFD No. 2022-1. Because fewer than twelve registered voters resided within the territory proposed to be annexed to CFD No. 2022-1 on November 11, 2022 (a date within the 90 days preceding the close of the public hearing on the territory proposed to be annexed to CFD No. 2022-1), the qualified electors shall be the landowners within territory proposed to be annexed, and each landowner who was the owner of record at the close of the hearing shall have one vote for each acre or portion of an acre of land that such landowner owns within the territory proposed to be annexed to CFD No. 2022-1.
(b) Consolidation of Elections; Combination of Propositions on Ballot. The election on the question of levying the special tax and establishing an appropriations limit for CFD No. 2022-1 shall be consolidated, and the two proportions shall be combined into a single ballot proposition for submission to the voters, as authorized by Government Code Section 53353.5.
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(c) Mail Ballot Election. Pursuant to Government Code section 53327.5, the election shall be conducted as a mail ballot election. The City Council hereby ratifies the City Clerk’s delivery of a ballot to each landowner within the territory proposed to be annexed to CFD No. 2022-1. The City Council hereby ratifies the form of the ballot, which is attached hereto as Exhibit B.
(d) Return of Ballots. The City Clerk shall accept the ballots of the landowners up to 6:00 p.m. on December 14, 2022. The City Clerk shall have available ballots that may be marked at the City Clerk’s office on the election day by voters.

Once all qualified electors have voted, the City Clerk may close the election. (e) Canvass of Election. The City Clerk shall commence the canvass of the returns of the special election as soon as the election is closed (on December 14, 2022, or when all qualified electors have voted) at the City Clerk’s office. At the conclusion of the canvass, the City Clerk shall declare the results of the election. (f) Declaration of Results. The City Council shall declare the results of the special election following the completion of the canvass of the returns and shall cause to be inserted into its minutes a statement of the results of the special election as ascertained by the canvass of the returns.

Section 10. Filing of Resolution and Map with City Clerk. The City Council hereby directs the City Clerk to file a copy of this resolution and the annexation map of the boundaries of CFD No. 2022-1 in his/her office.

PASSED, APPROVED AND ADOPTED this 14th day of December 2022:

Ben J. Benoit
Mayor
APPROVED AS TO FORM: ATTEST:

Thomas D. Jex Janet Morales
City Attorney City Clerk
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RESOLUTION NO. 2022-_________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF WILDOMAR, CALIFORNIA, DECLARING ELECTION
RESULTS FOR COMMUNITY FACILITIES DISTRICT NO.
2022-1 (SERVICES) ANNEXATION NO. 2
WHEREAS, the City Council (the "City Council") of the City of Wildomar (the "City") has heretofore conducted proceedings for the area proposed to be annexed to Community Facilities District No. 2022-1 (Services) (the "CFD No. 2022-1") of the City of Wildomar, including conducting a public hearing pursuant to Section 53339.5 of the Government Code; and
WHEREAS, at the conclusion of said public hearing, the City Council adopted a resolution calling a special election for December 14, 2022, and submitting to the qualified electors of the territory to be annexed to the CFD No. 2022-1 the question of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property as provided in the form of special election ballot; and
WHEREAS, a Certificate of Election Results, attached thereto as Exhibit A, dated December 14, 2022, executed by the City Clerk (or, in the absence of the City Clerk, the Acting City Clerk – in either case, the “Clerk”), has been filed with this Council, certifying that a completed ballot has been returned to the Clerk for each landowner-voter(s) eligible to cast a ballot in said special election, with all votes cast as “Yes” votes in favor of the ballot measure, and further certifying on said basis that the special mailed-ballot election was closed; and
WHEREAS, this Council has received, reviewed and hereby accepts the Clerk’s Certificate of Election Results and wishes by this resolution to declare the results of the special mailed-ballot election;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WILDOMAR:

Section 1. Recitals. This Council finds and determines that the foregoing recitals are true and correct.

Section 2. Ballot Measure. This Council hereby finds, determines and declares that the ballot measure submitted to the qualified electors of the territory to be annexed to CFD No. 2022-1 has been passed and approved by those qualified electors in accordance with Sections 53328 and 53329 of the Government Code.

Section 3. Annexation. This Council hereby finds, determines and declares that pursuant to Section 53339.8 of the Government Code, the City Council is authorized to determine that the territory to be annexed has been added to and become a part of the CFD No. 2022-1 with full legal effect, and the City Council is also authorized, pursuant to said Section 53339.8, to annually levy special taxes within the territory to be annexed 467
to pay the costs of the services to be provided by the CFD No. 2022-1 as specified in Resolution No. 2022-55 adopted by the City Council on November 9, 2022. The boundaries of the territory annexed are shown on the map entitled, "Annexation Map No. 2 Community Facilities District No. 2022-1 (Services)" a copy of which was recorded, on November 15, 2022, in Book 90 of Maps of Assessment and Community Facilities Districts at Page 8, in the office of the Riverside County Recorder.

Section 4. Notice of Special Tax Lien. Pursuant to Section 53339.8 of the Government Code and Section 3117.5 of the Streets and Highways Code, the City Clerk shall cause to be filed with the County Recorder of the County of Riverside an amendment of the notice of special tax lien and a map of the amended boundaries of the CFD No. 2022-1 including the annexed territory.

Section 5. Effect. This resolution shall take effect from and after its adoption.

PASSED, APPROVED AND ADOPTED this 14th day of December 2022:

Ben J. Benoit
Mayor
APPROVED AS TO FORM: ATTEST:

Thomas D. Jex Janet Morales
City Attorney City Clerk
468

CITY OF WILDOMAR

CC - REGULAR MEETING

PUBLIC HEARING
Agenda Staff Report # 2.2
Meeting Date: December 14, 2022
SUBJECT: Establishment of Community Facilities District No. 2022-3 (KB Homes Verano), Public Hearing
SUBMITTED BY: Emily Stadnik
PREPARED BY: Ninette Eva, Associate Engineer
ACTION:

Adopt the following Resolutions:

RESOLUTION NO. 2022 - ___

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 2022-3 (VERANO) OF THE CITY OF WILDOMAR,

AUTHORIZING THE LEVY OF A SPECIAL TAX THEREIN, CALLING AN ELECTION AND

APPROVING AND AUTHORIZING CERTAIN ACTIONS RELATED THERETO RESOLUTION NO. 2022 - ___

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2022-3 (VERANO) OF

THE CITY OF WILDOMAR DETERMINING THE NECESSITY TO INCUR BONDED INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED $7,000,000 WITHIN COMMUNITY FACILITIES DISTRICT NO. 2022-3 (VERANO) OF THE CITY OF WILDOMAR AND CALLING

AN ELECTION THEREIN
And
RESOLUTION NO. 2022 - ___

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR, CALIFORNIA

ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2022-3 (VERANO) OF THE CITY OF WILDOMAR CERTIFYING ELECTION

RESULTS
Introduce and read by title only:
469
ORDINANCE NO. ____

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WILDOMAR, CALIFORNIA

ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2022-3 (VERANO) OF THE CITY OF WILDOMAR AUTHORIZING THE LEVY

OF SPECIAL TAXES
BACKGROUND:

KB Home Coastal Inc., a California corporation (the “Developer”), owns 15.4 gross acres of property in the City which is proposed to be developed into 77 single family residential homes.

Such property is generally located to the east of Monte Vista Drive and south of Summer Sage Way.

The Developer has requested that the City form a community facilities district (“CFD No. 2022- 3” or the “District”) to encompass such property in accordance with the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”), to finance the costs of certain public improvements through the levy of a special tax and the issuance of bonds. The maximum amount of bonded indebtedness proposed is $7 million.

On November 9, 2022, the City Council adopted Resolution Nos. 2022-56 and 2022-57, which declared City’s intention to establish the District and the intention to incur bonded indebtedness within the District (together, the “Resolution of Intention”). The Resolution of Intention called for a public hearing to be held on December 14, 2022. The purpose of the public hearing is for the City Council to formally consider the approval of the formation of the CFD, the approval of the levy of the special taxes within the District and the issuance of bonds to finance the public improvements benefitting the District. Notice of the public hearing was published in a newspaper of general circulation in the District and mailed to the property owner in accordance with the Act.

In connection with the public hearing, Spicer Consulting Group has prepared a CFD Public Hearing Report which describes and analyzes the facilities to be financed by the District and the estimated costs of such facilities. Following the close of the public hearing, the City Council will be asked to adopt the Resolution of Formation and the Resolution Determining the Necessity to Incur Debt which, together, approves the formation of the District, the levy of the special taxes in the District in accordance with the rate and method of apportionment of special taxes for the District (the “RMA”) and determines the necessity for the District to issue bonds in an amount not to exceed $7 million for the District. Such resolutions call for an election to submit to the qualified voters the District, ballot measures on the approval of the special taxes, the issuance of the bonds and an appropriations limit for the District.

In addition, the Resolution of Formation, approves the execution and delivery of the Acquisition, Construction and Funding Agreement with the Developer (the “Funding 470
Agreement”) and a Joint Community Facilities Agreement (the “Water District JCFA”) with the Developer and Elsinore Valley Municipal Water District (the “Water District”) in the forms presented to this Council. The Funding Agreement sets forth the terms, among others, pursuant to which the District will finance improvements which are included in the City’s development fee program and certain improvements to be constructed by the Developer.

Under the Act, the District may finance certain facilities owned by another public agency so long as there is a Joint Community Facilities Agreement with respect to such facilities. The Water District JCFA provides for the terms by which the District is authorized to finance water district facilities to be owned and operated by the Water District.

On file with the City Clerk is a Certificate of the Registrar of Voters of Riverside County certifying that there are no registered voters residing within the boundaries of the District.

Accordingly, under the Mello-Roos Act, only property owners owning land in the District are eligible to vote at the election for the District with each owner having one vote for each acre (or portion thereof) that they own within the District. The Developer has executed a consent and waiver of certain election procedures with respect to the election, including certain timing requirements with respect to the election, in accordance with the Mello-Roos Act. Accordingly, if the City Council approves the Resolution of Formation and the Resolution Determining the Necessity to Incur Debt, the City Clerk will conduct the election. The City Clerk will announce the election results and the City Council will be asked to adopt the Resolution Certifying the Election Results. Based on upon certification that 2/3rds of the votes cast are in favor of the propositions voted upon in the District, the Resolution Certifying the Election Results directs the City Clerk to record a notice of special tax lien on the property within the District. The City Council will then be asked to introduce the Ordinance authorizing the levy of the special tax within the District in accordance with the RMA.

FISCAL IMPACT:

The Developer has made a deposit to pay for the costs of the formation proceedings which may be reimbursed to the Developer in accordance with a reimbursement agreement with the Developer. If established and subject to necessary Council and voter approvals, the District will annually levy special taxes on all of the taxable property within the District in accordance with the RMA. Such special taxes will be used to pay for the costs of facilities, debt service on bonds and administration of CFD No. 2022-3. Any bonds issued by CFD No. 2022-3 are not obligations of the City and will be secured solely by the special taxes levied within CFD No. 2022-3.

The RMA provides that the annual special tax rates will range from $4,195 for home sizes less than 1,500 square feet to $4,678 for home sizes greater than 1,900 square feet, which rates escalate at 2% per year.

The City has incurred expenses for the required legal notices on the potential formation of the District. A budget amendment of $3,500 for the Legal Notices is requested to be approved if 471
the District is approved for formation.

ACCOUNT CODE:
222-450-4500-52020 (Legal Notices) - $3,500
ATTACHMENTS:

RESOLUTION OF FORMATION CITY OF WILDOMAR CFD 2022-3 (VERANO) 4895-9769- 3502 v.4.doc
RESOLUTION OF NECESSITY TO INCUR DEBT CITY OF WILDOMAR CFD 2022-3 (VERANO).doc
RESOLUTION CERTIFYING ELECTION RESULTS CITY OF WILDOMAR CFD 2022-3 (VERANO).doc
ORDINANCE CITY OF WILDOMAR CFD 2022-3 (VERANO).doc
Certificate ROV CFD 2022-3 Form.pdf
CFD 2022-3 - CFD Report.pdf
ACQUISITION AGREEMENT WILDOMAR CFD 2022-3 (VERANO).docx JCFA with EVMWD - City of Wildomar CFD 2022-3 (Verano).docx 472
4895-9769-3502v4/200945-0002
RESOLUTION NO. 2022-___

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WILDOMAR ESTABLISHING COMMUNITY FACILITIES
DISTRICT NO. 2022-3 (VERANO) OF THE CITY OF

WILDOMAR, AUTHORIZING THE LEVY OF A SPECIAL TAX

THEREIN, CALLING AN ELECTION AND APPROVING AND

AUTHORIZING CERTAIN ACTIONS RELATED THERETO
WHEREAS, the City Council (the “City Council”) of the City of Wildomar (the “City”) has heretofore adopted Resolution No. 2022-56 stating its intention to form Community Facilities District No. 2022-3 (Verano) of the City of Wildomar (“Community Facilities District No. 2022-3” or the “District”) pursuant to 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 (the “Act”); and
WHEREAS, a copy of Resolution No. 2022-56 setting forth a description of the proposed boundaries of Community Facilities District No. 2022-3, the facilities and incidental expenses to be financed by the District and the rate and method of apportionment of the special tax proposed to be levied within the District is on file with the City Clerk; and WHEREAS, notice was published and mailed to all landowners of the land proposed to be included within the District as required by law relative to the intention of this City Council to form proposed Community Facilities District No. 2022-3 and to levy a special tax (the “Special Tax”) and to incur bonded indebtedness in the amount of up to $7,000,000 therein to finance the facilities and incidental expenses described in Resolution No. 2022-57; and WHEREAS, on December 14, 2022, this City Council conducted a noticed public hearing as required by law relative to the proposed formation of Community Facilities District No. 2022-3, the levy of the Special Tax therein and the issuance of bonded indebtedness by the District; and WHEREAS, at the December 14, 2022 public hearing there was filed with this City Council a report containing a description of the facilities necessary to meet the needs of the District and an estimate of the cost of such facilities as required by Section 53321.5 of the Act (the “Engineer’s Report”); and
WHEREAS, at the December 14, 2022 public hearing all persons desiring to be heard on all matters pertaining to the formation of Community Facilities District No. 2022-3, the levy of the Special Tax and the issuance of bonded indebtedness were heard and full and fair hearings were held; and
WHEREAS, following the public hearing, this City Council has determined to authorize the formation of the District to finance the types of facilities (the “Facilities”) and the incidental expenses (the “Incidental Expenses”) set forth in Attachment A hereto, which are described in more detail in the Engineer’s Report; and
WHEREAS, at the public hearing evidence was presented to this City Council on the matters before it, and the proposed Special Tax to be levied within the District was not precluded by a majority protest of the type described in Section 53324 of the Act, and this City Council at the conclusion of the hearing was fully advised as to all matters relating to the formation of the District, the levy of the Special Tax and the issuance of bonded indebtedness therein; and 473
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WHEREAS, this City Council has determined, based on a Certificate of Registrar of Voters of the County of Riverside on file in the office of the City Clerk, that no registered voters have been residing in the proposed boundaries of Community Facilities District No. 2022-3 for each of the 90 days prior to December 14, 2022 and that the qualified electors in Community Facilities District No. 2022-3 are the landowners within the District; and WHEREAS, on the basis of all of the foregoing, this City Council has determined to proceed with the establishment of Community Facilities District No. 2022-3 and to call an election therein to authorize (i) the levy of Special Tax pursuant to the rate and method of apportionment of the special tax, as set forth in Attachment C to Resolution No. 2022-56 (the “Rate and Method”), (ii) the issuance of bonds to finance the Facilities and Incidental Expenses, and (iii) the establishment of an appropriations limit for Community Facilities District No. 2022-3; and WHEREAS, in order to facilitate the funding of the Facilities, the legislative body of the District desires to enter into a, Acquisition, Construction and Funding Agreement (the “Funding Agreement”) with KB Home Coastal Inc., a California corporation (the “Developer”) and the form of the Funding Agreement is on file with the City Clerk; and WHEREAS, in connection with the proposed formation of the District, the City proposes to enter into a Joint Community Facilities Agreement (the “JCFA”) with the Elsinore Valley Municipal Water District (the “Water District”) and the Developer, relating to certain facilities proposed to be financed by the District and owned and operated by the Water District and the form of the JCFA is on file with the City Clerk;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WILDOMAR DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. Each of the above recitals is true and correct.

Section 2. A community facilities district to be designated “Community Facilities District No. 2022-3 (Verano) of the City of Wildomar” is hereby established pursuant to the Act. The City Council hereby finds and determines that all prior proceedings taken with respect to the establishment of the District were valid and in conformity with the requirements of law, including the Act. This finding is made in accordance with the provisions of Section 53325.1(b) of the Act.

Section 3. The boundaries of Community Facilities District No. 2022-3 are established as shown on the map designated “Proposed Boundary Map Community Facilities District No. 2022- 3 (Verano) of the City of Wildomar, County of Riverside, State of California”, which map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the County Book of Maps of Assessment and Community Facilities Districts in the Assessor-County Clerk-Recorder’s office of the County of Riverside in Book No. 90, Page No. 7 on November 15, 2022 as Instrument No. 2022-0470815.

Section 4. The types of Facilities and Incidental Expenses authorized to be provided for Community Facilities District No. 2022-3 are those set forth in Attachment A attached hereto.

The estimated cost of the Facilities and Incidental Expenses to be financed is set forth in the Engineer’s Report, which estimates may change as the Facilities are designed and bid for construction and acquisition, as applicable.

The City is authorized by the Act to contribute revenue to, or to construct or acquire the Facilities, all in accordance with the Act. The City Council finds and determines that the 474
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proposed Facilities are necessary to meet the increased demand that will be placed upon local agencies and public infrastructure as a result of new development within the District and that the Facilities to be financed, including those to be financed pursuant the JCFA to be entered into with the Water District, benefit residents of the City and the future residents of the District.

Section 5. Except where funds are otherwise available, it is the intention of this City Council, subject to the approval of the eligible voters of the District, to levy annually a Special Tax at the rates set forth in the Rate and Method on all non-exempt property within the District sufficient to pay for (i) the Facilities, (ii) the principal and interest and other periodic costs on the bonds proposed to be issued to finance the Facilities and Incidental Expenses, including the establishment and replenishment of reserve funds, any remarketing, credit enhancement and liquidity facility fees and other expenses of the type permitted by Section 53345.3 of the Act; and (iii) the Incidental Expenses. The District expects to incur, and in certain cases has already incurred, Incidental Expenses in connection with the creation of the District, the issuance of bonds, the levying and collecting of the Special Tax, the completion and inspection of the Facilities and the annual administration of the bonds and the District. The Rate and Method is described in detail in Attachment C to Resolution No. 2022-56 and incorporated herein by this reference, and the City Council hereby finds that the Rate and Method contains sufficient detail to allow each landowner within the District to estimate the maximum amount that may be levied against each parcel. As described in greater detail in the Engineer’s Report, which is incorporated by reference herein, the Special Tax is based on the expected demand that each parcel of real property within Community Facilities District No. 2022-3 will place on the Facilities and on the benefit that each parcel will derive from the right to access the Facilities and, accordingly, is hereby determined to be reasonable. The Special Tax shall be levied on each assessor’s parcel in accordance with the Rate and Method provided, however, that the Special Tax shall not be levied after Fiscal Year 2064-65. The Special Tax is apportioned to each parcel on the foregoing bases pursuant to Section 53325.3 of the Act and such Special Tax is not on or based upon the ownership of real property or the assessed value of real property.

If Special Taxes of the District are levied against any parcel used for private residential purposes, (i) the maximum Special Tax rate shall be specified as a dollar amount which shall be calculated and established not later than the date on which the parcel is first subject to the Special Tax because of its use for private residential purposes and shall not be increased over time except as authorized under the Rate and Method, (ii) the Special Tax shall not be levied after Fiscal Year 2064-65, and (iii) under no circumstances will the Special Tax levied against any such parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the District by more than ten percent above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults.

The City Manager of the City of Wildomar, will be responsible for preparing annually, or authorizing a designee to prepare, a current roll of special tax levy obligations by assessor’s parcel number and will be responsible for estimating future special tax levies pursuant to Section 53340.2 of the Act.

Section 6. In the event that a portion of the property within Community Facilities District No. 2022-3 shall become for any reason exempt, wholly or partially, from the levy of the Special Tax specified in the Rate and Method, or in the event of delinquencies in the payment of Special Taxes levied, subject to the maximum special taxes specified in the Rate and Method, the City Council shall, on behalf of Community Facilities District No. 2022-3, increase the levy to the extent necessary and permitted by law and these proceedings upon the remaining property 475
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within Community Facilities District No. 2022-3 which is not exempt or delinquent in order to yield the required debt service payments on any outstanding bonds of the District, or to prevent the District from defaulting on any of its other obligations or liabilities; provided, however, under no circumstances will the Special Tax levied against any parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the District by more than ten percent above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. The amount of the Special Tax will be set in accordance with the Rate and Method. The obligation to pay Special Taxes may be prepaid only as set forth in Section G of the Rate and Method.

Section 7. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the Special Tax shall attach to all non-exempt real property in the District and this lien shall continue in force and effect until the Special Tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the Special Tax by the District ceases.

Section 8. Consistent with Section 53325.6 of the Act, the City Council finds and determines that the land within Community Facilities District No. 2022-3, if any, devoted primarily to agricultural, timber or livestock uses and being used for the commercial production of agricultural, timber or livestock products is contiguous to other land within Community Facilities District No. 2022-3 and will be benefited by the Facilities proposed to be provided within Community Facilities District No. 2022-3.

Section 9. It is hereby further determined that there is no ad valorem property tax currently being levied on property within proposed Community Facilities District No. 2022-3 for the exclusive purpose of paying the principal of or interest on bonds or other indebtedness incurred to finance the construction of capital facilities which provide the same services to the territory of Community Facilities District No. 2022-3 as are proposed to be provided by the Facilities to be financed by Community Facilities District No. 2022-3.

Section 10. Written protests against the establishment of the District have not been filed by one-half or more of the registered voters within the boundaries of the District or by the property owners of one-half (1/2) or more of the area of land within the District. The City Council hereby finds that the proposed Special Tax has not been precluded by a majority protest pursuant to Section 53324 of the Act.

Section 11. An election is hereby called for Community Facilities District No. 2022-3 on the propositions of levying the Special Tax on the property within Community Facilities District No. 2022-3 and establishing an appropriations limit for the District pursuant to Section 53325.7 of the Act and shall be consolidated with the election on the proposition of incurring bonded indebtedness, pursuant to Sections 53351 and 53353.5 of the Act. The language of the propositions to be placed on the ballot is attached hereto as Attachment B.

Section 12. The date of the election for Community Facilities District No. 2022-3 on the propositions of incurring the bonded indebtedness, authorizing the levy of the Special Tax and establishing an appropriations limit for the District shall be December 14, 2022, or such later date as is consented to by the City Clerk or Deputy City Clerk (referred to herein as the “City Clerk”) of the City of Wildomar; provided that, if the election is to take place sooner than 90 days after December 14, 2022, then the unanimous written consent of each qualified elector within the District to such election date must be obtained. The polls shall be open for said election immediately following the close of the public hearing on December 14, 2022. The election shall 476
5 4895-9769-3502v4/200945-0002
be conducted by the City Clerk. Except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City of Wildomar insofar as such provisions are determined by the City Clerk to be applicable. The City Clerk is authorized to conduct the election following the adoption of this resolution, and all ballots shall be received by, and the City Clerk shall close the election by, 9:00 p.m. on the election day; provided the election shall be closed at such earlier time as all qualified electors have voted as provided in Section 53326(d) of the Act. Pursuant to Section 53326 of the Act, the ballots for the special election shall be distributed in person, or by mail with return postage prepaid, to the qualified electors within Community Facilities District No. 2022-3. The City Clerk has secured a certificate from the Registrar of Voters of the County of Riverside certifying that there were no registered voters within the District as of November 11, 2022. Accordingly, since there were fewer than 12 registered voters within the District for each of the 90 days preceding December 14, 2022, the qualified electors shall be the landowners within the District and each landowner, or the authorized representative thereof, shall have one vote for each acre or portion thereof that such landowner owns within Community Facilities District No. 2022-3, as provided in Section 53326 of the Act. The sole landowner within the District has executed and delivered a waiver of certain election law requirements and consenting to the holding of the election on December 14, 2022, which waiver is on file with the City Clerk.

Section 13. The District may accept advances of funds or work-in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose including, but not limited to, paying any cost incurred in creating Community Facilities District No. 2022-3. The District may enter into an agreement with the person or entity advancing the funds or work-in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council, with or without interest.

Section 14. The preparation of the Engineer’s Report is hereby ratified. The Engineer’s Report, as submitted, is hereby approved and was made a part of the record of the public hearing regarding the formation of Community Facilities District No. 2022-3. The Engineer’s Report is ordered to be kept on file with the transcript of these proceedings and open for public inspection.

Section 15. The form of the Funding Agreement on file with the City Clerk is approved as to form, and the City Manager and any written designee thereof, are authorized to execute the Funding Agreement in substantially the form on file with the City Clerk, together with such changes as are approved by the officer executing the same, with the approval of such changes to be conclusively evidenced by the execution and delivery thereof.

Section 16. The form of the JCFA on file with the City Clerk is approved as to form, and the City Manager and any written designee thereof, are authorized to execute the JCFA in substantially the form on file with the City Clerk, together with such changes as are approved by the officer executing the same, with the approval of such changes to be conclusively evidenced by the execution and delivery thereof.

Section 17. This Resolution shall be effective upon its adoption. 477
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PASSED, APPROVED AND ADOPTED this 14th day of December, 2022:

Ben J. Benoit
Mayor
APPROVED AS TO FORM: ATTEST:

Thomas D. Jex Janet Morales
City Attorney City Clerk
478
7 4895-9769-3502v4/200945-0002

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF WILDOMAR )
I, Janet Morales, City Clerk of the City of Wildomar, California, do hereby certify that Resolution No. ____________ was adopted by the City Council of the City of Wildomar, California, at the Regular meeting of December 14, 2022 and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________
Janet Morales
City Clerk
City of Wildomar
479
A-1
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ATTACHMENT A
Types of Facilities
to Be Financed by Community
Facilities District No. 2022-3 (Verano) of the City of Wildomar The proposed types of public facilities and expenses to be financed by the District include:

The construction, purchase, modification, expansion, rehabilitation and/or improvement of (i) drainage, library, park, police, fire, roadway, traffic, administration and community center facilities, animal shelter facilities, and other public facilities of the City, including the foregoing public facilities which are included in the City’s fee programs with respect to such facilities and authorized to be financed under the Act (the “City Facilities”), (ii) water and sewer facilities including the acquisition of capacity in the sewer system and/or water system of the Elsinore Valley Municipal Water District which are included in Elsinore Valley Municipal Water District’s water and sewer capacity and connection fee programs (the “Water District Facilities”), and (iii) interim and permanent school facilities of Lake Elsinore Unified School District, including classrooms, multi-purpose facilities, administration and auxiliary space at school facilities, athletic fields, playgrounds and recreational facilities and improvements thereto, landscaping, access roadways, drainage, sidewalks and gutters and utility lines, furniture, equipment and technology, including technology upgrades and mobile devices and infrastructure therefore, with a useful life of at least five (5) years at such school facilities (the “School Facilities” and together, with the City Facilities and the Water Facilities, the “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities, and to finance the incidental expenses to be incurred, including:
a. The cost of engineering, planning and designing the Facilities; b. All costs, including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and
c. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.

Capitalized terms used and not defined herein shall have the meaning set forth in the Rate and Method of Apportionment of Special Taxes for the District. 480
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ATTACHMENT B

BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2022-3
(VERANO) OF THE CITY OF WILDOMAR

SPECIAL TAX AND SPECIAL BOND ELECTION
December 14, 2022
PROPOSITION A: Shall Community Facilities District
No. 2022-3 (Verano) of the City of Wildomar (the
“District”) incur an indebtedness and issue one or more series of bonds in the maximum aggregate principal
amount of $7,000,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and the Incidental Expenses
described in Resolution No. 2022-56 of the City Council of the City of Wildomar?
PROPOSITION B: Shall a special tax with a rate and
method of apportionment as provided in Resolution No.
2022-56 of the City Council of the City of Wildomar be
levied to pay for the Facilities, Incidental Expenses and other purposes described in Resolution No. 2022-56,
including the payment of the principal of and interest on bonds issued to finance the Facilities and Incidental
Expenses?
YES______
NO_______
YES______
NO_______
PROPOSITION C: For each year commencing with
Fiscal Year 2022-23, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for Community Facilities
District No. 2022-3 be an amount equal to $3,500,000?
YES______
NO_______
481
4885-8129-5934v4/200945-0002
RESOLUTION NO. _____

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WILDOMAR ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 2022-3 (VERANO) OF

THE CITY OF WILDOMAR DETERMINING THE NECESSITY TO

INCUR BONDED INDEBTEDNESS IN AN AMOUNT NOT TO
EXCEED $7,000,000 WITHIN COMMUNITY FACILITIES
DISTRICT NO. 2022-3 (VERANO) OF THE CITY OF WILDOMAR

AND CALLING AN ELECTION THEREIN
WHEREAS, on November 9, 2022, the City Council of the City of Wildomar (the “City Council”) adopted Resolution No. 2022-56 stating its intention to form Community Facilities District No. 2022-3 (Verano) of the City of Wildomar (“Community Facilities District No. 2022-3” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”); and
WHEREAS, on November 9, 2022, the City Council also adopted Resolution No. 2022-57 stating its intention to incur bonded indebtedness in the amount of up to $7,000,000 within proposed Community Facilities District No. 2022-3 to finance (1) the purchase, construction, modification, expansion, improvement or rehabilitation of public facilities identified in Attachment B to Resolution No. 2022-56, and (2) the incidental expenses to be incurred in financing such public facilities and forming and administering the District, as identified in Attachment B to Resolution No. 2022-56; and
WHEREAS, notice was published as required by law relative to the intention of the City Council to form proposed Community Facilities District No. 2022-3 and to incur bonded indebtedness in the amount of up to $7,000,000 within the boundaries of proposed Community Facilities District No. 2022-3; and
WHEREAS, on December 14, 2022, this City Council conducted a noticed public hearing to determine whether it should proceed with the formation of Community Facilities District No. 2022-3, issue bonds to pay for the facilities and incidental expenses described in Resolution No. 2022-56 and authorize the rate and method of apportionment of a special tax to be levied within Community Facilities District No. 2022-3 for the purposes described in Resolution No. 2022-56; and
WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of Community Facilities District No. 2022-3, the levy of a special tax and the issuance of bonds to pay for the cost of the proposed facilities and incidental expenses were heard and a full and fair hearing was held; and
WHEREAS, the City Council subsequent to such hearing adopted Resolution No. 2022-__ establishing Community Facilities District No. 2022-3 (the “Resolution of Formation”) and authorizing the financing of the public facilities (the “Facilities”) and the incidental expenses (the “Incidental Expenses”) described in Attachment A thereto; and WHEREAS, the City Council desires to make the necessary findings to incur bonded indebtedness within the District, to declare the purpose for said debt, and to authorize the 482
2 4885-8129-5934v4/200945-0002
submittal of a proposition to issue bonded indebtedness to the voters of the District, being the landowners within the proposed District, all as authorized and required by law;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WILDOMAR, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2022-3 (VERANO) OF THE CITY OF WILDOMAR, HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS:

Section 1. It is necessary to incur bonded indebtedness in a maximum aggregate principal amount not to exceed $7,000,000 within Community Facilities District No. 2022-3.

Section 2. The indebtedness is to be incurred for the purpose of financing the costs of purchasing, constructing, modifying, expanding, improving, or rehabilitating the Facilities and financing the Incidental Expenses, as described in the Resolution of Formation, and carrying out the powers and purposes of Community Facilities District No. 2022-3, including, but not limited to, financing the costs of selling the bonds, establishing and replenishing bond reserve funds and paying remarketing, credit enhancement and liquidity facility fees and other expenses of the type authorized by Section 53345.3 of the Act.

Section 3. The whole of the property within Community Facilities District No. 2022-3, other than property exempted from the special tax pursuant to the provisions of the rate and method of apportionment attached to Resolution No. 2022-56 as Attachment C, shall pay for the bonded indebtedness pursuant to the levy of the special tax authorized by the Resolution of Formation.

Section 4. The maximum term of the bonds to be issued shall in no event exceed 35 years or such longer term as is then permitted by law.

Section 5. The bonds shall bear interest at the rate or rates not to exceed the maximum interest rate permitted by law, payable annually or semiannually, or in part annually and in part semiannually, except the first interest payment may be for a period of less than six months, with the actual rate or rates and times of payment to be determined at the time or times of sale thereof.

Section 6. The bonds may bear a variable or fixed interest rate, provided that such variable rate or fixed rate shall not exceed the maximum rate permitted by Section 53531 of the Government Code, or any other applicable provision of law limiting the maximum interest rate on the bonds.

Section 7. Pursuant to Section 53351 of the Act, a special election is hereby called for Community Facilities District No. 2022-3 on the proposition of incurring the bonded indebtedness. The proposition relative to incurring bonded indebtedness in the maximum aggregate principal amount of $7,000,000 shall be in the form of Proposition A set forth in Attachment A hereto. In accordance with Sections 53351(h) and 53353.5 of the Act, the election shall be consolidated with the special election called on the proposition of levying a special tax within the District as described in the Resolution of Formation, which proposition shall be in the form of Proposition B set forth in Attachment A hereto, and on the proposition of establishing an appropriations limit for the District, which proposition shall be in the form of Proposition C set forth in Attachment A hereto.

Section 8. The date of the special election for Community Facilities District No. 2022-3 on the propositions of incurring the bonded indebtedness, authorizing the levy of the special tax 483
3 4885-8129-5934v4/200945-0002
and setting an appropriations limit shall be December 14, 2022, or such later date as is consented to by the City Clerk, or a Deputy City Clerk of the City (referred to herein as the “City Clerk”); provided that, if the election is to take place sooner than 90 days after December 14, 2022, then the unanimous written consent of each qualified elector within the District to such election date must be obtained. The polls shall be open for said election immediately following the public hearing on December 14, 2022. The election shall be conducted by the City Clerk.

Except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City of Wildomar insofar as such provisions are determined by the City Clerk to be applicable. The City Clerk is authorized to conduct the election following the adoption of the Resolution of Formation, and this resolution and all ballots shall be received by and the City Clerk shall close the election by 9:00 p.m. on the election day; provided the election shall be closed at such earlier time as all qualified electors have voted as provided in Section 53326(d) of the Act. Pursuant to Section 53326 of the Act, the ballots for the special election shall be distributed in person, or by mail with return postage prepaid, to the qualified electors within Community Facilities District No. 2022-3. The City Clerk has secured a certificate of the Registrar of Voters of the County of Riverside certifying that there were no registered voters within the District as of November 11, 2022. Accordingly, since there were fewer than 12 registered voters within the District for each of the 90 days preceding December 14, 2022, the qualified electors shall be the landowners within the District and each landowner, or the authorized representative thereof, shall have one vote for each acre or portion thereof that such landowner owns within Community Facilities District No. 2022-3, as provided in Section 53326 of the Act. The sole landowner within the District has executed and delivered a waiver of certain election law requirements and consenting to the holding of the election on December 14, 2022, which waiver is on file with the City Clerk.

Section 9. This Resolution shall be effective upon its adoption.

PASSED, APPROVED AND ADOPTED this 14th day of December, 2022:

Ben J. Benoit
Mayor
APPROVED AS TO FORM: ATTEST:

Thomas D. Jex Janet Morales
City Attorney City Clerk
484
4 4885-8129-5934v4/200945-0002

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF WILDOMAR )
I, Janet Morales, City Clerk of the City of Wildomar, California, do hereby certify that Resolution No. ____________ was adopted by the City Council of the City of Wildomar, California, at the Regular meeting of December 14, 2022 and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________
Janet Morales
City Clerk
City of Wildomar
485
4885-8129-5934v4/200945-0002

ATTACHMENT A

BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2022-3
(VERANO) OF THE CITY OF WILDOMAR

SPECIAL TAX AND SPECIAL BOND ELECTION
December 14, 2022
PROPOSITION A: Shall Community Facilities District
No. 2022-3 (Verano) of the City of Wildomar (the
“District”) incur an indebtedness and issue one or more series of bonds in the maximum aggregate principal
amount of $7,000,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and the Incidental Expenses
described in Resolution No. 2022-56 of the City Council of the City of Wildomar?
PROPOSITION B: Shall a special tax with a rate and
method of apportionment as provided in Resolution No.
2022-56 of the City Council of the City of Wildomar be
levied to pay for the Facilities, Incidental Expenses and other purposes described in Resolution No. 2022-56,
including the payment of the principal of and interest on bonds issued to finance the Facilities and Incidental
Expenses?
YES______
NO_______
YES______
NO_______
PROPOSITION C: For each year commencing with
Fiscal Year 2022-23, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for Community Facilities
District No. 2022-3 be an amount equal to $3,500,000?
YES______
NO_______
486
4875-4556-4478v4/200945-0002
RESOLUTION NO. __-___

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WILDOMAR, CALIFORNIA ACTING IN ITS CAPACITY AS THE

LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT
NO. 2022-3 (VERANO) OF THE CITY OF WILDOMAR

CERTIFYING ELECTION RESULTS
WHEREAS, the City Council of the City of Wildomar called and duly held an election on December 14, 2022 within the boundaries of Community Facilities District No. 2022-3 (Verano) of the City of Wildomar (“Community Facilities District No. 2022-3” or the “District”) pursuant to Resolution Nos. 2022-__ and 2022-__ for the purpose of presenting to the qualified electors within the District Propositions A, B and C, attached hereto as Attachment A; and WHEREAS, there has been presented to this City Council a certificate of the City Clerk or Deputy City Clerk (referred to herein as the “City Clerk”) canvassing the results of the election, a copy of which is attached hereto as Attachment B;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WILDOMAR, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2022-3 (VERANO) OF THE CITY OF WILDOMAR, HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS:

Section 1. Each of the above recitals is true and correct and is adopted by the legislative body of the District.

Section 2. Propositions A, B and C presented to the qualified electors of the District on December 14, 2022 were approved by more than two-thirds of the votes cast at said election and Propositions A, B and C each has carried. The City Council, acting as the legislative body of the District, is hereby authorized to levy on the land within the District the special tax described in Proposition B for the purposes described therein and to take the necessary steps to levy the special tax authorized by Proposition B and to issue one or more series of bonds in an aggregate amount not to exceed $7,000,000 specified in Proposition A.

Section 3. The City Clerk is hereby directed to record in the Assessor-County ClerkRecorder’s office of the County of Riverside within fifteen days of the date hereof a notice of special tax lien with respect to the District which Bond Counsel to the District shall prepare in the form required by Streets and Highways Code Section 3114.5. 487
2 4875-4556-4478v4/200945-0002
Section 4. This Resolution shall be effective upon its adoption.

PASSED, APPROVED AND ADOPTED this 14th day of December, 2022:

Ben J. Benoit
Mayor
APPROVED AS TO FORM: ATTEST:

Thomas D. Jex Janet Morales
City Attorney City Clerk
488
3 4875-4556-4478v4/200945-0002

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF WILDOMAR )
I, Janet Morales, City Clerk of the City of Wildomar, California, do hereby certify that Resolution No. ____________ was adopted by the City Council of the City of Wildomar, California, at the Regular meeting of December 14, 2022 and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________
Janet Morales
City Clerk
City of Wildomar
489
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4875-4556-4478v4/200945-0002

ATTACHMENT A

BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2022-3
(VERANO) OF THE CITY OF WILDOMAR

SPECIAL TAX AND SPECIAL BOND ELECTION
December 14, 2022
PROPOSITION A: Shall Community Facilities District
No. 2022-3 (Verano) of the City of Wildomar (the
“District”) incur an indebtedness and issue one or more series of bonds in the maximum aggregate principal
amount of $7,000,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and the Incidental Expenses
described in Resolution No. 2022-56 of the City Council of the City of Wildomar?
PROPOSITION B: Shall a special tax with a rate and
method of apportionment as provided in Resolution No.
2022-56 of the City Council of the City of Wildomar be
levied to pay for the Facilities, Incidental Expenses and other purposes described in Resolution No. 2022-56,
including the payment of the principal of and interest on bonds issued to finance the Facilities and Incidental
Expenses?
YES______
NO_______
YES______
NO_______
PROPOSITION C: For each year commencing with
Fiscal Year 2022-23, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for Community Facilities
District No. 2022-3 be an amount equal to $3,500,000?
YES______
NO_______
490
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ATTACHMENT B

CERTIFICATE OF CITY CLERK

AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS I, Janet Morales, City Clerk of the City of Wildomar, do hereby certify that I have examined the returns of the Special Tax and Bond Election for Community Facilities District No. 2022-3 (Verano) of the City of Wildomar (the “City”). The election was held in the Wildomar City Hall Council Chambers 23873 Clinton Keith Rd. Suite 106, Wildomar, CA 92595, on December 14, 2022. I caused to be delivered ballots to each qualified elector. ____ (__) ballots were returned.

I further certify that the results of said election and the number of votes cast for and against Propositions A, B and C are as follows:

PROPOSITION A PROPOSITION B PROPOSITION C
YES: YES: YES:

NO: NO: NO:

TOTAL: TOTAL: TOTAL:

Dated this 14th day of December, 2022.

Janet Morales
Janet Morales, City Clerk
City of Wildomar
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ORDINANCE NO. ___-___

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

WILDOMAR, CALIFORNIA ACTING IN ITS CAPACITY AS THE

LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT
NO. 2022-3 (VERANO) OF THE CITY OF WILDOMAR

AUTHORIZING THE LEVY OF SPECIAL TAXES
Whereas, on November 9, 2022, the City Council (the “City Council”) of the City of Wildomar (the “City”) adopted Resolution No. 2022-56 declaring its intention to form Community Facilities District No. 2022-3 (Verano) of the City of Wildomar (the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, comprising Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”), and its Resolution No. 2022-57 declaring its intention to incur bonded indebtedness for the District; and Whereas, on December 14, 2022, after providing all notice required by the Act, the City Council conducted a noticed public hearing required by the Act relative to the proposed formation of the District, the proposed levy of a special tax therein to finance certain public facilities described in Resolution No. 2022-56 and to secure the payment of any bonded indebtedness of the District, and the proposed issuance of up to $7,000,000 of bonded indebtedness as described in Resolution No. 2022-57; and
Whereas, at the December 14, 2022 public hearing, all persons desiring to be heard on all matters pertaining to the formation of the District and the proposed levy of the special tax to finance the facilities described in Resolution No. 2022-56 and to secure the payment of up to $7,000,000 of bonded indebtedness of the District as described in Resolution No. 2022-57 (the “Bonds”) were heard and a full and fair hearing was held; and Whereas, on December 14, 2022, the City Council adopted Resolution Nos. 2022-__ and 2022- __ which formed the District and called a special election within the District on December 14, 2022 on three propositions relating to the levy of a special tax within the District, the issuance of the Bonds and the establishment of an appropriations limit within the District; and Whereas, on December 14, 2022, a special election was held within the District at which the qualified electors approved by more than a two-thirds vote Propositions A, B and C authorizing the levy of a special tax within the District for the purposes described in Resolution No. 2022-56, the issuance of the Bonds as described in Resolution No. 2022-57 and establishing an appropriations limit for the District; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WILDOMAR, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2022-3 (VERANO) OF THE CITY OF WILDOMAR, ORDAINS AS FOLLOWS:
492
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Section 1. The above recitals are all true and correct.

Section 2. By the passage of this Ordinance, the City Council authorizes and levies special taxes within the District pursuant to Sections 53328 and 53340 of the Act at the rates and in accordance with the rate and method of apportionment set forth in Attachment C to Resolution No. 2022-56, which is incorporated by reference herein (the “Rate and Method”). The special taxes are hereby levied commencing in the fiscal year specified in the Rate and Method and in each fiscal year thereafter until payment in full of the Bonds (including any bonds issued to refund the Bonds), payment of all costs of the public facilities and services authorized to be financed by the District, and payment of all costs of administering the District.

Section 3. Each of the Mayor, the City Manager, or their written designees (each, an “Authorized Officer”), acting alone, is hereby authorized and directed each fiscal year to determine the specific special tax rates and amounts to be levied in such fiscal year on each parcel of real property within the District, in the manner and as provided in the Rate and Method. The special tax rate levied on a parcel pursuant to the Rate and Method shall not exceed the maximum rate set forth in the Rate and Method for such parcel, but the special tax may be levied at a lower rate. Each Authorized Officer is hereby authorized and directed to provide all necessary information to the Treasurer-Tax Collector of the County of Riverside and to otherwise take all actions necessary in order to effect proper billing and collection of the special tax, so that the special tax shall be levied and collected in sufficient amounts and at times necessary to satisfy the financial obligations of the District in each fiscal year until the Bonds are paid in full, the facilities have been paid for, and provision has been made for payment of all of the administrative costs of the District.

Section 4. Properties or entities of the state, federal or other local governments shall be exempt from the special tax, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act and Section G of the Rate and Method. No other properties or entities are exempt from the special tax unless the properties or entities are expressly exempted in Resolution No. 2022- __ or in a resolution of consideration to levy a new special tax or special taxes or to alter the rate or method of apportionment or an existing special tax as provided in Section 53334 of the Act.

Section 5. All of the collections of the special tax shall be used as provided for in the Act, the Rate and Method and Resolution No. 2022-__.

Section 6. The special tax 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 (which such procedures include the exercise of all rights and remedies permitted by law to make corrections, including, but not limited to, the issuance of amended or supplemental tax bills), as such procedure may be modified by law or by this City Council from time to time.

Section 7. As a cumulative remedy, if any amount levied as a special tax for payment of the interest or principal of the Bonds (including any bonds issued to refund the Bonds), together with any penalties and other charges accruing under this Ordinance, are not paid when due, the City Council may, not later than four years after the due date of the last installment of principal on the Bonds (including any bonds issued to refund the Bonds), order that the same be collected by an action brought in the superior court to foreclose the lien of such special tax, as authorized by the Act.
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Section 8. The Mayor of the City shall sign this Ordinance and the City Clerk or Deputy City Clerk (referred to herein as the “City Clerk”) shall attest to the Mayor’s signature and then cause the same to be published within fifteen (15) days after its passage at least once in The Press Enterprise, a newspaper of general circulation published and circulated in the City of Wildomar.

Section 9. The specific authorization for adoption of this Ordinance is pursuant to the provisions of Section 53340 of the Act.

Section 10. The City Clerk is hereby authorized to transmit a certified copy of this ordinance to the Treasurer-Tax Collector of the County of Riverside, and to perform all other acts which are required by the Act, this Ordinance or by law in order to accomplish the purpose of this Ordinance.

Section 11. A full reading of this Ordinance is dispensed with prior to its final passage, a written or printed copy having been available to the City Council and the public a day prior to its final passage.

Section 12. This Ordinance shall take effect thirty days after its final passage.

Passed and Adopted on this ___th day of ________, 2023. _____________________________
Ben J. Benoit, Mayor
APPROVED AS TO FORM: ATTEST:

Thomas D. Jex Janet Morales
City Attorney City Clerk
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF WILDOMAR )
I, Janet Morales, City Clerk of the City of Wildomar, California, do hereby certify that Ordinance No. ____________ was adopted by the City Council of the City of Wildomar, California, at the Regular meeting of ________, 2023 and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________
Janet Morales
City Clerk
City of Wildomar
495
496

CITY OF WILDOMAR

PUBLIC HEARING REPORT
CFD NO. 2022-3 (VERANO)
DECEMBER 14, 2022
497
Table of Contents
Sections Page _____________________________________________ 1 Introduction ________________________________________________ 1 2 Description of Facilities ______________________________________________ 2 3 Cost Estimate ________________________________________________ 3 4 Proposed Development _____________________________________________ 4 5 Rate and Method of Apportionment ____________________________________ 5 6 Certifications ________________________________________________ 6 Tables Page
3-1 Cost Estimate _______________________________________________ 3 Appendices Page _____________________________________________ A Rate and Method of Apportionment _____________________________________ B Boundary Map _________________________________________________ C Resolution of Intention _______________________________________________ 498
1 Introduction Page | 1
City of Wildomar
CFD No. 2022-3 (Verano)
Public Hearing Report
Background
On November 9, 2022, the City Council (the “City Council”) of the City of Wildomar (the “City”), adopted a Resolution of Intention to form Community Facilities District No. 2022-3 (Verano) of the City of Wildomar (the “CFD No. 2022-2”), Resolution No. 2022-56, pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter

2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, (the “Act”).

CFD No. 2022-3 is currently comprised of two parcels and approximately 15.4 gross acres. A Tract Map 37476 includes 77 proposed single family residential properties. The properties are generally located to the east of Monte Vista Drive and south of Summer Sage Way, within the City of Wildomar, California.

For a map showing the boundaries of CFD No. 2022-3 please see Appendix B.

Purpose of Public Hearing Report
WHEREAS, this Community Facilities District Report (“Report”) is being provided to the City Council and generally contains the following:

1. A brief description of CFD No. 2022-3;

2. A brief description of the Facilities required at the time of formation to meet the needs of CFD No. 2022-3.

3. A brief description of the Boundaries of CFD No. 2022-3; and

4. An estimate of the cost of financing the bonds used to pay for the Facilities, including all costs associated with formation of the District, issuance of bonds, determination of the amount of any special taxes, collection of any special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the City with respect to the District, and any other incidental expenses to be paid through the proposed financing.

For particulars, reference is made to the Resolution of Intention as previously approved and adopted and is included in Appendix C.
499
2 Description of Facilities Page | 2
City of Wildomar
CFD No. 2022-3 (Verano)
Public Hearing Report
NOW, THEREFORE, the undersigned, authorized representative of Spicer Consulting Group, LLC, the appointed responsible officer, or person directed to prepare this Report, does hereby submit the following data:

Description of the Facilities
A Community Facilities District may pay for facilities which may include all amounts necessary to eliminate any fixed special assessment liens or to pay, repay, or defease any obligation to pay for any indebtedness secured by any tax, fee, charge, or assessment levied, provide for the purchase, construction, expansion, or rehabilitation for any real or other tangible property with an estimated useful life of five (5) years or longer, which is necessary to meet increased demands placed upon local agencies as a result of development and/or rehabilitation occurring within the District.

The types of facilities that are proposed by CFD No. 2022-3 and financed with the proceeds of special taxes and bonds issued by CFD No. 2022-3 consist of the construction, purchase, modification, expansion, rehabilitation and/or improvement of (i) drainage, library, park, police, fire, roadway, traffic, administration and community center facilities, animal shelter facilities, and other public facilities of the City, including the foregoing public facilities which are included in the City’s fee programs with respect to such facilities and authorized to be financed under the Act (the “City Facilities”), (ii) water and sewer facilities including the acquisition of capacity in the sewer system and/or water system of the Elsinore Valley Municipal Water District which are included in Elsinore Valley Municipal Water District’s water and sewer capacity and connection fee programs (the “Water District Facilities”), and (iii) interim and permanent school facilities of Lake Elsinore Unified School District, including classrooms, multi-purpose facilities, administration and auxiliary space at school facilities, athletic fields, playgrounds and recreational facilities and improvements thereto, landscaping, access roadways, drainage, sidewalks and gutters and utility lines, furniture, equipment and technology, including technology upgrades and mobile devices and infrastructure therefore, with a useful life of at least five (5) years at such school facilities (the “School Facilities” and together, with the City Facilities and the Water Facilities, the “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities.

Incidental Expenses
The Incidental Expenses to be paid from bond proceeds and/or special taxes include:
a) The cost of engineering, planning and designing the Facilities; and b) All costs, including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and c) Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.

Capitalized terms used and not defined herein shall have the meaning set forth in the Rate and Method of Apportionment of Special Taxes for the District.

All costs associated with the creation of CFD No. 2022-3, the issuance of bonds, the determination of the amount of special taxes to be levied, costs incurred in order to carry out the authorized purposes of CFD No. 2022-3, including legal fees, fees of consultants, engineering, planning, designing and the annual costs to administer CFD No. 2022-3 and any obligations.

The description of the eligible public facilities, services and incidental expenses above are preliminary and general in nature.

The final plans and specifications approved by the applicable public agency may show substitutes or modifications in order to accomplish the work or serve the new development and any such substitution or modification shall not constitute a change or modification in the proceedings relating to CFD No. 2022-3. 500
3 Cost Estimate Page | 3
City of Wildomar
CFD No. 2022-3 (Verano)
Public Hearing Report
Below is the estimated cost of facilities to be provided to the District. a) The cost estimate of facilities, including incidental expenses, to be financed through the issuance of CFD No. 2022- 3 Bonds is estimated to be $4,333,157 based upon current dollars (Fiscal Year 2022-23). b) For further particulars please reference Table 3-1 below and incorporated herein by reference. c) Pursuant to Section 53340 of the Act, the proceeds of any special tax levied and collected by CFD No. 2022-3 may be used only to pay for the cost of providing public facilities, services, and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the annual costs associated with determination of the amount of special taxes, collection of special taxes, payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the District. The incidental expenses associated with the annual administration of CFD No. 2022-3 are estimated to be $30,000 in the initial Fiscal Year. However, it is anticipated that the incidental expenses will vary due to inflation and other factors that may not be foreseen today, and the actual incidental expenses may exceed these amounts accordingly.

Table 3-1
Cost Estimate
City Fees Total Bond Allocation(1)
Police Facilities $17,479 $17,479
Fire Facilities $33,880 $33,880
Transportation - Roads $237,776 $237,776
Transportation - Signals $30,877 $30,877
Drainage - Medium Density $113,960 $113,960
Animal Shelter $19,250 $19,250
Community Centers $36,498 $36,498
City Hall $29,568 $29,568
Parks - Land $45,969 $45,969
Parks - Improvement $302,302 $302,302
Multi-Purpose Trails $58,058 $58,058
Corporate Yard $6,083 $6,083
City Facilities $186,340 $186,340
Total City Fees $1,118,040 $1,118,040
City Facilities Total Bond Allocation(1)
Offsite Street Improvements $402,500 $402,500
Total City Facilities $402,500 $402,500
Elsinore Valley Municipal Water District Total Bond Allocation(1) EVMWD – Water Fee $1,212,750 $1,212,750
EVMWD – Sewer Fee $689,766 $689,766
Landscape (2” – 1.5” Meter) $47,642 $47,642
Total Elsinore Valley Municipal Water District $1,950,158 $1,950,158 Lake Elsinore Unified School District Total Bond Allocation(1) School Fees $910,027 $862,459
Total Lake Elsinore Unified School District $910,027 $862,459 Total Eligible Fees/Improvements $4,380,725 $4,333,157
Incidental Financing Costs $941,843
Total Funded by Bond Proceeds $5,275,000
Total Fees/Improvements to be Funded by Developer $47,568 (1) Amounts are allocated based upon estimated bond sizing and may change abased upon market conditions at the time of bond issuance. 501
4 Proposed Development Page | 4
City of Wildomar
CFD No. 2022-3 (Verano)
Public Hearing Report
The CFD No. 2022-3 includes approximately 15.4 gross acres on two undeveloped assessor’s parcels in Tract 37476 located in the City. The property within CFD No. 2022-3 is expected to be developed with 77 single family residential units.

The District is located to the east of Monte Vista Drive and south of Summer Sage Way. As of Fiscal Year 2022-23 the proposed CFD No. 2022-3 includes the following Assessor's Parcel Numbers:

Assessor
Parcel Number
367-140-008 (portion of)
367-140-010 (portion of)
A map showing the boundaries of CFD No. 2022-3 is included in Appendix B. 502
5 Rate and Method of Apportionment Page | 5
City of Wildomar
CFD No. 2022-3 (Verano)
Public Hearing Report
The Rate and Method of Apportionment allows each property owner within CFD No. 2022-3 to estimate the annual Special Tax amount that would be required for payment. The Rate and Method of Apportionment of the Special Tax established pursuant to these proceedings, is attached hereto as Appendix A (the “Rate and Method”). The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the CFD Administrator may directly bill the Special Taxes, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 2022-3, and provided further that CFD No. 2022-3 may covenant to foreclose and may actually foreclose on parcels having delinquent Special Taxes as permitted by the Act.

All of the property located within CFD No. 2022-3, unless exempted by law or by the Rate and Method proposed for CFD No. 2022-3, shall be taxed for the purpose of providing necessary facilities to serve the District. The Boundary Map for CFD No. 2022-3 is attached hereto as Appendix B. Pursuant to Section 53325.3 of the Act, the tax imposed “is a Special Tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property.” The Special Tax may be based on the benefit received by property, the cost of making facilities or authorized services available or other reasonable basis as determined by the City, although the Special Tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Constitution. A property owner within the District may choose to prepay in whole or in part the Special Tax. The available method for so doing is described in Section G of the Rate and Method (“Prepayment of Special Tax”).

For each year that any Bonds are outstanding the Special Tax shall be levied on all parcels subject to the Special Tax. If any delinquent Special Taxes remain uncollected prior to or after all Bonds are retired, the Special Tax may be levied to the extent necessary to reimburse CFD No. 2022-3 for uncollected Special Taxes associated with the levy of such Special Taxes, but the Special Tax shall not be levied after 2064-2065 Fiscal Year.

For particulars as to the Rate and Method for CFD No. 2022-3, see the attached and incorporated in Appendix A. 503
6 Certifications Page | 6
City of Wildomar
CFD No. 2022-3 (Verano)
Public Hearing Report
Based on the information provided herein, it is my opinion that the described services herein are those that are necessary to meet increased demands placed upon the City of Wildomar as a result of development occurring within the CFD No. 2022-3 and benefits the lands within said CFD No. 2022-3. Further, it is my opinion that the special tax rates and method of apportionment, as set forth herein, are fair and equitable, uniformly applied and not discriminating or arbitrary.

Date: December 14, 2022 SPICER CONSULTING GROUP, LLC
__________________________

SHANE SPICER

SPECIAL TAX CONSULTANT FOR

CITY OF WILDOMAR

RIVERSIDE COUNTY

STATE OF CALIFORNIA
504

APPENDIX A
Rate and Method of Apportionment
505
City of Wildomar
Community Facilities District No. 2022‐3 (Verano)   Page 1

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2022‐3 (VERANO)

OF THE CITY OF WILDOMAR
A Special Tax (all capitalized terms not otherwise defined herein are defined in Section A, “Definitions”, below) shall be applicable to each Assessor’s Parcel of Taxable Property located within the boundaries of the City of Wildomar Community Facilities District No. 2022‐3 (Verano) of the City of Wildomar ("CFD No. 2022‐3").  The amount of Special Tax to be levied in each Fiscal Year on an Assessor’s Parcel shall be determined by the City Council of the City of Wildomar, acting in its capacity as the legislative body of CFD No. 2022‐3, by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exempt Property as set forth below.  All of the real property, unless exempted by law or by the provisions hereof in Section F, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Accessory Dwelling Unit” means a residential unit of limited size including a smaller second unit that shares an Assessor’s Parcel as a Single Family Residential Property with a stand‐alone Residential Unit. "Acre” or “Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded parcel map or instrument.  The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello‐Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2022‐3:  the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2022‐3 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2022‐3 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2022‐3 and any major property owner associated with applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2022‐3 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses.   Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2022‐3 for any other administrative purposes of CFD No. 2022‐3, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being 506
City of Wildomar
Community Facilities District No. 2022‐3 (Verano)   Page 2 levied, (ii) that have an assigned Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) that have not been issued a building permit on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied. "Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax of that name described in Section D below. "Backup Special Tax" means the Special Tax of that name described in Section D below. "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, certificates of participation, long‐term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long‐term contracts, or any refunding thereof, to which the Special Tax of CFD No. 2022‐3 has been pledged. "Building Permit" means the first legal document issued by the City giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include expired or cancelled building permits, or any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses. "Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the Building Permit for such Assessor’s Parcel.
"Calendar Year" means the period commencing January 1 of any year and ending the following December 31.
"CFD” or “CFD No. 2022‐3" means Community Facilities District No. 2022‐3 (Verano) of the City of Wildomar established by the City under the Act.
“CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax  Requirement, and providing for the levy and collection of the Special Taxes. “City” means the City of Wildomar, State of California. "City Council" means the City Council of the City of Wildomar, acting as the legislative body of CFD No. 2022‐3.
“Condominium Plan" means a condominium plan pursuant to California Civil Code, Section 6624. 507
City of Wildomar
Community Facilities District No. 2022‐3 (Verano)   Page 3 "County" means the County of Riverside, State of California. "Developed Property" means all Assessor’s Parcels that: (i) are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) for which a Building Permit for new construction was issued on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied.
"Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a Condominium Plan pursuant to California Civil Code Section 6624 that creates individual lots for which Building Permits may be issued without further subdivision. "Fiscal Year" means the period commencing on July 1st of any year and ending the following June 30th. “Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same.
“Land Use Category” means any of the categories listed in Table 1 of Section D. "Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2022‐3 on such Assessor’s Parcel. “Multifamily Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator.

"Non‐Residential Property" means all Assessor's Parcels of Developed Property for which a Building Permit(s) was issued for a non‐residential use.  The CFD Administrator shall make the determination if an Assessor’s Parcel is Non‐Residential Property.
"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1.
“Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Assessor’s Parcels of Undeveloped Property or Provisional Undeveloped Property, as applicable.
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City of Wildomar
Community Facilities District No. 2022‐3 (Verano)   Page 4 "Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section F.
"Residential Property" means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more Residential Units. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the CFD Administrator.  An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this RMA.
“RMA" means this Rate and Method of Apportionment of Special Taxes. “Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than Multifamily Property.
"Special Tax" or “Special Taxes” means any of the special taxes authorized to be levied within CFD No. 2022‐3 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to replenish any reserve funds established in association with the Bonds (provided that the same amount was not previously levied), (v) an amount up to any anticipated shortfall (based on the prior year’s delinquency rate) due to Special Tax delinquencies and (vi) for the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2022‐3 or the payment of debt service on Bonds anticipated to be issued, provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Steps Two or Three of Section E., less (vii) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to the Indenture. "Taxable Property" means all Assessor’s Parcels within CFD No. 2022‐3, which are not Exempt Property. “Taxable Unit” means either a Residential Unit or an Acre. “Trustee” means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property, or Provisional Undeveloped Property.

B. SPECIAL TAX
Commencing Fiscal Year 2023‐2024 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property, up to the applicable Maximum Special Tax, to fund the Special Tax Requirement.
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City of Wildomar
Community Facilities District No. 2022‐3 (Verano)   Page 5 C.  ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2023‐2024, each Assessor’s Parcel within CFD No. 2022‐3 shall be classified as Taxable Property or Exempt Property.  In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property.

Assessor’s Parcels of Developed Property shall further be classified as Residential Property or Non‐Residential Property.  Each Assessor’s Parcel of Residential Property shall further be classified as a Single Family Residential Property or Multifamily Property.   Each Assessor’s Parcel of Single Family Residential Property shall be further assigned to a Land Use Category based on its Building Square Footage.

In the event that there are Assessor’s Parcel(s) for which one or more Building Permits for Residential Units have been issued and the County has not yet assigned final Assessor’s Parcel Number(s) to such Assessor’s Parcel(s) (in accordance with the Final Map or Condominium Plan), the amount of the Special Tax levy on such Assessor’s Parcel for each Fiscal Year shall be determined as follows: (1) the CFD Administrator shall first determine an amount of the Maximum Special Tax for such Assessor’s Parcel, based on the classification of such Assessor’s Parcel as Undeveloped Property; (2) the amount of the Special Tax for the Residential Units on such Assessor’s Parcel for which Building Permits have been issued shall be determined based on the Developed Property Special Tax rates and such amount shall be levied as Developed Property in accordance with Step 1 of Section E below; and (3) the amount of the Special Tax on the Taxable Property in such Assessor’s Parcel not subject to the Special Tax levy in clause (2) shall be equal to: (A) the percentage of the Maximum Special Tax rate levied on Undeveloped Property pursuant to Step 3 of Section E below, multiplied by the total of the amount determined in clause (1), less (B) the amount determined in clause (2).

D.  MAXIMUM SPECIAL TAX

1. Developed Property
The Maximum Special Tax for each Assessor’s Parcel of Single Family Residential Property in any Fiscal Year shall be the greater of (i) the Assigned Special Tax for such Assessor’s Parcel or (ii) the Backup Special Tax.

The Maximum Special Tax for each Assessor’s Parcel of Multifamily Property and Non‐Residential Property shall be the applicable Assigned Special Tax described in Table 1 of Section D. a.     Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multifamily Property or Non‐Residential Property shall be subject to an Assigned Special Tax.  The Assigned Special Tax for Fiscal Year 2023‐2024 applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 below.
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Community Facilities District No. 2022‐3 (Verano)   Page 6 TABLE 1

ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2023‐2024
Land Use Category
Taxable
Unit Building Square Footage
Assigned
Special Tax Per
Taxable Unit

1. Single Family Residential Property RU Less than 1,500 sq. ft $4,195.00

2. Single Family Residential Property RU 1,500 sq. ft to 1,700 sq. ft $4,254.00

3. Single Family Residential Property RU 1,701 sq. ft to 1,900 sq. ft $4,476.00

4. Single Family Residential Property RU Greater than 1,900 sq. ft $4,678.00

5. Multifamily Property Acre N/A $23,142.00

6. Non‐Residential Property Acre N/A $23,142.00
On each July 1, commencing July 1, 2024, the Assigned Special Tax rate for Developed Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. b.    Multiple Land Use Categories
In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax for each Taxable Unit for all Land Use Categories located on the Assessor’s Parcel.  The CFD Administrator’s allocation to each type of property shall be final. c.    Backup Special Tax
The Backup Special Tax for an Assessor’s Parcel within a Final Map classified as Single Family Residential Property shall be $4,637 per Residential Unit.

Notwithstanding the foregoing, if all or any portion of the applicable Final Maps and/or condominium plan contained within the boundaries of CFD No. 2022‐3 is subsequently changed or modified, then the Backup Special Tax for Single Family Residential Property or Approved Property in such Final Map or condominium plan area that is changed or modified shall be recalculated as follows:

1. Determine the total Backup Special Taxes anticipated to apply to the changed or modified Final Map or condominium plan area prior to the change or modification.

2. The result of paragraph 1 above shall be divided by the total number of Residential Units constructed and/or anticipated to be constructed within such changed or modified Final Map or condominium plan area, as reasonably determined by the CFD Administrator.

The result of paragraph 2 is the Backup Special Tax per Residential Unit which shall be applicable to Assessor’s Parcels of Single Family Residential Property or Approved Property in such changed or modified Final Map or condominium plan area contained within the boundaries of CFD No. 2022‐3.

Notwithstanding the foregoing, the Backup Special Tax for an Assessor’s Parcel of Developed Property for which a certificate of occupancy has been granted may not be revised.

On each July 1, commencing July 1, 2024, the Backup Special Tax rate shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. 511
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2. Approved Property
The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as Single Family Residential Property shall be the Backup Special Tax computed pursuant to Section D.1.c above.

The Maximum Special Tax for each Assessor’s Parcel of Approved Property not expected to be classified as Single Family Residential Property shall be $23,142 per Acre.

On each July 1, commencing July 1, 2024, the Maximum Special Tax rate for Approved Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

3. Undeveloped Property and Provisional Undeveloped Property The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property and Provisional Undeveloped Property shall be $23,142 per Acre.

On each July 1, commencing July 1, 2024, the Maximum Special Tax rate for Undeveloped Property and Provisional Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

E.   METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing Fiscal Year 2023‐2024   and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property in accordance with the following steps:

Step One: (i) Prior to the first issuance of Bonds, the Special Tax shall be levied at 100% of the applicable Assigned Special Tax rates on Developed Property and (ii) subsequent to the first issuance of Bonds, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax rates in Table 1 to satisfy the Special Tax Requirement.

Step Two: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Approved Property at up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax levy on each Assessor's Parcel of Developed Property for which the Maximum Special Tax is the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to 100% of the Backup Special Tax as needed to satisfy the Special Tax Requirement. 512
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Community Facilities District No. 2022‐3 (Verano)   Page 8 Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Provisional Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Assessor’s Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Assessor’s Parcel be increased by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.

F. EXEMPTIONS
The City shall classify as Exempt Property, in the chronological order in which they become exempt, (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses, (vi) Assessor’s Parcels which are classified as Non‐Residential Property or (vii) Assessor’s Parcels restricted to other types of public uses determined by the City Council, provided that no such classification would reduce the sum of all Taxable Property to less than 14.66 Acres.

Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than 14.66 Acres.  Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 14.66 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E.

G. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section G:
“CFD Facilities” means $4,330,000 expressed in 2022 dollars, which shall increase by the Construction Inflation Index on July 1, 2024, and on each July 1 thereafter, or such lower amount (i) determined by the City Council as sufficient to provide the facilities under the authorized bonding program for CFD No. 2022‐3, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to finance additional facilities to be supported by Special Tax levied under this RMA. “Construction Fund” means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are available for expenditure to acquire or construct facilities eligible to be financed by CFD No. 2022‐3.
“Construction Inflation Index” means the greater of (i) 2% and (ii) the annual percentage change in the Engineering News‐Record Building Cost Index for the city of Los Angeles, measured as of the Calendar 513
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Community Facilities District No. 2022‐3 (Verano)   Page 9 Year which ends in the previous Fiscal Year.   In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News‐Record Building Cost Index for the City of Los Angeles. “Future Facilities Costs” means the CFD Facilities minus (i) amounts deposited in the Construction Fund, (ii) amounts deposited in any escrow accounts funded by the Outstanding Bonds and anticipated to fund public facilities costs, and (iii) public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment, but in no event shall such amount be less than zero. “Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax.

1. Prepayment in Full
The Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Approved Property or Undeveloped Property for which a Building Permit has been issued, (iii) Assessor’s Parcels of Approved Property or Undeveloped Property for which a Building Permit has not been issued and (iv) Assessor’s Parcels of Provisional Undeveloped Property.   The Special Tax obligation applicable to an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment.  An owner of an Assessor’s Parcel intending to prepay the Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non‐refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel.

Within 15 days of receipt of such non‐refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel.  Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes.

The Prepayment Amount shall be calculated as follows (some capitalized terms are defined below):

Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:

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

2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which 514
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Community Facilities District No. 2022‐3 (Verano)   Page 10 a Building Permit has been issued, compute the Maximum Special Tax for the Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Assessor’s Parcel.   For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued, or Provisional Undeveloped Property, compute the Maximum Special Tax for the Assessor’s Parcel.

3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Maximum Special Taxes that could be levied assuming build out of all Assessor’s Parcels of Taxable Property based on the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property not including any Assessor’s Parcels for which the Special Tax obligation has been previously prepaid.

4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”).

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

6. Determine the Future Facilities Costs.

7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s Parcel (the “Future Facilities Amount”).

8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from Special Tax prepayments.

9. Determine the Special Taxes levied on the Assessor’s Parcel in the current Fiscal Year which have not yet been paid.

10. Determine the amount the CFD Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount.

11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).

12. Verify the administrative fees and expenses of the CFD, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).

13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the 515
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Community Facilities District No. 2022‐3 (Verano)   Page 11 redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.

14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit.

15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments.  The Future Facilities Amount shall be deposited into the Construction Fund.  The Administrative Fees and Expenses shall be retained by the CFD.

The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds.  In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments.

As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for which the Special Tax obligation is prepaid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Special Tax obligation and the release of the Special Tax lien for the Assessor’s Parcel, and the obligation to pay the Special Tax for such Assessor’s Parcel shall cease.

Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses.

Tenders of Bonds in prepayment of the Special Tax obligation may be accepted upon the terms and conditions established by the City Council pursuant to the Act.  However, the use of Bond tenders shall only be allowed on a case‐by‐case basis as specifically approved by the City Council.

2. Prepayment in Part
The Special Tax obligation for an Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property, or Provisional Undeveloped Property may be partially prepaid. For purposes of determining the Partial Prepayment Amount, the provisions of Section G.1 shall be modified as provided by the following formula:

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

PP = Partial Prepayment Amount
PE = the Prepayment Amount calculated according to Section G.1 F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the 516
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Community Facilities District No. 2022‐3 (Verano)   Page 12 Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section G.1 The owner of an Assessor’s Parcel who desires to partially prepay the Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax obligation, (ii) the percentage of the Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any.  Within 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of the non‐refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Partial Prepayment Amount.   Within 15 business days of receipt of such non‐refundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial Prepayment Amount for the Assessor’s Parcel.   A Partial Prepayment Amount must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment Amount.

With respect to any Assessor’s Parcel for which the Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 15 of Section G.1, and (ii) indicate in the records of the CFD that there has been a partial prepayment for the Assessor’s Parcel and that a portion of the Special Tax obligation equal to the remaining percentage (1.00  ‐ F) of the applicable Special Tax will continue to be levied on the Assessor’s Parcel pursuant to Section E.

H. TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax shall be levied on all Assessor’s Parcels subject to the Special Tax pursuant to Section E.  The Special Tax shall cease not later than the 2064‐2065 Fiscal Year, however, Special Taxes will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all the required interest and principal payments on the CFD No. 2022‐3 Bonds have been paid; (ii) all authorized facilities of CFD No. 2022‐3 have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Special Taxes remain uncollected and (iv) all other obligations of CFD No. 2022‐3 have been satisfied.

I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2022‐3 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.

J.   APPEALS OF SPECIAL TAXES
Any taxpayer may file a written appeal of the Special Taxes levied on his/her Assessor’s Parcel(s) with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes.

During pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made.   The appeal must specify the reasons why the appellant claims the Special Tax is in error.   The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination.  If the CFD Administrator agrees with the appellant, the CFD Administrator shall grant a credit to eliminate 517
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Community Facilities District No. 2022‐3 (Verano)   Page 13 or reduce future Special Taxes on the appellant’s Assessor’s Parcel(s).  No refunds of previously paid Special Taxes shall be made unless approved by the CFD Administrator.

The CFD Administrator shall interpret this RMA and make determinations relative to the annual levy and administration of the Special Taxes and any taxpayer who appeals, as herein specified. 518

APPENDIX B
Boundary Map
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APPENDIX C
Resolution of Intention
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RESOLUTION NO. 2022 - 56

RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY

OF WILDOMAR TO ESTABLISH COMMUNITY FACILITIES DISTRICT
NO. 2022-3 (VERANO) OF THE CITY OF WILDOMAR, TO AUTHORIZE

THE LEVY OF A SPECIAL TAX TO PAY THE COSTS OF ACQUIRING

OR CONSTRUCTING CERTAIN FACILITIES AND TO PAY DEBT

SERVICE ON BONDED INDEBTEDNESS
WHEREAS, the City of Wildomar (the "City") received a petition signed by the owner of more than ten percent of the land within the boundaries of the territory which is proposed for inclusion in a proposed community facilities district, which petition meets the requirements of Sections 53318 and 53319 of the Government Code of the State of California; and
WHEREAS, the City Council of the City (the "City Council") desires to adopt this resolution of intention as provided in Section 53321 of the Government Code of the State of California to establish a community facilities district consisting of the territory described in Attachment "A" hereto and incorporated herein by this reference, which the City Council hereby determines shall be known as "Community Facilities District No. 2022-3 (Verano) of the City of Wildomar" ("Community Facilities District No. 2022-3" or the "District") pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code (the "Act") to finance (1) the purchase, construction, modification, expansion, improvement or rehabilitation of certain real or other tangible property described in Attachment "B" hereto and incorporated herein by this reference, including all furnishings, equipment and supplies related thereto (collectively, the "Facilities"), which Facilities have a useful life of five years or longer, and (2) the incidental expenses to be incurred in connection with financing the Facilities and forming and administering the District (the "Incidental Expenses"); and
WHEREAS, the City Council further intends to approve an estimate of the costs of the Facilities and the Incidental Expenses for Community Facilities District No. 2022- 3; and
WHEREAS, it is the intention of the City Council to consider financing the Facilities and the Incidental Expenses through the formation of Community Facilities District No. 2022-3 and the issuance of bonded indebtedness in an amount not to exceed $7,000,000 with respect to the Facilities and the Incidental Expenses and the levy of a special tax to pay for the Facilities and the Incidental Expenses (the "Special Tax") and to pay debt service on the bonded indebtedness, provided that the bond sale and such Special Tax levy are approved at an election to be held within the boundaries of Community Facilities District No. 2022-3;
WHEREAS, the City desires to enter into a reimbursement agreement with KB Home Coastal Inc. (the "Developer"), the form of which is on file with the City Clerk (the 522
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Stradling Yocca Carlson & Rauth
Draft of 11/21/22
4864-8819-4879v2/200945-0002
COMMUNITY FACILITIES DISTRICT NO. 2022-3 (VERANO)

OF THE CITY OF WILDOMAR

ACQUISITION, CONSTRUCTION AND FUNDING AGREEMENT
THIS ACQUISITION, CONSTRUCTION AND FUNDING AGREEMENT (the “Agreement”) is made and entered into by and between CITY OF WILDOMAR (the “City”), acting for and on behalf of itself and COMMUNITY FACILITIES DISTRICT NO. 2022-3 (VERANO) OF THE CITY OF WILDOMAR (the “Community Facilities District” or “CFD”) and KB HOME COASTAL INC., a California corporation (the “Developer”), each individually a “Party” and collectively the “Parties.” WHEREAS, Developer has requested that the City consider the formation of a community facilities district pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”), and undertake proceedings for the authorization of special taxes and issuance of bonded indebtedness for the payment of the construction and/or acquisition of certain improvements to be owned, operated or maintained by the City, Elsinore Valley Municipal Water District (the “Water District”) and Lake Elsinore Unified School District (the “Lake Elsinore Unified School District”), and incidental expenses in accordance with the Act; and WHEREAS, in order to proceed in a timely way with development of its property within the CFD which is described in the attached Exhibit “A” (the “Developer Property”), Developer desires to fund through the Community Facilities District (i) the City’s acquisition or construction of certain improvements that are to be owned, operated and maintained by the City or are otherwise required to be constructed by the City (“City Improvements”), as more particularly set forth and described in the Description of Cost Estimates attached hereto as Exhibit “B,” (ii) improvements included in the City’s fee programs (the “City Fee Facility Improvements”), as more particularly set forth and described in Exhibit “B,” and (iii) the improvements of the Water District and the Lake Elsinore Unified School District described in Exhibit “C” hereto (the “Miscellaneous Improvements” and together with the City Improvements and the City Fee Facilities Improvements, collectively the “Improvements”); and WHEREAS, the City is authorized by the Act to form the CFD and to issue bonds secured by Special Taxes (as defined in Section 2.2) of the CFD (the “Bonds”) to fund the Improvements; and
WHEREAS, the City Council has adopted the City’s policies and procedures concerning the use of special district financing programs to finance the Improvements (the “Policy”); and WHEREAS, the purpose of this Agreement is to constitute a formal understanding between Developer and the City (pursuant to the requirements of Government Code Section 53313.51 and other provisions of the Act and the Policy) concerning financial and other obligations and responsibilities related to the formation of the Community Facilities District and the Improvements to be financed by the Community Facilities District, when and if formed, to the extent funds are available, and to set forth the conditions upon which (1) the Community Facilities District will reimburse Developer or its designee for the cost of the City Improvements constructed by or on behalf of the Developer and (2) the Community Facilities District will fund the City Fee Facility Improvements thereby satisfying corresponding City fees; and (3) the Community Facilities District will also fund the Miscellaneous Improvements described in Exhibit “C.” NOW, THEREFORE, it is mutually agreed between the respective Parties as follows:
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1. Feasibility Study. The City has retained, at the Developer’s expense, the necessary consultants to analyze the proposed formation of the CFD, including the special tax consultant, bond counsel, and other consultants deemed necessary by the City. The Developer has advanced to the City a sum of money for such costs, all or a part of which may be eligible for reimbursement from the CFD in accordance with the Reimbursement Agreement dated as of November 9, 2022 (the “Reimbursement Agreement”) between the Developer and the City.

2. Sale of Bonds.

2.1 Requirements for the Issuance of Bonds. The total annual amount of the special taxes to be collected with respect to a parcel within the CFD and all other taxes and assessments which will be collected with respect to such parcel must not exceed two percent (2%) of the expected assessed value of such parcel within the Community Facilities District upon the completion of all expected structural improvements to such parcel. Such assessed value may be based on the actual sales price of such parcel to the initial purchaser.

The parties hereby agree that, unless waived by the City, at the time of issuance of the Bonds, the following requirements shall be met: (1) the ratio of the value of all parcels of property for which the Bonds are being issued to the amount of outstanding community facilities district or assessment district bonds attributable to such parcels (the “Value-to-Lien Ratio”) may not be less than four-to-one (4:1) and (2) at least 50% of the proposed residential units within the Community Facilities District shall have been completed and conveyed to individual homeowners. The fair market value of the property within the Community Facilities District for purposes of determining the foregoing ratio will be determined based on the assessed value of the property or the appraised value of the property based on the appraisal made by an appraiser selected by the City with a valuation date within ninety (90) days of the issuance of the Bonds. Subject to satisfaction of the Policy and the requirements of this Agreement, the City shall use its best efforts to issue and sell the Bonds in one or more series in an amount sufficient to fund the Improvements in accordance with the schedule for development of the Developer Property.

2.2 Security for Payment of Special Taxes.
(a) Concurrently with the issuance and sale of each series of the Bonds, the owner of any land within the Community Facilities District which the City has determined, in its sole discretion, to use in the sizing of such series of Bonds (the “Sizing Property”), together with any Sizing Property owned by any affiliate (collectively, an “Account Party”), for which the Maximum Special Taxes for the then-current fiscal year (as defined in the Rate and Method of Apportionment of Special Tax for the Community Facilities District (the “Rate and Method”) and such Special Tax referred to herein as the “Special Tax” or “Special Taxes”), are equal to or exceed 20% of the aggregate Maximum Special Taxes authorized to be levied on the Sizing Property in such fiscal year, shall deliver to the City either (i) a renewable irrevocable instrument of credit from a financial institution (rated “A” or better) and approved by the City, or (ii) cash inlieu thereof (a “Security”). The Security shall be in an amount equal to 200% of the product of the maximum annual debt service on the Bonds proposed to be issued times a fraction the numerator of which is the aggregate Maximum Special Taxes on the Sizing Property in the then current fiscal year applicable to the land owned by the Account Party and the denominator of which is the total Maximum Special Taxes applicable to all of the Sizing Property in such fiscal year (the “Stated Amount”). The Security shall be maintained by the Account Party in each fiscal year until terminated in accordance with Section 2.2(c) below. While the Security is still required the Stated Amount of such Security shall be reduced as set forth in a Certificate of Reduction or Termination (as defined in Section 2.2(c) below).
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The Security shall name the City as a beneficiary and shall provide that the City may draw an amount equal to any delinquencies in payment of semiannual installments of the Special Taxes levied on property owned by the Account Party in the Community Facilities District. The total amount to be drawn under the Security shall not exceed an amount equal to the Special Taxes owed by the Account Party with respect to property within the Community Facilities District that is delinquent at the time the draw is made. The amount drawn on the Security shall be applied in the same manner and for the same purposes as the delinquent Special Taxes would have been applied; provided, however the payment of a draw under the Security will not be deemed to cure the delinquency in payment of the Special Taxes.

If, subsequent to a draw on the Security and prior to the satisfaction of any reimbursements due to the institution providing the Security (the “Security Provider”) pursuant to this Agreement, the City receives payment of all or a portion of the delinquent Special Taxes or the proceeds of a sale of delinquent real property pursuant to foreclosure proceedings (“Delinquency Proceeds”) for a parcel for which the Security has been drawn, the Security Provider (or its designee, which may be the Developer) shall be reimbursed for such draws to the extent of Delinquency Proceeds net of the City’s costs of collection. The Security Provider is intended by the Parties to be a third party beneficiary of this Section 2.2. (b) The Security shall be renewed, or a substitute Security reasonably satisfactory to the City (a “Substitute Security”) provided, not less than thirty (30) calendar days prior to the expiration of the Security or Substitute Security then in effect. If the Account Party provides a Substitute Security to the City, then the City shall return any existing Security on the effective date of the Substitute Security to the Security Provider.

If the Security is not renewed within thirty (30) days prior to its expiration date and the requirements for release or termination of the Security as set forth in Section 2.2(c) below have not then been met, the full amount of the Security may be drawn by the City and deposited in an account established under the Indenture (as hereinafter defined) or in such account established with a financial institution selected by the City. Thereafter, amounts in such account shall be held as security, and if Special Taxes owed by the Account Party with respect to property within the Community Facilities District are not paid prior to delinquency, then such amounts in such account may be applied by the City to pay the delinquent Special Taxes owed by the Account Party with respect to such property on the same terms and conditions applicable hereunder to draws on the Security.

At such time as the Security is renewed, or a Substitute Security is accepted by the City, or the requirement for the Security has been terminated pursuant to this section, the City or its designee, shall release all amounts in the Security account to the Security Provider (or its designee, which may be the Developer) within ten (10) calendar days from the date of renewal or acceptance.
(c) Following the sale or transfer by the Account Party of any property to a person other than the Account Party, or upon the prepayment of the Special Tax obligation for a parcel owned by the Account Party, the Account Party shall notify the Community Facilities District of such event, in writing, and, if requested by the Account Party, the Stated Amount of the Security shall be reduced and be recalculated in accordance with this Section 2.2; provided, however, that any costs associated with the recalculation and reduction shall be borne by the Account Party.

Subject to Section 2.2(d) below, the Stated Amount may be reduced to an amount equal to 200% of the product of the maximum annual debt service on the outstanding Bonds times a fraction the numerator of which is the aggregate Maximum Special Taxes applicable to the Sizing Property 550
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owned by the Account Party and the denominator of which is the total Maximum Special Taxes to all of the Sizing Property as of the date of calculation. The Security shall be terminated when the Account Party has paid all Special Taxes in the current fiscal year and the Sizing Property owned by the Account Party is expected to be responsible for less than 20% of the Maximum Special Taxes in the next fiscal year.

Reduction or termination of a Security shall occur automatically upon submission to the Security Provider by the Fiscal Agent of a “Certificate of Reduction or Termination” upon evaluation of the Certificate of Reduction or Termination by the City. The City shall deliver to the Security Provider such Certificate of Reduction or Termination promptly upon receiving from the Account Party a certification which shall be made under penalty of perjury and which shall indicate (i) the legal description of all Sizing Property owned by the Account Party, and either (ii) a recalculation of the new Stated Amount that the Account Party proposes be applicable to the Security or (iii) if termination of the Security is requested, a statement that one of the requirements set forth in the preceding paragraph for termination of the Security has been satisfied.

The Account Party shall notify the City of any events that will result in a reduction of the Stated Amount of the Security and shall provide the City with verification of said events. The Account Party may provide the City with a Substitute Security in the reduced amount, and the Fiscal Agent shall release and return to the Security Provider the Security then in effect. The Parties expressly acknowledge that the Account Party’s failure to so notify the City or to reduce the Security at the times prescribed herein shall in no way effect or invalidate sale or transfer of property, or recordation of maps on property.
(d) If the Sizing Property is sold or transferred by an Account Party with the result that the Sizing Property owned by the transferee or any of its affiliates (“Transferee”) is responsible for 20% or more of the aggregate Maximum Special Taxes of all Sizing Property, a Security on the same terms specified in Section 2.2(a) above will be furnished by Transferee with respect to all land owned by such Transferee with respect to the Sizing Property. Any applicable purchase and sale agreement and/or escrow instructions shall notify the Transferee of this Security requirement and obligate the Transferee to provide such Security, if applicable. The Security of the Account Party will not be reduced to reflect the sale or transfer of such Sizing Property until a Security is furnished by the Transferee and accepted by the City. The issuing financial institution and the form and terms of said Security will be subject to reasonable prior approval by the City. All terms provided in this Section 2.2 are applicable to the Transferee by replacing the term “Account Party” at each place where it occurs in each section with the term “Transferee.” Each provider of a Security for a Transferee shall be an express third party beneficiary of the provisions of this Section 2.2. Any costs related to the holding or maintaining the Security, including any fees of a fiscal agent, trustee or other depository shall be borne by the Account Party.

2.3 Major Landowner Initial and Continuing Disclosure. An owner of land which is responsible for twenty percent (20%) or more of the Special Tax in the fiscal year in which the Bonds are issued or in the fiscal year following the fiscal year in which the Bonds are issued (a “Major Landowner”) will be required to provide all information regarding the development of its property, including the financing plan for such development, which is necessary to ensure that the official statement for such Bonds complies with the requirements of Rule 15c2-12 of the Securities and Exchange Commission (the “Rule”) and all other applicable federal and state securities laws. Additionally, Developer acknowledges that, if it is a Major Landowner at the time of issuance of the Bonds, it will be necessary that Developer enter into a continuing disclosure agreement to provide such continuing disclosure pertaining to the development of the land owned 551
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by Developer within the Community Facilities District as necessary to assist the underwriter in complying with the continuing disclosure requirements of the Rule and/or to assist in the marketing of the Bonds.

2.4 Bond Issuance Parameters. The terms and conditions upon which each series of the Bonds shall be issued and sold, the method of sale of the Bonds and the pricing of the Bonds shall be determined solely by the City in its reasonable discretion in conformance with the requirements of Government Code Section 53313.5, the Act, the Policy, and this Agreement.

The Bonds shall be issued with a term not to exceed 35 years and annual debt service on the Bonds shall be permitted to escalate by two percent (2%) per year consistent with the annual escalation of the Special Tax pursuant to the Rate and Method. The proceeds of the Bonds shall be used in the following priority to (1) fund a reserve fund for the payment of principal and interest with respect to the Bonds in an amount equal to the least of (i) ten percent (10%) of the total bond issue, (ii) maximum annual debt service on Bonds, or (iii) 125% of average annual debt service; (2) fund up to eighteen (18) months of capitalized interest, or such lesser amount requested by the Developer; (3) pay for costs of issuance of the Bonds including, without limitation, underwriter’s discount, bond counsel and disclosure counsel fees, appraisal and special tax consultant fees, printing, and fiscal agent fees; (4) pay for the costs of forming the Community Facilities District and any change proceedings for the Community Facilities District; and (5) pay for the actual costs of the Improvements. The Community Facilities District shall maintain records relating to the disbursements of proceeds of the sale of the Bonds. The Indenture or Resolution or Fiscal Agent Agreement (hereinafter “Indenture”) for the Bonds shall establish an acquisition and construction fund or improvement fund (herein, the “Improvement Fund”) to be held by the fiscal agent (“Fiscal Agent”) into which shall be deposited initially the proceeds of the Bonds net of the amount of proceeds required to fund items (1) through (4) in the second preceding sentence. The Indenture shall also establish separate accounts of the Improvement Fund designated the “City Improvements Account,” “City Fee Facility Improvements Account,” and any Miscellaneous Improvement Account(s) for the Miscellaneous Improvements described in Exhibit “C,” into which shall be deposited such portions of the Improvement Fund as agreed by the Parties and directed by the City in writing at or subsequent to the closing of the sale of the Bonds consistent with the following priorities:
(a) An amount sufficient to fund the reasonable, current estimated cost of the City Fee Facility Improvements anticipated to be funded out of the Bonds being issued shall be deposited in the City Fee Facility Improvements Account (any Special Taxes levied in the CFD and collected by the CFD remaining after the payment of administrative expenses of the CFD and the reimbursement of the Developer for CFD formation costs pursuant to Section 1 hereof shall be deposited into the City Fee Facility Improvements Account at the time of Bond issuance, unless otherwise directed in writing by the Developer);
(b) If applicable, an amount to be agreed upon between Developer and the CFD prior to the issuance of Bonds sufficient to fund the reasonable, current estimated costs of the City Improvements shall be deposited, or later transferred, to the City Improvements Account; and
(c) If applicable, an amount to be agreed upon between Developer and the CFD prior to the issuance of Bonds sufficient to fund the reasonable, current estimated cost of the Miscellaneous Improvements described in Exhibit “C” hereto, anticipated to be funded out of the Bonds being issued shall be deposited, or later transferred, to the applicable Miscellaneous Improvement Account(s).
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Interest earned on moneys deposited in each of the City Fee Facility Improvements Account, the City Improvements Account and the Miscellaneous Improvement Account(s) shall remain in such accounts until such time as all of the Improvements have been funded.

Additionally, the Developer may direct the CFD to transfer excess moneys in any of the City Fee Facility Improvements Account, the City Improvements Account or the Miscellaneous Improvement Account(s) to another Account. The Indenture shall provide that amounts remaining in the Improvement Fund after funding all proposed Improvements (such completion of funding to be agreed by the City and the Developer) shall be deposited in the special tax fund or bond service fund and be applied to pay debt service on the Bonds and/or to call Bonds in advance of maturity.

3. Allocation of Special Taxes. Prior to the issuance of Bonds, the City Council of the City, acting as the legislative body of the Community Facilities District, shall levy Special Taxes at the assigned special tax rate on all parcels classified as Developed Property pursuant to the Rate and Method. Such Special Taxes collected by the City shall first be applied to fund annual administrative expenses of the Community Facilities District and then to fund Improvements in the same manner as the proceeds of Bonds as set forth herein, provided, however, that the use of the Special Taxes to fund any Miscellaneous Improvements shall be at the City’s sole discretion. Prior to the issuance of Bonds, such Special Taxes collected by the City each fiscal year in excess of that required to fund annual administrative expenses of the Community Facilities District shall be deposited in a special fund of the City, which shall also be referred to as the City Improvements Account. Upon the issuance of the Bonds, such City Improvements Account shall be closed and all funds then remaining in it shall be transferred to the City Improvements Account of the Improvement Fund that is established with the issuance of the Bonds prior to the deposit of Bond proceeds.

Upon sale and delivery of the Bonds, the City shall annually levy the Special Tax as provided for in documents pursuant to which the Bonds were issued. Following the issuance of the Bonds, the City shall have no obligation to levy Special Taxes to reimburse the Developer for the costs of any Improvements not paid for from Bond proceeds or out of the Improvement Fund.

The entire amount of any Special Tax levied by the Community Facilities District to repay the Bonds and recover costs and expenses allowable pursuant to Government Code Section 53313.5, shall be allocated to the Community Facilities District.

4. Notice of Special Tax. Developer shall provide written notice to all potential initial purchasers of lots advising of the special tax obligation applicable to the Developer Property in the form required by Section 53341.5 of the Government Code.

5. Design Plans and Specifications. The requirements of this Section shall not apply to any City Improvement that was complete (as determined by the City Council) prior to the adoption by the City Council of the resolution forming the CFD, but they shall apply to all other City Improvements. All plans, specifications and bid documents for the City Improvements (“Plans”) constructed or to be constructed by the Developer shall be prepared by the Developer at the Developer’s initial expense, subject to approval by the applicable public agency. Costs for preparation of the Plans will be eligible for reimbursement, conditioned upon the final approval of the applicable public agency and the availability of funds. Reimbursement of costs for plan revisions will be considered on a case by case basis. All facilities which were not complete prior to the formation of the District, as determined by the City, shall be bid in accordance with “public works” requirements of Section 7 to be eligible for reimbursement.

6. Construction of Improvements. The requirements of this Section shall not apply to any City Improvement that was complete (as determined by the City Council) prior to the 553
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adoption by the City Council of the resolution forming the CFD, but they shall apply to all other City Improvements.

6.1 Acquisition of City Improvements. Upon the approval of Plans for a City Improvement, the Developer will provide for construction of such City Improvement in accordance with Sections 6.2 and 7 of this Agreement. Sections 6.2 and 7 specify the requirements for construction of the City Improvements that the City believes are necessary to ensure that such City Improvements are constructed as if they had been constructed under the direction and supervision, or under the authority of the City.

6.2 Acquisition. With respect to City Improvements, a qualified engineering firm (the “Field Engineer”) shall be employed by the Developer to provide all field engineering surveys determined to be necessary by the City’s inspection personnel. Field Engineer shall promptly furnish to City a complete set of grade sheets listing all locations, offsets, etc., in accordance with good engineering practices, and attendant data and reports resulting from Field Engineer’s engineering surveys and/or proposed facility design changes. City shall have the right, but not the obligation, to review, evaluate and analyze whether such results comply with applicable specifications.

As necessary as determined by City, a full-time soil-testing firm, approved by City, shall be employed by the Developer to conduct soil compaction testing and certification. The Developer shall promptly furnish results of all such compaction testing to the City for its review, evaluation and decision as to compliance with applicable specifications. In the event the compaction is not in compliance with applicable specifications, the Developer shall be fully liable and responsible for the costs of achieving compliance. A final report certifying all required compaction in accordance with the specifications shall be a condition of final approval of facilities.

The costs of all surveying, testing and reports associated with the City Improvements furnished and constructed by the Developer’s contractor(s) shall be eligible to be paid from funds in the City Improvements Account.

The City shall not be responsible for conducting any environmental, archaeological, biological, or cultural studies or any mitigation requirements that may be requested by appropriate Federal, State, and/or local agencies. Any such work shall be paid for and conducted by the Developer and reimbursed out of the City Improvements Account.

Should the Developer notify the City that the Developer is unable to complete such City Improvement, the City shall have the right but not the obligation to require the Developer to make an irrevocable offer of dedication to the City of the land owned by the Developer for the City Improvement identified in the notice and to assume responsibility for the work to be performed thereunder. In the event the City elects to assume the responsibility for any work on a previously awarded contract as described in the preceding sentence, the following will occur: (i) the Developer will make an irrevocable offer of dedication to the City of the land owned by the Developer for such City Improvement identified in the notice; (ii) to the extent permitted by law and the applicable contract, the Developer will assign all of the contracts for the work performed to date on the City Improvement identified in the notice to the City, if requested to do so by the City Manager; the City will use its best efforts to complete the City Improvement within a reasonable time frame; and upon completion of the City Improvement, to the extent there are Special Taxes or proceeds of the Bonds available following payment to the City for the costs of completing such City Improvement, the Developer will be reimbursed for the lesser of the cost or value of the previously unreimbursed satisfactory work performed or paid for by the Developer. 554
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The cost of such work will be determined by taking the unreimbursed amounts expended by the Developer under the contract(s) taken over by the City and deducting any incremental cost incurred by the City to complete the work under the contracts in question. Incremental cost shall be costs in excess of the sum of the original contract cost plus change orders approved by the City.

7. Public Works Requirements.

7.1 City Requirements. In order that the City Improvements may be properly and readily acquired by the City, the Developer shall comply with all of the requirements in this Section 7.1 with respect to any such City Improvements to be acquired with funds in the City Improvements Account and the Developer shall provide such proof to the City as the City may reasonably require and at such intervals and in such form as the City may reasonably require, that the requirements under this Section 7.1 have been satisfied as to all such City Improvements.

Notwithstanding the foregoing, City Improvements shall only be eligible for financing by the CFD if the City determines that the conditions under Section 53313.5 have been satisfied with respect to such City Improvements.
(a) The Developer shall prepare a bid package for review, comment and approval by the City Manager or his designee (the “City Representative”) for any City Improvements bid after the effective date of this Agreement. (b) For any City Improvements bid after the effective date of this Agreement, the Developer shall, after obtaining sealed bids for the construction of the City Improvements in conformance with the procedures and requirements of the City, submit to the City written evidence of such competitive bidding procedure, including evidence of the means by which bids were solicited, a listing of all responsive bids and their amounts, and the name or names of the contractor or contractors to whom the Developer proposes to award the contracts for such construction, which shall be the lowest responsible bidder. (c) For any City Improvements bid after the effective date of this Agreement, the following provisions apply: the City Representative shall attend the bid opening for such City Improvements. If unable to attend the bid opening, the City Representative shall approve or disapprove of a contractor or contractors, in writing, within five (5) business days after receipt from the Developer of the name or names of such contractor or contractors recommended by the Developer. If the City Representative disapproves of any such contractor, the Developer shall select the next lowest responsible bidder from the competitive bids received who is acceptable to the City Representative.
(d) The specifications and bid and contract documents shall require all such contractors to pay prevailing wages and to otherwise comply with applicable provisions of the Labor Code, the Government Code and the Public Contract Code relating to public works projects and as required by the procedures and standards of the City with respect to the construction of its public works projects.
(e) The Developer shall submit faithful performance and payment bonds in form and substance reasonably acceptable to the City with respect to the City Improvements. (f) The Developer and its contractor and subcontractors shall be required to provide proof of insurance coverage throughout the term of the construction of the City 555
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Improvements, which they will construct in conformance with the City’s standard procedures and requirements. The City’s insurance requirements are set out in Section 20 herein. (g) The Developer and all such contractors shall comply with such other requirements relating to the construction of the City Improvements which the City may impose by written notification delivered to the Developer and each such contractor at the time either prior to the receipt of bids by the Developer for the construction of such City Improvements or, to the extent required as a result of changes in applicable laws, during the progress of construction thereof; provided that such other requirements shall only be imposed to the extent the City reasonably determines they are required in order to comply with applicable law. In accordance with Section 7, the Developer shall be deemed the awarding body and shall be solely responsible for compliance and enforcement of the provisions of the Labor Code, Government Code, and Public Contract Code.
(h) A “Change Order” is an order from the Developer to a contractor authorizing a change in the work to be performed and a “Significant Change Order” is an order from the Developer to a contractor authorizing a change in the work to be performed where such Change Order is larger than 10% of the contract amount for such City Improvement. After the effective date of this Agreement, the Developer shall receive comments from the City Representative prior to the Developer’s approval of any Significant Change Order. The City Representative shall comment on or deny the Significant Change Order request within fifteen (15) business days of receipt of all necessary information. The City’s comments to a Significant Change Order shall not be unreasonably delayed, conditioned or withheld. The Developer shall not be entitled to be compensated for costs associated with a Significant Change Order that has not been approved by the City Representative.

Developer shall provide proof to the City, at such intervals and in such form as the City may reasonably require, that the foregoing requirements have been satisfied as to all of the City Improvements which are funded through Bond proceeds.

8. Inspection; Completion of Construction. The requirements of this Section shall not apply to any City Improvement that was complete (as determined by the City Council) prior to the adoption by the City Council of the resolution forming the CFD, but they shall apply to all other City Improvements.

The City shall have primary responsibility for inspecting the City Improvements to assure that the work is being accomplished in accordance with the Plans. Such inspection does not include inspection for compliance with safety requirements by the Developer’s contractor(s). The City’s personnel shall be granted access to each construction site at all reasonable times for the purpose of accomplishing such inspection. Upon satisfaction of the City’s inspectors, the Developer shall notify the City in writing that a City Improvement has been completed in accordance with the Plans. Any actual costs reasonably incurred by the City for inspection not previously paid by the Developer shall be reimbursed from funds in the City Improvements Account.

Within three (3) business days of receipt of written notification from City inspectors that a City Improvement has been completed in accordance with the Plans, the City Representative shall notify the Developer in writing that such City Improvement has been satisfactorily completed.

Upon receiving such notification, the Developer shall file a Notice of Completion with the County of Riverside Recorders Office, pursuant to the provisions of Section 3093 of the Civil Code. The Developer shall furnish to the City a duplicate copy of each such Notice of Completion showing 556
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thereon the date of filing with the County of Riverside (the “County”). City will in turn file a notice with the County for acceptance.

9. Liens. With respect to any City Improvement that was complete (as determined by the City Council) prior to the adoption by the City Council of the resolution forming the CFD, prior to any payment by the CFD to the Developer for such City Improvement, the Developer shall provide to the City such evidence or proof as the City shall require that all persons, firms and corporations supplying work, labor, materials, supplies and equipment for the construction of the City Improvements have been paid, and that no claims of liens have been recorded by or on behalf of any such person, firm or corporation. With respect to City Improvements, upon the earlier of (i) receipt of all applicable lien releases, or (ii) expiration of the time for the recording of claim of liens as prescribed by Sections 3115 and 3116 of the Civil Code the Developer shall provide to the City such evidence or proof as the City shall require that all persons, firms and corporations supplying work, labor, materials, supplies and equipment for the construction of the City Improvements have been paid, and that no claims of liens have been recorded by or on behalf of any such person, firm or corporation.

10. Acquisition; Acquisition Price; Source of Funds. The acquisition price of a City Improvement that was complete (as determined by the City Council) prior to the adoption by the City Council of the resolution forming the CFD shall be its fair market value, as determined by the City Manager or his or her designee, as of the date of acquisition. The City shall consider input and data provided by the Developer prior to determining the final fair market value. The Actual Cost (as defined below) of the City Improvement shall be presumed to be its fair market value unless there is reasonable evidence that a lower amount is the fair market value.

The costs eligible to be included in the acquisition price of a City Improvement that is not described in the preceding paragraph (the “Actual Costs”) shall include:
(i) The actual hard costs for the construction of such City Improvement as established by the City-approved construction contracts, Change Orders, and approved Significant Change Orders, including costs of payment, performance and maintenance bonds and insurance costs, pursuant to this Agreement;
(ii) The design and engineering costs of such City Improvement including, without limitation, the costs incurred in preparing the Plans; (iii) The costs of environmental evaluations and public agency permits and approvals attributable to the City Improvement;
(iv) Costs incurred by the Developer for construction management and supervision of such City Improvement, not to exceed five percent (5%) of the actual construction cost;
(v) Professional costs associated with the City Improvement such as engineering, inspection, construction staking, materials, testing and similar professional services; and
(vi) Costs approved by the City in accordance with the Act of acquiring any real property or interests therein required for the City Improvement including, without limitation, temporary construction easements, temporary by-pass road and maintenance easements.
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Provided the Developer has complied with the requirements of this Agreement, the City agrees to pay the acquisition price of a completed City Improvement to the Developer or its designee within thirty (30) days after the Developer’s satisfaction of the preconditions to such payment stated herein, but only to the extent there are sufficient funds available in the City Improvements Account. Except in the case of a City Improvement described in the first paragraph of this Section, the acquisition price to be paid from Bond proceeds for the acquisition of a City Improvement by the City shall be the least of (1) the value of the City Improvement; or (2) the total of the Actual Costs of the City Improvement (“Acquisition Price”). The Actual Cost of the City Improvement shall be presumed to be its Acquisition Price unless there is reasonable evidence that a lower amount is the actual value.

As a condition to the payment of the Acquisition Price, the ownership of the completed City Improvement shall be transferred to the City by grant deed, bill of sale or such other documentation as such public agency may require free and clear of all taxes, liens, encumbrances, and assessments, but subject to any exceptions determined by the City to not interfere with the actual or intended use of the land or interest therein (including the lien of a community facilities district so long as the subject property is exempt from taxation or is otherwise not taxable by such community facilities district). Upon the transfer of ownership of City Improvements or any portion thereof to the City, the City shall be responsible for the maintenance of such City Improvements or the portion transferred. Notwithstanding the foregoing, the Acquisition Price of a City Improvement may be paid prior to transfer of ownership and acceptance of the City Improvement if it is substantially completed at the time of payment. The City Improvement shall be considered “substantially complete” when it has been reasonably determined by the City to be usable, subject to final completion of such items as the final lift or any other items not essential to the primary use or operation of the City Improvement.

For purposes of determining the Acquisition Price to be paid by the Community Facilities District for the acquisition of the City Improvements by the City (other than City Improvements described in the first paragraph of this Section), the value of such City Improvements shall include the construction costs specified in the City-approved contracts (subject to the next sentence), Change Orders, and City-approved Significant Change Orders conforming to Section 6, as hereinbefore specified. City approval is a condition prior to initiation of contract work for City Improvements bid after the effective date of this Agreement. However, if the City reasonably determines that the additional Actual Costs are excessive and that the value of the City Improvements is less than the total amount of such Actual Costs and such construction costs, the price to be paid for the acquisition of the City Improvements shall be the value thereof as determined by the Engineer, subject, however, to the Developer’s right to appeal to the City Council.

Upon completion of the construction of a City Improvement, the Developer shall deliver or cause to be delivered to the City a Disbursement Request Form in substantially the form of Exhibit “D,” attached hereto, copies of the contract(s) with the contractor(s) who have constructed the City Improvement and other relevant documentation with regard to the payments made to such contractor(s) and each of them for the construction of the City Improvement, documentation evidencing payment of prevailing wages, and shall also provide to the City invoices and purchase orders with respect to all equipment, materials and labor purchased for the construction of the City Improvements. The City shall require the Engineer to complete its determination of the value of the City Improvements as promptly as is reasonably possible.

Notwithstanding the preceding provisions of this Section, the source of funds for the acquisition of the City Improvements or any portion thereof shall be funds in the City 558
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Improvements Account. If for any reason beyond the City’s control the Bonds are not sold, the City shall not be required to acquire the City Improvements from the Developer, except to the extent of funds from the collection of Special Taxes. In such event, the Developer shall complete the design and construction and offer to the City ownership of such portions of the City Improvements as are required to be constructed by the Developer as a condition to recordation of subdivision maps for the Developer Property (but only at such times as required by such condition), but need not construct any portion of the City Improvements which it is not so required to construct. Reimbursement for these facilities would be made from the collection of Special Taxes over time.

In addition to the foregoing, the City shall have the right to withhold payment for acquisition of a City Improvement, if:
(a) the Developer or any of its affiliates is delinquent in the payment of any Special Taxes levied by the Community Facilities District on properties then owned by the Developer or any of its affiliates within the CFD, or
(b) the Developer is not then in substantial compliance with a condition or obligation imposed upon the Developer Property by the City, including but not limited to, payment of all applicable fees, dedication of all applicable rights-of-way or other property and construction requirements.

The City shall immediately provide written notice to the Developer of the decision to withhold any such payment and shall specify the reason for such decision. If the payment is withheld as a result of the delinquency in the payment of Special Taxes, the notice shall identify the delinquent parcels and the amount of such delinquency. If the payment is withheld as a result of substantial non-compliance with a condition or obligation, the notice shall specify such condition or obligation and what action will be necessary by the Developer to substantially comply with such condition or obligation. Upon receipt of evidence reasonably satisfactory to the City that the Developer has paid the delinquent Special Taxes or complied with the subject condition or obligation, the City shall forthwith make all payments which have been withheld pursuant to the provisions of this Section.

11. Easements and/or Fee Title Ownership Deeds. Without limiting the Developer’s rights to reimbursement for such grants pursuant to Section 10 above, the Developer shall, at the time the City acquires the City Improvements as provided in Section 10 hereof, grant or cause to be granted to the City, by appropriate instruments prescribed by the City, all easements across private property and/or fee title ownership deeds which may be reasonably necessary for the proper operation and maintenance of such City Improvements, or any part thereof, but only to the extent located within the Developer Property.

12. Permits. The Developer shall be responsible for obtaining all necessary construction permits from the City and/or the County (as appropriate) covering construction and installation of the City Improvement.

13. Maintenance. Prior to the transfer of ownership of a City Improvement by the Developer to the City, as provided in Section 10 hereof, the Developer shall be responsible for the maintenance thereof and shall require its contractor(s) to repair all facilities damaged by any party other than the City, prior to acceptance by the City and/or make corrections determined to be necessary by the City’s inspection personnel. The City shall not be permitted to place any City 559
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Improvement in service prior to acceptance of the same, unless the Developer otherwise consents in writing.

14. Inspection of Records. The City shall have the right to review all books and records of the Developer pertaining to the costs and expenses incurred by the Developer for the design and construction of the City Improvements during normal business hours by making arrangements with the Developer. The Developer shall have the right to review all books and records of the City pertaining to costs and expenses incurred by the City for services of the Engineer by making arrangements with the City.

15. Ownership of Improvements. Notwithstanding the fact that some or all of the City Improvements may be constructed in dedicated street rights-of-way or on property which has been or will be dedicated to the City, each City Improvement shall be and remain the property of the Developer until acquired by the City as provided in this Agreement.

16. Materials and Workmanship Warranty. The requirements of this Section shall not apply to any City Improvement that was complete (as determined by the City Council) prior to the adoption by the City Council of the resolution forming the CFD, but they shall apply to all other City Improvements.

Upon the completion of the acquisition of a City Improvement by the City, the performance bond related to such individual City Improvement provided by the Developer pursuant to Section 7.1(e) hereof, shall be reduced by 90%, and the remaining 10% shall serve as a maintenance bond to guarantee that such City Improvement will be free from defects due to faulty workmanship or materials for a period of one year.

17. City Fee Facility Improvements. The Developer may be required pursuant to the conditions of development or the fee ordinance to pay certain City fees (the “City Fees”) relating to the City Fee Facility Improvements prior to the availability of proceeds of the Bonds to pay for such City Fee Facility Improvements. In the event such City Fees are paid prior to the availability of Bond proceeds, the amounts paid to the City shall be deemed to be deposits (each a “Deposit”) that are subject to refund by the City to the Developer in accordance with this Agreement. The City shall place each Deposit in a capital facilities account(s). If the Developer has made any Deposits to the City, then following deposit of Bond proceeds in the City Fee Facility Improvements Account, the City shall return to the Developer, from the capital account in which the Deposits were deposited the Deposits not previously returned, without interest or other earnings thereon. The City shall be so obligated to return such Deposits only to the extent that an equivalent amount of the Deposits to be returned is deposited in the City Fee Facility Improvements Account from Bond proceeds or Special Tax collections prior to the issuance of Bonds.

Bond proceeds used to finance City Fee Facility Improvements which relate to the City Fees shall be allocated first for return of all Deposits prior to being allocated to the payment of City Fees not previously deposited by the Developer. Any Deposits that have not been returned to the Developer at the time it is determined that there will be no further Bond proceeds available (i.e. the final series of Bonds to finance the Improvements have been issued) shall be retained by the City and may be used for the purposes for which the City Fee was required, and the unrefunded Deposits shall constitute full and final payment for such City Fees, without any increase of any kind.
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18. Miscellaneous Improvements. Improvements unrelated to the City Improvements and the City Fee Facility Improvements are described in Exhibit “C” attached hereto. The amounts deposited in the applicable Miscellaneous Improvement Account(s), if any, will be disbursed for the acquisition or construction of Miscellaneous Improvements in accordance with the provisions in the applicable Joint Community Facilities Agreement. Any amounts in the applicable Miscellaneous Improvement Account(s) shall be disbursed at the written direction of the City upon Developer’s submittal of a payment request which will be based upon applicable entity’s payment request form as provided for in the applicable Joint Community Facilities Agreement. Upon receipt of such payment request, the City shall submit a written requisition for payment of the requested amount to the Fiscal Agent for the Bonds, who shall directly pay the amount requested to the applicable entity.

19. Independent Contractor. In performing this Agreement, Developer is an independent contractor and not the agent of the City. The City shall not have any responsibility for payment to any contractor or supplier of Developer. It is not intended by the Parties that this Agreement create a partnership or joint venture among them and this Agreement shall not otherwise be construed.

20. Indemnification. Developer shall assume the defense of, indemnify and save harmless, the City, its officers, employees and agents, and the Community Facilities District, its officers, employees and agents, from and against all actions, damages, claims, losses or expenses of every type and description to which they may be subject or put, by reason of, or resulting from such person’s or entity’s performance of its obligations under this Agreement and the construction of the City Improvements and the Miscellaneous Improvements, the failure of the Developer to provide notice of the Special Tax to be levied by the Community Facilities District pursuant to Section 53341.5 of the Act (but only if the Developer is required by law to provide such notice), or arising out of any alleged misstatements of fact or alleged omission of a material fact made by the Developer, its officers, directors, employees or agents to the City, the Community Facilities District, the underwriter of the Bonds and its counsel, the appraiser, the special tax consultant, the market absorption consultant or bond counsel regarding the Developer, its proposed developments, its property ownership, and any contractual arrangement it may enter into in a disclosure document describing the Community Facilities District and the risks relating to the Bonds. No provision of this Agreement shall in any way limit the extent of Developer’s responsibility for payment of damages resulting from the operations of Developer and its contractors; provided, however that Developer shall not be required to assume the defense or indemnify and save harmless any person or entity as to actions, damages, claims, losses or expenses resulting from the breach of this Agreement, the willful misconduct of such person or entity or their officers, agents, consultants or employees.

21. Insurance Requirements. For City Improvements bid after the effective date of this Agreement, neither the Developer nor its contractor shall commence work on such City Improvement under this Agreement prior to obtaining insurance with a company or companies acceptable to the City, nor shall the Developer’s contractor allow any subcontractor to commence work on its subcontract until all insurance required of the subcontractor has been obtained.

The Developer shall during the life of this Agreement, notify the City in writing of any incident giving rise to any potential bodily injury or property damage claim and any resultant settlements, whether in conjunction with this or any other project which may affect the limits of the required coverage, as soon as is reasonable and practical. 561
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22. Conflict With Other Agreements. Except as specifically provided herein, nothing contained herein shall be construed as releasing Developer from any condition of development or requirement imposed by any other agreement with City. In the event of a conflicting provision, such other agreement shall prevail unless such conflicting provision is specifically waived or modified in writing by City.

23. Notices. Any notice, payment or instrument required or permitted by this Agreement to be given or delivered to either Party shall be deemed to have been received when personally delivered or seventy-two (72) hours following deposit of the same in any United States Post Office in California, registered or certified, postage prepaid. Any notice to the Community Facilities District or the City shall be addressed to City of Wildomar, 23873 Clinton Keith Rd., Suite 201 Wildomar, CA 92595, Attention: City Manager. Any notice to Developer shall be addressed to KB Home Coastal Inc., 36310 Inland Valley Drive, Wildomar, California 92595, Attention: Scott Hansen. Each Party may change its address for delivery of notice by delivering written notice of such change of address to the other Party hereto.

24. No Gift or Waiver.

24.1 No Gift or Waiver for City Improvements. The Developer and the City acknowledge that:
(a) The Developer or its predecessor may have constructed or may be constructing City Improvements before funds that will be used to acquire them are available with the expectation that the Developer will be reimbursed for such City Improvements to the extent and in the manner set forth in this Agreement.
(b) The City may inspect City Improvements and process Disbursement Request Forms even if funds from the proceeds of Bonds available at the time of such inspection and processing do not exist or are not then sufficient to satisfy the Disbursement Request in full. (c) The Developer may convey City Improvements to the City and the City may accept such City Improvements even if funds from the proceeds of Bonds available at the time of such conveyance and acceptance do not exist or are not then sufficient to satisfy the Disbursement Request in full.
(d) If the City accepts City Improvements before a Disbursement Request is paid in full, the unpaid balance of the Disbursement Request will be paid from time to time, in any number of installments and irrespective of the length of time payment is deferred, as funds from the proceeds of Bonds become available.
(e) The Developer’s conveyance or dedication of City Improvements to the City before the availability of funds from the proceeds of Bonds to acquire the City Improvements is not and shall not be deemed, a gift or a waiver of the Developer’s right to payment of the purchase price of such City Improvements pursuant to this Agreement.

24.2 No Gift or Waiver for City Fees. The Developer and the City acknowledge that:
(a) Prior to the availability of funds from the proceeds of Bonds, the Developer or its predecessor may have been or may be required to deposit funds to assure payment of applicable City Fees of the City.
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(b) The Developer or its predecessor has deposited or will be depositing such funds with the expectation that the Developer will be reimbursed for these Deposits to the extent and in the manner set forth in this Agreement.
(c) The reimbursement of such Deposits pursuant to Section 17 of this Agreement may occur from time to time, in any number of installments and irrespective of the length of time payment is deferred, as funds become available. (d) The Developer’s deposit of such funds to the City before the availability of funds to reimburse the Developer is not, and shall not be deemed, a gift or a waiver of the Developer’s right to reimbursement of such Deposits pursuant to this Agreement.

25. General Provisions.
(a) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the City and the Developer and their respective heirs, executors, legal representatives, successors, and authorized assigns.
(b) Amendment. This Agreement may be amended at any time but only in writing signed by each Party hereto.
(c) Entire Agreement. This Agreement, and the agreements referenced herein, contains the entire understanding and agreement between the Parties with respect to the matters provided for herein and supersedes all prior agreements and negotiations between the Parties with respect to the subject matter of this Agreement. There are no oral or written representations, understanding, undertakings or agreements which are not contained or expressly referred to herein, and any such representations, understandings or agreements are superseded by this Agreement. Failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Parties hereto, or the failure by a Party to exercise its rights upon the default of another Party, shall not constitute a waiver of such Party’s right to insist and demand strict compliance by such other Parties with the terms of this Agreement thereafter. This Agreement shall be binding upon, and enforceable by and against the Community Facilities District upon the establishment of the Community Facilities District. (d) Exhibits. All exhibits attached hereto are incorporated into this Agreement by reference.
(e) Severability. If any part of this Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent reasonably possible.
(f) Waiver. Failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Parties hereto, or the failure by a Party to exercise its rights upon the default of another Party, shall not constitute a waiver of such Party’s right to insist and demand strict compliance by such other Parties with the terms of this Agreement thereafter.
(g) No Third Party Beneficiaries. Except as provided explicitly in this Agreement, no person or entity shall be deemed to be a third party beneficiary hereof, and nothing in this Agreement (either express or implied) is intended to confer upon any person or entity, other than the City, the Community Facilities District, the Developer, and the Security Provider (and 563
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their respective successors and assigns), any rights, remedies, obligations or liabilities under or by reason of this Agreement.
(h) Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute but one instrument. (i) Assignment. Developer may assign all or any of its rights pursuant to this Agreement to a purchaser of all or any portion of the Developer Property. Such a purchaser and assignee shall, as a condition to taking an assignment of such rights, enter into an assignment and assumption agreement with the City and Developer, in a form reasonably acceptable to Developer and the City, whereby such rights assigned are specified and such purchaser agrees, except as may be otherwise specifically provided therein, to assume the obligations of Developer pursuant to this Agreement and to be bound thereby. A company that acquires all of the assets of the Developer, including ownership of the Developer itself, shall be deemed a successor and shall not require an assignment or assumption agreement to be bound by, and enjoy the benefits of, this Agreement.
(j) Governing Law. This Agreement and any dispute arising hereunder shall be governed by and interpreted in accordance with the laws of the State of California. (k) Construction of Agreement. This Agreement has been reviewed by legal counsel for both the City and Developer and shall be deemed for all purposes to have been jointly drafted by the City and Developer. No presumption or rule that ambiguities shall be construed against the drafting Party shall apply to the interpretation or enforcement of this Agreement. (l) Termination. The provisions of this Agreement related to the financing of the Improvements shall terminate and be of no further force or effect upon the earlier of (i) twenty (20) years following the issuance of building permits for all dwelling units expected to be built within the Community Facilities District, (ii) the funding of all Improvements pursuant to this Agreement, or (iii) December 31, 2042. Notwithstanding the foregoing, this Agreement shall not terminate pursuant to (iii) of the previous sentence if, on December 31, 2042, all of the building permits within the Community Facilities District have been pulled, construction within the Community Facilities District, as contemplated by the parties hereto, is ongoing, and the Developer has not yet received a full return of all Deposits or full reimbursement for the Miscellaneous Improvements from Special Taxes.
(m) Attorneys’ Fees. In the event of any action or proceeding, including an arbitration or a reference pursuant to Section 638 et seq., of the Code of Civil Procedure brought by any Party against any other under this Agreement, the prevailing Party shall be entitled to recover its actual attorneys’ fees and all fees, costs and expenses incurred for prosecution, defense, consultation, or advice in such action or proceeding. In addition to the foregoing, the prevailing Party shall be entitled to its actual attorneys’ fees and all fees, costs and expenses incurred in any post-judgment proceedings to collect or enforce the judgment. This provision is separate and several and shall survive the merger of this Agreement into any judgment on this Agreement.
(n) Venue and Forum. Any action at law or in equity arising under this Agreement brought by any Party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Riverside, State of California, and the Parties waive all provisions of law providing for the filing removal or change of venue to any other Court. 564
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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year written below.

DATED: December 14, 2022
CITY OF WILDOMAR, a political subdivision of the
State of California
By:

City Manager
ATTEST:

By:

Janet Morales, City Clerk
APPROVED AS TO FORM:

CITY ATTORNEY OF THE CITY OF WILDOMAR
By:

Thomas D. Jex, City Attorney

DEVELOPER
KB HOME COASTAL, INC.,
A California corporation
By:

Name:

Title:
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LIST OF EXHIBITS

EXHIBIT A - DESCRIPTION OF DEVELOPER PROPERTY

EXHIBIT B - DESCRIPTION OF COST ESTIMATES

EXHIBIT C - MISCELLANEOUS IMPROVEMENTS

EXHIBIT D - DISBURSEMENT REQUEST FORM
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EXHIBIT A

DESCRIPTION OF DEVELOPER PROPERTY
Real property in the City of Wildomar, County of Riverside, State of California, described as follows:

Lots 1 – 77 of Tract No. 37476 in the City of Wildomar, as shown on the map recorded in the official records of the County of Riverside Recorder’s office as Instrument No. 2022-0395844.

Assessor Parcel Numbers:
367-140-008 (portion of)
367-140-010 (portion of)
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EXHIBIT B
DESCRIPTION OF COST ESTIMATES OF THE IMPROVEMENTS (1)
I. CITY FEE FACILITY IMPROVEMENTS.

Estimated Cost of the City Fee Facility Improvements
Description Estimated Cost*
Police Facilities $ 17,479
Fire Facilities 33,880
Transportation – Roads 237,776
Transportation - Signals 30,877
Drainage 113,960
Animal Shelter 19,250
Community Centers 36,498
City Hall 29,568
Parks – Land 45,969
Parks Improvement 302,302
Multi-Purpose Trails 58,058
Corporate Yards 6,083
Other City Facilities 186,340
Total Fees $ 1,118,040
II. CITY IMPROVEMENTS.

Those facilities constructed by or on behalf of the Developer and needed by City in order to provide services to the Developer Property, including the following:

Estimated Cost of the City Improvements
Description Estimated Cost
Offsite Street Improvements(1) 402,500
Total City Improvements $402,500
(1) Amounts are estimates and subject to change. The Acquisition Price will be funded with Bond proceeds.
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EXHIBIT C

DESCRIPTION OF THE MISCELLANEOUS IMPROVEMENT
Water District facilities included in the Water District’s capacity and connection fee programs used to finance expansion projects, exclusive of in-tract facilities constructed by a property owner, but including and not limited to the following:

Description Estimated Cost
EVMWD – Water Fee $1,212,750
EVMWD – Sewer Fee 689,766
EVMWD – Landscape Fee (2” – 1.5” meter) 47,642
Total Estimated Water District Facilities Fees $1,950,158 Those facilities constructed by or on behalf of the Developer and needed by the Water District in order to provide services to the Developer Property and also include any of the following:

Estimated Cost of the Water District Improvements
Description Estimated Cost

TBD TBD
Lake Elsinore Unified School District Improvements included in the Lake Elsinore Unified School District’s development fee programs used to finance Lake Elsinore Unified School District Improvements, in approximately the following amount:

Estimated Cost of the Lake Elsinore Unified School District Improvements
Description Estimated Cost
Lake Elsinore Unified School District Fees $910,027
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EXHIBIT D
CFD NO. 2022-3 (VERANO) OF THE CITY OF WILDOMAR

DISBURSEMENT REQUEST FORM

1. Community Facilities District No. 2022-3 (Verano) of the City of Wildomar (the “CFD”) is hereby requested to pay from the City Improvements Account, or any applicable account or sub-account thereof, established by the CFD in connection with its [20__] Special Tax Bonds (the “Bonds”) to City of Wildomar (the “City”) as payee, the sum set forth below :
$_____________________ (the Requested Amount”)

2. The Requested Amount represents the payment of City Fees for ___ lot(s) within the boundaries of the CFD (the “Property”).
(Tract No. __________, Lot Nos. ________________).

Or, City Improvements as supported by attached documentation.

3. The Requested Amount is due and payable, has not formed the basis of any prior request or disbursement.

4. The Requested Amount shall be payable to _______________ (the “Developer”), pursuant to the wiring instructions attached hereto.

5. The Requested Amount is authorized and payable pursuant to the terms of the certain Acquisition, Construction and Funding Agreement (the “Agreement”) between the City, acting for and on behalf of itself and the CFD and Developer.

6. Capitalized undefined terms used herein shall have the meaning ascribed to them in the Agreement.

Dated: DEVELOPER:

By:____________ .

Dated: CITY OF WILDOMAR
By:

Its:
[ATTACH WIRING INSTRUCTIONS]
570

JOINT COMMUNITY FACILITIES AGREEMENT
by and among

CITY OF WILDOMAR,

ELSINORE VALLEY MUNICIPAL WATER DISTRICT
and
KB HOME COASTAL INC.

RELATING TO
COMMUNITY FACILITIES DISTRICT NO. 2022-3 (VERANO)

OF THE CITY OF WILDOMAR
Dated December 14, 2022
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TABLE OF CONTENTS
Page
ARTICLE I GENERAL PROVISIONS .................................................................................2 Section 1.1 Recitals ................................................................................................................2 Section 1.2 Definitions...........................................................................................................2 ARTICLE II FORMATION OF CFD AND ISSUANCE OF BONDS ...................................3 Section 2.1 Formation of CFD No. 2022-3 ............................................................................3 Section 2.2 Issuance and Sale of Bonds.................................................................................3 Section 2.3 CFD Proceeds......................................................................................................3 Section 2.4 Responsibility for EVMWD Costs and Facilities ...............................................4 Section 2.5 Responsibility for Debt Service or Special Taxes...............................................6 Section 2.6 Administration of CFD No. 2022-3 ....................................................................6 ARTICLE III TERM AND TERMINATION ...........................................................................6 Section 3.1 Effective Date......................................................................................................6 Section 3.2 Termination .........................................................................................................6 ARTICLE IV ADDITIONAL GENERAL PROVISIONS........................................................6 Section 4.1 Recordkeeping: Inspection of Records...............................................................6 Section 4.2 Partial Invalidity..................................................................................................6 Section 4.3 Successors and Assigns.......................................................................................7 Section 4.4 Indemnification ...................................................................................................7 Section 4.5 Notice ..................................................................................................................8 Section 4.6 Captions...............................................................................................................8 Section 4.7 Governing Law and Venue..................................................................................8 Section 4.8 Entire Agreement ................................................................................................8 Section 4.9 Amendments........................................................................................................8 Section 4.10 Waiver .................................................................................................................8 Section 4.11 Cooperation and Execution of Documents..........................................................9 Section 4.12 Attorneys’ Fees....................................................................................................9 Section 4.13 No Third Party Beneficiaries...............................................................................9 Section 4.14 Exhibits................................................................................................................9 Section 4.15 Signatories...........................................................................................................9 Section 4.16 Execution in Counterparts...................................................................................9 EXHIBIT “A” PROPERTY DESCRIPTION...................................................................... A-1 EXHIBIT “B” WATER AND SEWER FACILITIES DESCRIPTION ..............................B-1 EXHIBIT “C” EVMWD ACQUISITION FACILITIES DESCRIPTION ..........................C-1 EXHIBIT “D” PAYMENT REQUEST FORM - WATER/SEWER FACILITIES............ D-1 EXHIBIT “E” PUBLIC WORKS PROVISIONS .......................................................................E-1 572
1 4892-3218-6688v1/200945-0002

JOINT COMMUNITY FACILITIES AGREEMENT BY AND AMONG

CITY OF WILDOMAR,

ELSINORE VALLEY MUNICIPAL WATER DISTRICT
AND
KB HOME COASTAL INC.
(Community Facilities District No. 2022-3 (Verano) of the City of Wildomar) THIS JOINT COMMUNITY FACILITIES AGREEMENT (“Agreement”) is made and entered into as of the 14th day of December, 2022, by and among the ELSINORE VALLEY MUNICIPAL WATER DISTRICT, County of Riverside, State of California, a municipal water district (“EVMWD”), organized and operating pursuant to the Municipal Water District Law of 1911 of the California Water Code, the CITY OF WILDOMAR, a general law city organized and operating under the laws of the State of California (“City”), and KB HOME COASTAL INC., a California corporation (“Developer”). The parties hereto may be referred to in some instances as a party (“Party”) or parties (“Parties”).

R E C I T A L S
A. Developer owns certain real property located within the boundaries of both the City and EVMWD and designated as Tract Map No. 37476 (“Property”). The boundaries of the Property are identified in Exhibit “A” attached hereto. The Developer has obtained entitlements to develop the Property with approximately 77 dwelling units (collectively, the “Project”).

B. Development of the Project will require the payment, pursuant to the rules and regulations of EVMWD, as amended from time to time (“EVMWD Rules and Regulations”), of certain water and sewer service capacity and connection charges (“EVMWD Costs”), proceeds of which will be used by EVMWD to construct water and sewer facilities of EVMWD as further described herein (“EVMWD Facilities”). Developer may also construct water and sewer facilities of EVMWD, which are eligible to be acquired with CFD Proceeds as further described herein (“EVMWD Acquisition Facilities”), the costs of which, together with EVMWD Costs, may be paid from time to time from funds of hereinafter described CFD No. 2022-3 to the extent such funds are made available to finance EVMWD Facilities and EVMWD Acquisition Facilities.

C. Pursuant to actions of the City, the City has formed CFD No. 2022-3 pursuant to the provisions of the Act (as defined herein). The Parties herein have acknowledged and agreed that the City shall be solely responsible for the formation and administration of the CFD No. 2022- 3 and the costs thereof.

D. In accordance with Sections 53313.5 and 53316.2 of the Act, CFD No. 2022-3 may finance facilities to be owned or operated by EVMWD. It is the intention of the Parties that this Agreement shall constitute a “joint community facilities agreement” (“JCFA”) within the meaning of Section 53316.2 of the Act by and among the City, EVMWD and the Developer, pursuant to which CFD No. 2022-3 will be authorized to provide financing for the EVMWD Facilities and the EVMWD Acquisition Facilities. Pursuant to Section 53316.2(b) of the Act, a JCFA may be approved by two or more public agencies prior to the adoption of a resolution authorizing the issuance of bonds. As provided by Section 53316.6 of the Act, the EVMWD shall be responsible 573
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for constructing or otherwise acquiring, maintaining and operating the EVMWD Facilities and the EVMWD Acquisition Facilities.

E. The provision of the EVMWD Facilities and the EVMWD Acquisition Facilities is necessitated by the Project, and the Parties find and determine that the residents of the City, EVMWD and CFD No. 2022-3 will be benefited by the financing of the EVMWD Facilities and the EVMWD Acquisition Facilities as set forth herein, and that this Agreement is beneficial to the interests of such residents.

ARTICLE I

GENERAL PROVISIONS
Section 1.1 Recitals. The above recitals are true and correct and are hereby incorporated by this reference.

Section 1.2 Definitions.

Unless the context clearly otherwise requires, the terms defined in this Section shall, for all purposes of this Agreement, have the meanings herein specified. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, commencing with Government Code Section 53311, et seq.
“Agreement” means this Joint Communities Facilities Agreement. “Bond Resolution” means that Resolution, Resolution Supplement, Fiscal Agent Agreement, and/or other equivalent document(s), providing for the issuance of the Bonds. “Bonds” shall mean those bonds, or other securities, issued by, or on behalf of, as authorized by the qualified electors within CFD No. 2022-3. “CFD No. 2022-3” means Community Facilities District No. 2022-3 (Verano) of the City of Wildomar.
“CFD Proceeds” shall mean those net funds generated by the sale of the Bonds, or other securities issued on behalf of or for the benefit of CFD No. 2022-3, and Special Taxes made available to finance EVMWD Facilities and EVMWD Acquisition Facilities. “City Council” means the City Council of the City of Wildomar. “EVMWD Acquisition Facilities” means those sewer and water facilities constructed by the Developer or anticipated to be constructed by the Developer, and eligible to be acquired with CFD Proceeds, as described in Exhibit “C” hereto.
“EVMWD Facilities” means those public water and sewer facilities necessary to be funded by the EVMWD Costs as generally described in Exhibit “B” and which have not been previously funded with CFD Proceeds.
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“EVMWD Facilities Fund” means the fund(s) or account(s) into which a portion of the CFD Proceeds may be deposited in accordance with the Bond Resolution for payment of EVMWD Costs applicable to the Property and for acquisition of the EVMWD Acquisition Facilities.
“Rate and Method” means the Rate and Method of Apportionment of the Special Tax expected to be authorized for levy and collection pursuant to proceedings undertaken for the formation of CFD No. 2022-3 pursuant to the Act.
“State” means the State of California.
“Special Taxes” means the special taxes expected to be authorized to be levied and collected pursuant to the final Rate and Method as approved by CFD No. 2022-3.

Unless the context otherwise indicates, words expressed in the singular shall include the plural and vice versa and the use of the neuter, masculine or feminine gender is for convenience only and shall be deemed to include the neuter, masculine or feminine gender, as appropriate.

Headings of sections herein are solely for convenience of reference, do not constitute a part hereof and shall not affect the meaning, construction or effect hereof.

All references herein to “Sections” and other subdivisions are to the corresponding Sections or subdivisions of this Agreement; the words “herein,” “hereof,” “hereby,” “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Section or subdivision hereof.

ARTICLE II

FORMATION OF CFD AND ISSUANCE OF BONDS
Section 2.1 Formation of CFD No. 2022-3. The City has initiated proceedings pursuant to the Act for the formation of CFD No. 2022-3, the authorization of the Special Taxes within CFD No. 2022-3, and the authorization to issue one or more series of Bonds on behalf of CFD No. 2022-3. Nothing contained herein shall be deemed to limit the discretion of the City in that regard and the City shall have no liability to EVMWD if CFD No. 2022-3 is not formed or if the Special Taxes and Bonds are not authorized by the qualified electors therein.

Section 2.2 Issuance and Sale of Bonds. In the event CFD No. 2022-3 is formed and the Special Taxes and Bonds are authorized, the City Council, acting as the Legislative Body of CFD No. 2022-3, may, in its sole discretion, in accordance with its adopted policies (“CFD Policies”) adopt the Bond Resolution and issue the Bonds.

Section 2.3 CFD Proceeds. Upon completion of the issuance of the Bonds, and receipt of the CFD Proceeds, the City shall determine the amount of the CFD Proceeds allocable to finance the EVMWD Costs to be used by EVMWD to construct the EVMWD Facilities to accommodate development of the Property and the EVMWD Acquisition Facilities in accordance with the CFD Policies. CFD No. 2022-3 may pay the EVMWD Costs applicable to the Property directly to EVMWD, may reimburse EVMWD for the EVMWD Costs paid by EVMWD, may pay the acquisition price of EVMWD Acquisition Facilities 575
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and/or may reimburse the Developer for the EVMWD Costs if paid directly to EVMWD by such Developer or any owner of the Property, as shall be coordinated with EVMWD and the Developer from time to time. EVMWD and/or the Developer shall use the Payment Request Form set forth as Exhibit “D”, which is attached hereto and incorporated herein by this reference, to request payment of funds in the EVMWD Facilities Fund.

Section 2.4 Responsibility for EVMWD Costs and Facilities. (a) The Parties hereto acknowledge and agree that the final responsibility for the payment of the EVMWD Costs and the design, construction and dedication of the EVMWD Acquisition Facilities constructed by the Developer and the cost(s) of facilities required by EVMWD to be provided by the Developer to provide water and sewer service to the Project lies with the Developer as set forth in the exhibits hereto. The responsibility for, and control of, the design, construction and completion of facilities required to provide water and sewer service to the Project constructed and completed by EVMWD lies with EVMWD. (b) If the amount derived from CFD Proceeds, including investment earnings thereon, if any, are not sufficient to fund the total cost of the EVMWD Costs or EVMWD Acquisition Facilities for the Project, the Parties hereto agree that all responsibility and liability for the amount of such shortfall(s) shall be and remain with the Developer and shall not lie with the City, CFD No. 2022-3, or EVMWD.
(c) In addition to the EVMWD Costs referenced above, the Parties acknowledge that EVMWD may require the Developer, pursuant to the EVMWD Rules and Regulations, to design, construct and dedicate certain facilities to EVMWD, including, without limitation, the EVMWD Acquisition Facilities, as a condition to providing water and sewer service to the Project. The Parties hereto agree and acknowledge that all responsibility and obligation for the design, construction and dedication of such facilities to EVMWD, in accordance with all applicable statutes and the EVMWD Rules and Regulations, shall be and remain the responsibility of the Developer.
(d) EVMWD and the Developer acknowledge that the Developer intends to construct the EVMWD Acquisition Facilities. In order to ensure that the EVMWD Acquisition Facilities are eligible for community facilities district financing:

1. The EVMWD Acquisition Facilities must be constructed as if under the supervision or direction of EVMWD. EVMWD shall supervise and direct the work pursuant to the Public Works Provisions set forth in Exhibit “E” (the “Public Works Provisions”).

2. The acquisition purchase price for the EVMWD Acquisition Facilities will be equal the actual cost of construction of the EVMWD Acquisition Facilities, notwithstanding any estimates in this Agreement.

3. The Developer will be constructing the EVMWD Acquisition Facilities prior to the availability of CFD Proceeds that may be used to pay for such EVMWD Acquisition Facilities. Prior to the availability of CFD Proceeds, EVMWD will inspect the EVMWD Acquisition Facilities, approve the construction of the EVMWD Acquisition Facilities, and sign off on payment requests for costs incurred by the Developer upon satisfactory completion of the 576
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EVMWD Acquisition Facilities. The Developer may convey the EVMWD Acquisition Facilities to EVMWD, and EVMWD may accept the EVMWD Acquisition Facilities in accordance with this Agreement, when there are insufficient CFD Proceeds to pay the purchase price of such EVMWD Acquisition Facilities. EVMWD will defer the payment of any approved payment requests for the construction costs of the EVMWD Acquisition Facilities until there are sufficient CFD Proceeds available to pay the purchase price of the EVMWD Acquisition Facilities, at which time EVMWD will make the payments but only out of the CFD Proceeds made available to EVMWD for such purpose. If the CFD Proceeds are not sufficient or made available to finance all or any part of the purchase price of the EVMWD Acquisition Facilities, for whatever reason, EVMWD will not be responsible for paying the purchase price of the EVMWD Acquisition Facilities to the Developer. At all times, the Developer will be constructing such EVMWD Acquisition Facilities with the expectation that the purchase price for the EVMWD Acquisition Facilities will be paid from the CFD Proceeds, if and to the extent the CFD proceeds are sufficient and available to pay the purchase price. The Developer’s conveyance of the EVMWD Acquisition Facilities to EVMWD pursuant to this Agreement prior to receipt of all or any part of the purchase price shall not be construed as a dedication or gift, or a waiver of the payment of all or any part of the purchase price for the EVMWD Acquisition Facilities.

4. Notwithstanding any language in this Agreement to the contrary, the Developer will pay the costs of the EVMWD Acquisition Facilities using its own funds, but with the expectation that the EVMWD Acquisition Facilities will be acquired by EVMWD using CFD Proceeds, if and to the extent the CFD proceeds are sufficient and available to pay the purchase price.
(e) EVMWD agrees to utilize or apply funds provided to it, as set forth herein, for the EVMWD Costs and/or EVMWD Acquisition Facilities.
(f) EVMWD expressly acknowledges that the Bonds may be subject to Federal tax requirements applicable to the tax-exempt securities. EVMWD expressly confirms and warrants to the City that the EVMWD Facilities financed hereunder have not been previously financed with the proceeds of other tax-exempt securities or bonds. EVMWD agrees to promptly provide written notice to the City of any such financing of EVMWD Facilities financed hereunder until the issuance of the Bonds.

EVMWD agrees that in processing the disbursements of CFD Proceeds with respect to EVMWD Costs and/or EVMWD Acquisition Facilities, it will comply with all legal requirements for the expenditure of CFD Proceeds under the Act and the Internal Revenue Code of 1986 and any amendments thereto. As a condition to receiving any CFD Proceeds, EVMWD agrees that it shall provide to CFD No. 2022-3, a certificate to the effect that EVMWD agrees to comply with the provisions of the tax certificate delivered by CFD No. 2022-3 in connection with the Bonds, and such other matters as CFD No. 2022-3 may reasonably request upon which CFD No. 2022-3 and its bond counsel may rely in connection with the issuance of such Bonds and their conclusion that interest on such Bonds is not included in gross income for federal income tax purposes. 577
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Section 2.5 Responsibility for Debt Service or Special Taxes. EVMWD’s obligations under this Agreement shall be limited to its obligations with respect to the design, construction, ownership, operation and maintenance of the EVMWD Facilities to be funded by the EVMWD Costs and EVMWD shall have no obligation, responsibility, or authority with respect to the issuance and sale of the Bonds, or the payment of the principal and interest thereon, or for the levy of the Special Taxes to provide for the payment of principal and interest thereon, and CFD No. 2022-3 shall have the sole authority and responsibility for all such matters.

The Parties hereto specifically agree that the liabilities of CFD No. 2022-3, including liabilities, if any, of CFD No. 2022-3 and pursuant to the documents providing for the issuance of Bonds, including the Bond Resolution, shall not be or become liabilities of EVMWD.

Section 2.6 Administration of CFD No. 2022-3. The City shall have the power and duty to provide for the administration of CFD No. 2022-3 and once it is formed, including employing and compensating all consultants and providing for the various other administration duties set forth in this Agreement. It is understood and agreed by the Parties hereto that EVMWD will not be considered a participant in the proceedings relative to formation of CFD No. 2022-3 or the issuance of the Bonds, other than as a Party to this Agreement.

ARTICLE III

TERM AND TERMINATION
Section 3.1 Effective Date. This Agreement shall become effective and of full force and effect as of the date (“Effective Date”) that both of the following occur: (1) this Agreement is approved and executed by the last of EVMWD, the Developer and the City, to be confirmed upon execution of this Agreement by the authorized representatives of the Parties; and (2) CFD No. 2022-3 has been formed, as evidenced by the recordation of a Notice of Special Tax Lien against the Property.

Section 3.2 Termination. If the City is unable to complete the sale of the Bonds prior to January 1, 2039, this Agreement shall thereafter automatically terminate and be of no further force or effect.

ARTICLE IV

ADDITIONAL GENERAL PROVISIONS
Section 4.1 Recordkeeping: Inspection of Records. Each Party hereto agrees to keep and maintain full and accurate records of all amounts, and investment earnings, if any, paid to EVMWD for the EVMWD Facilities as to the respective portions of the Property and amounts expended from the EVMWD Facilities Account. Each Party further agrees to make such records available to the other Party hereto during normal business hours upon reasonable prior notice. All such records shall be kept and maintained by the appropriate Party as provided by applicable law and their respective policies.

Section 4.2 Partial Invalidity. If any part of this Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent reasonably possible.
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Section 4.3 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Parties hereto. This Agreement may not be assigned without the prior written consent of the other Parties hereto, and any such non-consented assignment shall be void. Such assignee shall, as a condition to taking an assignment of such rights, enter into an assignment and assumption agreement with the City, EVMWD and the Developer, in a form reasonably acceptable to the City EVMWD, and the Developer, whereby such rights assigned are specified and such assignee agrees, except as may be otherwise specifically provided therein, to assume the obligations of the Developer pursuant to this Agreement and to be bound thereby. This Agreement is for the sole benefit of the City, EVMWD, and the Developer and their successors and assigns, and no other person or entity shall be deemed to be a beneficiary hereof or have an interest herein.

Section 4.4 Indemnification. The City shall assume the defense of, indemnify and save harmless, EVMWD, its officers, employees and agents, and each and every one of them, from and against all actions, damages, claims, losses or expenses of every type and description to which they may be subjected or put, by reason of, or resulting from, any act or omission of the City with respect to this Agreement and the issuance of the Bonds. No provision of this Agreement shall in any way limit the extent of the City’s responsibility for payment of damages resulting from the operations of the City and its contractors; provided, however, that the City shall not be required to indemnify any person or entity as to damages resulting from negligence or willful misconduct of such person or entity or their agents or employees. EVMWD shall assume the defense of, indemnify and save harmless, the City, its officers, employees and agents, and each and every one of them, from and against all actions, damages, claims, losses or expenses of every type and description to which they may be subjected or put, by reason of, or resulting from, any act or omission of EVMWD with respect to this Agreement, and the design, engineering and construction of the EVMWD Facilities. No provision of this Agreement shall in any way limit the extent of EVMWD’s responsibility for payment of damages resulting from the operations of EVMWD and its contractors; provided, however, that EVMWD shall not be required to indemnify any person or entity as to damages resulting from negligence or willful misconduct of such person or entity or their agents or employees. The Developer shall assume the defense of, indemnify and save harmless, EVMWD and the City, each of their officers, employees and agents, and each and every one of them, from and against all actions, damages, claims, losses or expenses of every type and description to which they may be subjected or put, by reason of, or resulting from, any act or omission of the Developer with respect to this Agreement, and the design, engineering and construction of the EVMWD Facilities. No provision of this Agreement shall in any way limit the extent of the Developer’s responsibility for payment of damages resulting from the operations and/or development of the Property and its contractors; provided, however, that the Developer shall not be required to indemnify any person or entity as to damages resulting from negligence or willful misconduct of such person or entity or their agents or employees. 579
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Section 4.5 Notice. Any notice, payment or instrument required or permitted by this Agreement to be given or delivered to any Party or other person shall be deemed to have been received when personally delivered or upon deposit of the same in the United States Post Office registered or certified, postage prepaid, addressed as follows:

City: City of Wildomar
23873 Clinton Keith Road
Wildomar, CA 92595
Attention: City Manager
EVMWD: Elsinore Valley Municipal Water District
31315 Chaney Street
Lake Elsinore, CA 92530
Attention: General Manager
Developer: KB Home Coastal, Inc.
36310 Inland Valley Drive
Wildomar, CA 92595
Attention: Scott Hansen
Each Party can change its address for delivery of notice by delivering written notice of such change or address to the other parties within ten (10) calendar days prior to such change.

Section 4.6 Captions. The captions to Sections used herein are for convenience purposes only and are not part of this Agreement.

Section 4.7 Governing Law and Venue. This Agreement shall be governed by, and construed in accordance with, the laws of the State of California applicable to contracts made and performed in such State. In the event of any legal action to enforce or interpret this Agreement, the sole and exclusive venue shall be a court of competent jurisdiction located in the County of Riverside, California, and the parties hereto agree to and do hereby submit to the jurisdiction of such court, notwithstanding Code of Civil Procedure Section 394. Furthermore, the parties specifically agree to waive any and all rights to request that an action be transferred for trial to another county.

Section 4.8 Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the matters provided for herein and supersedes all prior agreements and negotiations between the Parties with respect to the subject matter of this Agreement.

Section 4.9 Amendments. This Agreement may be amended or modified only in writing executed by the authorized representative(s) of each of the Parties hereto.

Section 4.10 Waiver. The failure of any Party hereto to insist on compliance within any of the terms, covenants or conditions of this Agreement by any other Party hereto, shall not be deemed a waiver of such terms, covenants or conditions of this Agreement by such other Party, nor shall any waiver constitute a relinquishment of any other right or power for all or any other times.
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Section 4.11 Cooperation and Execution of Documents. The Parties hereto agree to complete and execute any further or additional documents which may be necessary to complete or further the terms of this Agreement.

Section 4.12 Attorneys’ Fees. In the event of the bringing of any action or suit by any Party against another Party arising out of this Agreement, the Party in whose favor final judgment shall be entered shall be entitled to recover from the other Parties all costs and expenses of suit, including reasonable attorneys’ fees.

Section 4.13 No Third Party Beneficiaries. No person or entity other than the CFD No. 2022-3 when and if formed shall be deemed to be a third party beneficiary hereof, and nothing in this Agreement (either express or implied) is intended to confer upon any person or entity, other than EVMWD, the City, CFD No. 2022-3, and the Developer (and their respective successors and assigns), any rights, remedies, obligations or liabilities under or by reason of this Agreement.

Section 4.14 Exhibits. The following exhibits attached hereto are incorporated into this Agreement by reference.

Exhibit Description
“A” Property Description
“B” Water and Sewer Facilities Descriptions
“C” EVMWD Acquisition Facilities Description
“D” Payment Request Form – Water/Sewer Facilities
“E” Public Works Provisions
Section 4.15 Signatories. The signatories hereto represent that they have been appropriately authorized to enter into this Agreement on behalf of the party for whom they sign.

Section 4.16 Execution in Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original. [Remainder of this page is blank]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year written alongside their signature below.

EVMWD: ELSINORE VALLEY MUNICIPAL WATER DISTRICT
By:____________________________________
Name: Greg Thomas
Title: General Manager
Date Signed:

DEVELOPER: KB HOME COASTAL INC.,
a California corporation
By:

Name:

Title:

Date Signed:
[Joint Community Facilities Agreement Signature Page]
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City: CITY OF WILDOMAR
By:

Name:

Date Signed:

ATTEST:

By:

City Clerk
APPROVED AS TO FORM:

By:

City Attorney
[Joint Community Facilities Agreement Signature Page]
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EXHIBIT “A”

PROPERTY DESCRIPTION
Real property in the City of Wildomar, County of Riverside, State of California, described as follows:

Lots 1 – 77 of Tract No. 37476 in the City of Wildomar, as shown on the map recorded in the official records of the County of Riverside Recorder’s office as Instrument No. 2022- 0395844.

Assessor Parcel Numbers:
367-140-008 (portion of)
367-140-010 (portion of)
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EXHIBIT “B”

WATER AND SEWER FACILITIES DESCRIPTION

1. Water source, storage, transmission facilities financed through EVMWD water connection and capacity fees and charges, including, but not limited to, water transmission lines, water reservoirs and related and appurtenant facilities. Further description(s) and cost(s) of these facilities are on file with EVMWD and are incorporated herein by this reference.

2. Sewer treatment, transmission and reclamation facilities financed through EVMWD sewer fees. Further description(s) and cost(s) of these facilities are on file with EVMWD and are incorporated herein by this reference.
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EXHIBIT “C”

EVMWD ACQUISITION FACILITIES DESCRIPTION
Description of Acquisition Facilities:

1. Onsite Water and Sewer Improvements *
*The facilities listed above are preliminary in nature. The final description, scope, cost and location will be determined upon the preparation of final plans. 586
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EXHIBIT “D”

PAYMENT REQUEST FORM - WATER/SEWER FACILITIES
Community Facilities District No. 2022-3 (Verano) of the City of Wildomar is hereby requested to pay from the EVMWD Facilities Fund to the person, corporation, or other entity designated below as Payee, the sum set forth below such designation, in payment of the water/sewer Project Costs described below. The amount shown below is due and payable under a purchase order, contract or other authorization with respect to the water/sewer Project Costs described below and has not formed the basis of any prior request for payment.

Payee:

Address:

Amount: $
Project Costs Description:
(Include identification of lots or APN’s where request is made for fees) REQUESTING PARTY (check box)
[_] ELSINORE VALLEY MUNICIPAL

WATER DISTRICT
[_]
(Name of requesting party - please print)
Signature:

Name:

Title:

Date:
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EXHIBIT “E”

PUBLIC WORKS PROVISIONS
In order to ensure that the EVMWD Acquisition Facilities will be constructed as if it had been constructed under the direction and supervision, or under the authority of, EVMWD, so that they may be acquired pursuant to California Government Code Section 53313.5 or so that the value or cost, whichever is less, of portions thereof constituting work in-kind may be reimbursed pursuant to California Government Code Section 53314.9, for the EVMWD Acquisition Facilities, the Developer shall comply with all of the following requirements or shall cause such requirements to be complied with:
(a) The Developer shall solicit and receive at least three independent bids; provided, however, the Developer may proceed with fewer than three bids if three bids were not reasonably available at the time of the bid.
(b) Bids shall be submitted to the Developer either via hard copy or email. (c) The contract for the construction of the EVMWD Acquisition Facilities shall be awarded to the responsible bidder submitting the lowest responsive bid for the construction of the EVMWD Acquisition Facilities or, if the Developer elects to perform the work pursuant to Section 53329.5 of the Act, the Developer shall perform the work at the prices specified in the bid of the lowest responsible bidder. If EVMWD reasonably disapproves any such contractor, the Developer will select the next lowest responsible bidder from the competitive bids received who is acceptable to the Developer and EVMWD.
(d) The Developer shall require, and the specifications and bid and contract documents shall require, all contractors engaged to perform work on the EVMWD Acquisition Facilities to pay prevailing wages and to otherwise comply with applicable provisions of the California Labor Code.
(e) The Developer and all such contractors shall comply with such other requirements relating to the construction of the EVMWD Acquisition Facilities as EVMWD may impose by written notification delivered to the Developer and each such contractor, to the extent required as a result of changes in applicable State or federal laws or the ordinances and policies of EVMWD. (f) The Developer shall provide proof to EVMWD, at such intervals and in such form as EVMWD may require, that the foregoing requirements have been satisfied as to all of the EVMWD Acquisition Facilities.
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CITY OF WILDOMAR

CC - REGULAR MEETING

GENERAL BUSINESS
Agenda Staff Report # 3.2
Meeting Date: December 14, 2022
SUBJECT: Committees, Commissions, and Board Appointments for 2023 SUBMITTED BY: Janet Morales
PREPARED BY: Janet Morales, City Clerk
ACTION:

1. Review the list of committees, commissions, and boards, update appointments, and/or add or remove committees as necessary.

2. Consider appointing two members to serve on a regional homeless task force committee.

BACKGROUND:

The City Council reviews the list of committees, commissions, and boards annually in December, and as requested or upon a change in council members. The last update was approved on March 16, 2022, following the appointment of Ashlee DePhillippo.

DISCUSSION:

In addition to it being December, Mayor Ben J. Benoit's term will end on December 14, 2022, so it would be appropriate for the Council to review the list and make updates as necessary.

Staff is also recommending that the City Council consider adding a Regional Homeless Task Force subcommittee and appointing two members to serve on the committee. The purpose of this committee would be to attend regional meetings and participate in issues affecting homelessness in the City prior to recommendations being brought to the full council for consideration.

FISCAL IMPACT:

None.

ATTACHMENTS:

A. Council Committees as of 04-13-22
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