4911-5397-1074v1/200945-0010
DISTRICT CONTINUING DISCLOSURE CERTIFICATE
THIS CONTINUING DISCLOSURE CERTIFICATE (this “Disclosure Certificate”), dated as of February 1, 2026, is executed and delivered by Community Facilities District No. 2023-1 (Avalino) of the City of Wildomar (the “District”) in connection with the issuance of the Community Facilities District No. 2023-1 (Avalino) of the City of Wildomar Special Tax Bonds, Series 2026 (the “Bonds”).
The Bonds are being issued pursuant to a resolution adopted by the City Council of the City of Wildomar, acting as the legislative body of the District on January 14, 2026 and a Bond Indenture by and between the District and Wilmington Trust, National Association, as Trustee, dated as of February 1, 2026 (the “Indenture”).
The District covenants as follows:
SECTION 1. Purpose of the Disclosure Certificate . This Disclosure Certificate is being executed and delivered, for the benefit of the Owners and Beneficial Owners of the Bonds and in order to assist the Participating Underwriter in complying with the Rule.
SECTION 2. Definitions. In addition to the definitions set forth in the Indenture and the Rate and Method of Apportionment, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings:
“Annual Report” shall mean any Annual Report provided by the District pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate.
“Beneficial Owner” shall mean any person who (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bond (including a person holding Bond through a nominee, depository or other intermediary), or (b) is treated as the owner of any Bond for federal income purposes.
“City” shall mean the City of Wildomar, County of Riverside, California.
“Disclosure Representative” shall mean the Finance Manager of the City, or such other officer or employee as the District shall designate in writing to the Dissemination Agent from time to time.
“Dissemination Agent” shall mean, initially, Spicer Consulting Group, LLC, or any successor Dissemination Agent designed in writing by the District.
“EMMA” shall mean the Electronic Municipal Market Access System of the Municipal Securities Rulemaking Board, which can be found at www.emma.msrb.org, or any other repository of disclosure information that may be designated by the Securities and Exchange Commission in the future.
“Financial Obligation” means a (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The term Financial Obligation shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule.
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2 “Listed Events” shall mean any of the events listed in Section 5 of this Disclosure Certificate.
“MSRB” shall mean the Municipal Securities Rulemaking Board or any other entity designated or authorized by the Securities and Exchange Commission to receive reports pursuant to the Rule.
Until otherwise designated by the MSRB or the Securities and Exchange Commission, filings with the MSRB are to be made through the Electronic Municipal Market Access (EMMA) website of the MSRB, currently located at http://emma.msrb.org.
“Official Statement” shall mean the District’s official statement with respect to the Bonds.
“Participating Underwriter” shall mean Piper Sandler & Co.
“Rate and Method of Apportionment” means that certain Rate and Method of Apportionment of Special Tax approved pursuant to the Resolution of Formation.
“Resolution of Formation” means the resolutions adopted by the City Council pursuant to which the City Council formed the District.
“Rule” shall mean Rule 15c2 -12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time.
SECTION 3. Provision of Annual Reports.
(a) Not later than March 31 of each year commencing March 31, 2026, the District shall, or shall cause the Dissemination Agent to, provide to EMMA and the Participating Underwriter an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Certificate, which initial Annual Report shall consist solely of the Official Statement and audited financial statements of the District, if any. If the Dissemination Agent is other than the District, then not later than 15 business days prior to the date referred to in the prior sentence hereof, the District shall provide the Annual Report (in a form suitable for filing with EMMA) to the Dissemination Agent. The Annual Report may be submitted as a single document or as separate documents comprising a package and may include by reference other information as provided in Section 4 of this Disclosure Certificate; provided that the audited fina ncial statements of the District may be submitted separately from and later than the balance of the Annual Report, if any, if they are not available by the date required above for the filing of the Annual Report.
(b) In the event that the Dissemination Ag ent is an entity other than the District, then the provisions of this Section 3(b) shall apply. Not later than fifteen (15) Business Days prior to the date specified in subsection (a) for providing the Annual Report, the District shall provide the Annual Report to the Dissemination Agent. If by fifteen (15) Business Days prior to the due date for an Annual Report the Dissemination Agent has not received a copy of the Annual Report, the Dissemination Agent shall contact the District to determine if the Dis trict will be filing the Annual Report in compliance with subsection (a). The District shall provide a written certification with each Annual Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes the Annual Report required to be furnished by it hereunder. The Dissemination Agent may conclusively rely upon such certification of the District and shall have no duty or obligation to review such Annual Report.
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3 (c) If the Dissemination Agent is other than the District and if the Dissemination Agent is unable to verify that an Annual Report has been provided to EMMA by the date required in subsection (a), the Dissemination Agent shall send a notice in a timely manner to EMMA, in the form required by EMMA. If the District acts as its own Dissemination Agent, it shall file a notice with EMMA no later than the date specified in subsection (a) for filing an Annual Report if the District fails to file the Annual Report by that date.
(d) If the Dissemination Agent is other than the District, the Dissemination Agent shall:
(i) determine each year prior to the date for
providing the Annual Report the name and address of the repository if other than the MSRB through EMMA; and
(ii) promptly after receipt of the Annual Report,
file a report with the District certifying that the Annual Report has been provided to EMMA and the date it was provided.
(e) Notwithstanding any other provision of this Disclosure Certificate, all filings shall be made in accordance with the MSRB’s EMMA system or in another manner approved under the Rule.
SECTION 4. Content of Annual Reports . The District’s Annual Reports shall contain or include by reference:
(a) Financial Statements. The audited financial statements of the District, if any, for the prior fiscal year, prepared in accordance with generally accepted accounting principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board.
If the District’s audited financial statements, if any are prepared, are not available by the time the Annual Report is required to be filed pursuant to Section 3, the Annual Report shall contain unaudited financial statements, and the audited financial statements shall be filed in the same manner as the Annual Report when they come available.
(b) Financial and Operating Data. The first Annual Report due by March 31, 2026 shall consist of the Official Statement and audited financial statements of the District, if any. Thereafter, the District’s Annual Report shall contain or incorporate by reference the following:
(i) the principal amount of Bonds outstanding as
of the September 2 preceding the filing of the Annual Report;
(ii) the balance in each fund under the Indenture as of the September 2 preceding the filing of the Annual Report;
(iii) the aggregate assessed valuation of the Taxable Property within the District;
(iv) any changes to the Rate and Method of Apportionment of the Special Tax approved or submitted to the qualified electors for approval prior to the filing of the Annual Report;
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4 (v) a table setting forth the annual Special Tax delinquency rate within the District at June 30 for each fiscal year on which a delinquency exists, listing for each fiscal year the total Special Tax levy, the amount delinquent and the percent delinquent;
(vi) the status of any foreclosure actions being pursued by the District with respect to delinquent Special Taxes within the District; and
(vii) an update of the value -to-lien of the property within the District based on the assessed value and the Special Tax levy for then current fiscal year, which update may be provided in a form similar to Table 2 in the Official Statement; provided that such update need not include overlapping special tax, assessment or general obligation indebtedness.
(c) Any or all of the items listed in (a) or (b) above may be included by specific reference to other documents, including official statements of debt issues of the District or related public entities, which have been submitted to EMMA or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the MSRB through EMMA. The District shall clearly identify each such other document so included by reference.
SECTION 5. Reporting of Significant Events.
(a) Pursuant to the provisions of this Section 5, the District shall give, or cause the Dissemination Agent to give, notice to EMMA in a timely manner not in excess of ten (10) business days after the occurrence of any of the following events with respect to the Bonds:
1. principal and interest payment delinquencies;
2. unscheduled draws on debt service reserves reflecting financial difficulties;
3. unscheduled draws on credit enhancements reflecting financial difficulties;
4. substitution of credit or liquidity providers, or their failure to perform;
5. adverse tax opinions or the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB);
6. defeasances;
7. tender offers;
8. bankruptcy, insolvency, receivership or similar proceedings of the obligated person;
9. ratings changes; and
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5 10. default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the obligated person, any of which reflect financial difficulties.
(b) Additionally, the District shall give or cause the Dissemination Agent to give notice to EMMA in a timely manner not in excess of ten (10) business d ays after the occurrence of any of the following events with respect to the Bonds, if material:
1. unless described in paragraph 5(a)(5), notices or determinations by the Internal Revenue Service with respect to the tax status of the Bonds or other material events affecting the tax status of the Bonds;
2. merger, consolidation, or acquisition involving the obligated person, or the sale of all or substantially all of the assets of the obligated person other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms;
2. appointment of a successor or additional fiscal agent or the change of the name of a fiscal agent;
3. nonpayment related defaults;
4. modifications to the rights of Bondholders;
5. bond calls;
6. release, substitution or sale of property securing repayment of the Bonds; and
7. incurrence of a Financial Obligation of the obligated person, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the obligated person, any of which affect security holders.
(c) In the event that the District’s fiscal year changes, the District s hall report or shall instruct the Dissemination Agent to report such change in the same manner and to the same parties as Listed Events would be reported pursuant to Section 5(a).
(d) The District hereby agrees that the undertaking set forth in this Discl osure Certificate is the responsibility of the District, and the Dissemination Agent, if other than the District, shall not be responsible for determining whether the District’s instructions to the Dissemination Agent under this Section comply with the requirements of the Rule.
(e) For purposes of this Disclosure Certificate, any event described in paragraph 5(a)(8) above is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the District in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the District, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming 803
6 a plan of reorganization, arran gement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the District.
SECTION 6. Termination of Reporting Obligation . The obligations of the District and the Dissemination Agent under this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If such termination occurs prior to the final maturity of the Bonds, the District shall give notice of such termination in the same manner as for a Listed Event under Section 5.
SECTION 7. Dissemination Agent. The District may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under the Disclosure Certificate, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. The initial Dissemination Agent shall be Spicer Consulting Group, LLC. The Dissemination Agent may resign by providing (i) thirty days written notice to the District, and (ii) upon appointment of a new Dissemination Agent hereunder.
SECTION 8. Amendment.
(a) This Disclosure Certificate may be amended, by written agreement of the parties, without the consent of the Owners, and any provision of this Disclosure Certificate may be waived, if all of the following conditions are satisfied: (1) such amendment or waiver is made in connection with a change in circumstances that arises from a change in legal (including regulatory) requirements, a change in law, or a change in the identity, nature or status of the District or the type of business conducted thereby, (2) the undertakings in this Disclosure Certificate as so amended or waived would, in the opinion of a nationally recognized bond cou nsel, have complied with the requirements of the Rule as of the date of this Disclosure Certificate, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances, and (3) the amendment or waiver either (i) is approved by the Owners of the Bonds in the same manner as provided in the Indenture for amendments to the Indenture with the consent of Owners or (ii) does not, in the determination of the District, materially impair the interests of the Owners or Beneficial Owners of the Bonds.
(b) To the extent any amendment to this Disclosure Certificate results in a change in the type of financial information or operating data provided pursuant to this Disclosure Certificate, the first Annual Report provided therea fter shall include a narrative explanation of the reasons for the amendment and the impact of the change in the type of operating data or financial information being provided.
(c) If an amendment is made to the basis on which financial statements are prep ared, the Annual Report for the year in which the change is made shall present a comparison between the financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. Such comparison shall include a quantitative and, to the extent reasonably feasible, qualitative discussion of the differences in the accounting principles and the impact of the change in the accounting principles on the presentation of the financial information.
SECTION 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the District from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which 804
7 is required by this Disclosure Certificate. If the District chooses to include any information in an y Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the District shall have no obligation under this Agreement to update such information or include it in any future A nnual Report or notice of occurrence of a Listed Event.
SECTION 10. Default. In the event of a failure of the District or the Dissemination Agent to comply with any provision of this Disclosure Certificate, any Owner or Beneficial Owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the District and/or the Dissemination Agent to comply with their respective obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an Event of Default under the Indenture, and the sole remedy under this Disclosure Certificate in the event of any failure of the District or the Dissemination Agent to comply with this Disclosure Certificate shall be an action to compel performance.
SECTION 11. Duties, Immunities and Liabilities of Dissemination Agent . Where an entity other than the District is acting as the Dissemination Agent, the Dissemination Agent shall have only such dut ies as are specifically set forth in this Disclosure Certificate, and the District agrees to indemnify and save the Dissemination Agent and its officers, directors, employees and agents, harmless against any loss, expense and liabilities which they may incur arising out of or in the exercise or performance of their powers and duties hereunder, including the costs and expenses (including attorney’s fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent’s negligence or willful misconduct. Any Dissemination Agent shall be paid (i) compensation by the District for its services provided hereunder in accordance with a schedule of fees to be mutually agreed to; and (ii) all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. The Dissemination Agent shall have no duty or obligation to review any information provided to it by the District pursuant to this Disclosure Certificate. The obligations of the District under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds. No person shall have any right to commence any action against the Dissemination Agent seeking any remedy other than to compel specific performance of this Disclosure Certificate. The Dissemination Agent shall not be liable under any circumstances for monetary damages to any person for any breach under this Disclosure Certificate.
SECTION 12. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the District, the Dissemination Agent, the Participating Underwriter and Owners and Beneficial Owners from time to time of the Bonds; and it shall create no rights in any other person or entity.
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8 SECTION 13. Merger. Any person succeeding to all or substantially all of the Dissemination Agent’s corporate trust business shall be the successor Dissemination Agent without the filing of any paper or any further act.
This Disclosure Certificate is executed as of the date and year first set forth above.
COMMUNITY FACILITIES DISTRICT NO. 2023 -1
(AVALINO) OF THE CITY OF WILDOMAR
By:
Disclosure Representative
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$__________
COMMUNITY FACILITIES DISTRICT NO. 2023-1 (AVALINO)
OF THE CITY OF WILDOMAR
SPECIAL TAX BONDS, SERIES 2026
BOND PURCHASE AGREEMENT
________, 2026
Community Facilities District No. 2023-1
(Avalino) of the City of Wildomar
23873 Clinton Keith Road, Suite 110
Wildomar, California 92595
Attention: City Manager
Ladies and Gentlemen:
Piper Sandler & Co., as underwriter (the “Underwriter”), acting not as a fiduciary or agent for you, but on behalf of itself, offers to enter into this Bond Purchase Agreement (this “Purchase Agreement”) with Community Facilities District No. 2023-1 (Avalino) of the City of Wildomar (the “Community Facilities District”), which upon acceptance will be binding upon the Underwriter and the Community Facilities District. The agreement of the Underwriter to purchase the Bonds (as hereinafter defined) is contingent upon the Communi ty Facilities District satisfying all of the obligations imposed upon it under this Purchase Agreement. This offer is made subject to the Community Facilities District’s acceptance by the execution of this Purchase Agreement and its delivery to the Underw riter at or before 11:59 p.m., local time, on the date hereof, and, if not so accepted, will be subject to withdrawal by the Underwriter upon notice delivered to the Community Facilities District at any time prior to the acceptance hereof by the Community Facilities District. All capitalized terms used herein, which are not otherwise defined, shall have the meaning provided for such terms in the Bond Indenture, dated as of February 1, 2026 (the “Indenture”), by and between the Community Facilities District and Wilmington Trust, National Association , as trustee (the “Trustee”).
1. Purchase, Sale and Delivery of the Bonds.
Subject to the terms and conditions and in reliance upon the representations, warranties and agreements set forth herein , the Underwriter her eby agrees to purchase from the Community Facilities District and the Community Facilities District hereby agrees to sell to the Underwriter all (but not less than all) of the $__________ aggregate principal amount of Community Facilities District No. 2023-1 (Avalino) of the City of Wildomar Special Tax Bonds, Series 2026 (the “Bonds”), dated the Closing Date (as hereinafter defined), bearing interest at the rates and maturing on the dates and in the principal amounts set forth in Exhibit A hereto. The purchase price for the Bonds shall be $_______ (being 100% of the aggre gate principal amount thereof, plus original issue premium of $______ and less an Underwriter’s discount of $_______). 807
2 2. The Bonds. The Bonds shall be substantially in the form described in, shall be issued and secured under the provisions of, and shall be payable from the Net Taxes and certain other funds pledged therefor as provided in , the Indenture, the Preliminary Official Statement (as hereinafter defined), and the Mello -Roos Community Facilities Act of 1982, as amended (Section 53311 et seq. of the Government Code of the State of California (the “State”)) (the “Community Facilities District Act”). The issuance of the Bonds has been duly authorized by the City Council of the City of Wildomar (the “City”), as the legislative body for the Community Faci lities District, pursuant to a resolution adopted on _______, 2026 (the “Community Facilities District Resolution of Issuance”).
The proceeds of the Bonds will be used to : (i) finance certain public improvements benefitting the development within the Community Facilities District, including public improvements to be owned by the City, and water and sewer facilities to be owned and operated by the Elsinore Valley Municipal Water District; (ii) fund a reserve account for the Bonds; and (iii) pay costs of issuance for the Bonds.
3. Public Offering and Establishment of Issue Price.
A. The Underwriter agrees to make a bona fide public offering of all of the Bonds initially at the public offering prices (or yields) set forth in Exhibit A attached hereto and incorporated herein by reference. Subsequent to the initial public offering, the Underwriter reserves the right to change the public offering prices (or yields) as it deems necessary in connection with the marketing of the Bonds subject to this Section 3, provid ed that the Underwriter shall not change the interest rates set forth in Exhibit A. The Bonds will be offered and sold to certain dealers at prices lower than such initial offering prices.
The Community Facilities District hereby acknowledges that the Und erwriter is entering into this Purchase Agreement in reliance on the representations, warranties and agreements made by the Community Facilities District herein, and the Community Facilities District shall take all action necessary to enforce its rights he reunder for the benefit of the Underwriter and shall immediately notify the Underwriter if it becomes aware that any representation, warranty or agreement made by the Community Facilities District herein is incorrect in any material respect.
The Community Facilities District knowledges and agrees that with respect to the transaction contemplated hereby: (i) the Underwriter is not acting as a municipal advisor within the meaning of Section 15B of the Securities Exchange Act, as amended ; (ii) the primary role of the Underwriter, as an underwriter, is to purchase securities, for resale to investors, in an arm’s length commercial transaction between the Community Facilities District and the Underwriter and the Underwriter has financial and other interests that d iffer from those of the Community Facilities District ; (iii) the Underwriter is acting solely as a principal and is not acting as a municipal advisor, financial advisor or fiduciary to the Community Facilities District and has not assumed any advisory or f iduciary responsibility to the Community Facilities District (irrespective of whether the Underwriter has provided other services or is currently providing other services to the Community Facilities District on other matters); (iv) the only obligations the Underwriter has to the Community Facilities District with respect to the transaction contemplated hereby are expressly set forth in this Purchase Agreement; and (v) the Community Facilit ies District has consulted its own financi al and/or municipal, legal, accounting, tax and other advisors, as applicable, to the extent it has deemed appropriate. The Community Facilities District acknowledges that it has previously provided the Underwriter with an acknowledgement of receipt of th e required Underwriter disclosure under Rule G-17 of the Municipal Securities Rulemaking Board (“MSRB”). The Community Facilities District 808
3 further acknowledges and represents that it has engaged CSG Advisors Incorporated (the “Municipal Advisor”) as its mu nicipal advisor within the meaning of Section 15B of the Securities Exchange Act, as amended, and will rely solely on the financial advice of the Municipal Advisor with respect to the Bonds.
B. The Underwriter agrees to assist the Community Facilities Distric t in establishing the issue price of the Bonds and shall execute and deliver to the Community Facilities District at Closing (as defined below) an “issue price” or similar certificate, together with the supporting pricing wires or equivalent communications , substantially in the form set forth in Exhibit E, with such modifications as may be appropriate or necessary, in the reasonable judgment of the Underwriter, the Community Facilities District and Bond Counsel (as such term is defined below), to accurately reflect, as applicable, the sales price or prices or the initial offering price or prices to the public of the Bonds. All actions to be taken by the Community Facilities District under this section to establish the issue price of the Bonds may be taken o n behalf of the Community Facilities District by the Municipal Advisor and any notice or report to be provided to the Community Facilities District may be provided to the Municipal Advisor.
C. Except as otherwise set forth in Exhibit A, the Community Faciliti es District will treat the first price at which 10% of each maturity of the Bonds (the “10% test”), identified under the column “10% Test Used” in Exhibit A, is sold to the public as the issue price of that maturity. At or promptly after the execution of this Purchase Agreement, the Underwriter shall report to the Community Facilities District the price or prices at which it has sold to the public each maturity of Bonds. If at that time the 10% test has not been satisfied as to any maturity of the Bonds, the Underwriter agrees to promptly report to the Community Facilities District the prices at which it sells the unsold Bonds of that maturity to the public. That reporting obligation shall continue, whether or not the Closing Date has occurred, until eith er: (i) the Underwriter has sold all of the Bonds of that maturity; or (ii), the 10% test has been satisfied as to the Bonds of that maturity, provided that, the Underwriter’s reporting obligation after the Closing Date may be at reasonable periodic interv als or otherwise upon the request of the Community Facilities District or Bond Counsel. For purposes of this Section, if Bonds mature on the same date but have different interest rates, each separate CUSIP number within that maturity will be treated as a separate maturity of the Bonds. For clarity, and notwithstanding any other condition to Closing set forth in this Purchase Agreement, the sale of 10% of each maturity of the Bonds to the public prior to the Closing Date shall not be a condition to Closing.
D. The Underwriter confirms that it has offered the Bonds to the public on or before the date of this Purchase Agreement at the offering price or prices (the “ initial offering price”), or at the corresponding yield or yields, set forth in Exhibit A. Exhibit A also sets forth, identified under the column “Hold the Offering Price Rule Used,” as of the date of this Purchase Agreement, the maturities, if any, of the Bonds for which the 10% test has not been satisfied and for which the Community Facilities Distri ct and the Underwriter agree that the restrictions set forth in the next sentence shall apply, which will allow the Community Facilities District to treat the initial offering price to the public of each such maturity as of the sale date as the issue price of that maturity (the “hold-the-offering-price rule”). So long as the hold-the-offering-price rule remains applicable to any maturity of the Bonds, the Underwriter will neither offer nor sell unsold Bonds of that maturity to any person at a price that is higher than the initial offering price to the public during the period starting on the sale date and ending on the earlier of the following:
1. the close of the fifth (5th) business day after the sale date; or 809
4 2. the date on which the Underwriter has sold at l east 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public.
The Underwriter will advise the Community Facilities District promptly after the close of the fifth (5th) business day after the sale date whether it has sold 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public.
E. The Underwriter confirms that:
(1) any selling group agreement and any third -party distribution agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each dealer who is a member of the selling group, and each broker -dealer that is a party to such third -party distribution agreement, as applicable, (A) (i) to report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it, whether or not the Closing Date has occurred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Underwriter that the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon request of the Underwriter, and (ii) to comply with the hold-the-offering-price rule, if applicable, if and for so long as directed by the Underwriter; (B) to promptly notify the Underwriter of any sales of Bonds that, to its knowledge, are made to a purchaser who is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below), and (C) to acknowledge that, unless otherwise advised by the dealer or broker -dealer, the Underwriter shall assume that each order submitted by the dealer or broker-dealer is a sale to the public; and
(2) any selling group agreement relating to the initial sale of the Bonds to the public, together with the re lated pricing wires, contains or will contain language obligating each dealer that is a party to a third -party distribution agreement to be employed in connection with the initial sale of the Bonds to the public to require each broker -dealer that is a part y to such third-party distribution agreement to (A) report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it, whether or not the Closing Date has occurred, until either all Bonds of that maturity allocated to it h ave been sold or it is notified by the Underwriter or the dealer that the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon request of the Underwriter or the dealer and (B) comply with the hold -the-offering-price rule, if applicable, if and for so long as directed by the Underwriter or the dealer and as set forth in the related pricing wires.
F. The Community Facilities District acknowledges that, in making the representations set forth in this Section, the Underwriter will rely on (i) in the event a selling group has been created in connection with the initial sale of the Bonds to the public, the agreement of each dealer who is a member of the selling group to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold -the-offering- price rule, if applicable to the Bonds, as set forth in a selling grou p agreement and the related pricing wires, and (ii) in the event that a third-party distribution agreement was employed in connection with the initial sale of the Bonds to the public, the agreement of each broker -dealer that is a party to such agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold -the-offering-price rule, if applicable to the Bonds, as set forth in the third -party distribution agreement and th e related pricing wires. The 810
5 Community Facilities District further acknowledges that the Underwriter shall not be liable for the failure of any dealer who is a member of a selling group, or of any broker -dealer that is a party to a third-party distribution agreement, to comply with its corresponding agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds.
G. The Underwriter acknowledges that sales of any Bonds to any person that is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below) shall not constitute sales to the public for purposes of this section.
Further, for purposes of this section:
1. “public” means any person other than an underwriter or a related party;
2. “underwriter” means (A) any person that agrees pursuant to a written contract with the Community Facilities District (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to the public (including a member of a selling group or a party to a third party distribution agreement participating in the initial sale of the Bonds to the public);
3. a purchaser of any of the Bonds is a “related p arty” to an underwriter if the underwriter and the purchaser are subject, directly or indirectly, to (A) more than 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (B) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (C) more than 50% common ownership of the valu e of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other); and
4. “sale date” means the date of execution of this Purchase Agreement by all parties.
4. The Official Statement.
A. Pursuant to the authorization of the Community Facilities District, the Underwriter has distributed copies of t he Preliminary Official Statement dated [POS Date], relating to the Bonds, which, together with the cover page, inside cover page and appendices thereto is herein called the “Preliminary Official Statement.” By its acceptance of this Purchase Agreement, t he Community Facilities District hereby ratifies the use by the Underwriter of the Preliminary Official Statement, and the Community Facilities District agrees to execute a final official statement relating to the Bonds (the “Official Statement”) which wil l consist of the Preliminary Official Statement with such changes as may be made thereto, with the approval of Stradling Yocca Carlson & Rauth LLP, as Bond Counsel (“Bond Counsel”), and as Disclosure Counsel (“Disclosure Counsel”), and the Underwriter, and to provide copies thereof to the Underwriter as set forth herein. The Community Facilities District hereby authorizes the Underwriter to use and promptly distribute, in connection with the offer and sale of the Bonds, the Preliminary Official Statement, the Official Statement and 811
6 any supplement or amendment thereto. The Community Facilities District further authorizes the Underwriter to use and distribute, in connection with the offer and sale of the Bonds, the Indenture, the Continuing Disclosure Certificate executed by the Community Facilities District in connection with the Bonds (the “Continuing Disclosure Certificate”), this Purchase Agreement and all information contained herein, and all other documents, certificates and statements furnished by or o n behalf of the Community Facilities District to the Underwriter in connection with the transactions contemplated by this Purchase Agreement. This Purchase Agreement, the Indenture, the Bonds, and the Continuing Disclosure Certificate are collectively referred to herein as the “Community Facilities District Documents.”
B. To assist the Underwriter in complying with Securities and Exchange Commission Rule 15c2 -12(b)(5) (the “Rule”), the Community Facilities District will undertake pursuant to the Continuing Disclosure Certificate, in the form attached as Appendix F to the Official Statement, to provide annual reports and notices of certain enumerated events. A description of this undertaking is set forth in the Preliminary Official Statement and will also be se t forth in the Official Statement.
5. Closing. Except as the Underwriter and the Community Facilities District may otherwise agree, the Community Facilities District will deliver to the Underwriter, at the offices of Bond Counsel in Newport Beach, California, or at such other location as may be mutually agreed upon by the Underwriter and the Community Facilities District, the documents hereinafter mentioned; and the Community Facilities District will deliver to the Underwriter through the facilities of The Dep ository Trust Company (“DTC”), the Bonds, in definitive form (all Bonds bearing CUSIP numbers), duly executed by the Community Facilities District and authenticated by the Trustee in the manner provided for in the Indenture and the Community Facilities Dis trict Act at 8:30 a.m. California time, on [Closing Date] (the “Closing Date”), and the Underwriter will accept such delivery and pay the purchase price of the Bonds as set forth in paragraph (A) of this Section by wire transfer, payable in federal or other immediately available funds (such delivery and payment being herein referred to as the “Closing”). The Bonds shall be in fully registered book -entry form (which may be typewritten) and shall be registered in the name of Cede & Co., as nominee of DTC .
The Bonds shall be made available to the Underwriter at least one (1) business day before the Closing Date for purposes of inspection.
6. Representations, Warranties and Covenants of the Community Facilities District .
The Community Facilities District represents, warrants and covenants to the Underwriter on behalf of itself and the City that:
A. The City is duly organized and validly existing as a general law city under the Constitution and laws of the State and has duly authorized the formation of the Community Facilities District, the incurring of bo nded indebtedness thereby pursuant to resolutions duly adopted by the City Council (collectively, the “Community Facilities District Formation Resolution s” and, together with the Community Facilities District Reso lution of Issuance, the “Community Facilities District Resolutions”) and the Community Facilities District Act. The City Council, as the legislative body of the City and the Community Facilities District, has duly adopted the Community Facilities District Formation Resolution s and an ordinance of the City Council levying Special Tax within the Community Facilities District (the “Ordinance”) , and has caused to be recorded in the real property records of the County of Riverside, a notice of special tax lien, and any required amendments thereof (collectively, the “Notice of Special Tax Lien” and, together with the Community Facilities District Formation Resolutions and the Ordinance, the “Formation Documents”), and has duly adopted the 812
7 Community Facilities District Resolution of Issuance. Each of its Formation Documents remains in full force and effect as of the date hereof and has not been amended or rescinded. The Community Facilities District is duly organized and validly existing as a community facilities district under the laws of the State. The Community Facilities District has, and at the Closing Date will have, as the case may be, full legal right, power and authority: (i) to execute, deliver and perform its obligations under the Community Facilities District Documents, and to carry out all transactions contemplated by each of such agreements; (ii) to issue, sell and deliver the Bonds as provided herein; and (iii) to carry out, give effect to and consummate the transactions contemplated by the Formation Documents, the Community Facilities District Documents and the Official Statement.
B. The Community Facilities District and the City, as applicable, have each complied, and will at the Closing Date be in compliance , in all material respects, with the Forma tion Documents and the Community Facilities District Documents, and any immaterial noncompliance by the Community Facilities District and the City, if any, will not impair the ability of the Community Facilities District and the City, as applicable, to car ry out, give effect to or consummate the transactions contemplated by the foregoing. From and after the date of issuance of the Bonds, the Community Facilities District will continue to comply with the covenants of the Community Facilities District contained in the Community Facilities District Documents.
C. The information in the Preliminary Official Statement and in the Official Statement relating to the Community Facilities District, the City and the Bonds (other than statements therein pertaining to the D TC and its book -entry system, any statement provided by the Underwriter, information under the caption “PROPERTY OWNERSHIP AND THE DEVELOPMENT”, and “APPENDIX D - APPRAISAL REPORT”, as to which no view is expressed), is true and correct in all material res pects and does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; and, upon delivery and up to and including 25 days after the End of the Underwriting Period (as defined in paragraph (D) below), the Official Statement will be amended and supplemented so as to contain no misstatement of any material fact or omission of any statement necessary to make the statem ents contained therein, in the light of the circumstances in which such statements were made, not misleading.
D. Up to and including 25 days after the End of the Underwriting Period, the Community Facilities District will advise the Underwriter promptly of an y proposal to amend or supplement the Official Statement and will not affect or consent to any such amendment or supplement without the consent of the Underwriter, which consent will not be unreasonably withheld. The Community Facilities District will advi se the Underwriter promptly of the institution of any proceedings known to it by any governmental agency prohibiting or otherwise materially affecting the use of the Official Statement in connection with the offering, sale or distribution of the Bonds. As used herein, the term “End of the Underwriting Period” means the later of such time as:
(i) the Bonds are delivered to the Underwriter; or (ii) the Underwriter does not retain, directly or as a member of an underwriting syndicate, an unsold balance of the Bonds for sale to the public. Unless the Underwriter gives notice to the contrary, the End of the Underwriting Period shall be deemed to be the Closing Date. Any notice delivered pursuant to this provision shall be written notice delivered to the Commun ity Facilities District at or prior to the Closing Date, and shall specify a date (other than the Closing Date) to be deemed the “End of the Underwriting Period.” E. Except as described in the Preliminary Official Statement, the Community Facilities District is not, in any respect material to the transactions referred to herein or contemplated 813
8 hereby, in breach of or in default under, any law or administrative rule or regulation of the State, the United States of America, or of any department, division, agency or instrumentality of either thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture, contract, agreement or other instrument to which the Community Facilities District is a party or is otherwise subject or bound, and the performance of its obligations under the Community Facilities District Documents and compliance with the provisions of each thereof, or the performance of the conditions precedent to be performed by the Community F acilities District pursuant to this Purchase Agreement, will not conflict with or constitute a breach of or default under any applicable law or administrative rule or regulation of the State, the United States of America, or of any department, division, agency or instrumentality of either thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture, contract, agreement or other instrument to which the Community Facilities District is a pa rty or is otherwise subject or bound, in any manner which would materially and adversely affect the performance by the Community Facilities District of its obligations under the Community Facilities District Documents or the performance of the conditions p recedent to be performed by the Community Facilities District pursuant to this Purchase Agreement.
F. Except as may be required under the “blue sky” or other securities laws of any jurisdiction, all approvals, consents, authorizations, elections and orders of , or filings or registrations with, any governmental authority, board, agency or commission having jurisdiction which would constitute a condition precedent to, or the absence of which would materially adversely affect, the performance by the Community Fac ilities District of its obligations under the Community Facilities District Documents, and the performance of the conditions precedent to be performed by the Community Facilities District pursuant to this Purchase Agreement, have been or will be obtained at the Closing Date and are or will be in full force and effect at the Closing Date.
G. The Community Facilities District Documents conform in all material respects as to form and tenor to the descriptions thereof contained in the Official Statement.
H. The Bonds are payable from the Net Taxes of the Community Facilities District, as set forth in the Indenture, the levy of which has been duly and validly authorized pursuant to the Community Facilities District Act and the Special Tax within the Community Facilitie s District will be fixed and levied in an amount which, together with other available funds, is required for the payment of the principal of, and interest on, the Bonds when due and payable, all as provided in the Indenture. The Community Facilities Distr ict has covenanted to cause the Special Tax to be levied and collected at the same time and in the same manner as ordinary ad valorem property taxes or in such other manner as the City Council shall determine.
I. The Indenture creates a valid first pledge of and lien on the Net Taxes of the Community Facilities District , and in the moneys in the Special Tax Fund , including the Reserve Account therein, established pursuant to the Indenture, on the terms and conditions set forth in the Indenture.
J. Except as disclosed in the Preliminary Official Statement, there are, to the best of the Community Facilities District’s knowledge, no entities with outstanding assessment or special tax liens against any of the properties within the Community Facilities District or which are senior to or on a parity with the Special Tax of the Community Facilities District. 814
9 K. The information contained in the Preliminary Official Statement and in the Official Statement (other than statements therein pertaining to the DTC and its book -entry system, any statement provided by the Underwriter, information under the caption “PROPERTY OWNERSHIP AND THE DEVELOPMENT”, and “APPENDIX D - APPRAISAL REPORT”, as to which no view is expressed) is true and correct in all material respects and such inf ormation does not and shall not contain any untrue or misleading statement of a material fact or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.
L. The Prelimi nary Official Statement was deemed final by a duly authorized officer of the Community Facilities District prior to its delivery to the Underwriter, except for the omission of such information as is permitted to be omitted in accordance with paragraph (b)(1) of the Rule. The Community Facilities District hereby covenants and agrees that, within seven (7) business days from the date hereof, or upon reasonable written notice from the Underwriter within sufficient time to accompany any confirmation requesting payment from any customers of the Underwriter, the Community Facilities District shall cause a final printed form of the Official Statement to be delivered to the Underwriter in sufficient quantity to comply with Rule 15c2-12, rules of the MSRB and to meet potential customer requests for copies of the Official Statement.
M. At the time of acceptance hereof there is and as of the Closing there will be no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, government agency, public board or body (collectively and individually, an “Action”) pending (written notice of which has been served on the City or the Community Facilities District) or to the best knowledge of the Community Facilities District or the City overtly threatened in writing, in which any such Action: (i) in any way questions the existence of the Community Facilities District or the titles of the officers of the Community Facilities District to their respective offices; (ii) affects, contests or seeks to prohibit, restrain or enjoin the issuance or delivery of the Bonds or the payment or collection of Special Tax or any amounts pledged or to be pledged to pay the principal of and interest on the Bonds, or in any way contests or affects the validity of the Community Facilities District Documents or the consummation of the transactions on the part of the Community Facilities District contemplated thereby; (iii) contests the exemption of interest on the Bonds from federal or State income taxation, or contests the powers of the Community Facilities District which may result in any material adverse change relating to the financial condition of the Community Facilities District; or (iv) contests the completeness or accuracy of the Preliminary Official Statement o r the Official Statement or any supplement or amendment thereto or asserts that the Preliminary Official Statement or the Official Statement contained any untrue statement of a material fact or omitted to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and as of the time of acceptance hereof there is and, as of the Closing Date, there will be no basis for any action, suit, proceeding, inquiry or investigation of the nature described in clauses (i) through (iv) of this sentence.
N. Any certificate signed on behalf of the Community Facilities District by any officer or employee of the Community Facilities District authorized to do so sh all be deemed a representation and warranty by the Community Facilities District to the Underwriter on behalf of itself and the Community Facilities District as to the statements made therein.
O. At or prior to the Closing , the Community Facilities District will have duly authorized, executed and delivered the Continuing Disclosure Certificate in substantially the form 815
10 attached as Appendix F to the Official Statement. Based upon a review of its previous undertakings, and except as disclosed in the Preliminary Official Statement, the City and its related entities , including the Community Facilities District, have not failed to comply in all material respects with any previous undertakings with regard to the Rule to provide annual reports or notices of enumerated events in the last five years.
P. The Community Facilities District will apply the proceeds of the Bonds in accordance with the Indenture and as described in the Preliminary Official Statement and Official Statement.
Q. Until such time as moneys have been set aside in an amount sufficient to pay all then outstanding Bonds at maturity or to the date of redemption if redeemed prior to maturity, plus unpaid interest thereon and premium, if any, to maturit y or to the date of redemption if redeemed prior to maturity, the Community Facilities District will faithfully perform and abide by all of the covenants, undertakings and provisions contained in the Indenture.
R. Between the date of this Purchase Agreement a nd the date of Closing, the Community Facilities District will not offer or issue any bonds, notes or other obligations for borrowed money not previously disclosed to the Underwriter.
S. The City, on behalf of the Community Facilities District , has adopted lo cal debt policies in accordance with Section 8855(i) of the California Government Code.
The Community Facilities District hereby approves the preparation and distribution of the Official Statement, consisting of the Preliminary Official Statement with su ch changes as are noted thereon and as may be made thereto, with the approval of Bond Counsel, Disclosure Counsel and the Underwriter, from time to time prior to the Closing Date.
The Community Facilities District hereby ratifies any prior use of and autho rizes the future use by the Underwriter, in connection with the offering and sale of the Bonds, of the Preliminary Official Statement, the Official Statement, this Purchase Agreement and all information contained herein, and all other documents, certificat es and written statements furnished by the City or the Community Facilities District to the Underwriter in connection with the transactions contemplated by this Purchase Agreement.
The execution and delivery of this Purchase Agreement by the Community Faci lities District shall constitute a representation by the Community Facilities District to the Underwriter that the representations and warranties contained in this Section 6 with respect to the Community Facilities District and the City are true as of the date hereof.
7. Conditions to the Obligations of the Underwriter . The obligation of the Underwriter to accept delivery of and pay for the Bonds on the Closing Date shall be subject, at the option of the Underwriter, to the accuracy in all material respects o f the representations and warranties on the part of the Community Facilities District contained herein, to the accuracy in all material respects of the statements of the officers and other officials of the Community Facilities District made in any certificates or other documents furnished pursuant to the provisions hereof, to the performance by the Community Facilities District of its obligations to be performed hereunder at or prior to the Closing Date, and in reliance upon the representations and covenant s of D.R. Horton Los Angeles Holding 816
11 Company, Inc., a California corporation (the “Developer”) contained in the certificate(s) delivered as of the Closing Date, and to the following additional conditions:
A. At the Closing Date, the Community Facilities District Resolutions and the Community Facilities District Documents shall be in full force and effect, and shall not have been amended, modified or supplemented, except as may have been agreed to in writing by the Underwriter, and there shall have been taken in connection therewith, with the issuance of the Bonds and with the Bonds, and with the transactions contemplated thereby, and by this Purchase Agreement, all such actions as, in the opinion of Bond Counsel, shall be necessary and appropriate.
B. At the Closing Date, except as described in the Preliminary Official Statement, the Community Facilities District shall not be, in any respect material to the transactions referred to herein or contemplated hereby, in breach of or in default under, any law or adm inistrative rule or regulation of the State, the United States of America, or of any department, division, agency or instrumentality of either thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, reso lution, indenture, contract, agreement or other instrument to which the Community Facilities District is a party or is otherwise subject or bound, and the performance of the conditions precedent to be performed hereunder will not conflict with or constitute a breach of or default under any applicable law or administrative rule or regulation of the State, the United States of America, or of any department, division, agency or instrumentality of either thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture, contract, agreement or other instrument to which the Community Facilities District is a party or is otherwise subject or bound, in any manner which would materially and adversely af fect the performance of the conditions precedent to be performed by the Community Facilities District hereunder.
C. At the Closing Date, except as described in the Preliminary Official Statement, the Community Facilities District shall not be, in any respect material to the transactions referred to herein or contemplated hereby, in breach of or in default under, any law or administrative rule or regulation of the State, the United States of America, or of any department, division, agency or instrumentality of either thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture, contract, agreement or other instrument to which the Community Facilities District is a party or is otherwise subject or bound, and the performance by the Community Facilities District of its obligations under the Bonds, the Community Facilities District Resolutions, the Community Facilities District Documents , and any other instruments contemplated by any of such docume nts, and compliance with the provisions of each thereof, or the performance of the conditions precedent to be performed hereunder, will not conflict with or constitute a breach of or default under any applicable law or administrative rule or regulation of the State, the United States of America, or of any department, division, agency or instrumentality of either thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture, contract, agree ment or other instrument to which the Community Facilities District is a party or is otherwise subject or bound, in any manner which would materially and adversely affect the performance by the Community Facilities District of its obligations under the Community Facilities District Documents or the performance of the conditions precedent to be performed by the Community Facilities District hereunder.
D. The information contained in the Official Statement (other than statements therein pertaining to the DTC and its book-entry system, any statement provided by the Underwriter, information under the caption “PROPERTY OWNERSHIP AND THE DEVELOPMENT”, and 817
12 “APPENDIX D - APPRAISAL REPORT”, as to which no view is expressed) is, as of the Closing Date and as of the date of any supplement or amendment thereto pursuant hereto, true and correct in all material respects and does not, as of the Closing Date or as of the date of any supplement or amendment thereto, contain any untrue statement of a material fact or omit to stat e a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.
E. Between the date hereof and the time for Closing, this Purchase Agreement shall have not been terminated by the Underwriter pursuant to Section 8 hereof.
F. At or prior to the Closing Date, the Underwriter shall have received a counterpart original or certified copy of the following documents, in each case satisfactory in form and substance to the Underwriter:
1. The Official Statement, executed on behalf of the Community Facilities District by an authorized officer;
2. The Community Facilities District Documents, each duly executed and delivered by the respective parties thereto, with only such ame ndments, modifications or supplements as may have been agreed to in writing by the Underwriter;
3. The Community Facilities District Resolutions and the Formation Documents, together with a certificate dated as of the Closing Date of the City Clerk to the effect that such resolutions and documents are true, correct and complete copies of the ones duly adopted by the City Council;
4. An unqualified approving opinion for the Bond s, dated the Closing Date and addressed to the Community Facilities District, of Bond Counsel, to the effect that the Bonds are the valid, legal and binding obligations of the Community Facilities District and that the interest thereon is excluded from gro ss income for federal income tax purposes and exempt from personal income taxes of the State, in substantially the form included as Appendix C to the Official Statement, together with a letter of Bond Counsel, dated the Closing Date and addressed to the Underwriter and the Trustee, to the effect that such opinion addressed to the Community Facilities District may be relied upon by the Underwriter and the Trustee to the same extent as if such opinion was addressed to it;
5. A supplemental opinion or opinions of Bond Counsel dated the Closing Date and addressed to the Underwriter to the effect that:
(i) this Purchase Agreement and the Continuing Disclosure Certificate have been duly executed and delivered by the Community Facilities District and, assuming due authorization, execution and delivery by the other parties thereto, constitute the valid and binding obligations of the Community Fa cilities District, except to t he extent that enforceability may be limited by moratorium, bankruptcy, reorganization, insolvency or other similar laws affecting creditors’ rights generally or by the exercise of judicial discretion in accordance with general principles of equity or othe rwise in appropriate cases and by limitations on legal remedies against public agencies in the State;
818
13 (ii) the Bonds are not subject to the registration requirements of the Securities Act of 1933, as amended, and the Indenture is exempt from qualification unde r the Trust Indenture Act of 1939, as amended; and
(iii) the statements contained in the Official Statement under the captions “INTRODUCTION – Source of Payment for the Bonds,” “INTRODUCTION – Description of the Bonds,” “INTRODUCTION – Tax Exemption ,” “INTRODUCTION – Parity Bonds for Refunding Purposes Only,” “THE BONDS,” “SOURCES OF PAYMENT FOR THE BONDS,” (except information under the caption “– Special Taxes” as to which no opinion is expressed), “TAX EXEMPTION,” Appendix C – “FORM OF OPINION OF BOND COUNSEL” and Appendix E – “SUMMARY OF THE INDENTURE,” excluding any material that may be treated as included under such captions by cross -reference or reference to other documents or sources, insofar as such statements expressly summarize certain provisions of the Indenture and Bond Counsel’s final approving opinion, are accurate in all material respects.
6. A letter, dated the Closing Date and addressed to the Underwriter, of Disclosure Counsel, to the effect that such counsel is not passing upon and has not undertake n to determine independently or to verify the accuracy or completeness of the statements contained in the Preliminary Official Statement or in the Official Statement, and is, therefore, unable to make any representation to the Underwriter in that regard, b ut on the basis of its participation in conferences with representatives of the City, the City Attorney , as issuer’s counsel , Bond Counsel, the appraisal of the taxable properties within the Community Facilities District with a date of value as of November 3, 2025 (the “Appraisal Report”) prepared by Stephen G. White, MAI (the “Appraiser”), Spicer Consulting Group, LLC, Murrieta, California (the “Special Tax Consultant ”), the Municipal Advisor, representatives of the Underwriter and others, during which con ferences the content of the Preliminary Official Statement and the Official Statement and related matters were discussed, and its examination of certain documents, and, in reliance thereon and based on the information made available to it in its role as Di sclosure Counsel and its understanding of applicable law, Disclosure Counsel advises the Underwriter as a matter of fact, but not opinion, that no information has come to the attention of the attorneys in the firm working on such matter which has led them to believe that the Preliminary Official Statement as of its date and the date hereof and the Official Statement as of its date and as of the Closing Date (in each case excluding therefrom the financial and statistical data, forecasts, charts, numbers, est imates, projections, assumptions and expressions of opinion included in the Preliminary Official Statement and the Official Statement, information regarding DTC and its book entry system and the information set forth in Appendices A, B, C, D, E, G and H, as to all of which no opinion is expressed) contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading;
7. A certificate dated the Closing Date and signed by an authorized representative of the Community Facilities District or an authorized designee, on behalf of the Community Facilities District to the effect that: (i) the representations and warranties made by the Community Facilities District contained herein are true and correct in all material respects on and as of the Closing Date with the same effect as if made on the Closing Date; (ii) the Community Facilities District Documents have been duly authorized and executed and are in full force and effect; (iii) to the best knowledge of such officer, no event has occurred since the date of the Official Statement which should be disclosed in the Official Statement for the purpose for which it is to be used or which it is necessary to disclose therein in order to make the statements and information therein not misleading in any material respect; (iii) the Community Facilities District has complied 819
14 with all the agreements and satisfied all the conditions on its part to be satisfied under this Purchase Agreement, the Community Facilities District Resolutions, the Community Facilities District Documents and the Official Statement at or prior to the Closing Date; and (iv) all information in the Official Statement relating to the Community Facilities District (other than information therein provided by the Special Tax Consultant) is true and correct in all material respects as of the date of the Official Statement and as of the Closing Date;
8. An opin ion of Burke, Williams & Sorensen, LLP, Riverside, California, City Attorney, dated the date of Closing and addressed to the Underwriter and the Community Facilities District, substantially in the form attached hereto as Exhibit D;
9. A certificate dated the Closing Date from the Appraiser addressed to the Community Facilities District and the Underwriter substantially to the effect that (i) the assumptions made in the Appraisal Report are reasonable; (ii) the Appraisal Report fairly and accurately described, as of the stated date of value, the market values of the properties in the Community Facilities District that are subject to the Special Taxes; (iii) the Appraiser consents to the reproduction of the Appraisal Report as Appendix D to the Preliminary Offici al Statement and the final Official Statement, each with respect to the Bonds, and to the references to the Appraiser and the Appraisal Report made in the Preliminary Official Statement and the Official Statement ; (iv) the Appraisal Report complies with the Appraisal Standards for Land -Secured Financings issued by the California Debt and Investment Advisory Commission dated July, 2004 ; (v) a true and correct copy of the Appraisal Report is attached as Appendix D to the Preliminary Official Statement and the Official Statement; (vi) to the best of the Appraiser’s knowledge, neither the Appraisal Report nor the information in the Preliminary Official Statement or the Official Statement referring to it contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading ; and (vii) The Appraiser is aware that acts and events may have occurred since the date of the Appraisal Report which could result in both positive and negative effects on market value, however no events or occurrences have been ascertained by the Appraiser or have come to the Appraiser’s attention that, in the Appraiser’s opinion, would substantially and adversely impact the estimated market values of the properties in the Community Facilities District that are subject to the Special Taxes set forth in the Appraisal Report; provided, however, the Appraiser has not performed any procedures since the date of the Appraisal Report to obtain knowledge of such events or occurrences , the Appraiser is not obligated to perform any such procedures in the future , nor has the Appraiser prepared an updated appraisal of the properties in the Community Facilities District that are subject to the Special Taxes since the date of the Appraisal Report;
10. A certificate dated the Closing Date from the Special Tax Consultant addressed to the Community Facilities District and the Underwriter to the effect that: (i) the Special Tax, if levied and collected in the maximum amounts permitted pursuant to the Rate and Method of Apportionment of Special Tax of the Community Facilities District , as of the Closing Date, would generate at least 110% of the annual debt service payable with respect to the Bonds plus the Administrative Expenses Cap, based on such assumptions and qualifications as shall be acceptable to the Underwriter; (ii) the statements in the Preliminary Official Statement and the Official Statement provided by the Special Tax Consultant concerning the Special Tax and all information supplied by it for use in the Official Statement were as of the date of the Preliminary Official Statement, the date of the Official Statement and are as of the Closing Date true and correct, and do not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstance s under which they were made, not misleading ; (iii) all 820
15 information supplied by the Special Tax Consultant to the Appraiser is true and correct as of the date of the Preliminary Official Statement and the date of the Official Statement and as of the Closin g Date, based on such assumptions as may have been supplied by it; (iv) the information contained in the Appraisal Report with respect to taxes and tax rates applicable, and projected to be applicable, to the property in the Community Facilities District is consistent with such information provided by the Special Tax Consultant to the Appraiser, which information so provided was based on information obtained by the Special Tax Consultant from the Community Facilities District , the Developer and the City; and (v) the Special Tax Consultant is duly authorized to execute and deliver the Continuing Disclosure Certificate in its capacity as dissemination agent thereunder, and the Special Tax Consultant has duly executed and delivered the Continuing Disclosure Certificate;
11. Certified copies of the general resolution of the Trustee authorizing the execution and delivery of certain documents by certain officers of the Trustee, which resolution authorizes the execution of the Indenture and the authentication of the Bonds;
12. A certificate of the Trustee, addressed to the Underwriter, and the Community Facilities District dated the Closing Date, to the effect that: (a) the Trustee is a national banking association organized and existing under and by virtue of the laws of th e United States, having the full power and being qualified to enter into and perform its duties under the Indenture and to authenticate and deliver the Bonds to the Underwriter; (b) the Trustee is duly authorized to enter into the Indenture and to authenti cate and deliver the Bonds to the Underwriter pursuant to the Indenture; (c) when delivered to and paid for by the Underwriter at the Closing, the Bonds will have been duly authenticated and delivered by the Trustee; (d) the execution and delivery of the I ndenture and compliance with the provisions on the Trustee’s part contained therein, will not conflict with or constitute a breach of or default under any law, administrative regulation, judgment, decree, loan agreement, indenture, note, resolution, agreem ent or other instrument to which the Trustee is a party or is otherwise subject (except that no representation, warranty or agreement is made with respect to any federal or state securities or blue sky laws or regulations), which conflict, breach or defaul t would materially impair the ability of the Trustee to perform its obligations under the Indenture, nor will any such execution, delivery, adoption or compliance result in the creation or imposition of any lien, charge or other security interest or encumb rance of any nature whatsoever upon any of the properties or assets held by the Trustee pursuant to the lien created by the Indenture under the terms of any such law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument, except as provided by the Indenture; and (e) to the best of the knowledge of the Trustee, it has not been served with any action, suit, proceeding, inquiry or investigation in law or in equity, before or by any court, governmental agency, public board or body, nor is any such action or other proceeding threatened against the Trustee, affecting the existence of the Trustee, or the titles of its officers to their respective offices or seeking to prohibit, restrain, or enjoining the execution and delivery of the Bonds or the collection of revenues to be applied to pay the principal, premium, if any, and interest with respect to the Bonds, or the pledge thereof, or in any way contesting or affecting the validity or enforceability of the Indenture, or contesting the powers of the Trustee or its authority to enter into, adopt or perform its obligations under any of the foregoing to which it is a party, wherein an unfavorable decision, ruling or funding would materially adversel y affect the validity or enforceability of the Indenture or the power and authority of the Trustee to enter into and perform its duties under the Indenture and to authenticate and deliver the Bonds to or upon the order of the Underwriter;
13. An opinion of cou nsel to the Trustee dated the Closing Date, addressed to the Underwriter, and the Community Facilities District to the effect that (i) the Trustee 821
16 is a national banking association duly organized and validly existing under the laws of the jurisdiction of its organization and has the corporate power to execute and deliver the Indenture, (ii) the execution and delivery by the Trustee of the Indenture, and its performance of its obligations under the Indenture, have been and are as of the date hereof duly auth orized by all necessary corporate action, (iii) no approval, authorization or other action by, or filing with, any governmental body or regulatory authority (which has not been obtained) is required in connection with the due execution, delivery and performance by the Trustee of the Indenture, (iv) the Indenture has been duly executed and delivered and constitute s the valid and legally binding obligation of the Trustee enforceable against it in accordance with its terms except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally and by general principles of equity (regardless of whether enforcement is sought as a proceeding in equity or at law) , and (v) the Bonds have been duly authenticated and delivered by the Trustee;
14. A certificate of the Community Facilities District dated the Closing Date, in a form acceptable to Bond Counsel and the Underw riter, that the Bonds are not arbitrage bonds within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended;
15. Opinions of counsel to the Developer, dated the date of the Closing, addressed to the Underwriter and the Community Facilities District, in form and substance acceptable to the Underwriter and Bond Counsel;
16. Prior to and in connection with printing and distribution of the Preliminary Official Statement, an executed certificate of the Developer in substantially the form attached he reto as Exhibit B or as such certificate may be modified with the approval of the Underwriter and Disclosure Counsel;
17. A closing certificate of the Developer in the form attached hereto as Exhibit C or as such closing certificate may be modified with the a pproval of the Underwriter and Disclosure Counsel;
18. The Developer Continuing Disclosure Certificate executed and delivered by the Developer in substantially the form attached as Appendix G to the Official Statement;
19. An opinion of Kutak Rock LLP, Irvine, Ca lifornia, counsel to the Underwriter (“Underwriter’s Counsel”), dated the date of Closing and addressed to the Underwriter in form and substance acceptable to the Underwriter;
20. A certificate of the Municipal Advisor to the effect that the Municipal Advisor has participated in the preparation of the Preliminary Official Statement and the Official Statement and nothing has come to the attention of the Municipal Advisor which would lead it to believe that the Preliminary Official Statement or the Official Statement contain any untrue statement of a material fact or omits to state a fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading;
21. A copy of t he Community Facilities District ’s executed Blanket Letter of Representation to DTC; and
822
17 22. Such additional legal opinions, certificates, instruments and other documents as the Underwriter may reasonably request to evidence the truth and accuracy, as of the date hereof and as of the Closing Date, of the material representations and warranties of the Community Facilities District contained herein, and of the statements and information contained in the Official Statement and the due performance or satisfaction b y the Community Facilities District at or prior to the Closing of all agreements then to be performed and all conditions then to be satisfied by the Community Facilities District in connection with the transactions contemplated hereby and by the Indenture and the Official Statement.
All of the opinions, letters, certificates, instruments and other documents mentioned in this Purchase Agreement will be deemed to be in compliance with the provisions of this Purchase Agreement if, but only if, they are in form and substance satisfactory to the Underwriter. If the Community Facilities District shall be unable to satisfy the conditions to the obligations of the Underwriter to purchase, accept delivery of and pay for the Bonds contained in this Purchase Agreement, or if the obligations of the Underwriter to purchase, accept delivery of and pay for the Bonds shall be terminated for any reason permitted by this Purchase Agreement, this Purchase Agreement shall terminate and neither the Community Facilities District nor the Underwriter shall be under any further obligation hereunder, except that the respective obligations of the Underwriter and the Community Facilities District set forth in Section 9 hereof shall continue in full force and effect.
8. Termination Events. In recognition of the desire of the Community Facilities District and the Underwriter to effect a successful public offering of the Bonds, and in view of the potential adverse impact of any of the following events on such a public offering, this Purchase Ag reement shall be subject to termination in the discretion of the Underwriter by notification, in writing, to the Community Facilities District prior to delivery of and payment for the Bonds, if between the date hereof and the time of Closing, in the Underw riter’s sole and reasonable judgment any of the following events shall occur (each a “Termination Event”):
A. the market price or marketability of the Bonds, or the ability of the Underwriter to enforce contracts for the sale of the Bonds, shall be materially adversely affected by any of the following events:
1. legislation shall have been enacted by the Congress of the United States or the legislature of the State or shall have been favorably reported out of committee of either body or be pending in committee of either body, or shall have been recommended to the Congress for passage by the President of the United States or a member of the President’s Cabinet, or a decision shall have been rendered by a court of the United States or the State or the Tax Court of t he United States, or a ruling, resolution, regulation or temporary regulation, release or announcement shall have been made or shall have been proposed to be made by the Treasury Department of the United States or the Internal Revenue Service, or other fed eral or state authority with appropriate jurisdiction, with respect to federal or state taxation upon interest received on obligations of the general character of the Bonds;
2. there shall have occurred (1) an outbreak or escalation of hostilities or the declaration by the United States of a national emergency or war or (2) any other calamity or crisis in the financial markets of the United States or elsewhere or the escalation of such calamity or crisis; or
823
18 3. a general suspension of trading on the New York Stoc k Exchange or other major exchange shall be in force, or minimum or maximum prices for trading shall have been fixed and be in force, or maximum ranges for prices for securities shall have been required and be in force on any such exchange, whether by virtue of determination by that exchange or by order of U.S.
Securities and Exchange Commission (“ SEC”) or any other governmental authority having jurisdiction; or
4. legislation shall have been enacted by the Congress of the United States or shall have been favo rably reported out of committee or be pending in committee, or shall have been recommended to the Congress for passage by the President of the United States or a member of the President's Cabinet, or a decision by a court of the United States shall be rend ered, or a ruling, regulation, proposed regulation or statement by or on behalf of the SEC or other governmental agency having jurisdiction of the subject matter shall be made, to the effect that any obligations of the general character of the Securities, or the Bonds are not exempt from registration under or other requirements of the Securities Act of 1933, as amended and as then in effect, or the Securities Exchange Act of 1934, as amended and as then in effect, or that the Indenture is not exempt from qu alification under or other requirements of the Trust Indenture Act of 1939, as amended and as then in effect; or
5. except as disclosed in or contemplated by the Official Statement, any material adverse change in the affairs of the Community Facilities District shall have occurred; or B. any event or circumstance shall exist that either makes untrue or incorrect in any material respect any statement or information in the Official Statement (other than any statement provided by the Underwriter) or is not reflected in the Official Statement but should be reflected therein in order to make the statements therein, in the light of the circumstances under which they were made, not misleading and, in either such event, the Community Facilities District refuses to permit the Official Statement to be supplemented to supply such statement or information, or the effect of the Official Statement as so supplemented is to materially adversely affect the market price or marketability of the Bonds or the ability of the Underwriter to enforce contracts for the sale of the Bonds; or
C. a general banking moratorium shall have been declared by federal or State authorities having jurisdiction and be in force; or
D. a material disruption in securities settlement, payment or clearance services affecting the Bonds shall have occurred; or
E. any new restriction on transactions in securities materially affecting the market for securities (including the imposition of any limitation on interest rates) or the extension of credit by, or a charge to the ne t capital requirements of, underwriters shall have been established by the New York Stock Exchange, the SEC, any other federal or State agency or the Congress of the United States, or by Executive Order; or
F. a decision by a court of the United States shall be rendered, or a stop order, release, regulation or no -action letter by or on behalf of the SEC or any other governmental agency having jurisdiction of the subject matter shall have been issued or made, to the effect that the issuance, offering or sale of the Bonds, including the underlying obligations as contemplated by this Purchase Agreement or by the Official Statement, or any document relating to the issuance, offering 824
19 or sale of the Bonds, is or would be in violation of any provision of the federal s ecurities laws at the Closing Date, including the Securities Act of 1933, as amended and as then in effect, the Securities Exchange Act of 1934, as amended and as then in effect, or the Trust Indenture Act of 1939; or G. the commencement of one or more Actions.
Subject to Section 9, upon the occurrence of a Termination Event and the termination of this Purchase Agreement by the Underwriter, all obligations of the Community Facilities District and the Underwriter under this Purchase Agreement shall terminate, without further liability.
9. Expenses. Whether or not the Bonds are sold to the Underwriter as set forth herein:
A. The Underwriter shall be under no obligation to pay any expenses incident to the performance of the obligations of the Community Facilities Distr ict hereunder. If the Bonds are delivered by the Community Facilities District, the Community Facilities District shall pay, from the proceeds of the Bonds or from other funds of the Community Facilities District, the following expenses: (a) the cost of preparing, duplicating or printing, mailing and delivering the Community Facilities District Documents, the Preliminary Official Statement, the Official Statement and all other agreements and documents that are contemplated hereby (and drafts of any thereo f); (b) the cost of preparation and printing of the definitive Bonds; (c) the fees and expenses of the Community Facilities District, the Trustee, Bond Counsel, Disclosure Counsel, the Municipal Advisor, the Special Tax Consultant, the Appraiser, any entit y performing continuing disclosure compliance research or providing continuing disclosure compliance reports and any other experts or consultants retained by the Community Facilities District; (d) the charges of any rating agency with respect to the Bonds; (e) reimbursement to the Underwriter for payment of any fees and expenses reasonably incurred in connection with the initial offering, sale and delivery of the Bonds, including but not limited to industry fees (e.g., DTC, DAC, IPREO, CUSIP and Day Loan fees) only if the Community Facilities District and Underwriter have previously discussed and approved the allocation of proceeds towards these fees, and meal and travel expenses of the personnel of the Community Facilities District, but not including entert ainment expenses or those to be paid by the Underwriter pursuant to the last paragraph of this Section 9, and (f) all other fees and expenses, not including entertainment expenses, reasonably incurred in connection with the preparation of the Community Fac ilities District Documents, the Preliminary Official Statement, the Official Statement and all other agreements and documents that are contemplated hereby (and drafts of any thereof) and/or the initial offering, sale and delivery of the Bonds. The Communi ty Facilities District has authorized, and does hereby authorize, the Underwriter to pay such expenses on behalf of the Community Facilities District from proceeds of the Bonds at Closing as further described in the closing memorandum relating to the Bonds.
B. If the Bonds are sold to the Underwriter by the Community Facilities District, the Community Facilities District shall pay out of the proceeds of the Bonds the discount of the Underwriter or the purchase price paid for the Bonds shall reflect such discount.
Except as otherwise provided in this Section 9, the Underwriter shall pay the cost, if any, of qualifying the Bonds for sale in the various states chosen by the Underwriter, all advertising expenses in connection with the public offering of the Bonds a nd all other expenses incurred by it in connection with its public offering and distribution of the Bonds, not described above , including fees and disbursements of Underwriter’s Counsel.
825
20 10. Use of Documents . The Community Facilities District hereby authorizes the Underwriter to use, in connection with the public offering and sale of the Bonds, this Purchase Agreement, the Preliminary Official Statement, the Official Statement and the Community Facilities District Documents, and the information contained herein and therein.
11. Qualification of Bonds . The Community Facilities District will furnish such information, execute such instruments and take such other action in cooperation with the Underwriter as the Underwriter may reasonably request to qualify the Bonds for offer and sale under the Blue Sky or other securities laws and regulations of such states and other jurisdictions of the United States as the Underwriter may designate and to provide for the continuance of such qualification; provided, however, that the Community Facilities District will not be required to qualify as a foreign corporation or to file any general or special consents to service of process under the laws of any state.
12. Notices. Any notice or other communication to be given t o the Community Facilities District under this Purchase Agreement may be given by delivering the same in writing to the City of Wildomar, 23873 Clinton Keith Road, Suite 110, Wildomar, California 92595 , Attention: City Manager; any notice or other communic ation to be given to the Underwriter under this Purchase Agreement may be given by delivering the same in writing to Piper Sandler & Co. , 2321 Rosecrans Avenue, Suite 3200, El Segundo, California 90245, Attention: Public Finance.
13. Benefit. This Purchase A greement is made solely for the benefit of the Community Facilities District and Underwriter (including any successors or assignees of the Underwriter) and no other person shall acquire or have any right hereunder or by virtue hereof. Except as otherwise expressly provided herein, all of the agreements and representations of the Community Facilities District contained in this Purchase Agreement and in any certificates delivered pursuant hereto shall remain operative and in full force and effect regardless o f: (i) any investigation made by or on behalf of the Underwriter; (ii) delivery of and payment for the Bonds hereunder; or (iii) any termination of this Purchase Agreement.
14. Survival of Representations and Warranties . The representations and warranties of the Community Facilities District under this Purchase Agreement shall not be deemed to have been discharged, satisfied or otherwise rendered void by reason of the Closing and regardless of any investigations made by or on behalf of the Underwriter (or stat ements as to the results of such investigations) concerning such representations and statements of the Community Facilities District and regardless of delivery of and payment for the Bonds.
15. Execution in Counterparts. This Purchase Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. 826
21 16. Effective. This Purchase Agreement shall become ef fective and binding upon the respective parties hereto upon the execution of the acceptance hereof by the Community Facilities District and shall be valid and enforceable as of the time of such acceptance.
17. No Prior Agreements . This Purchase Agreement cont ains the entire agreement between the parties relating to the subject matter hereof and supersedes all oral statements, prior writings and representations with respect thereto.
18. Waiver of Jury Trial . THE COMMUNITY FACILITIES DISTRICT HEREBY
IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT
OF OR RELATING TO THIS PURCHASE AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
19. Governing Law . This Purchase Agreement shall b e governed by the laws of the State.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE
FOLLOWS
827
S-1
20. Effective Date. This Purchase Agreement shall become effective and binding upon the respective parties hereto upon the execution of the acceptance hereof by the Community Facilities District and shall be valid and enforceable as of the time of such acceptance.
Very truly yours,
PIPER SANDLER & CO.
By:
Its: Managing Director
The foregoing is hereby agreed to and
accepted as of the date first above written:
COMMUNITY FACILITIES DISTRICT NO. 2023-1
OF THE CITY OF WILDOMAR
By:
Authorized Officer
Time of Execution: _____________ California time
828
A-1
EXHIBIT A
COMMUNITY FACILITIES DISTRICT NO. 2023-1 (AVALINO)
OF THE CITY OF WILDOMAR
SPECIAL TAX BONDS, SERIES 2026
MATURITY SCHEDULE
Maturity
(September 1)
Principal
Amount
Interest
Rate Yield Price
10% Test
Satisfied*
10% Test
Not
Satisfied
Hold-The-
Offering-
Price Used
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
20__(T)
20__(T)
20__(T)
20__(T)
_________________
(T) Term Bond.
(C) Priced to optional redemption date of September 1, 20__ at [par]. * At the time of execution of this Purchase Agreement and assuming orders are confirmed by the close of the business day immediately following the date of this Purchase Agreement.
829
A-2
REDEMPTION PROVISIONS
Optional Redemption. The Bonds may be redeemed at the option of the District from any source of funds on any Interest Payment Date on or after September 1, 20__, in whole or in part, from such maturi ties as are selected by the District and by lot within a maturity, at the following redemption prices, expressed as a percentage of the principal amount to be redeemed, together with accrued interest to the date of redemption:
Redemption Date Redemption Price
September 1, 20-- and March 1, 20__ 103%
September 1, 20__ and March 1, 20__ 102
September 1, 20__ and March 1, 20__ 101
September 1, 20__ and any Interest Payment Date thereafter 100
In the event that the District elects to redeem Bonds as provided above, the District will give written notice to the Trustee of its election to so redeem, the redemption date and the principal amount of the Bonds of each maturity to be redeemed. The notice to the Trustee will be given at least 45 but no more than 60 calendar days prior to the redemption date, or by such later date as is acceptable to the Trustee.
Special Mandatory Redemption from Special Tax Prepayments . The Bonds are subject to special mandatory redemption as a whole or in part on a pro rata basis among maturities and by lot within a maturity, on any Interest Payment Date on or after September 1, 20__, and will be redeemed by the Trustee, from any amounts paid by the District to the Trustee and de signated by the District as a prepayment of Special Taxes for one or more parcels in the District made in accordance with the Rate and Method deposited to t he Redemption Account pursuant to the Indenture, plus amounts transferred from the Reserve Account p ursuant to the Indenture, at the following redemption prices, expressed as a percentage of the principal amount to be redeemed, together with accrued interest to the redemption date:
Redemption Date Redemption Price
Any Interest Payment Date from September 1, 20__ through March 1, 20__
103%
September 1, 20__ and March 1, 20__ 102
September 1, 20__ and March 1, 20__ 101
September 1, 20__ and any Interest Payment Date thereafter 100
Mandatory Sinking Fund Redemption . The Bonds maturing on September 1, 20__ (the “20__ Term Bonds”) will be called before maturity and redeemed, from the Sinking Fund Payments that have been deposited into the Redemption Account established under the Indenture, on September 1, 20 __, and on each September 1 thereafter prior to maturity, in accordance with the schedule of Sinking Fund Payments set forth below. The 20 __ Term Bonds so called for redemption will be selected by the Trustee by lot and will be redeemed at a redemption price for each redeemed 20__ Term Bond equal to t he principal amount thereof, plus accrued interest to the redemption date, without premium, as follows:
830
A-3
Term Bonds Maturing September 1, 20__
Sinking Fund Redemption Date
(September 1) Sinking Fund Payments
* Maturity.
The Bonds maturing on September 1, 20__ (the “20__ Term Bonds”) will be called before maturity and redeemed, from the Sinking Fund Payments that have been deposited into the Redemption Account established under the Indenture, on September 1, 20__, and on each September 1 thereafter prior to maturity, in accordance with the schedule of Sinking Fund Payments set forth below. The 20__ Term Bonds so called for redemption will be selected by the Trustee by lot and will be redeemed at a redemption price for each redeemed 20__ Term Bond equal to the principal amount thereof, plus accrued interest to the redemption date, without premium, as follows:
Term Bonds Maturing September 1, 20__
Sinking Fund Redemption Date
(September 1) Sinking Fund Payments
* Maturity.
The Bonds maturing on September 1, 20__ (the “20__ Term Bonds”) will be called before maturity and redeemed, from the Sinking Fund Payments that have been deposited into the Redemption Account established under the Indenture, on September 1, 20__, and on each September 1 thereafter prior to maturity, in accordance with the schedule of Sinking Fund Payments set forth below. The 20__ Term Bonds so called for redemption will be selected by the Trustee by lot and will be redeemed at a redemption price for each redeemed 20__ Term Bond equal to the principal amount thereof, plus accrued interest to the redemption date, without premium, as follows:
831
A-4
Term Bonds Maturing September 1, 20__
Sinking Fund Redemption Date
(September 1) Sinking Fund Payments
* Maturity.
The Bonds maturing on September 1, 20__ (the “20__ Term Bonds”) will be called before maturity and redeemed, from the Sinking Fund Payments that have been deposited into the Redemption Account established under the Indenture, on September 1, 20__, and on each September 1 thereafter prior to maturity, in accordance with the schedule of Sinking Fund Payments set forth below. The 20__ Term Bonds so called for redemption will be selected by the Trustee by lot and will b e redeemed at a redemption price for each redeemed 20__ Term Bond equal to the principal amount thereof, plus accrued interest to the redemption date, without premium, as follows:
Term Bonds Maturing September 1, 20__
Sinking Fund Redemption Date
(September 1) Sinking Fund Payments
* Final Maturity.
832
B-1
EXHIBIT B
COMMUNITY FACILITIES DISTRICT NO. 2023-1 (AVALINO)
OF THE CITY OF WILDOMAR
SPECIAL TAX BONDS, SERIES 2026
CERTIFICATE OF
D.R. HORTON LOS ANGELES HOLDING COMPANY, INC.
[POS Date]
Community Facilities District No. 2023-1 (Avalino)
of the City of Wildomar
23873 Clinton Keith Road, Suite 110,
Wildomar, California 92595
Piper Sandler & Co.
2321 Rosecrans Avenue, Suite 3200
El Segundo, CA 90245
Ladies and Gentlemen:
Reference is made to the Community Facilities District No. 2023-1 (Avalino) of the City of Wildomar Special Tax Bonds, Series 2026 (the “Bonds”) and to the Bond Purchase Agreement to be entered into in connection therewith (the “ Bond Purchase Agreement ”). This Certificate of D.R.
Horton Los Angeles Holding Company, Inc. (the “ Certificate”) is delivered pursuant to and in satisfaction of Section 7(F)(16) of the Bond Purchase Agreement. Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Bond Purchase Agreement.
The undersigned certifies and represents that he is duly authorized on behalf of D.R. Horton Los Angeles Holding Company, Inc. , a California corporation (the “ Developer”), to execute and deliver this Certificate in connection with the issuance, sale and delivery by Community Facilities District No. 2023-1 (Avalino) of the City of Wildomar (the “Community Facilities District”) of the Bonds. The Bonds are described in the Preliminary Official Statemen t dated [POS Date] relating to the Bonds (the “Preliminary Official Statement”).
As used herein, the phrase “ Actual Knowledge of the Developer ” shall mean the knowledge that the undersigned has or has obtained through (i) interviews with such current officers and responsible employees of the Developer and its Relevant Entities as the undersigned has determined are reasonably likely, in the ordinary course of their respective duties, to have knowledge of the matters set forth in this Certificate, and/or (ii) inspection of documents in the possession of the Developer that were reasonably available to the undersigned and which the undersigned has determined are necessary for the undersigned to sign this Certificate. With your permission, the undersigned has not conducted any additional or extraordinary inspection or inquiry other than such inspections and inquiries as are prudent and customary in connection with 833
B-2
the ordinary course of the Developer’s business and operations. Individuals who are no longer employed by the Developer or its Relevant Entities have not been contacted .
As used herein, “Relevant Entity” means, with respect to the Developer, any other person or entity (i) who directly, or indirectly through one or more intermediaries, is currently controlling, controlled by or under common control with the Developer, and (ii) for whom information, including financial information or operating data, concerning such person or entity is material to an evaluation of the Community Facilities District and investment decision regarding the Bonds (i.e. such person or entity’s assets or funds would materially affect the Developer’s ability to develop its Property (defined herein) as described in the Preliminary Official Statement or to pay its Special Taxes on the Property (prior to delinquency) to the extent the responsibility of the Developer.
The undersigned certifies that he or she is familiar with the facts herein certified and is authorized and qualified to certify the same as an authorized officer or rep resentative of the Developer, and the undersigned, on behalf of the Developer, further certifies as follows:
1. The Developer is duly formed, validly existing and in good standing under the laws of the State of California, and has all requisite corporate right, power, and authority:
(i) to execute and deliver the Developer Continuing Disclosure Certificate at Closing (the “Disclosure Certificate ”), and perform its obligations thereunder, and (ii) to own and develop the Property as described in the Preliminary Official Statement.
2. The Developer agrees to execute at Closing, the Disclosure Certificate substantially in the form attached as part of Appendix G to the Preliminary Official Statement relating to the Bonds (the “ Preliminary Official Statement ”), with suc h additional changes as may be agreed upon by the Developer.
3. To the Actual Knowledge of the Developer, the execution and delivery of the Disclosure Certificate, and the performance by the Developer of its obligations under the Disclosure Certificate, will not conflict with or constitute a breach of or default under any loans, lines of credit, credit agreements, or other material contractual or financial obligations of the Developer, or any applicable law, regulation, judgment or decree.
4. As set forth in the Preliminary Official Statement, certain property within the Community Facilities District is held in the name of the Developer (herein the “Property”).
5. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Developer, the Developer has not violated any applicable law or administrative rule or regulation of the State of California or the United States of America, or of any department, division, agency or instrumentality of either thereof, which violation could reasonably be expected to materially and adversely affect the Developer’s ability to develop the Property as described in the Preliminary Official Statement or to pay the applicable Special Tax due with respect to the Property (to the extent the responsibility of the D eveloper) prior to delinquency .
6. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Developer, (a) the Developer is not in breach of or in default under any or under any applicable court or administrative judgment or d ecree or any loan agreement, line of credit, note, bond, indenture, fiscal agent agreement, development 834
B-3
agreement (including mitigation agreements or joint community facilities agreements) (collectively, the “ Material Agreements ”) to which the Developer is a party or is otherwise subject or bound, which breach or default could reasonably be expected to materially and adversely affect the ability of the Developer to perform its obligations under the Disclosure Certificate, to develop the Property as describe d in the Preliminary Official Statement or to pay the applicable Special Tax due with respect to the Property (to the extent the responsibility of the Developer) prior to delinquency and (b) no event has occurred and is continuing that with the passage of time or giving of notice, or both, would constitute such a breach of or default under any Material Agreement which could reasonably be expected to materially and adversely affect the ability of the Developer to perform its obligations under the Disclosure Certificate, to develop the Property as described in the Preliminary Official Statement or to pay the applicable Special Tax due with respect to the Property (to the extent the responsibility of the Developer) prior to delinquency .
7. Except as disclosed in t he Preliminary Official Statement, to the Actual Knowledge of the Developer, there are no material loans outstanding and unpaid and no material lines of credit of the Developer or its Relevant Entities that are secured by an interest in the Property. To th e Actual Knowledge of the Developer, the Developer is not currently in default on any loans, lines of credit or other financial obligation, the result of which could reasonably be expected to materially and adversely affect the Developer’s ability to compl ete the development of the Property as described in the Preliminary Official Statement .
8. To the Actual Knowledge of the Developer, the Developer is not currently delinquent in any material amount in the payment of ad valorem property taxes, special assessments or special taxes on the Property. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Developer, the Developer has not been delinquent in the last five years in the payment of special assessments or special taxes o n property in California owned by the Developer during the period of its ownership included within the boundaries of a community facilities district or assessment district within California that caused a draw on a reserve fund relating to such assessment d istrict or community facilities district financing.
9. As of the date hereof, to the Actual Knowledge of the Developer, the statements in the Preliminary Official Statement solely with respect to the Developer, the Property and the proposed development of the Property as described under the captions entitled “PROPERTY OWNERSHIP AND THE DEVELOPMENT” and “CONTINUING DISCLOSURE— Developer Continuing Disclosure” (but, in all cases under all captions excluding (i) information regarding the appraisal, market value r atios and annual special tax ratios, (ii) information which is identified as having been provided by a source other than the Developer, and (iii) information about valuation, appraisals, market absorption, archaeological or environmental matters), are true and correct in all material respects and do not contain any untrue statement of any material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading .
10. Except as disclosed in the Preliminary Official Statement, no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, 835
B-4
regulatory agency, or public board or body is pending against the Developer (with proper service of process to the Developer having been accomplished), or to the Actual Knowledge of the Developer, is overtly threatened in writing against the Developer, (i) in any way questioning the due formation and valid existence of the Developer, (ii) in any way see king to challenge or affect the validity and enforceability of any governmental agreements or approvals necessary for the development of the Property, or seeking to restrain or enjoin continuation and/or completion of the development of the Property as des cribed in the Preliminary Official Statement, (iii) in any way seeking to invalidate or set aside any material agreement relating to the development of the Property, (iv) in any way seeking to restrain or to enjoin the issuanc e, sale or delivery of the Bonds, the application of the proceeds thereof in accordance with the Indenture, or the collection or application of the Special Taxes pledged or to be pledged to pay the principal of and interest on the Bonds, or the pledge thereof, (v) in any way contest ing or affecting the validity or enforceability of the Bonds, the Resolution or the Indenture, or (vi) in any way contesting the completeness or accuracy of the Preliminary Official Statement, or (vii) in any way contesting the validity or enforceability o f the Disclosure Certificate, or the power and authority of the Developer to enter into and perform its obligations under the Disclosure Certificate .
11. To the Actual Knowledge of the Developer, the Developer is able to pay its bills as they become due and no legal proceedings are pending against the Developer (with proper service of process to the Developer having been accomplished) or, to the Actual Knowledge of the Developer, overtly threatened in writing, in which the Developer may be adjudicated as bankrupt or discharged from any and all of its debts or obligations, or granted an extension of time to pay its debts or obligations, or be allowed to reorganize or readjust its debts
12. The Developer covenants that, while the Bonds or any refunding obligations related thereto are outstanding, the Developer and its Relevant Entities which it controls will not bring any action, suit, proceeding, inquiry or investigation at law or in equity, before any court, regulatory agency, public board or body which seeks to c hallenge or overturn the formation or existence of the Community Facilities District, the authorization of the Special Taxes or the validity of the Bonds or the pledge and assignment of the Special Taxes to secure payment of the Bonds or the proceedings ta ken for their issuance. The foregoing covenant shall not prevent the Developer from bringing any action, suit, proceeding, inquiry or investigation at law or in equity, before any court, regulatory agency, public board or body, (a) contending that the Spec ial Taxes have not been levied in accordance with the methodologies contained in the Rate and Method of Apportionment of Special Taxes for the Community Facilities District pursuant to which the Special Taxes are levied, (b) with respect to the application or use of the Special Taxes levied and collected, or (c) enforcing the obligations of the Community Facilities District or the City under the formation resolutions or any agreement including without limitation, the Resolution of Formation, the Indenture, the Disclosure Certificate, the Bond Purchase Agreement, or any other agreements between or among the Developer, its Relevant Entities, the Community Facilities District, and/or the City or to which the Developer or its Relevant Entities is a party or beneficiary.
13. To the Actual Knowledge of the Developer, there are no claims, disputes, lawsuits, or actions pending against the Developer (with proper service of process to the 836
B-5
Developer having been accomplished) or overtly threatened in writing against the Developer, nor, to the Actual Knowledge of the Developer, are there any contingent liabilities of, among, by or between the Developer or any Relevant Entity, in each such case which is reasonably expected to materially and adversely affect the ability of the Developer to develop the Property as described in the Preliminary Official Statement, or, when executed, to comply with its obligations under the Disclosure Certificate.
14. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Developer, the Developer is not aware of any State of California or federally classified hazardous substances located on the Property and does not believe that such a current liability exists with respect to any portion of the Property owned by the Developer.
15. Except as disclosed in the Preliminary Official Statement, the Developer has not submitted an application for, nor received actual notice of, (a) the formation or authorization of any assessment district or community facilities district which would include any portion of the Property, or (b) the authorization or issuance of any debt secured by a special tax or assessment to be levied on any portion of the Property.
16. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Developer, the Developer is not aware of any material failures by it to comply in all material respects with previous continuing disclosure undertakings in a written certificate or agreement executed by it to provide periodic continuing disclosure re ports or notices of material events respecting securities offerings in California within the past five years.
17. The Developer agrees to deliver a Closing Certificate dated the date of the Closing Date, in substantially the form attached as Exhibit C to the Bond Purchase Agreement. If any event related to or affecting the Developer, its Relevant Entities or the development and sale of the Property occurs, as a result of which it is necessary to modify the form or Closing Certificate, the Developer agrees to deliver at the time of issuance of the bonds a new form of Closing Certificate revised to reflect such event.
18. An appraisal of the taxable properties within the Community Facilities District, dated November 17, 2025 (the “ Appraisal Report ”), with a date of v alue of November 3 , 2025 (the “ Date of Value ”), was prepared by Stephen G. White, MAI, Fullerton, California (the “Appraiser”). The Appraisal Report estimates the market value of the appraised taxable properties within the Community Facilities District as of the Date of Value. To Actual Knowledge of the Developer, all information submitted by, or on behalf of and authorized by, the Developer to the Appraiser and contained in the sections of the Appraisal Report highlighted in yellow or circled in Appendix B attached hereto, was true and correct in all material respects as of the Date of Value.
19. The Developer has received a copy of the Bond Purchase Agreement and acknowledges and agrees that the representations and covenants on its part contained in this Certificate are given as a condition to the issuance of the Bonds by the Community Facilities District and the underwriting of the Bonds by the Underwriter, and that the Community Facilities District and the Underwriter would not so issue and so underwrite the Bonds, respectively, without the representations and covenants contained herein. 837
B-6
The undersigned has executed this Certificate solely in his or her capacity as an authorized officer or representative of the Developer and he or she will have no personal li ability, individually or collectively, arising from or relating to this Certificate. Any liability arising from or relating to this Certificate may only be asserted against the Developer.
This Certificate has been executed as of the date first written above.
D.R. HORTON LOS ANGELES HOLDING
COMPANY, INC.,
a California corporation
By:
Name:
Title:
[EXECUTION PAGE OF CERTIFICATE OF
D.R. HORTON LOS ANGELES HOLDING COMPANY, INC.]
838
C-1
EXHIBIT C
$__________
COMMUNITY FACILITIES DISTRICT NO. 2023-1 (AVALINO)
OF THE CITY OF WILDOMAR
SPECIAL TAX BONDS, SERIES 2026
CLOSING CERTIFICATE OF D.R. HORTON LOS ANGELES HOLDING COMPANY, INC.
[Closing Date]
Community Facilities District No. 2023-1 (Avalino)
of the City of Wildomar
23873 Clinton Keith Road, Suite 110,
Wildomar, California 92595
Piper Sandler & Co.
2321 Rosecrans Avenue, Suite 3200
El Segundo, CA 90245
Ladies and Gentlemen:
Reference is made to the Community Facilities District No. 2023 -1 (Avalino) of the City of Wildomar Special Tax Bonds, Series 2026 (the “ Bonds”) and to the Bond Purchase Agreement (the “ Bond Purchase Agreement ”) executed by and between Community Facilities District No. 2023 -1 (Avalino) of the City of Wildomar (the “ Community Facilities District ”) and Piper Sandler & Co. (the “ Underwriter ”), entered into in connection therewith. This Closing Certificate of D.R. Horton Los Angeles Holding Company, Inc. (the “ Closing Certificate ”) is delivered by D.R. Horton Los Angeles Hol ding Company, Inc. , a California corporation (the “ Developer ”) pursuant to the Bond Purchase Agreement. Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Certificate of D.R.
Horton Los Angeles Holding Company , Inc. , dated [POS Date] (the “ Certificate ”), delivered by the Developer.
The undersigned certifies that he or is familiar with the facts herein certified and is authorized and qualified to certify the same as an authorized officer or representative of the Developer, and the undersigned, on behalf of the Developer, further certifies as follows:
1. The Developer has received the final Official Statement relating to the Bonds, dated [BPA Date] (the “ Official Statement ”). Each statement, representation and warran ty made in the Certificate is true and correct in all material respects on and as of the date hereof with the same effect as if made on the date hereof, except that all references therein to the Preliminary Official Statement shall be deemed to be references to the Official Statement.
2. To the Actual Knowledge of the Developer, no event has occurred since the date of the Preliminary Official Statement affecting the statements and information contained in the Sections 839
C-2
of the Official Statement described in Par agraph 9 of the Certificate relating to the Developer, the Property and the proposed development of the Property, which should be disclosed in the Official Statement for the purposes for which it is to be used in order to make such statements and information contained in the Official Statement not misleading in any material respect.
3. For the period through 25 days after the “ End of the Underwriting Period ” as referenced in Section 3(D) of the Bond Purchase Agreement (provided the Developer may assume the End of the Underwriting Period is the Closing Date (as defined in the Bond Purchase Agreement), unless it receives written notice from the Underwriter that the End of the Underwriting Period is later than the Closing Date), if any event relating to or affecti ng the Developer, its Relevant Entities, or the development of the Property shall occur as a result of which it is necessary, in the opinion of the Underwriter or counsel to the Community Facilities District, to amend or supplement the Official Statement i n order to make the information under the sections of the Official Statement indicated in Paragraph 9 of the Certificate (and subject to limitations and exclusions contained in Paragraph 9 of the Certificate) not misleading in the light of the circumstance s under which they were made, the Developer shall reasonably cooperate with the Community Facilities District and the Underwriter in the preparation of a supplement or amendment to the information described under the sections of the Official Statement indi cated in Paragraph 9 of the Certificate (and subject to the limitations and exclusions contained in Paragraph 9 of the Certificate) in form and substance satisfactory to the Underwriter and counsel to the Community Facilities District, which will amend or supplement the Official Statement so that it will not contain an untrue statement of a material fact or omits to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.
4. The Developer has duly executed and delivered the Disclosure Certificate.
D.R. HORTON LOS ANGELES HOLDING COMPANY,
INC.,
a California corporation
By:
Name:
Title:
[EXECUTION PAGE OF CLOSING CERTIFICATE OF
D.R. HORTON LOS ANGELES HOLDING COMPANY, INC.]
840
D-1
EXHIBIT D
FORM OF OPINION OF THE ISSUER’S COUNSEL
[Closing Date]
Community Facilities District No. 2023-1
(Avalino) of the City of Wildomar
Wildomar, California
Piper Sandler & Co.
El Segundo, California
Re: $__________ Community Facilities District No. 2023-1 (Avalino) of the City of Wildomar Special Tax Bonds, Series 2026
Ladies and Gentlemen:
I am the City Attorney of the City of Wildomar (the “City”), and in such capacity I have acted as counsel (“Issuer’s Counsel”) to Community Facilities District No. 2023-1 (Avalino) of the City of Wildomar (the “Community Facilities District”) in connection with the issuance of the above- referenced bonds (the “Bonds”). This opinion is rendered at the request of the City and is satisfaction of the condition set forth in Section 7(F)(8) of that certain Bond Purchase Agreement, dated [BPA Date] (the “Bond Purchase Agreement”), by and between Piper Sandler & Co. , as underwriter, and the Community Facilities District, relatin g to the Bonds. All capitalized terms used herein but not otherwise defined shall have the meanings ascribed to them in the Bond Purchase Agreement.
In rendering this opinion, I have examined and relied upon originals or copies of the following upon whic h, with your permission, I am relying, without further inquiry or investigation:
(i) the Community Facilities District Resolution of Issuance, (ii) the Formation Documents consisting of Resolution No. 2023-37, Resolution No. 202 3-38, Resolution No. 202 3-48, Resolution No. 202 3- 49, and Ordinance No. 235, (iii) the Community Facilities District Documents, and (iv) the Official Statement, relating to the Bonds. In rendering this opinion, I have made such other investigations of law and facts as I have deemed n ecessary, and as to questions of fact material to my opinions, I have relied upon representations of the Community Facilities District contained in the Community Facilities District Documents and in the certified proceedings and other certifications of pub lic officials and others furnished in connection with the closing of the subject transaction, without undertaking to verify the same by independent investigation. . Acceptance of this opinion letter by you shall conclusively operate as your acknowledgement that this opinion letter is limited to and addresses all of the specific legal issues that are to be dealt with in our opinions set forth herein and no opinions are implied or may be inferred beyond the matters expressly stated herein.
The opinions expr essed herein may be affected by actions taken or omitted or events occurring after the date hereof. We have not undertaken any duty, and we expressly disclaim any 841
D-2
responsibility, to advise you as to actions taken or omitted or events occurring after the date hereof with respect to the Bonds or other matters concerning the Community Facilities District or the City.
In my examination, I have assumed, without independent investigation, the authenticity and completeness of all documents submitted to or reviewed by me as originals, the conformity in all respects to authentic originals of all documents submitted to or rev iewed by me as certified or photostatic copies, and the accuracy of the statements and representations contained in such documents. In addition, I have assumed that each party to the documents referenced herein, other than the Community Facilities Distric t and the City, has the power to enter into and perform its obligations thereunder and has duly authorized, executed, and delivered such documents.
Whenever a statement herein is qualified by "to my knowledge," it shall be deemed to indicate that, during the course of my representation of the Community Facilities Distri ct in connection with this transaction, no information that would give me current actual knowledge of the inaccuracy of such statement has come to my attention. I have not, however, underta ken any independent investigation to determine the accuracy of such statements, and any limited inquiry undertaken by me during the preparation of this opinion letter should not be regarded as such investigation. No inference as to my knowledge of any matt ers bearing upon the accuracy of any such statements should be drawn from the fact of my representation of the Community Facilities District or the City.
My opinions set forth herein do not extend to, and I express no opinions herein with respect to, any laws other than the laws of the State of California, but exclusive of the tax and securities laws, rules and regulations of the State of California and the laws of the State of California relating to debt limitations and restrictions applicable to public entities.
On the basis of, and subject to and in reliance upon, the foregoing and the other qualifications and limitations set forth in this opinion letter, I am of the opinion that:
(i) the City is a municipal corporation and general law city, duly organ ized and existing under the Constitution and the laws of the State of California;
(ii) the Community Facilities District is duly organized and validly existing as a community facilities district under and by virtue of the Constitution and laws of the Stat e of California;
(iii) the Community Facilities District Resolution of Issuance and the Formation Documents have been duly adopted at meetings of the City Council of the City acting as the legislative body of the Community Facilities District, which were called and held pursuant to law and with all public notice required by law and at which a quorum was present and acting throughout, and the Community Facilities District Resolution of Issuance and the Formation Documents are in full force and effect and ha ve not been modified, amended, rescinded or repealed since the respective dates of their adoption;
(iv) the Community Facilities District Documents and the Official Statement have been duly authorized, executed and delivered by the Community Facilities District;
(v) except as may be stated in the Official Statement, to my knowledge, there is no action, suit, proceeding or investigation before or by any court, public board or body pending (proper 842
D-3
notice or process of which has been served on the City or t he Community Facilities District) or overtly threatened in writing : (a) challenging the creation, organization, existence or powers of the City or the Community Facilities District, or the titles of their members and officers to their respective offices; or (b) challenging the validity of the Community Facilities District Documents or seeking to restrain or enjoin the repayment of the Bonds or contesting the validity of the Community Facilities District Documents or contesting the authority of the Community Facilities District to enter into or perform its obligations under any of the Community Facilities District Documents; or (c) questioning the right of the Community Facilities District to use Special Tax levied within the Community Facilities District fo r the repayment of the Bonds or the right or ability of the Community Facilities District to collect or pledge the Special Tax levied within the Community Facilities District for the repayment of the Bonds;
(vi) to my knowledge, the execution and delivery of the Bonds and the Community Facilities District Documents, and compliance with the provisions of each, will not conflict with or constitute a breach of or default under any material loan agreement, note, ordinance, resolution, indenture, contract, agre ement or other instrument of which the Community Facilities District is a party or is otherwise subject or bound, a consequence of which could be to materially and adversely affect the ability of the Community Facilities District to perform its obligations under the Bonds or the Community Facilities District Documents;
(vii) To my knowledge, the Community Facilities District is not in breach of or default under any applicable law or administrative regulation of the State or any applicable judgment or decree or any material loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the Community Facilities District is a party or is otherwise subject, which breach or default would materially adversely affect the Community Facilities District’s ability to enter into or perform its obligations under the Community Facilities District Documents.
This letter is furnished by me as Issuer’s Counsel. Other than the City and the Community Facilities District, no attorney -client relationship has existed or exists between the Issuer’s Counsel and you in connection with the Bonds or by virtue of this letter. I disclaim any obligation to update this letter. This letter is delivered to the addresses, is solely for their benefit and is not t o be used, circulated, quoted or otherwise referred to or relied upon for any other purpose or by any other person; provided, however, an information copy may be included in the transcript of the proceedings for the Bonds. This letter is not intended to, and may not, be relied upon by owners of the Bonds.
I bring to your attention the fact that our legal opinions are an expression of professional judgment and are not a guarantee of a result.
Respectfully submitted,
843
E-1
EXHIBIT E
$__________
COMMUNITY FACILITIES DISTRICT NO. 2023-1 (AVALINO)
OF THE CITY OF WILDOMAR
SPECIAL TAX BONDS, SERIES 2026
FORM OF ISSUE PRICE CERTIFICATE
The undersigned, on behalf of Piper Sandler & Co. (“Piper Sandler”) hereby certifies as set forth below with respect to the sale and delivery of the above -captioned obligations (the “ Bonds”) based upon the information available to it.
1. Sale of the General Rule Maturities . As of the date of this certificate, for each Maturity of the General Rule Maturities, the first price at which at least 10% of such Maturity was sold to the Public is the respective price listed in Schedule A.
2. Defined Terms.
(a) General Rule Maturities means those Maturities of the Bonds listed in Schedule A hereto as the “General Rule Maturities.”
(b) Issuer means Community Facilities District No. 2023-1 (Avalino) of the City of Wildomar.
(c) Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate maturities.
(d) Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter .
The term “related party” for purposes of this certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (e) Underwriter means: (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public; and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a third -party distribution agreement participating in the initial sale of the Bonds to the Public).
The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents Piper Sandler’s interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied upon by the Issuer with respect to certain of the representations set forth in the Tax Certificate and with respect to compliance with the federal income tax rules affecting the Bonds, and by Stradling Yocca Carlson & 844
E-2
Rauth LLP, Newport Beach, California , in connection wit h rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038 -G, and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds. Except as expressly set forth above, the certifications set forth herein may not be relied upon or used by any third party or for any other purpose The certifications contained herein are not necessarily based on personal kno wledge, but may instead be based on either inquiry deemed adequate by the undersigned or institutional knowledge (or both) regarding the matters set forth herein.
PIPER SANDLER & CO.
By:
Name:
Dated: [Closing Date]
845
E-3
SCHEDULE A
SALE PRICES OF THE GENERAL RULE MATURITIES
[TO BE ATTACHED]
846
APPRAISAL REPORT
COVERING
Community Facilities District No. 2023-1 (Avalino)
of the City of Wildomar
DATE OF VALUE: SUBMITTED TO:
November 3, 2025 City of Wildomar
23873 Clinton Keith Rd.
Wildomar, CA 92595
Attn: Adam Jantz
Finance Manager
DATE OF REPORT: SUBMITTED BY:
November 17, 2025 Stephen G. White, MAI
1801 Lexington Dr.
Fullerton, CA 92835
847
November 17, 2025
City of Wildomar Re: Co mmunity Facilities District No. 2023-1 23873 Clinton Keith Rd. (Avalino) of the City of Wildomar Wildomar, CA 92595
Attn: Adam Jantz
Finance Manager
Dear Mr. Jantz:
In accordance with your request and authorizat ion, I have completed an appraisal of the taxable properties within the above-referenced Community F acilities District (CFD). These properties consist of 117 single- family lots that are being de veloped by D.R. Horton with a neighborhood of homes called Ava lino. As of the November 3, 2025 date of value for this appraisal there were 79 completed-closed homes (closed builder sales), 9 completed- unclosed homes (including the 2 models), 9 homes under construction, and 20 vacant lots.
The purpose of this appraisal is to estimate the aggregate market value of the as is condition of these taxable properties, with the values allocated to Individual Owners (completed- closed homes) and to Builder Ownership (completed-unclosed homes, homes under construction and vacant lots). This apprai sal reflects the proposed CFD bond financing, with the effective tax rate of just under 2.0% based on th e average appraised value for the completed-closed homes and including special taxes of this CFD and other overlapping debt.
Based on the general inspections of the properties and analysis of matters pertinent to value, the following conclusions of market value have been arrived at, subject to the Assumptions and Limiting Conditions, and as of November 3, 2025:
No. Market
Ownership Lots Value
Individual Owners (completed-closed homes): 79 $57,275,000 Builder Ownership (completed-unclosed homes): 9 $5,220,000 Builder Ownership (homes under construction): 9 $3,050,000 Builder Ownership (vacant lots): 20 $4,850,000
117 $70,395,000
$70,395,000
(SEVENTY MILLION THREE HUNDRED NINETY-FIVE THOUSAND DOLLARS)
848
MR. ADAM JANTZ
NOVEMBER 17, 2025
PAGE 2
The following is the balance of this 38-page Appraisal Report which includes the Certification, Assumptions and Limiting Cond itions, definitions, prope rty data, exhibits, valuation and market data from which the value conclusions were derived.
S i n c e r e l y ,
Stephen G. White, MAI
(State Certified General Real Estate
A p p r a i s e r N o . A G 0 1 3 3 1 1 )
SGW:sw
Ref: 25019
849
TABLE OF CONTENTS
P A G E S
Appraisal Summary …………………………………………………... 5
Certification …………………………………………………………... 6
Assumptions and Limiting Conditions ………………………………… 7-8
Purpose and Intended Use/User of the Appraisal, Scope of the Appraisal, Date of Value, Property Rights Appraised,
Definitions, Exposure Time, Ownership/Sales History ………. 9-10
PROPERTY DATA
Location Map, Location, General Area Description, Aerial Photo, Legal Description, Assessor Data, Assessor Maps,
No. Lots/Lot Sizes, Streets & Access, Utilities, Zoning/ General Plan/Approvals, School District/Schools,
Topography/Views, Drainage/Flood Hazard, Fire Hazard
Zone, Soil/Geologic/Seismic Conditions, Title Report,
Residential Market Overview, Map of Avalino,
Description of Homes/Status of Construction,
Homeowners Association, Highest & Best Use ………………… 11-25
VALUATION
Method of Analysis, Analysis of Completed-Closed Homes, Analysis of Completed-Unclosed Homes, Analysis of
Homes Under Construction, Analysis of Vacant Lots,
Conclusion of Value ……….……………………………….…… 26-35
ADDENDA
Qualifications of Appraiser ……………………………………………… 36-38
850
5 APPRAISAL SUMMARY
Property Type: 79 completed-closed homes, 9 completed-unclosed homes, 9 homes under construction & 20 vacant lots;
117 total lots
Ownership: Individual Owners (completed-closed homes) Builder Ownership (completed-unclosed homes,
homes under construction & vacant lots)
Date of Value/Effective
Date of the Appraisal: November 3, 2025
Date of Report: November 17, 2025
Location: SW/S Palomar St. at Starbuck Cr. and at Olivet Way, Wildomar
APN: 380-550-001 to 071
380-560-001 to 013
380-561-001 to 010
380-570-001 to 023
Legal Description: Lots 1 to 117 of Tract No. 31896
No. Lots/Lot Sizes: 117 lots, ±7,200 s.f. minim um size (8,308 s.f. average)
Home Sizes: 1,898 s.f. to 3,015 s.f.
Years Built: 2024 to current/ongoing
Highest & Best Use: As Improved/As Planned
Method of Analysis: Sales Comparison Approach/Mass Appraisal
Value Conclusions: 79 Completed-Closed Homes: $57,275,000 9 Completed-Unclosed Homes: $ 5,220,000
9 Homes Under Construction: $ 3,050,000
20 Vacant Lots: $ 4,850,000
Total: $70,395,000
851
6 CERTIFICATION
I certify that, to the best of my knowledge and belief:
The statements of fact contained in this report are true and correct.
The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.
I have no present or prospective interest in the properties that are the subject of this report, and no personal interest with respect to the parties involved.
I have no bias with respect to the properties th at are the subject of this report or to the parties involved with this assignment.
My engagement in this assignment was not contingent upon developing or reporting predetermined results.
My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of the appraisal.
I have made a general inspection of the properties that are the subject of this report.
No one provided significant real property appr aisal assistance to the person signing this Certification, other than data research by my associate, Kirsten Patterson.
I have performed no services, as an appraiser or in any other capacity, regarding the subject properties within the three-year period prior to accepting this assignment.
The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute.
The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
As of the date of this report, I have completed the continuing education program for Designated Members of the Appraisal Institute.
Stephen G. White, MAI
(State Certified General Real Estate
A p p r a i s e r N o . A G 0 1 3 3 1 1 )
852
7 ASSUMPTIONS AND LIMITING CONDITIONS
This appraisal has been based upon the following assumptions and limiting conditions:
1. No responsibility is assumed for the lega l descriptions provi ded or for matters pertaining to legal or title considerations. Title to the properties is assumed to be good and marketable unless otherwise stated.
2. The properties are appraised free and clear of any or all liens or encumbrances unless otherwise stated.
3. Responsible ownership and competent property management are assumed.
4. The information furnis hed by others is believed to be reliable, but no warranty is given for its accuracy.
5. All engineering studies, if applicable, are a ssumed to be correct. Any plot plans or other illustrative material in this report are included only to help the reader visualize the property.
6. It is assumed that there are no hidden or unapparent conditions of the properties, subsoil, or structures that render them more or less valuable. No responsibility is assumed for such conditions or for obtaini ng the engineering st udies that may be required to discover them.
7. It is assumed that the properties are in fu ll compliance with all applicable federal, state and local environmental regulations a nd laws unless the lack of compliance is stated, described and considered in the appraisal report.
8. It is assumed that the properties conform to all applicable zoning and use regulations and restrictions unless a nonconformity has been identified, described and considered in the appraisal report.
9. It is assumed that all required licenses, cer tificates of occupancy, consents and other legislative or administrative authority from any local, state or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimates contained in the report are based.
10. It is assumed that the use of the land and improvements is confined within the boundaries or property lines of the properties describe d and that there are no encroachments or trespasses unless noted in the report.
11. Unless otherwise stated in th is report, the existence of hazardous materials, which may or may not be present on the propertie s, was not observed by the appraiser.
However, the appraiser is not qualified to detect such substances. The presence of such substances may affect the value of the property, but the values estimated in this 853
8 ASSUMPTIONS AND LIMITING CONDITIONS, Continuing
appraisal are based on the a ssumption that there is no such material on or in the properties that would cause a loss in value. No responsibility is assumed for such conditions or for any expertis e or engineering knowledge re quired to discover them.
The client should retain an expert in this field, if desired.
12. Possession of this report, or a copy thereo f, does not carry with it the right of publication, unless otherwise authorized. It is understood and agreed that this report will be utilized in the Official Statement, as required for the within-referenced CFD bond issuance.
13. The appraiser, by reason of this appraisal, is not required to give further consultation or testimony or to be in attendance in court with refe rence to the properties in question unless arrangements have previously been made.
EXTRAORDINARY ASSUMPTIONS
1. It has been assumed that there are no so il, geologic, seismic or environmental conditions that would negativel y impact the ex isting or planned uses or valuation of the subject properties.
2. An estimate of the remaining costs and fees to get the subject lots from their as is condition to finished lot condition has been provided by the builder/property owner, and these estimates have been relied upon in this appraisal as being reasonably accurate and reliable; in addition, the valu ations have reflected the proposed CFD bond financing such that the deductions of es timated remaining costs/fees do not include any amounts that are to be funded by the planned CFD bond proceeds.
854
9 PURPOSE AND INTENDED USE/USER OF THE APPRAISAL
The purpose of this appraisal is to estimate th e market value of the as is condition of the taxable properties located within Community Facilities District No. 2023-1 (Avalino) of the City of Wildomar, reflecting the proposed CF D bond financing. It is intended that this Appraisal Report is to be used by the client, consisting of the City of Wildomar, and other appropriate parties as part of the planned CFD bond issuance.
SCOPE OF THE APPRAISAL
It is the intent of this appraisal that all appr opriate data considered pertinent in the valuation of the subject properties be collected, confirme d and reported in an Appraisal Report, in conformance with the Uniform Standards of Professional Appraisal Practice and the guidelines of the California Debt and Investment Advisory Commission. The scope of work has included an identification of the appraisal problem to be solved, which in this case is the market value of the taxable subject properties in as is condition as of the date of value of the appraisal; a general inspection of the subject properties and their surroundings; obtaining of pertinent property data on the subject propertie s, including review of various maps and documents relating to the properties and the home development; obtaining of comparable home sales and land sales from a variety of sources ; analysis of all of the data to the value conclusions; and completion of the Appraisal Report.
DATE OF VALUE (EFFECTIVE DATE OF THE APPRAISAL)
The date of value or effective date of the appraisal is November 3, 2025.
PROPERTY RIGHTS APPRAISED
This appraisal is of the fee simple interest in the subject properties, subject to the applicable CFD special tax and assessment liens.
DEFINITION OF MARKET VALUE
The most probable price, as of a specified date, in cash, or in terms equi valent to cash, or in other precisely revealed terms, for which the specified proper ty rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress. (The Dictionary of Real Estate Appraisal, Seventh Edition)
DEFINITION OF FEE SIMPLE INTEREST (ESTATE)
Absolute ownership unencumbered by any othe r interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. (The Dictionary of Real Estate Appraisal, Seventh Edition)
855
10 DEFINITION OF MASS APPRAISAL
The process of valuing a unive rse of properties as of a given date using standard methodology, employing common data, and allo wing for statistical testing. (USPAP, 2020- 2021 ed.) Often associated with real property tax assessment va luation. (The Dictionary of Real Estate Appraisal, Seventh Edition)
DEFINITION OF FINISHED LOT
This term describes the condition of residential lots in a resi dential subdivision for homes in which the lots are fully improved and ready for homes to be built. This reflects that the lots have all development entitleme nts, infrastructure improvement s completed, finish grading completed, all in-tract utilities extended to the property line of each lot, street improvements completed, common area improvements/landscaping (associated with the tract) completed, resource agency permits (if necessary), and a ll development fees paid, exclusive of building permit fees, in accordance with the conditions of approval of the specific tract map.
EXPOSURE TIME
This is defined as the estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date or date of value of the appr aisal. Assumi ng a reasonable marketing effort and at or reasonably near mark et value, I have concluded that the exposure time for the subject homes as we ll as the bulk of homes under construction and vacant lots would have been within 4 months for a sale to be negotiated, and with appropriate escrow time for the sales to close.
OWNERSHIP/SALES HISTORY
D.R. Horton Los Angeles Holding Company, In c. purchased the unimproved land for the subject neighborhood from R & H Wildomar 1 LLC by deed recorded June 9, 2023 at an indicated price of $7,000,000 or $59,829 per lot. This pric e reflected the unimproved condition of the land but with an approved final tract map, and based on an estimate of $265,000 per finished lot.
As of the November 3, 2025 date of value, in dividual owners owned 79 of the lots with completed homes (Lots 21, 22, 24 to 28, 30, 32, 33, 36 to 51 & 58 to 110) and D.R. Horton Los Angeles Holding Company, Inc. owned 38 of the lots (Lots 1 to 20, 23, 29, 31, 34, 35, 52 to 57 & 111 to 117) consisting of the 9 completed-unclos ed homes (including the 2 models), the 9 homes under construction and th e 20 vacant lots. The closed builder sales closed/recorded from October 11, 2024 through October 30, 2025 at net sale prices ranging from $621,231 to $833,831. In addition, as of October 31, 2025 there were 7 pending builder sales that were scheduled to close from November 12 through December 30, 2025.
As of November 3, 2025 there has been 1 closed resale of these homes.
856
11 LOCATION MAP
857
12 PROPERTY DATA
LOCATION
The subject neighborhood of Avalino is loca ted along the southwest side of Palomar St. at Starbuck Cr. and Olivet Way, wr apping around intervening property, in the City of Wildomar. This location is at the far south end of Wildomar, with the City of Murrieta directly to the south, and it is not ed that Palomar St. becomes Washington Ave. within Murrieta. This location is also ½ mile southwest of the 15 Freeway, with a full interchange at Clinton Keith Rd. to the north.
GENERAL AREA DESCRIPTION
To the north/northwest of Avalino are th ree single-family homes built from 1965 to 2010 on lots from half acre up to 8.88-acres and including various accessory structures and outdoor storage uses. Beyond these is the Sycamore Academy of Science and Cultural Arts on ±13 acres, a charter school serving students from TK through 8
th grade. The existing facility was constructed in 2015 and comprises ±28,000 s.f. within six buildings around a central courtyar d, with blacktop, playground and turf athletic field. An e xpansion of 4 buildings comprising 17,000 s.f. has been proposed on four acres on the southeasterly side of the campus currently utilized as overflow parking. To the northwest of the school is a large church built in 2003 and then various scattered residences on large lots.
To the east of the central part of Ava lino is a 16.25-acre parcel, partially improved with the Murrieta Springs Seventh Day A dventist church and private school which were built in ±2009. There are two remain ing large pad areas av ailable for future development. To the east of the church and school, fronting on th e westerly side of Palomar St., is a vacant 5.10-acre parcel wi th no current plans for development but with a land use designation of medium density residential.
Across Palomar St. to the northeast is much vacant and hilly land sloping up and over a ridgeline to the 15 Freeway. The majority of this area is encompassed within the proposed, 165-acre specific plan called the Bluffs at Hidden Springs which is to be a mixed-use development. It would include a 14-acre sports park, hotel site, senior housing complex, 36 acr es of commercial and retail development including a hilltop restaurant, and approximately 969 single and multi-family dwelling units.
The project is still in the early stages of review. Across Palomar St. to the east is a
29.4-acre site with grading underway for a planned residential project of 163 townhomes to be built by KB Home.
Adjacent to the southeast of Avalino is the boundary line for the City of Murrieta, with various neighborhoods of single-f amily homes extending to the south and southeast. These residential tracts were generally built in th e late 1990s and early 2000s on lots that are generally 7,200 s.f. minimum size. Recent home sales in this
858
13 859
14 GENERAL AREA DESCRIPTION, Continuing
area indicate prices ranging from $670,000 to $1,099,000 for home s from 2,076 s.f. to 3,748 s.f. in size.
Along the westerly side of Avalino is Mu rrieta Creek, a natural water course which flows southeasterly through this area. Be yond the creek to the west are 30.35 acres of vacant land zoned rural residential and currently being marketed for sale for future residential development. Farther to the northwest are several custom estate homes on large lots and various vacant parcels of land. Across Murrieta Creek to the southwest is Copper Canyon Park, which is maintained by the C ity of Murrieta and includes athletic fields, sport courts, pl ayground, community center, picnic areas and walking paths. Beyond that is Cole Canyon Elementary School on 10.43 acres.
Farther to the west and southwest are seve ral large residential communities within the City of Murrieta that terr ace up into the hills to the southwest. The homes were built from the late 1980s to early 2000s and recent sale prices range from $590,000 to $1,350,000 for homes ranging in size from 1,553 s.f. to 3,776 s.f.
LEGAL DESCRIPTION
The taxable properties are described as Lots 1 to 117 of Tract No. 31896, in the City of Wildomar, County of Rivers ide, State of California, as shown by Ma p on file in Book 494, Pages 10 through 21 of Maps, records of Riverside County, California.
(Note: Lots 48 and 54 were re-mapped to Lo ts 1 and 2 of Lot Line Adjustment No. 2024-007 recorded August 5, 2024. However, fo r purposes of this appraisal, these lots are still referred to as Lots 48 and 54.)
ASSESSOR DATA-2025/2026
The 117 lots comprise the following Assessor Parcel Nos.:
380-550-001 to 047, 049 to 053, 055 to 071, 083 & 086
380-560-001 to 013
380-561-001 to 010
380-570-001 to 023
860
15 861
16 862
17 863
18 ASSESSOR DATA-2025/2026, Continuing
The current assessed values for th e 117 parcels range from $57,622 to $236,836 for land and $0 to $644,950 for improvements, or totals of $57,622 to $794,950. The tax rate area is 025-007 which has an indicated tax rate of 1.05654%, but the effective tax rate including special taxes fo r this CFD and other overlapping debt is just under 2.0% based on the appraised av erage value for the completed-closed homes.
NO. OF LOTS/LOT SIZES
The subject neighborhood comprises a tota l of 117 single-family lots that are considered as a minimum size of ±7,200 s.f ., and with typical minimum dimensions of 65’ width and 112’ depth. Per the Tract Map and Lot Line Adjustment data, the actual lot sizes range from 7,215 s.f. to 13,867 s.f., or an average of 8,308 s.f.
STREETS AND ACCESS
Access to the northwest part of the nei ghborhood is by Palomar St. at Starbuck Cr., and to the southeast part of the neighbor hood is by Palomar St . at Olivet Way.
Palomar St. becomes Washington Ave. as it enters Murrieta just to the southeast of the subject neighborhood. It is mostly a 2-lane street thr ough this area, but has been widened along the subject neighborhood including curb, gutter, landscaped parkway, sidewalk and separately fenced trail. The northeast side of the street has not yet been widened.
Starbuck Cr. and Olivet Way are both in-tra ct residential streets that provide access into and through the neighborhood.
The in-tract streets on which the subject lots front are Starbuck Cr., Copa De Oro Ct., Desert Lily Ct., Desert Da ndelion Ct., Bush Sunflower Ct., Western Goldenrod St., Olivet Way, Evening Primrose Ct., Baby Bl ue Ct. and Bloom Ct . These streets are typical two-lane paved residential streets, with curbs, gutters and sidewalks.
UTILITIES
All utilities are ava ilable to the subject neighborhood, and have been installed in the in-tract streets as part of the land development that was completed. The utilities are provided as follows:
Water & Sewer: Elsinore Va lley Municipal Water District Electric: Southern California Edison Company
Gas: Southern California Gas Company
864
19 ZONING/GENERAL PLAN/APPROVALS
The zoning designation for the subject neighborhood is R-1 (Residential Low) which permits single-family residential development with 7,200 s.f. minimum lot size, and typically 60’ minimum width and 120’ minimum depth. The General Plan designation is MDR (Medium Density Resi dential) which permits single family residential uses with densities of 2 to 5 dwelling units per acre, and is the implementing land use designation for the R-1 zone.
The specific approvals for the subject neighborhood are by Tract Map No. 31896 which was recorded on December 22, 2023 in Book 494, Pages 10 to 21 of Maps.
SCHOOL DISTRICT/SCHOOLS
The subject neighborhood is located within the boundaries of the Lake Elsinore Unified School District. It is served by Donald Graham Elementary School (±2 miles to the north/northwest in Wildom ar); David A. Brown Middle School (±2 miles to the northwest in Wildomar); a nd Elsinore High School (±4 miles to the northwest in Wildomar).
TOPOGRAPHY/VIEWS
The overall subject neighborhood has a gra dual slope and minor terracing down to the southwest, resulting in no atypical views from any of the subject homes.
DRAINAGE/FLOOD HAZARD
Drainage is to the streets and in curbs within the neighborhood, with drainage flows directed southwesterly to open space/retenti on basin/drainage areas that are part of the neighborhood, and to a natural drainage course beyond. Per FEMA Flood Zone Panel No. 060221-2705G dated August 28, 2008, th e 117 subject lots are located in Zone X which indicates areas that are dete rmined to be outside of the 100- and 500- year floodplain and out of the Special Fl ood Hazard Area, with the floodplain area being directly to the southwest of the neighborhood.
FIRE HAZARD ZONE
Per the County of Riverside, and consistent with the CalFire Fire Hazard Severity Zone map, the subject neighborhood is located within a Local Re sponsibility Area.
The area in the northeasterly part of the neighborhood is located in a Very High Fire Hazard Severity zone; the areas at the north westerly and southeasterly ends of the neighborhood are designated as High Fire Hazard Severity zone; and the area along the southwesterly side of the neighborhood is designated as Mode rate Fire Hazard Severity zone. There are several homes lo cated at the end of the Bloom Ct. cul-de- sac at the southwest corner of the neighborhood that are not located in a fire hazard severity zone.
865
20 FIRE HAZARD ZONE, Continuing
Per information provided by the builder, no mitigation measures were required since the fire zones were not updated to the current status (described above) until well after the project plans were approved.
SOIL/GEOLOGIC/SEISMIC CONDITIONS
It is noted that the subject lots along the northeast side of Copa De Oro Ct. are within a State of California Earthquake Fault Haza rd Zone along the Elsinore Fault, and the lots to the southwest of this are within the Liquefaction Zone.
The builder indicated that the “fault setb ack zone” prevents any structures from being built within this zone. This line is shown on the Precise Grade plans and there is a disclosure for these lots as well. This fault setback zone lies behind the home foundations for the affected lots. The lots on Desert Lily Ct. were far enough away from the fault setback zone to not have any setback line required. For liquefaction mitigation, engineered fill was incorporat ed between 5 and 10 fe et of the surface depending on the liquefaction potential.
TITLE REPORT
A Preliminary Report by First American Title Company dated April 9, 2025, and covering the parcels owned by D.R. Hort on Los Angeles Holding Company, Inc. at that time, has been reviewed. Pertinent exceptions to title include the following:
The lien of special tax for Community Facilities District 2022-1 (Services) as disclosed by Notice of Special Tax Lien recorded June 20, 2022.
The lien of special tax for Community Facilities District No. 2023-1 (Avalino) as disclosed by Notice of Special Tax Lien recorded September 28, 2023. Various easements for public streets, utilities, communication equipment, drainage facilities & maintenance, and incidental purposes.
Various agreements and documents pertaining to subdivision improvements, stormwater management, slopes, drainage, access & maintenance.
It is noted that these exceptions to title for the Community Facilities Districts and the various easements and agreements are fairly typical for a residential subdivision such as the subject. These items have been in corporated into the a pprovals and the Tract Map for the neighborhood so as to provide for the lots to be developable with homes that have been completed and with construction currently ongoing.
RESIDENTIAL MARKET OVERVIEW
In the fourth quarter of 2025, the Southern California housing ma rket has reached a place of general stability where supply and demand are more balanced, and a slight shift has occurred toward a buyer’s mark et. While demand for housing remains strong and inventory is higher than in years past, affordability constraints as well as uncertainty surrounding the economy, jobs and interest rates have limited the number 866
21 RESIDENTIAL MARKET OVERVIEW, Continuing
of buyers who are willing and able to buy. This has translated into decelerating price growth, decreased sales volume and a slower pace of sales, forcing sellers to greater negotiations on price and terms.
According to the 2026 California Housing Market Forecast from California Association of Realtors rele ased in September, home pri ces and sales volume will rise slightly after re maining relatively flat in 2025. Single-family home sales are forecast to rise 2% to a total of 274,400 units statewide with the statewide median home price projected to grow 3.6% to $905,000 in 2026. Home affordability is also anticipated to improve over the year, reaching 18% in 2026, up from 17% in 2025 and 16% in 2024. Lower interest rates and improving affordability will create margin for modest price growth over the co ming year and as prices stabilize, seller confidence is expected to rise leading to greater market activ ity and increases in available inventory.
Interest rates have been a recent bright s pot in the market with a relatively steady decline from mid-July to mid-September and hovering in the low 6% range since then. According to data provided by Fre ddie Mac, the average rate on a 30-year fixed loan opened the year at 6.91% and quickly peaked two weeks later at 7.04%. It subsequently fluctuated in the high 6% range for the first half of the year with a more recent downward trend in August and Septem ber, and currently sitting at 6.24% for week ending November 13, 2025. Mortgage ra tes are generally expected to remain in the low to mid-6% range through the end of the year.
Data provider Redfin reports that in October 2025 across Ca lifornia there were 110,954 homes for sale indicatin g a 5.4% increase in inve ntory year over year.
Listings took longer to sell with the me dian days on market up to 47 days, an increase of 10 days from the median of 37 days in October 2024. The statewide median home sale price of $840,200 for October 2025 was up a slight 0.06% year over year and the number of homes so ld at 25,715 for Oc tober 2025 was up 3.0% from October 2024.
Statewide trends are similarly reflected in Riverside County, w ith Redfin reporting 2,183 homes sold in October 2025, up 8.7% year over year. Listings were on market for a median of 63 days, up from 47 days in October 2024. The median price of $605,000 for October 2025 was unchanged from July and August 2025 but reflected a 1.4% decrease from October 2024.
In the subject location of Wildomar, Redf in reports a median sale price of $680,000, down 3.2% year over year. A total of 25 homes were sold in October, up 13.6% from October 2024, and the median number of days on market was 73, up 15 days from the 58 reported in Oct ober 2024. On average, homes in the market sold at
98.7% of list price (down from 100.3% in October 2024) with 28.0% of homes selling above list price (compared to 40.9% in October 2024) and 22.4% of homes 867
22 RESIDENTIAL MARKET OVERVIEW, Continuing
showing price drops (compared to 32.7% in October 2024). In summary, the subject market evidences reasonably good demand fo r single-family homes but with prices and sales volume significan tly influenced by interest rates and other economic factors.
More specific to the subject Avalino ne ighborhood, sales rates have been good with 79 builder closed sales from October 2024 through October 2025, or just over 6.5 closed sales per mont h over that time period. In a ddition, there were 7 pending builder sales as of October 31, 2025.
868
23 869
24 DESCRIPTION OF HOMES/STATUS OF CONSTRUCTION
These 117 lots are being developed by D.R. Horton with the neighborhood of homes called Avalino. As of the November 3, 2025 date of value, there were 79 completed- closed homes (closed builder sales); 9 completed-unclosed homes (including the 2 models); 9 homes under construction of which 4 were estimated to be ±75% completed and 5 were estimated to be ±25% completed; and 20 vacant lots in near- finished condition, including the lot which is the model parking lot.
(Note: The 79 completed-closed homes are Lots 21, 22, 24 to 28, 30, 32, 33, 36 to 51 & 58 to 110; the 9 comple ted-unclosed homes are Lots 23, 29, 31, 34, 35, 52, 57, 116 & 117; the 4 homes at ±75% completion are Lots 53 to 56; the 5 homes at ±25% completion are Lots 1 to 3, 19 & 20; and th e 20 vacant lots are Lots 4 to 18 & 111 to 115.)
There are five floor plans, and per marketing information are described as follows:
Plan 1 (Residence 1898): 1,898 s.f., one-story, with 4 bedrooms, 3 baths, great room-dining area-kitchen, entry hall and laundry; plus 2 or 3-bay garage and covered porch.
Plan 2 (Residence 2239): 2,239 s.f., two-story, with 4 bedrooms, 3 baths; first floor has great room-dining area-kitchen, entry, bedroom and bath; second floor has 3 bedrooms, 2 baths, loft and laundry with storage room; plus 2 or 3-bay garage and covered porch.
Plan 3 (Residence 2537): 2,537 s.f., two-story, with 5 bedrooms, 3 baths; first floor has great room-dining area-kitchen, entry, laundry, 2 bedrooms and 2 baths; second floor has 3 bedrooms, 1 bath , and bonus room; plus 2 or 3-bay garage and covered porch.
Plan 4 (Residence 2929): 2,929 s.f., two-story, with 4 bedrooms plus multi-gen suite, 4 baths; first floor has great room-dining area- kitchen, entry, bedroom, bath and multi-gen suite with living room, kitchenette, bedroom and bath; second floor has 3 bedrooms, 2 baths, loft and laundry; plus 2 or 3-bay garage and covered porch.
Plan 5 (Residence 3015): 3,015 s.f., two-story, with 5 bedrooms, 3 baths; first floor has great room-dining area-kitchen with walk-in pantry, entry, den, bedroom and bath; second floor has 4 bedrooms, 2 baths, loft and laundry; plus 3-bay garage and covered porch.
Per building permit data, the 88 completed homes have sizes as noted above for the five floor plans; and the average sizes are 2,554 s.f. for the 79 completed-closed homes and 2,550 s.f. for the 9 completed-unclosed homes.
HOMEOWNERS ASSOCIATION
The Avalino neighborhood has a homeowners association (HOA) with monthly dues projected to be $169 at build -out. The HOA is responsible for maintenance of items including common area and sl ope landscape, the concrete channel and landscaped storm drains, the three basins along the s outhwesterly edge of the neighborhood, and some walls/fencing. The CFD maintains item s including trails, sidewalks and street lights.
870
25 HIGHEST AND BEST USE
The term highest and best use is defined as the reasonably probable and legal use of vacant land or an improved property, whic h is physically possi ble, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productiv ity. Furthermore, the highest and best use of land or a site as though vacant is defined as among all reasonable, alternative uses, the use that yields the highest presen t land value, after payments are made for labor, capital, and coordination.
In terms of legal permissibility, single-f amily residential deve lopment is permitted by the zoning/General Plan designations, and by the recorded final Tract Map for the subject neighborhood. In terms of physical po ssibility, the lots within the subject neighborhood have been graded to fairly flat buildable pads, and with all needed infrastructure of streets, utilities and drainage completed for the home construction.
In terms of the financial feasibility, as previously discussed in the Residential Market Overview, the current reside ntial market conditions st ill evidence reasonably good demand for new and resale homes in this ge neral area, with indications of prices being stable or slightly in creasing. The demand and pric ing factors are also evident by the good home sales activity in the subj ect neighborhood, with 79 closed builder sales since October 2024 of which 55 closings have taken place thus far in 2025. In addition, there were 7 pending builder sales as of October 31, 2025.
In terms of the maximum pr oductivity, this is represented by the homes that have been and are being built on the subject lots, with an appropriate array of home sizes, floor plans and pricing.
In summary, the highest and best use is concluded to be as improved for the completed homes, and as planned for the homes under construction and the remaining vacant lots.
871
26 VALUATION
METHOD OF ANALYSIS
The analysis of the completed-closed homes is of the aggregate value on a mass appraisal basis, and by means of the Sale s Comparison Approach. Consideration is given to the builder sales of the subject ho mes; recent sales of other homes in the general area; and new-home pricing from other active projects. For the completed- unclosed homes, the analysis considers a discount due to the bulk ownership by the builder with the discount re flecting holding/sales costs, minor finishing costs and profit in order to sell off the homes.
For the homes under constructi on, a simplified Cost Approach is used in which the value is based on an estimate of construction costs expended plus the estimated value of the vacant lot. The analysis of the vacan t lots as if in fini shed condition is based on the Sales Comparison Approach, consider ing recent sales of residential land or bulk lots in the general area, and th en a deduction for the remaining land development costs and impact fees to get to finished lot condition, reflecting the value of the as is condition.
ANALYSIS OF COMPLETED-CLOSED HOMES
Builder Sales of Subject Homes: The builder sales of these 79 completed homes closed/recorded from October 11, 2024 th rough October 30, 2025. The net sale prices ranged from $621,231 to $833,831, or an average of $725,127 for the average home size of 2,554 s.f., or $283.92 per s.f. It is noted that the net sale price includes lot premiums and options, but deducts or is net of incentives which include price incentives/adjustments and interest rate buydown costs. The lot premiums averaged $15,525, the options averaged $27,232, and total incentives averaged $41,931.
The contract dates when the closed sale s were negotiated ranged from June 16, 2024 through September 11, 2025, with the closing dates previously noted from October 2024 through October 2025. Based on the contract dates, the changes in average net pricing, premiums/options and total incen tives over various periods of time are shown in the following table:
No. of Time Frame Av g. Av g Home Av g. Av g.
Sales (Contract Dates) Net Price Size (s.f.) Price/s.f. Prem./Opt. Incentives
79 Jun’24-Sep’25 $725,127 2,554 $283.92 $42,757 ($41,931)
16 Jun-Sep’24 $749,544 2,780 $269.62 $46,744 ($15,878)
21 Oct’24-Jan’25 $714,720 2,422 $295.09 $49,385 ($35,132)
26 Feb-Ma y’25 $719,753 2,488 $289.29 $37,948 ($47,666)
16 Jun-Sep’25 $723,103 2,608 $277.26 $37,886 ($67,585)
79 872
27 ANALYSIS OF COMPLETED-CLOSED HOMES, Continuing
It is evident that, when considering the differentials in average home size, the average net pricing increased early on, but then flattened and decreased slightly in the more recent time segments . This also reflects th e more recent significant increases in average incentives, which are reflected as a deduction in the net price.
Thus, it is concluded that the indication at $725,127 from all sales tends to support a close indication of average va lue at current date considering the price increases and decreases; the indication at $719,753 tends to support a close lower limit indication of average value for the 79 homes due to th e smaller average home size but partially offset by the slightly older dates of sale; and the indication at $723,103 tends to support a close upper limit due to the larger average home size, and conversely due to the larger size a close lower limit at $277.26 per s.f., as follows:
2,554 s.f. @ $277.26/s.f. = $708,122
As of October 31, 2025 there were 7 pendi ng builder sales, with closing dates scheduled from November 12 thr ough December 30, 2025. Other pertinent information is shown as follows:
No. of Time Frame Av g. Av g Home Av g. Av g.
Sales (Contract Dates) Net Price Size (s.f.) Price/s.f. Prem./Opt. Incentives
7 8/10/25 – 10/26/25 $736,430 2,541 $289.82 $48,308 ($63,797)
Initially, it is evident that the average net price indicates an increase from the most recently negotiated closed sales, and for the slightly smaller aver age home size. In addition, these pending sales still reflect a fairly similar amount of average incentives as the most recently negotiated closed sales. Considering the fairly similar average home size to the 79 completed-closed homes, this supports a fairly close indication for the completed-closed homes at $736,430.
Resales of Subject Homes: There has been one resale of the subject Avalino homes, located at 23548 Baby Blue Ct. (Lot 110). This is the largest Plan 5 home with 3,015 s.f.; a larger lot size of 9,234 s.f. ; in good condition with typical builder finishes/no significant upgrades; and no rear yard landscap ing. The original builder sale closed in October 2024 at the net price of $758,452, and the resale closed on October 24, 2025 at the net price of $860,000 with no seller concessions.
It is noted that the home was marketed as being located in Murrieta and in the Murrieta school district, the seller’s child reportedly attended Murr ieta Valley High School, and the sales agent indicated that th is was a significant factor to the buyer.
The agent also indicated th at there was high demand for this home due to minimal new developments in the area, and this sale was at full asking price.
873
28 ANALYSIS OF COMPLETED-CLOSED HOMES, Continuing
It is also noted that the most recent closed builder sale of the Plan 5 home was at a net price of $780,414, and a currently pending bu ilder sale of a Plan 5 home is at a net price of $825,222. Thus, the resale indi cates a significantly higher price at $860,000, though it is uncertain what effect there might have been on the price by the marketing as a Murrieta location. This sale is concluded to be mostly of general interest, but possibly providing support that the builder pricing is conservative relative to resales in the market.
Resales of Homes from Nearby Neighborho ods: Next, recent resales of relatively similar homes from various nearby ne ighborhoods in Wildomar have been considered. These neighborhoods are located within several miles to the northwest along Palomar St. and within several miles no rtherly, in areas to the east of the 15 Freeway and north of Clinton Keith Rd. These sales, in order of sale date, are shown in the following table:
COE Net Home BR /BA Yea r Lot HOA/ Conces-
No. Address Date Price* Size Stories Built Size Assmts sions Comments
1 35696
Capistrano St.
5/21/25 $730,950 2,846 4/2.5
2 2016 9,148 $0
$3,615
$9,050 Well upgraded
2 21701 Front St. 5/28/25 $744,250 2,763 4/3
1 2005 9,583 $65
$2,992
$750 Well upgraded
3 35709 Susan
Dr.
6/26/25 $728,000 2,803 4/3
2 2008 10,019 $125
$2,763
$2,000 Upgraded; view
4 26355 Poppy
Field Ct.
7/24/25 $745,000 2,490 3/2.5
1 2017 8,276 $90
$4,058
$0 Well upgraded; cul-de-
sac
5 32659 Ascot
Hill Cir.
8/12/25 $750,000 2,445 3/2.5
1 2022 7,840 $78
$4,509
$0 Some upgrades;
finished garage
6 36238 Trail
Creek Cir.
8/22/25 $663,000 2,733 5/3
2 2012 7,405 $109
$3,551
$0 Good/typical condition
7 23812 Cook
Ct.
8/25/25 $695,000 2,728 4/3.5
2 2009 12,632 $122
$2,668
$20,000 Good/typical condition;
minimal landscape
8 26331 Poppy
Field Ct.
9/12/25 $785,000 2,700 4/3
1 2016 10,890 $90
$4,064
$15,000 Well upgraded yard
with pool/spa
9 22675
Tranquility Cir.
9/17/25 $767,700 2,553 4/2.5
1 2018 11,326 $85
$4,207
$42,300 Some upgrades
10 21662 Pink
Ginger Ct.
10/2/25 $665,000 2,895 4/3
2 2005 7,405 $65
$3,312
$0 Typical/some updates
11 25199 Loring
Rd.
10/20/25 $651,375 2,728 4/3
1 2005 7,405 $100
$3,476
$23,625 Good condition; some
upgrades
Avg. $720,480 2,699
*Net of seller
concessions
874
29 ANALYSIS OF COMPLETED-CLOSED HOMES, Continuing
In comparison to the subject homes, the lo cations are fairly similar; the average home size is larger; the higher percentage of one-story homes is slightly superior; the ages of the homes at 3 to 20 years (average of 13 years) is far inferior; the lot sizes are relatively similar; the monthly HOA dues are lower on average; and the annual special assessments are lower than th e subject (range from about $6,400 to $7,100), resulting in a lower effective tax rate; and the general condition of the sales is likely slightly superior to the average of the subject homes. Overall, the far inferior factor of age is mostly offset by the other supe rior factors, resulting in a fairly close indication of average value for the subject homes at $720,480.
Other New-Home Pricing: Lastly, a survey was made of current pricing in other neighborhoods of new homes in the general area, which is shown in the following table along with the base pricing of the subject homes:
Floor Bed/
Project Plan (s.f.) Bath Stories Garage HOA CFD Base Price
Subject Avalino 1,898 4/3 1 3 $169 Yes $717,990
(7,200 s.f. min. lots) 2,239 4/3 2 3 $735,990
2,537 5/3 2 3 $758,990
2,929 5/4 2 3 $819,990
3,015 5/3 2 3 $809,990
Quartz Trail 2,760 4/3.5 1 2 $268 Yes $720,289
(Lennar Homes) 3,010 5/3 2 3T $732,640
Menifee 3,418 5/3 2 3 $780,390
(8,100 s.f. min. lots) 4,134 5/3.5 2 3 $876,490
Bordeaux 1,882 4/2 1 2 No Yes $620,990
(KB Home) 2,538 5/3 2 2 $685,990
French Valley 2,874 5/3 2 2 $720,990
(5,000 s.f. min. lots)
Crestview at Sommers 2,170 4/2.5 2 2 Yes Yes $831,807
Bend (Richmond Am.) 2,630 3/2.5 2 2 $857,991
Temecula
(3,000 s.f. min. lots)
Prado 1,410 3/2.5 2 2 $267 Yes $619,000
(Meritage Homes) 1,520 3/2.5 2 2 $633,000
Temecula 1,647 3/2.5 2 2 $659,000
(Detached cluster lots) 1,865 4/3 2 2 $699,000
Linden at Alberhill Ranch 2,792 4/2.5 2 3T $184 Yes $688,990 (Pulte Homes) 2,988 4/3.5 2 3T $704,990
Lake Elsinore 3,337 5/4 2 3T $736,990
(5,000 s.f. min. lots)
Initially, it is noted that there is no othe r new-home competing product in Wildomar.
The locations in Lake Elsinore and Menifee are considered inferior, French Valley is considered similar, and Temecula is considered superior to the subject location in 875
30 ANALYSIS OF COMPLETED-CLOSED HOMES, Continuing
Wildomar and adjacent to Murrieta. In comparison to the subject Avalino project, all but one of these projects ar e inferior in lot sizes; th e recreational amenities are generally superior; the HOA due s are similar to higher; an d all projects have CFD’s with generally similar effective tax rates. Overall, considering these factors, while the indicated base pricing is fairly supportive of the ba se pricing for the subject homes, the effect of builder incentives is not reflected as it tends to be confidential and also subject to widely varying negotiations on each project.
Conclusion: In summary, the indications of average value from the closed sales of the subject homes are close lower limits at $708,122 and $719,753, a close indication at $725,127, and a close upper limit at $723,10 3; from the pending builder sales of the subject homes is a close indication at $736,430; from the resale data a close indication at $720,480; and with general support from the other new-home pricing.
Greatest weight is given to the builder sales of the subject homes, with greater weight to the closed sales than to the pe nding sales, but with consideration to the pending sales due to being the most curr ent indications. The conclusion is an average of $725,000 for the 79 completed-closed homes.
ANALYSIS OF COMPLETED-UNCLOSED HOMES
These 9 homes consist of 7 production homes and 2 model homes, with the average size of 2,550 s.f. being very similar to the average of 2,554 s.f. for the completed- closed homes. Thus, the initial conclusion is the same as for the completed-closed homes, or an average of $725,000. Then, a di scount of 20% is made due to being part of the bulk ownership by the builder and reflecting sell-off time, holding/sales costs, minor finishing costs and profit. Th is results in the discounted average value of $580,000 for these 9 homes.
ANALYSIS OF HOMES UNDER CONSTRUCTION
For the 4 homes that were estimated to be an average of ±75% completed, I have considered a cost amount of 75% of direct costs indica ted to be an average of ±$80.00 per s.f., or $60.00 per s.f. This cost is applied to the average home size of 2,595 s.f. for these 5 homes, or an amount of $155,700. The cost is then added to the estimated value of $242,556 for the vacant lot (as discussed in the following Analysis of Vacant Lots, $285,000 per finish ed lot less $42,444 per lot allocation of remaining costs to get to finished lot condition), resulting in a total of $398,256, rounded to $400,000 as an average for these 4 homes.
For the 5 homes that were estimated to be an average of ±25% completed, the cost amount of 25% of ±$80.00 per s.f., or $20.00 pe r s.f. is applied to the average home size of 2,368 s.f. for these 5 homes, or an amount of $47,360. The cost is then added
876
31 ANALYSIS OF HOMES UNDER CONSTRUCTION, Continuing
to the estimated value of $242,556 for the vacant lot (as i ndicated above), resulting in a total of $289,916, rounded to $290,000 as an average for these 5 homes.
ANALYSIS OF VACANT LOTS
Finished Lot Value
The pertinent land sales data is shown in the following table, with discussion and analysis of the data thereafter.
Rec. No. Lots Price/Lot
No. Location/APN Date Min Size Price/Fin Lot Remarks
1 Subject Propert y 6/9/23 117 $59,829 Vacant, fairly flat land in unimproved condition; 7,200 $265,000 a pproved final tract map; CFD
2 S/S Rouse Rd., W/O & E/O Sherman 3/8/24 491 $45,825 Le gado; lots in blue-topped to semi-finished Rd., Menifee 5,000- $211,000- condition; mix of 5,000 s.f., 5,500 s.f., 6,000 s.f. 333-020-011 & 020 (portions) 7,000 $257,000 & 7,000 s.f. min.; CFD
3 W/S Valle y Blvd. at Enchanted Star Ln. 5/3/24 176 $45,455 Enclave; land in unim proved condition with Menifee 7,200 $290,000 recorded tr act map; CFD; some views; KB 339-53 to 57 (various) Home plans Ladera, 1,548-3,131 s.f. homes
4 SEC Evans Rd. & Holland Rd., 9/5/24 80 $275,956 Lots in nea r-finished condition, recorded tract Menifee ±8,100 $300,000 map; CFD; Lennar Homes building Quartz 358-790 & 800 Trail, 2,760-4,134 s.f. homes
5 W/O Greenwald Ave., S/O Little Valle y 10/4/24 335 $38,806 Tuscan y Crest; unimproved/hilly land with Rd., Lake Elsinore 5,000 $245,000 entitlements; planned CFD; KB Home planned 349-240 & 380 (various) 1,472-3,086 s.f. homes, $619,000 avg price
6 Both sides Valley Blvd., SE/O Goet z 5/2/25 96 $104,740 Menifee Vista; rolling land in unimproved Rd., Menifee 7,200 $250,000 condition with entitlements; to be CFD 330-230-023 & 024
7 NWC Mission Trail & Lemon St. 5/14/ 25 191 $85,340 Land in unimproved con d, with approved final Lake Elsinore Cluster / $211,000 tract ma p; to be CFD; buyer plans Elsinore 370-050-019, 020 & 032 Small-lot Grove at Mission Trail; 1,323-2,146 sf homes
Data No. 1 is the June 2023 sale of the subj ect property in vacant, unimproved condition but with entitlements for the pl anned 117-lot subdivision. The sale was reported to be negotiated in 2022 and it recorded in June 2023 at the price of $7,000,000 or $59,829 per lot for the as is condition, based on an estimated $265,000 per finished lot. Consider ing upward adjustments for date of sale/market conditions and inferior physical condition (current n ear-finished lot condition is superior to unimproved condition of the land at time of sale due to the risk and time factors), the sale supports a firm lower limit indicat ion of current value fo r the subject lots at $265,000 per finished lot.
877
32 ANALYSIS OF VACANT LOTS, Continuing
Data No. 2 is located along the south side of Rouse Rd., extending west and east from Sherman Rd. in Menifee, nearby to the east of the 215 Freeway. This sale consists of the north part of the mast er-planned community called Legado. It comprises 491 lots, including 159 at 5,000 s. f. minimum, 174 at 5,500 s.f. minimum, 49 at 6,000 s.f. minimum and 109 at 7,000 s.f. minimum. The lots ranged from graded blue-topped condition to semi-finished condition, and with a CFD.
The sale to Lennar Homes closed in March 2024 at the price of $22,500,000 or $45,825 per lot, with finished lot indicat ions of $211,000 for the 5,000 s.f. lots, $219,000 for the 5,500 s.f. lots, $223,000 for th e 6,000 s.f. lots and $257,000 for the 7,000 s.f. lots, or a blended indication of $225,244 per finish ed lot. Average home pricing was targeted to be $538,000 on the 5,000 s.f. lots, $572,000 on the 5,500 s.f. lots, $563,000 on the 6,000 s.f. lots and $685,000 on the 7,000 s.f. lots, reflecting finished lot ratios from 38-40%.
In comparison to the subject, th e date of sale/market conditi ons is fairly similar; the location is considered to be fairly similar; the large bulk size of 491 lots is inferior on a price per lot basis; the minimum lot size s range from much smaller to similar; the physical condition is slightly inferior in term s of the time and risk to get to finished condition; and the CFD factor is similar. Overall, upward adjustments for the inferior factors result in a firm lower li mit indication of value for the subject lots based on the allocation of $257,000 per finished lot for the 7,000 s.f. lots.
Data No. 3 is located on the west side of Va lley Blvd. at Enchanted Star Ln. in Menifee, and extending well to the west and north and into the hills to the north and northwest. The land was in unimproved undulating and hilly condition, but with a recorded tract map for the 176 lots, 7,200 s. f. minimum size and an average size of closer to 10,000 s.f. Some of the lots will have territorial views, and a CFD has been formed. The sale to KB Home closed in May 2024 at the price of $8,000,000 or $45,455 per lot, with finished lots estimated at $290,000 per lot. KB Home plans to build the project called Ladera, with hom es ranging from 1,548 s.f. to 2,763 s.f., and current pricing from $594,990.
In comparison to the subject, th e date of sale/market conditi ons is fairly similar; the location is fairly similar; the larger average lot size is superior; the view potential is superior; the unimproved physical condition at time of sale was inferior due to the time and risk factors to get to finished lot condition; and th e CFD factor is similar.
Overall, downward adjustments for the supe rior factors of lot size and view are partially offset by an upward adjustment for the inferior physical condition, resulting in a close upper limit indication of value for the subject at $290,000 per finished lot.
Data No. 4 is located at the southeast corner of Evans Rd. and Holland Rd. in Menifee. This was the sale of 80 lots , 7,200 s.f. minimum size in near-finished condition, with a recorded tract map and to have a CFD. The sale to Lennar Homes 878
33 ANALYSIS OF VACANT LOTS, Continuing
closed in September 2024 at the pr ice of $22,076,500 or $275,956 per lot, with finished lots estimated at $300,000 per lot. Lennar had previously built the Quartz Ranch project across Holland Rd. to the north, and planned the gated Quartz Trail project on these 80 lots, with homes to range from 2,760 s.f. to 4,134 s.f., and current pricing from the low $700,000’s to high $800,000’s.
In comparison to the subject, th e date of sale/market conditi ons is fairly similar; the location is similar; the minimum lot sizes are similar; the near-finished lot condition is similar; the CFD factor is similar; and the buyer motivation due to being able to benefit from having developed the adjacent an d recent project is superior. Overall, a downward adjustment for the factor of buyer motivation results in a close upper limit indication of value for the subject at $300,000 per finished lot.
Data No. 5 is located west from Greenwald Ave. and south from Little Valley Rd. in the far northeast part of Lake Elsinore, and extending well to the west and southwest.
The project is referred to as Tuscany Crest, with the land in unimproved undulating and hilly condition, but with entitlements for the 335 lots, 5,000 s.f. minimum size, and with a planned CFD. The sale to KB Home closed in October 2024 at the price of $13,000,000 or $38,806 per lot, with finished lots estimated at $245,000 per lot.
KB Home planned to build homes ranging from 1,472 s.f. to 3,086 s.f. with average home pricing of $619,000, indicating a finished lot ratio of 40%.
In comparison to the subject, th e date of sale/market conditi ons is fairly similar; the location is considered to be slightly infe rior; the much smaller minimum lot size is inferior; the much larger bul k size of 335 lots is sligh tly inferior; the unimproved physical condition at time of sale was infe rior; and the CFD factor is similar.
Overall, upward adjustments for the infe rior factors result in a far lower limit indication of value for the subject at $245,000 per finished lot.
Data No. 6 is located on both sides of Valley Blvd. nearby to the southeast of Goetz Rd. and extending east to futu re Byers Rd., in Menifee. It consisted of unimproved rolling/undulating land with entitlements for 96 lots, 7,200 s.f. minimum and typical size, with a planned CFD. The sale to Richmond American Homes closed in early May 2025 at the price of $10,055,000 or $104,740 per lot for the unimproved condition. The deal was originally negotiated based on finished lots at $280,000, but was renegotiated down to $250,000 per finished lot as ma rket conditions eroded and cost estimates increased.
In comparison to the subject, th e date of sale/market conditi ons is fairly similar; the location is fairly similar; the minimum lot size is simila r; the unimproved physical condition is inferior; and the CFD is similar. Overall, an upward adjustment for the inferior physical condition resu lts in a firm lower limit indication of value for the subject at $250,000 per finished lot.
879
34 ANALYSIS OF VACANT LOTS, Continuing
Data No. 7 is located at the northwest corner of Mission Trail and Lemon St. in Lake Elsinore. It consisted of vacant and fairly flat land in unimproved condition but with an approved final tract map for 191 lots in a cluster/small-lot configuration, and with a planned CFD. The sale to MRP HNHB, LLC (The New Home Company) closed in May 2025 at the price of $16,300,000 or $85,340 per lot for the unimproved condition, with finished lots estimated at $211,000 per lot. The buyer plans the project called Elsinore Grove at Mission Trail, with homes to range in size from 1,323 s.f. to 2,146 s.f.
In comparison to the subject, the date of sale/market conditions is similar; the location is slightly inferior; the much smaller lot sizes are far inferior; the unimproved condition of the la nd was inferior; and the CFD is similar. Overall, upward adjustments for the various inferior factors results in a far lower limit indication of value for the subject at $211,000 per finished lot.
In summary, on a finished lo t basis the analysis of the data supports far lower limit indications of value at $211,000 and $245,000; closer but still firm lower limit indications from $250,000 to $265,000; a nd close upper limits at $290,000 and $300,000.
An alternative analysis is by the finished lot ratio, which is calculated by the finished lot price divided by the projected or proforma average home price. As indicated for Data Nos. 2 and 5, the finished lot rati os range from 38% to 40%, and other data indicates up to 44%. Considering the subjec t lots in near finish ed condition, part of an ongoing project, but also a higher-priced product, a range of 39-40% has been used. Applying this range to the aver age home price of $725,000 (average value previously concluded for th e completed-closed homes), the resulting indication as follows:
$725,000 x .39-.40 = $282,750 to $290,000/finished lot
The conclusion for the subject lots is $285,000 per lot if in finished condition.
Deduction of Costs to Complete
Then, a deduction is made for the re maining land devel opment costs plus development impact fees to get all lots to a fully finish ed condition. Per information provided by the builder, the remaining co st amount is a total of $1,230,880. This includes items of engineering, consultants, bon ds, permits, soils work, fees, utilities, street improvements and common area landscape. It is noted that none of these costs or fees are to be funded or reimbursed by the CFD bond proceeds.
This cost amount of $1,230,880 is allocated over the total of 29 lots that are either vacant lots or have homes under constructio n. This results in an allocation of $42,444 per lot to these 29 lots.
880
35 ANALYSIS OF VACANT LOTS, Continuing
Conclusion for Vacant Lots – As Is Condition
Thus, relative to the 20 vacant lots, the following indication results:
20 vacant lots, if in finished condition @ $285,000/lot = $5,700,000 Less alloc. of remaining costs: 20 lots @ $42,444/lot = - 848,880 Value, As Is Condition: $4,851,120
R d . $ 4 , 8 5 0 , 0 0 0
CONCLUSION OF VALUE
Based on the foregoing, th e total value indication for the subject Avalino neighborhood in its as is condition, is calculated as follows:
79 completed-closed homes @ $725,000 = $57,275,000
9 completed-unclosed homes @ $580,000 = $ 5,220,000
4 homes, ±75% completion @ $400,000 = $ 1,600,000
5 homes, ±25% completion @ $290,000 = $ 1,450,000
20 vacant lots = $ 4,850,000
Value Indication, As Is Condition: $70,395,000
Thus, as the result of this analysis, I ha ve arrived at the following overall conclusion of market value for the as is condition of the subject Avalino neighborhood, subject to the Assumptions and Limiting Conditions, and as of November 3, 2025:
$70,395,000
(SEVENTY MILLION THREE HUNDRED NINETY-FIVE THOUSAND DOLLARS)
881
43 ADDENDA
882
36 QUALIFICATIONS
OF
STEPHEN G. WHITE, MAI
PROFESSIONAL EXPERIENCE
Real Estate Appraiser since 1976.
1983 through current date: Self-employed; office located at 1801 Lexington Dr., Fullerton, CA 92835 (Phone: 714-738-1595)
1976-1982: Employed by Cedric A. White, Jr., MAI, independent appraiser located in Anaheim.
Real estate appraisals have been completed on most types of properties for purposes of fair market value, leased fee value, leasehold value, easement value, partial acquisitions and severance damages.
PROFESSIONAL ORGANIZATIONS
Designated Member, Appraisal Institute; MAI designation obtained 1985
Affiliate Member, Pacific West Association of Realtors
LICENSES
Licensed by the State of California as a Certified General Real Estate Appraiser; BREA ID No.
AG013311; valid through September 22, 2026.
EDUCATION
B.A. Economics & Business, Westmont College, Santa Barbara (1976)
Appraisal Institute Courses:
Basic Appraisal Principles, Methods and Techniques
Capitalization Theory and Techniques
Urban Properties
Litigation Valuation
Standards of Professional Appraisal Practice
Numerous seminars and continuing education on various appraisal subjects, including valuation of easements and leased fee interests, litigation, the money market and its impact on real estate, and standards of professional appraisal practice.
COURT/TESTIMONY EXPERIENCE
Qualified as an expert witness in the Superior Courts of Orange, Los Angeles, Riverside and San Bernardino Counties; also for the Assessment Appeals Board of Orange and Los Angeles Counties.
TYPES OF PROPERTY APPRAISED
Residential: vacant lots, acreage and subdivisions; single family residences, condominiums, townhomes and apartment complexes.
Commercial: vacant lots/acreage; office buildings, retail/shopping centers, restaurants, hotels/motels.
Industrial: vacant lots and acreage; warehouses, manufacturing buildings, R&D buildings, industrial parks, mini-warehouses.
Special Purpose: mobilehome parks, churches, automobile agencies, medical buildings, convalescent hospitals, easements, leased fee and leasehold interests.
883
37 QUALIFICATIONS, Page 2
CLIENT LIST
Corporations:
Aera Energy La Habra Products, Inc.
British Pacific Properties MCP Foods
BSI Consultants Orangeland RV Park
Crown Central Petroleum Pacific Scientific
Firestone Building Materials Penhall International
Foodmaker Realty Corp. Pic 'N Save Stores
Greyhound Lines Sargent-Fletcher Co.
Holiday Rambler Corp. Shell-Western E&P
International Baking Co. Southern Distributors Corp.
Johnson Controls Southern California Edison
Kampgrounds of America The Home Depot
Knowlwood Restaurants Tooley and Company
Kroger Company Wastewater Disposal Co.
Developers:
Brighton Homes Kathryn Thompson Developers
BRIDGE Housing Mission Viejo Co.
B r o o k f i e l d P r e m i e r H o m e s
Citation Builders Presley Homes
Davison-Ferguson Investment Devel. Rockefeller & Associates D . T . S m i t h H o m e s T a y l o r W o o d r o w H o m e s Irvine Company Unocal Land & Development
Law Firms:
Atkinson, Andelson, Loya, Ruud & Romo Oliver, Barr & Vose Baldikoski, Klotz & Dragonette Ollestad, Freedman & Taylor Best, Best & Krieger LLP Palmieri, Tyler, Wiener, Wilhelm & Bowie, Arneson, Wiles & Giannone Waldron LLP
Bye, Hatcher & Piggott Paul, Hastings, Jonofsky &
Callahan, McCune & Willis Walker LLP
Cooksey, Coleman & Howard Piggott, George B.
Dawson & Dawson Pothier, Rose
Hamilton & Samuels Rosenthal & Zimmerman
Horgan, Rosen, Beckham & Coren Ross Wersching & Wolcott LLP Kirkland & Ellis Rutan & Tucker, LLP
Latham & Watkins LLP Sikora & Price, Inc.
McKee, Charles C. Smith & Politiski
Mosich, Nicholas J. Williams, Gerold G.
Long, David M. Woodruff, Spradlin & Smart, P.C.
Nossaman, Guthner, Knox & Elliott, LLP Yates, Sealy M.
Financial Institutions:
Ahmanson Trust Company NorthMarq
Barclays Bank Pacific Western Bank
Chino Valley Bank San Clemente Savings & Loan
Continental Bank Security Pacific Bank
First Interstate Mortgage Sunwest Bank
First Niagara Bank United Calif. Savings Bank
First Wisconsin Bank Washington Square Capital
884
38 QUALIFICATIONS, Page 3
Cities:
Anaheim Laguna Beach San Diego
Baldwin Park Lake Elsinore San Marino
Buena Park Long Beach Santa Ana
City of Industry Mission Viejo Santee
Cypress Orange Seal Beach
Dana Point Palm Desert Stanton
Duarte Placentia Temecula
F o n t a n a R i a l t o T u s t i n
Fullerton Riverside Wildomar
La Habra San Clemente Yorba Linda
Counties:
County of Orange County of Riverside
Other Governmental:
Agua Mansa Industrial Growth As sociation Lee Lake Water District Eastern Municipal Water District Metropolitan Water District El Toro Water District Orange County Water District
Federal Deposit Insurance Corporation (FDIC) Trabuco Canyon Water District Kern County Employees Retiremen t Association U.S. Postal Service
School Districts:
Alvord Unified Irvine Unified Riverside Unified
Anaheim Union High Jurupa Unified Romoland
Anaheim Elementary Lake Elsinore Unified Saddleback Valley Unified Banning Unified Menifee Union San Jacinto Unified
Beaumont Unified Moreno Valle y Unified San Marcos Unified Capistrano Unified Murrieta Valley Unified Santa Ana Unified C a s t a i c U n i o n N e w h a l l S a u g u s U n i o n Cypress Newport-Mesa Unified Sulphur Springs Union
Etiwanda Orange Unified Westside Union
Fullerton Palm Springs Unified William S. Hart Union High Fullerton Jt. Union High Placentia-Yor ba Linda Unif. Victor Elementary Garden Grove Unified Poway Unified
Hemet Unified Rialto Unified
Churches/Church Organizations:
Calvary Church, Santa Ana Lutheran Church, Missouri Synod Central Baptist Church, Pomona Presbytery of Los Rancho Christian & Missionary Alliance Church, Santa Ana St. Mark’s Lutheran Church, Hac. Hts.
Christian Church Foundation United Methodist Church
Congregational Church, Fullerton Vineyard Christian Fellowship First Church of the Nazarene Yorba Linda United Methodist Church
Other:
B e v e r l y H o s p i t a l
The Claremont College Services
GOALS (nonprofit org.)
885
COMMUNITY FACILITIES
DISTRICT 2023-1 (AVALINO)
SPECIAL TAX BONDS
SERIES 2026
886
BACKGROUND
• CFD 2023-1 (Avalino) formed August 9th, 2023
• Incur Bonded Indebtedness NTE $12,000,000
• Bonds to be issued to Finance City Facilities, Storm Drain Costs, EVMWD Facility & Sewer Improvements, and Cost of Issuance • ~$295,000 in City Fee Premium to be Used For Any City Capital Project
• Housing Prices Ranging From $718,000 to $820,000
• Request for Bond Sale from DR Horton Pursuant to City Approved Formation Proceedings in 2023
• 117 Parcels – Over 67% Developed and Conveyed to Individual Owners • Began Levying in FY2024-25
887
PROPOSED
TRANSACTION
Special Tax Bonds Secured by Special Tax
Revenue Levied on CFD 2023-1 (Avalino)
Principal Projected to Be About $10.7
Million – Dependent on Market
30 Year Maturity
Appraised Value of Property -
$70,395,000 as of November 3rd, 2025
888
GOOD FAITH
ESTIMATES
• True Interest Cost of Bonds – 5.05%
• T otal Finance Charges - $296,000
• To t a l Bond Proceeds Net of Finance Charges - $9,469,00 0 • T otal Payment Amount to Final Maturity – $22,035,019 • These are not obligations of the City of Wildomar. They are secured by the Special Tax Levied on CFD 2023- 1. There is no Fiscal Impact to the City of Wildomar
• All Amounts Subject to Market Conditions and Actuals Costs to Be Confirmed When Bonds Are Priced in Late January 2026
889
CITY:
• Approximately $1.4 million of Bond Proceeds to Fund DIF Eligible City Projects
• Additional Premium of $294,930 for any City Capital Project • Storm Drain Improvements
• $30,000 per Year For Administration (With 2% Annual CPI Increase) • CFD Funding Program Promotes New Development and Spurs Economic Activity
890
QUESTIONS / DISCUSSION
891
CITY OF WILDOMAR
CITY COUNCIL REGULAR MEETING
PUBLIC HEARING
Agenda Staff Report # 2.1
Meeting Date: January 14, 2026
SUBJECT:
Establishment of Community Facilities District No. 2025-1 (Camelia)
SUBMITTED BY:
Adam Jantz, Finance Manager
PREPARED BY:
Adam Jantz, Finance Manager
ACTION:
1. Adopt a Resolution entitled:
RESOLUTION NO. 2026 -____
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 2025-1 (CAMELIA) OF THE CITY OF WILDOMAR,
AUTHORIZING THE LEVY OF A SPECIAL TAX THEREIN, CALLING AN ELECTION AND
APPROVING AND AUTHORIZING CERTAIN ACTIONS RELATED THERETO
2. Adopt a Resolution entitled:
RESOLUTION NO. 2026 - ____
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (CAMELIA) OF
THE CITY OF WILDOMAR DETERMINING THE NECESSITY TO INCUR BONDED INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED $10,000,000 WITHIN COMMUNITY FACILITIES DISTRICT NO. 2025-1 (CAMELIA) OF THE CITY OF WILDOMAR AND
CALLING AN ELECTION THEREIN
3. Adopt a Resolution entitled:
RESOLUTION NO. 2026 - ____
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR, CALIFORNIA
ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (CAMELIA) OF THE CITY OF WILDOMAR CERTIFYING ELECTION
RESULTS
4. Introduce and read by title only:
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. 2025-1 (CAMELIA) OF THE CITY OF WILDOMAR AUTHORIZING THE LEVY
OF SPECIAL TAXES
892
SUMMARY:
Adoption of these resolutions and first reading of the Ordinance are required to form CFD 2025-1 (Camelia), calling an election, authorizing the levy of a Special Tax, and determining the necessity to incur bonded indebtedness in an amount not to exceed $10,000,000.
BACKGROUND:
KB Home Cal Management Services LLC, a Delaware limited liability company (the “Developer”) owns 22.15 gross acres of property within the City which is proposed to be developed into 163 single-family residential homes. Such property is generally located to the southeast of a newly established intersection of Washington Avenue and a newly extended Jefferson Avenue on the border of the City of Murrieta. The Developer has requested that the City form a Community Facilities District (CFD No 2025-1 (Camelia)) to encompass the property in accordance with the Mello-Roos Community Facilities Act of 1982 (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 $10,000,000.
On October 13, 2025, the City Council adopted Resolution Nos. 2025-56 and 2025-57, which declared the City's intention to establish the District, the intention to incur bonded indebtedness within the District, and calling for a public hearing to be held on December 10, 2025. On December 3, 2025, the City Council adopted Resolution No. 2025-66, which changed the public hearing date from December 10, 2025 to January 14, 2026.
The purpose of the public hearing is for the City Council to formally consider the approval of the formation of CFD 2025-1 (Camelia), 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.
DISCUSSION:
In connection with the public hearing, Spicer Consulting Group prepared a CFD Public Hearing Report (Attachment 5), 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 (Attachment 1) and the Resolution Determining the Necessity to Incur Debt (Attachment 2) 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 $10 million. Such resolutions call for an election to submit to the qualified voters of the District, ballot measures on the approval of the special taxes, the issuance of the bonds, and an appropriations limit for the District.
The Resolution of Formation also approves the execution and delivery of the Acquisition, Construction and Funding Agreement (the “Funding Agreement”) with the Developer (Attachment 6) and a Joint Community Facilities Agreement (the “JCFA”) with the Developer and Elsinore Valley Municipal Water District (the “Water District”) (Attachment 7) in the forms presented to the City Council. The Funding Agreement sets forth the terms, among others, pursuant to which the District will finance District improvements. 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 JCFA with the Water District provides for the terms by which the District is authorized to finance water facilities to be owned 893
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 (Attachment 8). Accordingly, under the 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 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 (Attachment 3). Based 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 (Attachment 4).
FISCAL IMPACT:
There is no impact to the General Fund to form the District. Costs of formation are paid out of a deposit made by the Developer. This deposit may be reimbursed once bonds are sold in accordance with a reimbursement agreement previously approved by the City Council. If established and subject to necessary City 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. 2025-1. Any bonds issued by the District are not obligations of the City’s General Fund and will be secured solely by the special taxes levied within CFD No. 2025-1.
The RMA provides that the annual special tax rates for FY 2025-26 will range from $2,397 for home sizes less than 1,500 square fee up to $2,793 for home sizes greater than 1,700 square fee. The special tax rates escalate at 2% per year.
ATTACHMENTS:
Attachment #1 - Resolution Of Formation City Of Wildomar CFD 2025-1 (Camelia).docx Attachment #2 - Resolution Of Necessity To Incur Debt City Of Wildomar CFD 2025-1 (Camelia).docx Attachment #3 - Resolution Certifying Election Results City Of Wildomar CFD 2025-1 (Camelia).docx Attachment #4 - Ordinance City Of Wildomar CFD 2025-1 (Camelia).docx Attachment #5 - CFD 2025-1 - CFD Report - Final.pdf
Attachment #6 - Acquisition Agreement Wildomar CFD 2025-1 (Camelia).docx Attachment #7 - Joint_Community_Facilities_Agmt_(JCFA)_with_EVMWD_-_Wildomar_CFD_2025- 1_(Camelia)-c1.pdf
Attachment #8 - Certificate of ROV (Camelia).pdf
Attachment #9 - Public Hearing Presentation for CFD2025-1 Camelia 894
4904-0849-7271v3/200945-0009
RESOLUTION NO. 2026-__
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WILDOMAR ESTABLISHING COMMUNITY FACILITIES
DISTRICT NO. 2025-1 (CAMELIA) 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. 2025-56 stating its i ntention to form Community Facilities District No. 2025-1 (Camelia) of the City of Wildomar (“Community Facilities District No. 2025-1” 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. 2025-56 setting forth a description of the proposed boundaries of Community Facilities District No. 2025-1, 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, on December 3, 2025, this City Council adopted Resolution No. 2025-66, which changed the public hearing date relative to the proposed formation of Community Facilities District No. 2025 -1, the levy of the special tax therein (the “Special Tax”) and the issuance of bonded indebtedness by the District previously called for December 10, 2025 to January 14, 2026; 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 t o the intention of this City Council to form proposed Community Facilities District No. 2025-1 and to lev y the Special Tax and to incur bonded indebtedness in the amount of up to $ 10,000,000 therein to finance the facilities and incidental expenses describ ed in Resolution No. 2025-56 and
WHEREAS, on January 14, 2026 , this City Council conducted a noticed public hearing as required by law relative to the proposed formation of Community Facilities District No. 2025-1, the levy of the Special Tax therein and t he issuance of bonded indebtedness by the District; and
WHEREAS, at the January 14, 2026 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 o f the cost of such facilities as required by Section 53321.5 of the Act (the “Engineer’s Report”); and
WHEREAS, at the January 14, 2026 public hearing all persons desiring to be heard on all matters pertaining to the formation of Community Facilities Distr ict No. 2025-1, the 895
2 4904-0849-7271v3/200945-0009
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 f inance 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 present ed 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 hearin g 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
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. 2025-1 for each of the 90 days prior to January 14, 2026 and that the qualified electors in Community Facilities District No. 2025-1 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 Faciliti es District No. 2025-1 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. 2025-56 (the “Rate and Method”), (ii) the is suance of bonds to finance the Facilities and Incidental Expenses, and (iii) the establishment of an appropriations limit for Community Facilities District No. 2025-1; and
WHEREAS, in order to facilitate the funding of the Facilities, the legislative body of the District desires to enter into a n Acquisition, Construction and Funding Agreement (the “Funding Agreement”) with KB Home Cal Management Services LLC, a Delaware limited liability company (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 ”) a nd 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;
896
3 4904-0849-7271v3/200945-0009
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. 2025-1 (Camelia) 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 wit h the provisions of Section 53325.1(b) of the Act.
Section 3. The boundaries of Community Facilities District No. 2025-1 are established as shown on the map designated “Proposed Boundary Map Community Facilities District No. 2025-1 (Camelia) 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. 97, Page No. 65 on October 22, 2025 as Instrument No. 2025-0324156.
Section 4. The types of Facilities and Incidental Expenses authorized to be provided for Community Facilities Di strict No. 2025-1 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 proposed Facilities are nec essary 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 completi on and inspection of the Facilities and the annual administration of the bonds and the District. The Rate and Method is described 897
4 4904-0849-7271v3/200945-0009
in detail in Attachment C to Resolution No. 2025-56 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 describ ed 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. 2025-1 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, t hat the Special Tax shall not be levied after Fiscal Year 2065-66. 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 l ater 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 aft er Fiscal Year 2065-66, 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 wit hin 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. 2025-1 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. 2025-1, increase the levy to the extent necessary and permitted by law and these proceedings upon the remaining property with in Community Facilities District No. 2025-1 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 liabi lities; 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 Dist rict 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 898
5 4904-0849-7271v3/200945-0009
the Rate and Method. The obligation to pa y 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. 2025-1, 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. 2025-1 and will be benefited by the Facilities proposed to be provided within Community Facilities District No. 2025-1.
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. 2025-1 for the exclusive purpose of paying the principal of or interest on bonds or othe r indebtedness incurred to finance the construction of capital facilities which provide the same services to the territory of Community Facilities District No. 2025-1 as are proposed to be provided by the Facilities to be financed by Community Facilities D istrict No. 2025-1.
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 wi thin 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. 2025-1 on the propositions of levying the Special Tax on the property within Community Facilities District No. 2025-1 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. 2025-1 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 January 14, 2026, or such later date as is consented to by the City Clerk or De puty 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 January 14, 2026 , then the unanimous written consent of each qualified elector within the District t o such election date must be obtained. The polls shall be open for said election immediately following 899
6 4904-0849-7271v3/200945-0009
the close of the public hearing on January 14, 2026. 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 t he 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. 2025-1. 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 October 20 , 2025. Accordingly, since there were fewer than 12 registered voters wit hin the District for each of the 90 days preceding January 14, 2026 , 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. 2025-1, 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 January 14, 2026, 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 incl uding, but not limited to, paying any cost incurred in creating Community Facilities District No. 2025-1. 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. 2025-
1. 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 Mayor, the City Manager, the Finance 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 Mayor, the City Manager, the Finance 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, 900
7 4904-0849-7271v3/200945-0009
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.
PASSED, APPROVED AND ADOPTED this 14th day of January, 2026:
Carlos Marquez
Mayor
APPROVED AS TO FORM: ATTEST:
Thomas D. Jex Janet Morales Garcia, CMC
City Attorney City Clerk
901
8 4904-0849-7271v3/200945-0009
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF WILDOMAR )
I, Janet Morales Garcia, 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 January 14, 2026 and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
Janet Morales Garcia, CMC
City Clerk
City of Wildomar
902
A-1
4904-0849-7271v3/200945-0009
ATTACHMENT A
Types of Facilities
to Be Financed by Community
Facilities District No. 2025-1 (Camelia) 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”), and (ii) water and sewer facilities including the acquisition of capacity in the sewer system and/or water system of the Elsinore Valley Municipal Water Distric t which are included in Elsinore Valley Municipal Water District’s water and sewer capacity and connection fee programs (the “Water District Facilities” together, with the City 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.
903
B-1
4904-0849-7271v3/200945-0009
ATTACHMENT B
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(CAMELIA) OF THE CITY OF WILDOMAR
SPECIAL TAX AND SPECIAL BOND ELECTION
January 14, 2026
PROPOSITION A: Shall Community Facilities
District No. 2025-1 (Camelia) 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 $ 10,000,000, 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. 2025-56 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. 2025-56 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. 2025-56, 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 2025-26, shall the appropriations limit,
as defined by subdivision (h) of Section 8 of
Article XIII B of the California Constitution, for the District be an amount equal to $5,000,000?
YES______
NO_______
904
4908-6488-9975v3/200945-0009
RESOLUTION NO. 2026-__
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WILDOMAR ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(CAMELIA) OF THE CITY OF WILDOMAR DETERMINING
THE NECESSITY TO INCUR BONDED INDEBTEDNESS
IN AN AMOUNT NOT TO EXCEED $ 10,000,000 WITHIN
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(CAMELIA) OF THE CITY OF WILDOMAR AND CALLING
AN ELECTION THEREIN
WHEREAS, on October 13, 2025 , the City Council of the City of Wildomar (the “City Council”) adopted Resolution No. 2025-56 stating its intention to form Community Facilities District No. 2025-1 (Camelia) of the City of Wildomar (“Community Facilities District No. 2025-1” or the “District”) purs uant to the Mello -Roos Community Facilities Act of 1982, as amended (the “Act”); and
WHEREAS, on October 13, 2025 , the City Council also adopted Resolution No. 2025- 57 stating its intention to incur bonded indebtedness in the amount of up to $ 10,000,000 within proposed Community Facilities District No. 2025-1 to finance (1) the purchase, construction, modification, expansion, improvement or rehabilitation of public facilities identified in Attachment B to Resolution No. 2025-56, 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. 2025-56; and WHEREAS, on December 3, 2025, this City Council adopted Resolution No. 2025-66, which changed the public hearing date relative to the proposed formation of Community Facilities District No. 2025 -1, the levy of the special tax therein and the issuance of bonded indebtedness by the District , previously called for December 10, 2025 to January 14, 2026; and
WHEREAS, notice was published as required by law relative to the intention of the City Council to form proposed Community Facilities District No. 2025-1 and to incur bonded indebtedness in the amount of up to $ 10,000,000 within the boundaries of pro posed Community Facilities District No. 2025-1; and
WHEREAS, on January 14, 2026 , this City Council conducted a noticed public hearing to determine whether it should proceed with the formation of Community Facilities District No. 2025-1, issue bonds to pay for the facilities and incidental expenses described in Resolution No. 2025-56 and authorize the rate and method of apportionment of a special tax to be levied within Community Facilities District No. 2025-1 for the purposes described in Resolution No. 2025-56; and WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of Community Facilities District No. 2025-1, the levy of a special tax and 905
2 4908-6488-9975v3/200945-0009
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. 202 6- __ establishing Community Facilities District No. 2025-1 (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 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. 2025-1 (CAMELIA) OF THE CITY OF WILDOMAR, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
Section 1. It is necessary to in cur bonded indebtedness in a maximum aggregate principal amount not to exceed $ 10,000,000 within Community Facilities District No. 2025-1.
Section 2. The indebtedness is to be incurred for the purpose of financing the costs of purchasing, constructing, modifying, exp anding, 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. 2025-1, including, but not limited to, fin ancing 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 propert y within Community Facilities District No. 2025-1, other than property exempted from the special tax pursuant to the provisions of the rate and method of apportionment attached to Resolution No. 2025-56 as Attachment C, shall pay for the bonded indebtednes s 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 906
3 4908-6488-9975v3/200945-0009
53531 of the Government Cod e, 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. 2025-1 on the proposition of incurring the bonded indebtedness. The proposition relative to incurring bonded indebtedness in the maximum aggregate principal amount of $10,000,000 shall be in the form of Proposition A set forth in Attachment A hereto. In accordance with Sections 53351(h) and 53353.5 of th e 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. 2025- 1 on the propositions of incurring the bonded indebtedness, authorizing the levy of the special tax and setting an appropriations limit shall be January 14, 2026 , 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 January 14, 2026 , then the unanimous written c onsent 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 January 14, 2026 .
The election shall be conducted by the City Clerk. Excep t 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 close d 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 t he qualified electors within Community Facilities District No. 2025-
1. 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 October 20, 2025. Accordingly, since there were fewer than 12 registered voters within the District for each of the 90 days preceding January 14, 2026, 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. 2025-1, 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 January 14, 2026, which waiver is on file with the City Clerk.
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Section 9. This Resolution shall be effective upon its adoption.
PASSED, APPROVED AND ADOPTED this 14th day of January, 2026:
Carlos Marquez
Mayor
APPROVED AS TO FORM: ATTEST:
Thomas D. Jex Janet Morales Garcia, CMC
City Attorney City Clerk
908
5 4908-6488-9975v3/200945-0009
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF WILDOMAR )
I, Janet Morales Garcia, 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 January 14, 2026 and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
Janet Morales Garcia, CMC
City Clerk
City of Wildomar
909
4908-6488-9975v3/200945-0009
ATTACHMENT A
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(CAMELIA) OF THE CITY OF WILDOMAR
SPECIAL TAX AND SPECIAL BOND ELECTION
January 14, 2026
PROPOSITION A: Shall Community Facilities
District No. 2025-1 (Camelia) 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 $ 10,000,000, 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. 2025-56 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. 2025-56 of the City Council of the
City of Wildomar be levied to pay for the Facilities,
Incidental Expen ses and other purposes described
in Resolution No. 2025-56, 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 2025-26, shall the appropriations limit,
as defined by subdivision (h) of Section 8 of
Article XIII B of the California Constitution, for the
District be an amount equal to $5,000,000?
YES______
NO_______
910
4935-9774-1175v3/200945-0009
RESOLUTION NO. 2026-__
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WILDOMAR, CALIFORNIA ACTING IN ITS CAPACITY AS
THE LEGISLATIVE BODY OF COMMUNITY FACILITIES
DISTRICT NO. 2025-1 (CAMELIA) OF THE CITY OF
WILDOMAR CERTIFYING ELECTION RESULTS
WHEREAS, the City Council of the City of Wildomar called and duly held an election on January 14, 2026 within the boundaries of Community Facilities District No. 2025-1 (Camelia) of the City of Wildomar (“Community Facilities District No. 2025-1” or the “District”) pursuant to Resolution Nos. 202 5-__ and 202 5-__ 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 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 C APACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (CAMELIA) OF THE CITY OF WILDOMAR, DOES HEREBY FIND, DETERMINE AND RESOLVE 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 January 14, 2026 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 th e 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 $ 10,000,000 specified in Proposition A.
Section 3. The City Clerk is hereby directed to record in the Assessor -County Clerk- Recorder’s office of the County of Riverside within fifteen da ys 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. 911
2 4935-9774-1175v3/200945-0009
Section 4. This Resolution shall be effective upon its adoption.
PASSED, APPROVED AND ADOPTED this 14th day of January, 2026:
Carlos Marquez
Mayor
APPROVED AS TO FORM: ATTEST:
Thomas D. Jex Janet Morales Garcia, CMC
City Attorney City Clerk
912
3 4935-9774-1175v3/200945-0009
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF WILDOMAR )
I, Janet Morales Garcia, 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 January 14, 2026 and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
Janet Morales Garcia, CMC
City Clerk
City of Wildomar
913
A-1
4935-9774-1175v3/200945-0009
ATTACHMENT A
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(CAMELIA) OF THE CITY OF WILDOMAR
SPECIAL TAX AND SPECIAL BOND ELECTION
January 14, 2026
PROPOSITION A: Shall Community Facilities
District No. 2025-1 (Camelia) 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 $ 10,000,000, 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. 2025-56 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. 2025-56 of the City Council of the
City of Wildoma r be levied to pay for the Facilities,
Incidental Expenses and other purposes described
in Resolution No. 2025-56, 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 2025-26, shall the appropriations limit,
as defined by subdivision (h) of Section 8 of
Article XIII B of the California Constitution, for the
District be an amount equal to $5,000,000?
YES______
NO_______
914
B-1
4935-9774-1175v3/200945-0009
ATTACHMENT B
CERTIFICATE OF CITY CLERK
AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS I, Janet Morales Garcia, 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. 2025-1 (Camelia) of the City of Wildomar. The election was held in the Wildomar City Hall Council Chambers 23873 Clinton Keith Rd. Suite 106, Wildomar, CA 92595, on January 14, 2026 . 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 January, 2026.
Janet Morales Garcia, CMC
City Clerk
City of Wildomar
915
4930-6211-5447v3/200945-0009
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. 2025-1 (CAMELIA) OF THE
CITY OF WILDOMAR AUTHORIZING THE LEVY OF SPECIAL TAXES
WHEREAS, on October 13, 2025, the City Council (the “City Council”) of the City of Wildomar (the “City”) adopted Resolution No. 2025-56 declaring its intention to form Community Facilities District No. 2025-1 (Camelia) 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 “Ac t”), and its Resolution No. 2025-57 declaring its intention to incur bonded indebtedness for the District; and
WHEREAS, on December 3, 2025, the City Council adopted Resolution No. 2025- 66, which changed the public hearing date relative to the proposed formation of Community Facilities District No. 2025 -1, the levy of the special tax therein and the issuance of bonded indebtedness by the District, previously called for December 10, 2025 to January 14, 2026; and
WHEREAS, on January 14, 2026, 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 t ax therein to finance certain public facilities described in Resolution No. 2025-56 and to secure the payment of any bonded indebtedness of the District, and the proposed issuance of up to $10,000,000 of bonded indebtedness as described in Resolution No. 2025-57; and WHEREAS, at the January 14, 2026 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. 2025-56 and to secure the payment of up to $10,000,000 of bonded indebtedness of the District as described in Resolution No. 2025-57 (the “Bonds”) were heard and a full and fair hearing was held; and
WHEREAS, on January 14, 2026, the City Council adopted Resolution Nos. 2026- __ and 2026-__ which formed the District and called a special election within the District on January 14, 2026 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 January 14, 2026, a special election was held within the District at which the qualified electors approved by more than a two -thirds vote Prop ositions A, B and C authorizing the levy of a special tax within the District for the purposes described in Resolution No. 2025-56, the issuance of the Bonds as described in Resolution No. 2025-57 and establishing an appropriations limit for the District; and 916
2 4930-6211-5447v3/200945-0009
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WILDOMAR,
ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (CAMELIA) OF THE CITY OF WILDOMAR, ORDAINS AS FOLLOWS:
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. 2025-56, 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, the Finance 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 propert y 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 bil ling 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 facili ties 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 F 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. ________ or in a resolution of consideration to levy a new special tax or special taxes or to alter the rate or method of apportionment of 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 p rovided for in the Act, the Rate and Method and Resolution No.__________.
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 917
3 4930-6211-5447v3/200945-0009
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.
Section 8. The Mayor of the City shall sign this Ordinance and 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, APPROVED AND ADOPTED this ___ day of _________, 2026:
Carlos Marquez
Mayor
918
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APPROVED AS TO FORM: ATTEST:
Thomas D. Jex Janet Morales Garcia, CMC
City Attorney City Clerk
919
Public Hearing Report
Community Facilities District No. 2025-1
(Camelia)
January 14, 2026
920
Table of Contents
Sections P age _____________________________________________ 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 5-1 Assigned Special Tax for Developed Property ___________________________ 5
Appendices P age _____________________________________________ A Rate and Method of Apportionment _____________________________________ B Boundary Map _________________________________________________ C Resolution of Intention _______________________________________________
921
1 Introduction Page | 1
City of Wildomar
CFD No. 2025-1 (Camelia)
Public Hearing Report
Background
On October 13, 2025, the City Council (the “City Council”) of the City of Wildomar (the “City”), adopted a Resolution of Intention to form Community Facilities District No. 2025-1 (Camelia) of the City of Wildomar (the “CFD No. 2025-1”), Resolution No. 2025-56, 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. 2025-1 is currently comprised of one parcel and approximately 22.15 gross acres. Tract Map 37156 includes 163 proposed single family residential properties. The properties are generally located to the southeast of a newly established intersection of Washington Avenue and a newly extended Jefferson Avenue, on the border of the City to the City of Murrieta, within the City of Wildomar, California.
For a map showing the boundaries of CFD No. 2025-1 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. 2025-1;
2. A brief description of the Facilities required at the time of formation to meet the needs of CFD No. 2025-1.
3. A brief description of the Boundaries of CFD No. 2025-1; 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.
922
2 Description of Facilities Page | 2
City of Wildomar
CFD No. 2025-1 (Camelia)
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 pu rchase, construction, expansion, or reha bilitation 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. 2025- 1 and financed with the proceeds of special taxes and bonds issued by CFD No. 2025-1 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 fac ilities 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”), and (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 Dist rict Facilities” together , with the City Facilities, the “F acilities”), 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. 2025-1, 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. 2025-1, including legal fees, fees of consultants, engineering, planning, designing and the annual costs to administer CFD No. 2025-1 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. 2025-1.
923
3 Cost Estimate Page | 3
City of Wildomar
CFD No. 2025-1 (Camelia)
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. 2025- 1 Bonds is estimated to be $7,385,000 based upon current dollars (Fiscal Year 2025-26). 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. 2025-1 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. 2025-1 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 fores een today, and the actual incidental expenses may exceed these amounts accordingly.
Table 3-1
Cost Estimate
City Facilities Total Bond Allocation(1)
Storm Drain Improvements $2,466,398 $2,466,398
Street Improvements $2,603,831 $2,603,831
Total City Facilities $5,070,229 $5,070,229
Elsinore Valley Municipal Water District Fees Total Bond Allocation(1) Water Fee $3,618,763 $1,228,724
Sewer Fee $2,415,823 $0
Total Elsinore Valley Municipal Water District Fees $6,034,586 $1,228,724
Total Eligible Fees/Improvements $11,104,815 $6,298,953 Incidental Financing Costs $1,086,047
Total Funded by Bond Proceeds $7,385,000
Total Fees/Improvements to be Funded by Developer $4,707,820 (1) Amounts are allocated based upon estimated bond sizing and may change based upon market conditions at the time of bond issuance. 924
4 Proposed Development Page | 4
City of Wildomar
CFD No. 2025-1 (Camelia)
Public Hearing Report
The CFD No. 2025-1 includes approximately 22.15 gross acres on one undeveloped assessor’s parcel in Tract Map 37156 located in the City. The property within CFD No. 2025-1 is expected to be developed with 163 single family residential units.
The District is generally located to the southeast of a newl y established intersection of Washington Avenue and a newly extended Jefferson Avenue, on the border of the City to the City of Murrieta. As of Fiscal Year 2025-26 the proposed CFD No. 2025-1 includes the following Assessor's Parcel Numbers:
Assessor
Parcel Number
380-220-010
A map showing the boundaries of CFD No. 2025-1 is included in Appendix B.
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5 Rate and Method of Apportionment Page | 5
City of Wildomar
CFD No. 2025-1 (Camelia)
Public Hearing Report
The Rate and Method of Apportionment allows each property owner within CFD No. 2025-1 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. 2025-1, and provided further that CFD No. 2025-1 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. 2025-1, unless exempted by law or by the Rate and Method proposed for CFD No. 2025-1, shall be taxed for the purpose of providing necessary facilities to serve the District. The Boundary Map for CFD No. 2025-1 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 co st 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 Articl e 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. 2025-1 for uncollected Special Taxes associated with the levy of such Special Taxes, but the Special Tax shall not be levied after 2065-2066 Fiscal Year.
Table 5-1
Assigned Special Tax for Developed Property
Fiscal Year 2025-26
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. f t $2,397.00
2. Single Family Residential Property RU 1,500 sq. ft to 1,700 sq. f t $2,533.00
3. Single Family Residential Property RU Greater than 1,700 sq. f t $2,793.00
4. Multifamily Property Acre N/A $44,811.00
5. Non-Residential Property Acre N/A $44,811.00
Escalation of Special Taxes
On each July 1, commencing on July 1, 2026 the Assigned Special Tax shall increase by two percent (2.0%), of the amount in effect in the prior Fiscal Year.
For particulars as to the Rate and Method for CFD No. 2025-1, see the attached and incorporated in Appendix A.
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6 Certifications Page | 6
City of Wildomar
CFD
No. 2025-1 (Camelia)
Public Hearing Report
Based on the information provided herein, it is my opinion that the described facilities 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. 2025-1 and benefits the lands within said CFD No. 2025-1. 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 10, 2025 SPICER CONSULTING GROUP, LLC
_
_________________________
SHA
NE
SPICER
SPECIAL TAX CONSULTANT FOR
CITY OF WILDOMAR
RIVERSIDE
COUNTY
STATE OF
CALIFORNIA
927
Appendix A:
Rate and Method of Apportionment
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Community Facilities District No. 2025‐1 (Camelia) Page 1
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2025‐1 (CAMELIA)
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. 2025‐1 (Camelia) of the City of Wildomar ("CFD No. 2025‐1"). 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. 2025‐1, 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. 2025‐1: 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. 2025‐1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2025‐1 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2025‐1 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. 2025‐1 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. 2025‐1 for any other administrative purposes of CFD No. 2025‐1, 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 levied, 929
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Community Facilities District No. 2025‐1 (Camelia) Page 2
(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. 2025‐1 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. 2025‐1" means Community Facilities District No. 2025‐1 (Camelia) 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. 2025‐1.
“Condominium Plan" means a Condominium Plan pursuant to California Civil Code, Section 6624. 930
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"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 1
st 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. 2025‐1 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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"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. 2025‐1 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. 2025‐1 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. 2025‐1, 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 2025‐2026 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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C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2025‐2026, each Assessor’s Parcel within CFD No. 2025‐1 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 2025‐2026 applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 below.
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TABLE 1
ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2025‐2026
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 $2,397.00
2. Single Family Residential Property RU 1,500 sq. ft to 1,700 sq. ft $2,533.00
3. Single Family Residential Property RU Greater than 1,700 sq. ft $2,793.00
4. Multifamily Property Acre N/A $44,811.00
5. Non‐Residential Property Acre N/A $44,811.00
On each July 1, commencing July 1, 2026, 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 $2,895 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. 2025‐1 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. 2025‐1.
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, 2026, the Backup Special Tax rate shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
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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 $44,811 per Acre.
On each July 1, commencing July 1, 2026, 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 $44,811 per Acre.
On each July 1, commencing July 1, 2026, 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 2025‐2026 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.
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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 9.47 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 9.47 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 9.47 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 $7,000,000 expressed in 2025 dollars, which shall increase by the Construction Inflation Index on July 1, 2026, 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. 2025‐ 1, 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. 2025‐1.
“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 Year which ends in the previous Fiscal Year. In the event this index ceases to be published, the 936
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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 a Building Permit has been issued, compute the Maximum Special Tax for the Assessor’s Parcel as 937
City of Wildomar
Community Facilities District No. 2025‐1 (Camelia) Page 10
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 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 938
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Community Facilities District No. 2025‐1 (Camelia) Page 11
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 Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section G.1 939
City of Wildomar
Community Facilities District No. 2025‐1 (Camelia) Page 12
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 2065‐2066 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. 2025‐1 Bonds have been paid; (ii) all authorized facilities of CFD No. 2025‐1 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. 2025‐1 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. 2025‐1 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 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.
940
Appendix B:
Proposed Boundary Map
941
942
Appendix C:
Resolution of Intention
943
RESOLUTION NO. 2025 - 56
RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY
OF WILDOMAR TO ESTABLISH COMMUNITY FACILITIES DISTRICT
NO. 2025-1 ( CAMELIA) 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. 2025-1 ( Camelia) of the City of Wildomar" (" Community Facilities District No. 2025-1" 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. 2025- 1; 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. 2025-1 and the issuance of bonded indebtedness in an amount not to exceed $ 10,000,000 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. 2025-1; and
WHEREAS, the City desires to enter into a reimbursement agreement with KB Home Cal Management Services LLC, a Delaware limited liability company ( the A-1
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Developer"), the form of which is on file with the City Clerk ( the " Reimbursement Agreement"), to provide for the reimbursement of certain amounts advanced by the Developer in connection with the formation of the District; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WILDOMAR, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
SECTION 1. The above recitals are true and corrects
SECTION 2. A community facilities district is proposed to be established under the terms of the Act. It is further proposed that the boundaries of the community facilities district shall be the legal boundaries as described in Attachment " A" hereto, which boundaries shall, upon recordation of the boundary map for the District, include the entirety of any parcel subject to taxation by the District, and as depicted on the map of the proposed Community Facilities District No. 2025-1 which is on file with the City Clerk. The City Clerk is hereby directed to sign the original map of the District and record it with all proper endorsements thereon with the Assessor - County Clerk - Recorder of the County of Riverside within 15 days after the adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California.
SECTION 3. The name of the proposed community facilities district shall be Community Facilities District No. 2025-1 ( Camelia) of the City of Wildomar." SECTION 4. The Facilities proposed to be provided within Community Facilities District No. 2025-1 are public facilities as defined in the Act, which the City, and the Water District, with respect to certain water and sewer facilities, are authorized by law to construct, acquire, own and operate. The City Council hereby finds and determines that the description of the Facilities herein is sufficiently informative to allow taxpayers within the proposed District to understand what the funds of the District may be used to finance. The Incidental Expenses expected to be incurred include the cost of planning and designing the Facilities, the costs of forming the District, issuing bonds and levying and collecting the Special Tax within the proposed District. The Facilities may be acquired from one or more of the property owners within the District as completed public improvements or may be constructed from bond or Special Tax proceeds.
All or a portion of the Facilities may be purchased with District funds as completed public facilities pursuant to Section 53314.9 or as discrete portions or phases pursuant to Section 53313.51 of the Act and/or constructed with District funds pursuant to Section 53316.2 of the Act. Any portion of the Facilities may be financed through a lease or lease - purchase arrangement if the District hereafter determines that such arrangement is of benefit to the District.
SECTION 5. Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with the procedures contained in the Act the Special Tax, secured by recordation of a continuing lien against all nonexempt real property in the District, sufficient to pay for: ( i) the Facilities and Incidental Expenses; A-2
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and ( ii) the principal and interest and other periodic costs on bonds or other indebtedness issued to finance the Facilities and Incidental Expenses, including the establishment and replenishment of any reserve funds deemed necessary by the District, and any remarketing, credit enhancement and liquidity facility fees ( including such fees for instruments which serve as the basis of a reserve fund in lieu of cash).
The rate and method of apportionment and manner of collection of the Special Tax are described in detail in Attachment " C" attached hereto, which Attachment " C" is incorporated herein by this reference. Attachment " C" allows each landowner within the District to estimate the maximum amount of the Special Tax that may be levied against each parcel. In the first year in which such Special Tax is levied, the levy shall include an amount sufficient to repay to the District all amounts, if any, transferred to the District pursuant to Section 53314 of the Act and interest thereon.
If the Special Tax is 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 set forth in Attachment " C" hereto, ( ii) such Special Tax shall not be levied after fiscal year 2065-66 as described in Attachment " C" hereto, and iii) under no circumstances will the Special Tax levied in any fiscal year 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 ( 10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults.
The Special Tax is based on the expected demand that each parcel of real property within proposed Community Facilities District No. 2025-1 will place on the Facilities and on the benefit that each parcel derives from the right to access the Facilities. The City Council hereby determines that the proposed Facilities are necessary to meet the increased demand placed upon the City and the existing infrastructure in the City as a result of the development of the land proposed for inclusion in the District. The City Council hereby determines the rate and method of apportionment of the special tax with respect to the Special Tax set forth in Attachment " C" to be reasonable. The Special Tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and such special tax is not on or based upon the value or ownership of real property. In the event that a portion of the property within Community Facilities District No. 2025-1 shall become for any reason exempt, wholly or partially, from the levy of the Special Tax specified on Attachment " C," the City Council shall, on behalf of Community Facilities District No. 2025-1, cause the levy to be increased, subject to the limitation of the maximum Special Tax for a parcel as set forth in Attachment " C," to the extent necessary upon the remaining property within proposed Community Facilities District No. 2025-1 which is not exempt in order to yield the Special Tax revenues required for the purposes described in this Section 5. The obligation to pay the Special Tax may be prepaid only as set forth in Section G of Attachment " C" hereto.
SECTION 6. A public hearing ( the " Hearing") on the establishment of the proposed Community Facilities District No. 2025-1, the proposed rate and method of A-3
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apportionment of the Special Tax and the proposed issuance of bonds to finance the Facilities and the Incidental Expenses shall be held at 6:00 p.m., or as soon thereafter as practicable, on December 10, 2025, at the City Council Chambers, 23873 Clinton Keith Road, Suite 106, Wildomar, California 92595. Should the City Council determine to form the District, a special election will be held to authorize the issuance of the bonds and the levy of the Special Tax in accordance with the procedures contained in Government Code Section 53326. If held, the proposed voting procedure at the election will be a landowner vote with each landowner who is the owner of record of land within the District at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within the proposed District. Ballots for the special election may be distributed by mail or by personal service.
SECTION 7. At the time and place set forth above for the Hearing, the City Council will receive testimony as to whether the proposed Community Facilities District No. 2025-1 shall be established and as to the method of apportionment of the special tax and shall consider:
a) if an ad valorem property tax is currently being levied on property within proposed Community Facilities District No. 2025-1 for the exclusive purpose of paying principal of or interest on bonds, lease payments or other indebtedness incurred to finance construction of capital facilities; and
b) if the capital facilities to be financed and constructed by Community Facilities District No. 2025-1 will provide the same services as were provided by the capital facilities mentioned in subsection ( a); and
c) if the City Council makes the findings specified in subsections ( a) and ( b) above, it will consider appropriate action to determine whether the total annual amount of ad valorem property tax revenue due from parcels within Community Facilities District No. 2025-1, for purposes of paying principal and interest on the debt identified in subsection a) above, shall not be increased after the date on which Community Facilities District No. 2025-1 is established, or after a later date determined by the City Council with the concurrence of the legislative body which levied the property tax in question.
SECTION 8. At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within proposed Community Facilities District No. 2025-1, may appear and be heard.
SECTION 9. Each City officer who is or will be responsible for providing the Facilities within proposed Community Facilities District No. 2025-1, if it is established, is hereby directed to study the proposed District and, at or before the time of the above - mentioned Hearing, file a report with the City Council containing a brief description of the public facilities by type which will in his or her opinion be required to meet adequately the needs of Community Facilities District No. 2025-1 and an estimate of the cost of providing those public facilities, including the cost of environmental evaluations A-4
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of such facilities and an estimate of the fair and reasonable cost of any Incidental Expenses to be incurred.
SECTION 10. 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. 2025-1. 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 11. The City Clerk is hereby directed to publish a notice ( the " Notice") of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of proposed Community Facilities District No. 2025-1.
The City Clerk is further directed to mail a copy of the Notice to each of the landowners within the boundaries of the District at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the proposed district and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven ( 7) days prior to the date of the Hearing.
SECTION 12. The reasonably expected maximum principal amount of the bonded indebtedness to be incurred by the District for the Facilities and Incidental Expenses is Ten Million Dollars ($ 10,000,000).
SECTION 13. The form of the Reimbursement Agreement is hereby approved. The Mayor, the City Manager, the Administrative Services Director or their written designees are hereby authorized and directed to execute and deliver the Reimbursement Agreement in the form on file with the City Clerk with such changes, insertions and omissions as may be approved by the officer or officers executing such agreement, said execution being conclusive evidence of such approval.
SECTION 14. Except to the extent limited in any bond resolution or trust indenture related to the issuance of bonds, the City Council hereby reserves to itself all rights and powers set forth in Section 53344.1 of the Act ( relating to tenders in full or partial payment).
SECTION 15. This Resolution shall be effective upon its adoption.
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PASSED, APPROVED, AND ADOPTED this 13th day of October, 2025.
A lee. DePhillippo
M or
APPROVED AS TO FORM:
Thomas D. Jex
City Attorney
ATTEST:
Ja Morales, CMC
City Clerk
4898-1304-9450v4/200945-0009
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4898-1304-9450v4/200945-0009
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The property in the District is described as follows:
Real property in the City of Wildomar, County of Riverside, State of California, described as follows:
Riverside County Assessor Parcel No. 380-220-010
A-8
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ATTACHMENT B
Types of Facilities
to Be Financed by Community
Facilities District No. 2025-1 ( Camelia) 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"), and ( 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" together, with the City 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.
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ATTACHMENT C
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-1 ( CAMELIA)
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. 2025-1 ( Camelia) of the City of Wildomar (" CFD No. 2025-1"). 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. 2025-1, 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. 2025-1: 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. 2025-1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2025-1 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2025-1 and any major property owner associated with applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure C-1
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statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2025-1 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. 2025-1 for any other administrative purposes of CFD No. 2025-1, 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 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. 2025-1 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.
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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. 2025-1" means Community Facilities District No. 2025-1 ( Camelia) 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. 2025-1.
Condominium Plan" means a Condominium Plan pursuant to California Civil Code, Section 6624.
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.
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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. 2025-1 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.
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,.
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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. 2025-1 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. 2025-1 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. 2025-1, 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 2025-2026 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.
C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2025-2026, each Assessor's Parcel within CFD No. 2025-1 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 C-5
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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 2025-2026 applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 below.
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TABLE 1
ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2025-2026
Land Use Cate o
le Family Residential Pro
2. Single Family Residential Propert
3. Single Family Residential Propert
4. Multifamily Property
5. Non - Residential Property
Taxable
Unit
RU
RU
RU
Acre
Acre
Building Square
Footage
Less than 1,500 sq. ft
1,500 s• . ft to 1,700 sq. ft
Greater than 1,700 s ft
N/A
N/A
Assigned
Special Tax
Per Taxable
Unit
2,397.00
2,533.00
2,793.00
44,811.00
44,811.00
On each July 1, commencing July 1, 2026, 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 $ 2,895 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. 2025-1 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 C-7
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Approved Property in such changed or modified Final Map or Condominium Plan area contained within the boundaries of CFD No. 2025-1.
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, 2026, the Backup Special Tax rate shall be increased by two percent ( 2.00%) of the amount in effect in the prior Fiscal Year.
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 $ 44,811 per Acre.
On each July 1, commencing July 1, 2026, 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 rope and rovisional Undeveloped Property The Maximum Special Tax for each Assessor's Parcel of Undeveloped Provisional Undeveloped Property shall be $ 44,811 per Acre.
On each July 1, commencing July 1, 2026, the Maximum Special Undeveloped Property and Provisional Undeveloped Property shall be two percent ( 2.00%) of the amount in effect in the prior Fiscal Year.
E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Property and
Tax rate for
increased by
Commencing Fiscal Year 2025-2026 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 C-8
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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.
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 9.47 Acres.
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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 9.47 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 9.47 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 $ 7,000,000 expressed in 2025 dollars, which shall increase by the Construction Inflation Index on July 1, 2026, 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. 2025-1, 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. 2025-1.
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 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 C-10
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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 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.
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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 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 C-12
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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 C-13
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F = the percent by which the owner of the Assessor's Parcel(s) is partially prepaying the 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 2065-2066 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. 2025-1 Bonds have been paid; ( ii) all authorized facilities of CFD No. 2025-1 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. 2025-1 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. 2025-1 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.
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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 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.
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )
CITY OF WILDOMAR )
I, Janet Morales, City Clerk of the City of Wildomar, California, do hereby certify that the foregoing Resolution No. 2025 — 56 was duly adopted at an adjourned regular meeting held on October 13, 2025, by the City Council of the City of Wildomar, California, by the following vote:
AYES: Moore, Morabito, Nigg, Mayor Pro Tem Marquez, Mayor DePhillippo NOES: None
ABSTAIN: None
ABSENT: None
Jan . Morales, C C
City Clerk
City of Wildomar
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COMMUNITY FACILITIES DISTRICT NO. 2025-1 (CAMELIA)
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. 2025-1 (CAMELIA) OF THE CITY OF WILDOMAR (the “Community Facilities District” or “CFD”) and KB HOME CAL MANAGEMENT SERVIES LLC, a Delaware limited liability company (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 and the Elsinore Valley Municipal Water District (the “Water 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”), if any, and (iii ) the improvements of the Water 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 financ ial 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 October 13, 2025 (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 minimum 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 CFD 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 CFD (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, or otherwise approved by the City) and approved by the City, or (ii) cash in-lieu thereof (a “Security”).
The Security sha ll be in an amount calculated by multiplying the Special Tax Requirement (as defined in the Rate and Method) for the then current and following fiscal year, by the percentage of the Maximum Special Taxes for the current fiscal year allocable to the Develop er Property owned by the Account Party (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). 971
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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 p roceedings (“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 determined by the method of calculation set forth in Section 2.2(a) hereof. The Security shall be terminated upon the earlier of (i) when the Sizing Property owned by, or under option to, the Account Party is 972
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responsible for less than 20% of the Maximum Special Taxes applicable to all of the Sizing Property or (ii) when the Account Party has paid (or cause to be paid) all Special Taxes owed by the Account Party in the current fiscal year and the Sizing Property owned by, or under option to, 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 verifi cation 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 any Sizing Property is sold or transferred by an Account Party with the result that the Sizing Property owned by the transferee together with 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 Sizing Property owned by such Transferee. 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 Fiscal A gent. 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.
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 E xchange 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 contin uing disclosure agreement to provide such continuing disclosure pertaining to the development of the land owned by Developer within the Community Facilities District as necessary to assist the underwriter in 973
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complying with the continuing disclosure require ments 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 eigh teen (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 ta x 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 prece ding 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 Improvemen ts 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 Improvements anticipated to be funded out of the Bonds being issued shall be deposited in the City Improvements Account (any Special Taxes levied in the CFD and collected by t he 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 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 Fee Facility Improvements shall be deposited, or later transferred, to the City Fee Facility Improvements; 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 sh all 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. Reim bursement 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 975
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adoption by the City Council of the resolut ion 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 certi fying 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 responsibi lity 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 irrevoc able 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 Improvem ent, 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 unreimburs ed satisfactory work performed or paid for by the Developer. 976
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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 Deve loper 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 t he 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 Represent ative 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 di sapproves 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 subcontr actors shall be required to provide proof of insurance coverage throughout the term of the construction of the City 977
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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 t hat 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 Chang e 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 a ll 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 o f 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 978
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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 n o 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 C ity 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 Improv ement (“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 own ership 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 except ions 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 980
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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 const ruction 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 d elinquent 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 instrument s 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 981
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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 Im provements 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 depo sit 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 o f 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 use d 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 req uest 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 a mount 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 sh all 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 t he 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. 983
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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 Cal Management Services LLC , 36310 Inland Valley Drive, #300 , Wildomar, California 92595, Attention: Vernall Williams. 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 accept s 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 reimb urse 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 b inding 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 respe ct 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 const itute 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 985
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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 asset s 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 dispu te 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 Agre ement 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 Fa cilities District, (ii) the funding of all Improvements pursuant to this Agreement, or (iii) December 31, 2045. Notwithstanding the foregoing, this Agreement shall not terminate pursuant to (iii) of the previous sentence if, on December 31, 204 5, 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 o r 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 additio n 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 surviv e 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. 986
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IN WITNESS WHEREOF, th e Parties have executed this Agreement as of the day and year written below.
DATED: January 14, 2026
CITY OF WILDOMAR, a political subdivision of the
State of California
By:
City Manager
ATTEST:
By:
Janet Morales Garcia, CMC, City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY OF THE CITY OF WILDOMAR
By:
Thomas D. Jex, City Attorney
DEVELOPER
KB HOME CAL MANAGEMENT SERVICES LLC,
a Delaware limited liability company
By:
Name:
Title:
987
4925-7334-7959v3/200945-0009
LIST OF EXHIBITS
EXHIBIT A - DESCRIPTION OF DEVELOPER PROPERTY
EXHIBIT B - DESCRIPTION OF COST ESTIMATES
EXHIBIT C - MISCELLANEOUS IMPROVEMENTS
EXHIBIT D - DISBURSEMENT REQUEST FORM
988
A-1
4925-7334-7959v3/200945-0009
EXHIBIT A
DESCRIPTION OF DEVELOPER PROPERTY
Real property in the City of Wildomar, County of Riverside, State of California, described as follows:
Riverside County Assessor Parcel No. 380-220-010
989
B-1
4925-7334-7959v3/200945-0009
EXHIBIT B
DESCRIPTION OF COST ESTIMATES OF THE IMPROVEMENTS (1)
I. 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(1)
Jefferson Avenue Street Improvements
$ 826,191
Washington Avenue Street Improvements 1,498,200
Jefferson Avenue & Washington Avenue Storm Drain
Improvements
2,466,398
Signal Improvements 357,000
Total City Improvements $5,148,289
(1) Amounts are estimates and subject to change. The Acquisition Price will be funded with Bond proceeds or such in-lieu amount as determined by the City.
II. CITY FEE FACILITY IMPROVEMENTS.
Estimated Cost of the City Fee Facility Improvements
Description Estimated Cost
TBD TBD
990
C-1
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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 $3,618,763
EVMWD – Sewer Fee 2,415,823
Total Estimated Water District Facilities Fees $6,034,586
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
991
D-1
4925-7334-7959v3/200945-0009
EXHIBIT D
CFD NO. 2025-1 (CAMELIA) OF THE CITY OF WILDOMAR
DISBURSEMENT REQUEST FORM
1. Community Facilities District No. 2025-1 (Camelia) 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]
992
JOINT COMMUNITY FACILITIES AGREEMENT
by and among
CITY OF WILDOMAR,
ELSINORE VALLEY MUNICIPAL WATER DISTRICT
and
KB HOME CAL MANAGEMENT SERVICES LLC
RELATING TO
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (CAMELIA)
OF THE CITY OF WILDOMAR
Dated ________________
993
i
4892-3218-6688v1/200945-0002
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. 2025-1 ............................................................................3 Section 2.2 Issuance and Sale of Bonds .................................................................................3 Section 2.3 CFD Proceeds ......................................................................................................4 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. 2025-1 ....................................................................6 ARTICLE III TERM AND TERMINATION ...........................................................................6 Section 3.1 Effective Date ......................................................................................................6 Section 3.2 Termination .........................................................................................................7 ARTICLE IV ADDITIONAL GENERAL PROVISIONS ........................................................7 Section 4.1 Recordkeeping: Inspection of Records ...............................................................7 Section 4.2 Partial Invalidity ..................................................................................................7 Section 4.3 Successors and Assigns .......................................................................................7 Section 4.4 Indemnification ...................................................................................................7 Section 4.5 Notice ..................................................................................................................8 Section 4.6 Captions ...............................................................................................................9 Section 4.7 Governing Law and Venue ..................................................................................9 Section 4.8 Entire Agreement ................................................................................................9 Section 4.9 Amendments ........................................................................................................9 Section 4.10 Waiver .................................................................................................................9 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 .........................................................................................................10 Section 4.16 Execution in Counterparts .................................................................................10 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-1 994
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JOINT COMMUNITY FACILITIES AGREEMENT BY AND AMONG
CITY OF WILDOMAR,
ELSINORE VALLEY MUNICIPAL WATER DISTRICT
AND
KB HOME CAL MANAGEMENT SERVICES LLC
(Community Facilities District No. 2025-1 (Camelia) of the City of Wildomar) THIS JOINT COMMUNITY FACILITIES AGREEMENT (“Agreement”) is made and entered into as of the ___ day of ______, 2025, 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 CAL MANAGEMENT SERVICES LLC, a Delaware limited liability company (“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. 37156 (“Property”). The boundaries of the Property are identified in Exhibit “A” attached hereto. The Developer has obtained entitlements to develop the Property with approximately 163 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. 2025-1 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. 2025-1 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. 2025-1 and the costs thereof.
D. In accordance with Sections 53313.5 and 53316.2 of the Act, CFD No. 2025-1 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. 2025-1 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 995
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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 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. 2025-1 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 Community 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. 2025-1. “CFD No. 2025-1” means Community Facilities District No. 2025-1 (Camelia) 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. 2025-1, 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. 996
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“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.
“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. 2025-1 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. 2025-1.
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; and 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. 2025-1 . The City has initiated proceedings pursuant to the Act for the formation of CFD No. 2025-1, the authorization of the Special Taxes within CFD No. 2025-1, and the authorization to issue one or more series of Bonds on behalf of CFD No. 2025-1. 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. 2025-1 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. 2025-1 is formed and the Special Taxes and Bonds are authorized, the City Council, acting as the Legislative Body of CFD No. 2025-1, may, in its sole discretion in accordance with its adopted policies (“CFD Policies”), adopt the Bond Resolution and issue the Bonds. Prior to the sale of any series of Bonds in which it is anticipated that CFD Proceeds will be available to finance any EVMWD Costs or EVMWD Acquisition Facilities , the City shall consult with EVMWD to determine whether EVMWD is able to comply with tax-exempt regulations related to the 997
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expenditure of CFD Proceeds proposed to be allocated towards the EVMWD Facilities Fund.
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. 2025-1 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, 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. 2025-1, 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:
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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” (“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 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) Should it be determined after the consultation described in Section 2.2 above that EVWMD is able to use CFD Proceeds in a manner that complies with tax-exempt regulations, EVMWD agrees that it will comply with the requirements set forth in this subsection (f). Such requirements are as follows:
1. EVMWD expressly acknowledges that the Bonds may be subject to Federal tax requirements applicable to the tax-exempt securities. EVMWD expressly confirms 999
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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.
2. 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. 2025-1 , a certificate to the effect that EVMWD agrees to comply with the provisions of the tax certificate delivered by CFD No. 2025-1 in connection with the Bonds, and such other matters as CFD No. 2025-1 may reasonably request upon which CFD No. 2025-1 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.
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. 2025-1 shall have the sole authority and responsibility for all such matters.
The Parties hereto specifically agree that the liabilities of CFD No. 2025-1 (including liabilities, if any, of CFD No. 2025-1 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. 2025-1 . The City shall have the power and duty to provide for the administration of CFD No. 2025-1 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. 2025-1 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. 2025-1 has been formed, as evidenced by the recordation of a Notice of Special Tax Lien against the Property.
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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.
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 nonconsented 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 1001
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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.
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 (a) when personally delivered, (b) the next business day after deposit with a nationally recognized overnight courier service, (c) seventy-two (72) hours following deposit of the same in the United States Post Office registered or certified, postage prepaid, or (d) if given by electronic communication upon the sender’s receipt of an appropriate answerback or other written acknowledgement, addressed as follows:
City: City of Wildomar
23873 Clinton Keith Road
Wildomar, CA 92595
Attention: Heidi Schrader,
Administrative Services Director
Telephone: (951) 677-7751
Email: [email protected]
EVMWD: Elsinore Valley Municipal Water District
31315 Chaney Street
Lake Elsinore, CA 92530
Attention: Greg Thomas, General Manager
Telephone: (951) 674-3146
Email: [email protected]
Developer: KB HOME Cal Management Services LLC
Inland Empire Division
36310 Inland Valley Drive, Suite 300
Wildomar, CA 92595
Attention: Scott Hansen,
Vice President, Forward Planning
Telephone: (951) 691-5239
Email: [email protected]
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. 1002
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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.
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. 2025-1 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. 2025-1, 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
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“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 CAL MANAGEMENT SERVICES LLC,
a Delaware limited liability company
By: _________________________________
Name: Scott Hansen
Title: VP Forward Planning
Date Signed:
[Joint Community Facilities Agreement Signature Page]
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City: CITY OF WILDOMAR
By:
Name: Chris Mann,
Title: City Manager
Date Signed:
ATTEST:
By:
Janet Morales, City Clerk
APPROVED AS TO FORM:
By:
Thomas D. Jex, 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:
LOT “A” AS SHOWN ON LOT LINE ADJUSTMENT NO. 2022-007, AS EVIDENCED BY DOCUMENT RECORDED APRIL 24, 2024 AS INSTRUMENT NO. 2024-0119659 OF OFFICIAL RECORDS, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEING A PORTION OF PARCEL 1 OF NOTICE OF LOT LINE ADJUSTMENT NO. 4213,
RECORDED APRIL
27, 2000 AS INSTRUMENT NO. 2000-157057, OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, ALSO DESCRIBED AS PARCEL 1 IN THAT CERTAIN GRANT DEED IN FAVOR OF CAMELIA PROJECT OWNER, LLC, RECORDED OCTOBER 28, 2021 AS DOCUMENT NO. 2021-0641247, OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA;
TOGETHER WITH A PORTION OF LOT 1 IN FRACTIONAL SECTION 7, TOWNSHIP 7 SOUTH, RANGE 3 WEST, SAN BERNARDINO MERIDIAN, DESCRIBED AS PARCEL 2 IN THAT CERTAIN GRANT DEED IN FAVOR OF LION'S LAIR ENTERPRISES, INC., RECORDED SEPTEMBER 3, 1986, AS INSTRUMENT NO. 211972, OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, ALL TOGETHER DESCRIBED AS FOLLOWS:
COMMENCING AT THE NORTHWEST CORNER OF SAID SECTION 7, SAID CORNER ALSO BEING THE NORTHWESTERLY CORNER OF SAID PARCEL 2 PER INSTRUMENT NO. 211972;
THENCE SOUTH 0°26'16" WEST; ALONG THE WESTERLY LINE OF SAID SECTION 7, AND SAID PARCEL2;
A DISTANCE OF 284.78 FEET, TO THE SOUTHWEST CORNER OF SAID PARCEL 2; THENCE CONTINUING SOUTH 0°26'16" WEST, A DISTANCE OF 135.64 FEET, TO A
POINT ON A NONTANGENT CURVE, CONCAVE NORTHEASTERLY, HAVING A RADIUS OF 1945.00 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 20°03'44" WEST, SAID POINT BEING THE TRUE POINT OF BEGINNING;
THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 20°37'34", AN ARC LENGTH OF 700.19 FEET;
THENCE SOUTH 40°41'18" WEST, 25.00 FEET TO A POINT ON THE NORTHERLY RIGHT-OF-WAY OF PALOMAR STREET (60 FEET WIDE) AS SHOWN ON GRAHAM, COLLIER AND HELD'S SUBDIVISION OF BLOCKS "K", "L" AND "M IN ELSINORE, AS SHOWN BY MAP ON FILE IN BOOK 4 OF MAPS, AT PAGE 174, RECORDS OF SAN DIEGO COUNTY, CALIFORNIA;
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THENCE SOUTH 49°18'42" EAST, ALONG SAID NORTHERLY RIGHT-OF-WAY, 219.80
FEET, TO THE BEGINNING OF A TANGENT CURVE CONCAVE WESTERLY, HAVING A RADIUS OF 633.20 FEET, BEING THE BEGINNING OF A TANGENT CURVE ON THE EASTERLY LINE OF THAT CERTAIN 60.00 FOOT STRIP OF LAND CONVEYED TO RIVERSIDE COUNTY IN A DEED RECORDED MARCH 8, 1915, IN BOOK 406, PAGE 98 OF DEEDS, RECORDS OF SAID RIVERSIDE COUNTY, CALIFORNIA; THENCE SOUTHERLY ALONG THE EASTERLY LINES OF SAID 60.00 FOOT STRIP, THE FOLLOWING FOUR (4) COURSES:
1. SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 69°53'10", AN ARC LENGTH OF 772.34 FEET;
2. SOUTH 20°34'28" WEST, 199.47 FEET, TO THE BEGINNING OF A TANGENT CURVE CONCAVE Order EASTERLY, HAVING A RADIUS OF 328.10 FEET;
3. SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 62°19'21", AN ARC LENGTH OF 358.89 FEET;
4. SOUTH 41°44'53" EAST, 210.44 FEET, TO THE SOUTHWEST CORNER OF AFOREMENTIONED PARCEL 1;
THENCE NORTH 50°56'15" EAST, ALONG THE SOUTHERLY LINE OF SAID PARCEL 1, A DISTANCE OF 167.11 FEET TO AN ANGLE POINT IN SAID SOUTHERLY LINE, SHOWN AS "STA 13" ON SAID MAP OF BLOCKS "K", "L" AND "M" OF ELSINORE THENCE NORTH 50°57'24" EAST, ALONG SAID SOUTHERLY LINE OF SAID PARCEL 1, A DISTANCE OF 1608.14 FEET, TO THE NORTHEAST CORNER OF SAID PARCEL 1;
THENCE LEAVING SAID SOUTHERLY LINE OF SAID PARCEL 1, SOUTH 84°31'45" WEST, A DISTANCE OF 389.83 FEET, TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 1945.00 FEET;
THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 25°31'59', AN ARC LENGTH OF 886.78 FEET, TO THE TRUE POINT OF BEGINNING.
APN: 380-220-010
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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. 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. 1011
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EXHIBIT “D”
PAYMENT REQUEST FORM - WATER/SEWER FACILITIES
Community Facilities District No. 2025-1 (Camelia) 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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#224782 v4 9143.113 E-1
4892-3218-6688v1/200945-0002
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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1014
PUBLIC HEARING
FOR THE ESTABLISHMENT OF CFD 2025-1 CAMELIA
(FACILITIES)
Adam Jantz – Finance Manager
January 14th, 2026
1015
BACKGROUND
• 163 single family residential project on approx. 22 acres by KB Home. • TR Map 37156 is located southeast of a newly established intersection of Washington Avenue and Jefferson Avenue.
• Developer formally requested CFD formation for facilities and public services. • On October 13, 2025, City Council adopted Resolution Nos. 2025-56 and 2025-57, declaring intent to incur bonded indebtedness and calling for the public hearing on December 10, 2025.
• On December 3, 2025, City Council adopted Resolution No. 2025-66 changing the Public Hearing from December 10, 2025, to January 14, 2026. 1016
PURPOSE OF TONIGHT’S PUBLIC HEARING
• Receive public input on:
• CFD 2025-1 (Camelia)
• Consider formation of the CFD and authorization of special taxes. • Consider necessity to incur debt.
• Conduct landowner election.
• Consider introduction of ordinances levying special taxes following successful election. 1017
PROJECT
BOUNDARIES
• Proposed Boundary
Map was recorded
October 22, 2025
• Notices mailed and
published consistent
with the Act.
1018
CFD NO. 2025-1 (CAMELIA)
Purpose: Finance the construction of public improvements and reimburse eligible developer costs.
• Created under the Mello-Roos Community Facilities Act of 1982. • Estimated bond capacity: $7,385,000 million secured solely by special taxes. • Facilities to be financed:
• Special Tax Structure: Assigned rates from $2,397 to $2,793 per unit. • Fiscal Safeguards: 2% Effective Tax Rate (ETR) cap consistent with City policy • $2.47M Storm Drain
• $2.60M Street Improvements
• $1.23M Water Fees
• $1.08M Incidentals
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CFD NO. 2025-1 (CAMELIA) – ACTIONS REQUIRED TONIGHT
• Adopt Resolution of Formation.
• Adopt Resolution Determining Necessity to Incur Bonded Indebtedness. • Call and conduct the landowner election.
• Adopt Resolution Certifying Election Results.
• Introduce Ordinance Authorizing the Levy of Special Taxes. 1020
QUESTIONS / DISCUSSION
1021
CITY OF WILDOMAR
CITY COUNCIL REGULAR MEETING
PUBLIC HEARING
Agenda Staff Report # 2.2
Meeting Date: January 14, 2026
SUBJECT:
Establishment of Community Facilities District No. 2025-S (Services)
SUBMITTED BY:
Adam Jantz, Finance Manager
PREPARED BY:
Adam Jantz, Finance Manager
ACTION:
1. Adopt a Resolution entitled:
RESOLUTION NO. 2026 - ____
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR, CALIFORNIA, ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 2025-S (SERVICES) OF THE
CITY OF WILDOMAR, AUTHORIZING THE LEVY OF A SPECIAL TAX THEREIN, CALLING
AN ELECTION AND APPROVING AND AUTHORIZING CERTAIN ACTIONS RELATED
THERETO
2. Adopt a Resolution entitled:
RESOLUTION NO. 2026 - ____
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR, CALIFORNIA,
ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-S (SERVICES) OF THE CITY OF WILDOMAR CERTIFYING ELECTION
RESULTS
3. Introduce and read by title only:
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. 2025-S (SERVICES) OF THE CITY OF WILDOMAR AUTHORIZING THE
LEVY OF SPECIAL TAXES
SUMMARY:
Adoption of this resolution declares the City's intention to establish a new services CFD (CFD 2025-S) and authorizes the levy of a special tax to help pay some of the costs of providing maintenance and public safety services.
BACKGROUND:
KB Home Cal Management Services LLC, a Delaware limited liability company (the “Developer”), owns 22.15 gross acres of property within the City which is proposed to be developed into 163 single family residential homes. Such property is generally located to the 1022
southeast of a newly established intersection of Washington Avenue and a newly extended Jefferson Avenue, on the border of the City to the City of Murrieta. The Developer has requested that the City form a community facilities district to encompass the property in accordance with the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”), to finance the costs of certain maintenance services and public safety services through the levy of special taxes.
Pursuant to the Developer's request, the City proposes to designate additional property as territory for annexation to CFD No. 2025-S in the future (the “Potential Annexation Area”). A parcel or parcels within such territory may be annexed and subjected to the special tax of CFD No. 2025-S only with the unanimous consent and approval of the owner or owners of the parcel or parcels at the time of annexation. The Potential Annexation Area includes the boundaries of the entire City. The property owned by the Developer will be designed as Tax Zone O (Original) under the Rate and Method of Apportionment (the “RMA”) for the District, which would be the first property to be included within CFD No. 2025-S.
On October 13, 2025, the City Council adopted Resolution No. 2025-53, which declared the City's intention to establish the District and calling for a public hearing to be held on December 10, 2025. On December 3, 2025, the City Council adopted Resolution No. 2025-67, which changed the public hearing date from December 10, 2025 to January 14, 2026.
The purpose of the public hearing is for the City Council to formally consider the approval of the formation of CFD 2025-S (Services) and the approval of the levy of the special taxes within 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.
DISCUSSION:
In connection with the public hearing, Spicer Consulting Group prepared a CFD Public Hearing Report (Attachment 4), which describes and analyzes the services to be financed by the District, and the estimated costs of such services. Following the close of the public hearing, the City Council will be asked to adopt the Resolution of Formation (Attachment 1) which approves the formation of the District, the designation of the Potential Annexation Area and the levy of the special taxes in the District in accordance with the RMA. Such resolution calls for an election to submit to the qualified voters of the District (consisting of Tax Zone O (Original)), ballot measures on the approval of the special taxes and an appropriations limit for the 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 (consisting initially of Tax Zone O (Original)) (Attachment 5). Accordingly, under the Act, only property owners owning land in Tax Zone O (Original) 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 Tax Zone O (Original). 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 Act. Accordingly, if the City Council approves the Resolution of Formation, 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 (Attachment 2). Based upon certification that 2/3rds of the votes cast are in favor of the propositions voted upon, the Resolution Certifying the Election Results directs the 1023
City Clerk to record a notice of special tax lien on the property within Tax Zone O (Original).
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 (Attachment 3).
FISCAL IMPACT:
There is no impact to the General Fund to form the District. Costs of formation are paid out of a deposit made by the developer. If established and subject to necessary City 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 services and administration of CFD No. 2025-S. The RMA provides for special tax rates for various services to be provided within the District. Such tax rates escalate in accordance with the RMA.
ATTACHMENTS:
Attachment #1 - Resolution Formation City of Wildomar CFD 2025-S (Services).docx Attachment #2 - Resolution Certifying Election Results City of Wildomar CFD No. 2025-S (Services).doc Attachment #3 - Ordinance City of Wildomar CFD No. 2025-S (Safety Services).docx Attachment #4 - CFD 2025-S - CFD Report - Final.pdf
Attachment #5 - Certificate of ROV (Services).pdf
Attachment #6 - Public Hearing Presentation for CFD2025-S Services 1024
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RESOLUTION NO. 2026 - _____
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR, CALIFORNIA, ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 2025-S (SERVICES) 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. 2025-53 stating its intention to form Community Facilities District No. 2025 -S (Services) of the City of Wildomar (“Community Facilities District No. 2025-S (Services)” or the “District”) and a Potential Annexation Area therein (the “Potential Annexation Area”) 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. 2025-53 setting forth a description of the proposed boundaries of Community Facilities District No. 2025 -S (Services), the proposed boundaries of the Potential Annexation Area, the services 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, on December 3, 2025, this City Council adopted Resolution No. 2025- 67, which changed the public hearing date relative to the proposed for mation of Community Facilities District No. 2025-S and the levy of the special tax therein to finance certain public services and related expenses, previously called for December 10, 2025 to January 14, 2026; 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. 2025-S (Services), to designate the Potential Annexation Area pro posed for annexation to the District in the future and to levy a special tax therein to finance the services and incidental expenses described in Resolution No. 2025-53; and
WHEREAS, on January 14, 2026 , this City Council conducted a noticed public hearing as required by law relative to the proposed formation of Community Facilities District No. 2025-S (Services), the designation of the Potential Annexation Area, and the levy of the special tax therein; and
WHEREAS, at the January 14, 2026, public hearing there was filed with this City Council a report containing a description of the services necessary to meet the needs of the District and an estimate of the cost of such services as required by Section 53321.5 of the Act (the “Engineer’s Report”); and
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WHEREAS, at the January 14, 2026 , public hearing all persons desiring to be heard on all matters pertaining to the formation of Community Facilities District No. 2025- S (Services), the designation of the Potential Annexation Area, and the levy of the special tax 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 services (the “Services”) and the incidental expenses (the “Ser vices 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 designation of the Potential Annexation Area and the levy of the special tax; and
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. 2025-S (Services) for each of the 90 days prior to January 14, 2026, and that the qualified electors in Community Facilities District No. 2025-S (Services) 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. 2025-S (Services) and to call an election therein to authorize (i) the levy of special taxes pursuant to the rate and method of apportionment of the special tax, as set forth in Attachment “C” to Resolution No. No. 2025-53, and (ii) the establishment of an appropriations limit for Community Facilities District No. 2025-S (Services);
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WILDOMAR DOES HEREBY FIND, DETERMINE AND RESOLVE 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. 2025-S (Services) 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.
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Section 3. The boundaries of Community Facilities Distri ct No. 2025-S (Services) are established as shown on the map designated “Proposed Boundary Map Community Facilities District No. 2025-S (Services) 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. 97 Page No. 66, on October 22, 2025 as Instrument No. 2025-0324157.
In addition, the boundaries of the Potential Annexation Area are established and designated for future annexation to the District pursuant to Sections 53339 et. seq. of the Act in accordance with Resolution No. 2025-53, as shown on the map designated “Proposed Boundary Map” and “Boundaries—Potential Annexation Area Community Facilities District No. 2025-S (Services) 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 Cler k- Recorder’s office of the County of Riverside in Book No. 97 Page No. 67, on October 22, 2025 as Instrument No. 2025-0324158.
Section 4. The types of Services and Services Incidental Expenses authorized to be provided for Community Facilities District No. 2025 -S (Services) are those set forth in Attachment “A” attached hereto. The estimated cost of the Services and Services Incidental Expenses to be financed is set forth in the Engineer’s Report.
Section 5. The City Council finds and determines that the proposed Services 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 Services to be financed benefit residents of the City and the future residents of the District.
Section 6. 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 Attachment “C” to Resolution No. 2025-53 on all non- exempt property within the District sufficient to pay for the Services and the Services Incidental Expenses. The District expects to incur, and in certain cases has already incurred, Services Incidental Expenses in connection with the creation of the District, the levying and collecting of the special tax, and the annual administration of the District. The rate and method of apportionment of the special tax is described in detail in Attachment “C” to Resolution No. 2025-53 and incorporated here in by this reference, and the City Council hereby finds that the rate and method of apportionment of the special tax described in detail in Attachment “C” to Resolution No. 2025-53 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. 2025 -S (Services) will place on the Services and on the benefit that each parcel will derive from the right to access the Services and, accordingly, is hereby determined to be reasonable. The 1027
4 4918-2211-0583v4/200945-0008
special tax shall be levied on each assessor’s parcel so long as the Services are being provided within CFD No. 2025-S (Services). 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.
Section 7. 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 8. 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 9. Consistent with Section 53325.6 of the Act, the City Council finds and determines that the land within Community Facilities District No. 2025-S (Services), if any, devoted primarily to agricultu ral, 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. 2025-S (Services) and will be benefited by the Services proposed t o be provided within Community Facilities District No. 2025 -S (Services).
Section 10. It is hereby further determined that there is no ad valorem property tax currently being levied on property within proposed Community Facilities District No. 2025- S (Services) for the exclusive purpose of paying for the same services to the territory of Community Facilities District No. 2025 -S (Services) as are proposed to be provided by the Services to be financed by Community Facilities District No. 2025-S (Services).
Section 11. 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.
Written protests against the establishment of the Potential Annexation Area have not been filed by one -half or more of the re gistered voters within the boundaries of the Potential Annexation Area or by the property owners of one-half (1/2) or more of the area of land within the Potential Annexation Area. The City Council hereby finds that the proposed special tax has not been p recluded by a majority protest pursuant to Section 53339.6 of the Act.
Section 12. An election is hereby called for Community Facilities District No. 2025 -S (Services) on the propositions of levying the special tax on the property within Community Facilities District No. 2025-S (Services) and establishing an appropriations limit for the 1028
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District pursuant to Section 53325.7 of the Act. The language of the propositions to be placed on the ballot is attached hereto as Attachment “B.” Section 13. The date of the election for Communit y Facilities District No. 2025 -S (Services) on the propositions of authorizing the levy of the special tax and establishing an appropriations limit for the District shall be January 14, 2026, 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 January 14, 2026, 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. 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 this resolution, and all ballots shall be received by, and the City Clerk shall close the election by, 11:00 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. P ursuant 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. 2025-S (Services). 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 October 20, 2025 . Accordingly, since there were fewer than 12 registered voters within the District for eac h of the 90 days preceding January 14, 2026, 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. 2025-S (Services), 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 January 14, 2026, which waiver is on file with the City Clerk.
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 fo rmation of Community Facilities District No. 2025 -S (Services).
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 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. 2025-S. 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. 1029
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Section 16. This Resolution shall be effective upon its adoption.
PASSED, APPROVED AND ADOPTED this 14th day of January, 2026.
Carlos Marquez
Mayor
APPROVED AS TO FORM: ATTEST:
Thomas D. Jex Janet Morales Garcia, CMC
City Attorney City Clerk
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A-1
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ATTACHMENT “A”
TYPES OF SERVICES
TO BE FINANCED BY
COMMUNITY FACILITIES DISTRICT NO. 2025-S (SERVICES)
OF THE CITY OF WILDOMAR
The services which may be funded with proceeds of the special tax of CFD No. 2025 -S, as provided by Section 53313 of the Act, will include some or all of the costs attributable to public safety and maintenance services. Capitalized terms used and not defined herein shall have the meanings set forth in the Rate and Method of Apportionment of Special Tax for CFD No. 2025-S.
These services include: (i) police protection services (including but not limited to criminal justice services), fire protection and sup pression services, and paramedic services and (ii) the costs of maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right -of-way, public landscaping, public open spaces and o ther similar landscaped areas officially dedicated for public use, all as further described in the Rate and Method of Apportionment of Special Tax for CFD No. 2025-S.
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 and to establish an operating reserve for the costs of services as determined by the Administrator.
The above services shall be l imited to those provided within the boundaries of CFD No. 2025-S and the Potential Annexation Area of CFD No. 2025 -S for the benefit of the properties within the boundaries of CFD No. 2025 -S and the Potential Annexation Area of CFD No. 2025 -S, as the bound ary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2025-S only to the extent that they are in addition to those provided in the territory of CFD No. 2025-S before CFD No. 2025-S was created.
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B-1
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ATTACHMENT “B”
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2025-S (SERVICES)
OF THE CITY OF WILDOMAR
SPECIAL TAX ELECTION
January 14, 2026
PROPOSITION A: Shall a special tax with a rate and
method of apportionment as provided in Resolution
No. 2025-53 of the City Council of the City of
Wildomar be levied to pay for the Services, Services
Incidental Expenses and other purposes described in
Resolution No. 2025-53 of the City Council of the City
of Wildomar?
YES______
NO_______
PROPOSITION B: For each year commencing with
Fiscal Year 2025-2026, 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. 2025 -S (Services)
be an amount equal to $200,000,000?
YES______
NO_______
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RESOLUTION NO. 2026-___
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WILDOMAR, CALIFORNIA, ACTING IN ITS CAPACITY AS
THE LEGISLATIVE BODY OF COMMUNITY FACILITIES
DISTRICT NO. 2025-S (SERVICES) OF THE CITY OF
WILDOMAR CERTIFYING ELECTION RESULTS
WHEREAS, the City Council (the “City Council”) of the City of Wildomar called and duly held an election on January 14, 2026 within the boundaries of Community Facilities District No. 2025-S (Services) of the City of Wildomar (“Community Facilities District No. 2025-S” or the “Distr ict”) pursuant to Resolution No . ________ for the purpose of presenting to the qualified electors with in the District Propositions A and B attached hereto as Exhibit A; and
WHEREAS, there has been presented to this City Council a certificate of the City Clerk canvassing the results of the election, a copy of which is attached hereto as Exhibit B;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WILDOMAR,
ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 202 5-S (SERVICES) OF THE CITY OF WILDOMAR, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
Section 1. Each of the above recitals is true and correct.
Section 2. Propositions A and B presented to the qualified electors of the District on January 14, 2026 were approved by two-thirds or more of the votes cast at said election and Propositions A and B 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 A for the purposes described therein.
Section 3. The City Clerk is hereby directed to record in the Assessor-County Clerk- Recorder’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.
Section 4. This Resolution shall be effective upon its adoption. 1033
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PASSED, APPROVED AND ADOPTED this 14th day of January, 2026:
Carlos Marquez
Mayor
APPROVED AS TO FORM: ATTEST:
Thomas D. Jex Janet Morales Garcia, CMC
City Attorney City Clerk
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF WILDOMAR )
I, Janet Morales Garcia, City Clerk of the City of Wildomar, Ca lifornia, do hereby certify that Resolution No. ____________ was adopted by the City Council of the City of Wildomar, California, at the Regular meeting of January 14, 2026 and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
Janet Morales Garcia, CMC
City Clerk
City of Wildomar
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4929-8026-2775v3/200945-0008
EXHIBIT A
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2025-S (SERVICES)
OF THE CITY OF WILDOMAR
SPECIAL TAX ELECTION
January 14, 2026
PROPOSITION A : Shall a special tax with a rate
and method of apportionment as provided in
Resolution No. 2025-53 of the City Council of the
City of Wildomar be levied to pay for the Services,
Services Incidental Expenses and other purposes
described in Resolution No. 2025-53 of the City
Council of the City of Wildomar?
YES______
NO_______
PROPOSITION B: For each year commencing with
Fiscal Year 2025 -2026, shall the appropriations
limit, as defined by subdivision (h) o f Section 8 of
Article XIII B of the Cal ifornia Constitution, for
Community Facilities District No. 2025 -S (Services)
be an amount equal to $200,000,000?
YES______
NO_______
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4929-8026-2775v3/200945-0008
EXHIBIT 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 Election for Community Facilities District No. 2025-S (Services) of the City of Wildomar. The election was held i n the Wildomar City Hall Council Chamber s 23873 Clinton Keith Rd. Suite 106, Wildomar, CA 92595 , on January 14, 2026. 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 and B are as follows:
PROPOSITION A PROPOSITION B
YES: YES:
NO: NO:
TOTAL: TOTAL:
Dated this 14th day of January, 2026.
Janet Morales Garcia, City Clerk
City of Wildomar
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4921-2514-9047v3/200945-0008
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. 2025-S (SERVICES) OF THE CITY OF
WILDOMAR AUTHORIZING THE LEVY OF SPECIAL
TAXES
WHEREAS, on October 13, 2025, the City Council (the “City Council”) of the City of Wildomar (the “City”) adopted Resolution No. 2025-53 declaring its intention to form Community Facilities District No. 2025-S (Services) 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
WHEREAS, on December 3, 2025, this City Council adopted Resolution No. 2025- 67, which changed the public hearing date relative to the proposed formation of the District and the levy of the special tax therein to finance certain public services and related expenses, previously called for December 10, 2025 to January 14, 2026; and WHEREAS, on January 14, 2026, after providing all notice required by the Act, the City Counci l 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 services described in Resolution No. 2025-53; and WHEREAS, at the January 14, 2026 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 public services described in Resolution No. 2025-53 were heard and a full and fair hearing was held; and
WHEREAS, on January 14, 2026 , the Board adopted Resolution No. ______ which formed the District and called a special election within the District on January 14, 2026 on two propositions relating to the levy of a special tax within the Dis trict and the establishment of an appropriations limit within the District; and WHEREAS, on January 14, 2026, a special election was held within the District at which the qualified electors approved by a vote of two-thirds or more Propositions A and B authorizing the levy of a special tax within the District for the purposes described in Resolution No. _____ 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. 2025-S (SERVICES) OF THE CITY OF WILDOMAR ORDAINS AS FOLLOWS:
Section 1. The above recitals are all true and correct.
Section 2. By the passage of this Ordinance, the Board authorizes and levies special taxes within the District pursuant to Sections 53328 and 53340 of the Act at the rates and 1038
2 4921-2514-9047v3/200945-0008
in accordance with the rate and method of apportionment set forth in Attachment “C” to Resolution No. 2025-53, 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 so long as the services authorized to be financed by the District, are provided through such financing within the District.
Section 3. Each of the Mayor, the City Manager, the Finance 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.
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. ____, 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. ___.
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 perm itted 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. 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 8. The specific authorization for adoption of this Ordinance is pursuant to the provisions of Section 53340 of the Act.
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3 4921-2514-9047v3/200945-0008
Section 9. The City Clerk is hereby authorized to transmit a cer tified 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 10. 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 11. This Ordinance shall take effect thirty days after its final passage.
PASSED, APPROVED AND ADOPTED this ___ day of _________, 2026:
Carlos Marquez
Mayor
APPROVED AS TO FORM: ATTEST:
Thomas D. Jex Janet Morales Garcia, CMC
City Attorney City Clerk
1040
Public Hearing Report
Community Facilities District No. 2025-S
(Services)
January 13, 2026
1041
Table of Contents
Sections P age _____________________________________________ 1 Introduction ________________________________________________ 1 2 Description of Services ______________________________________________ 2 3 Cost Estimate ________________________________________________ 3 4 Proposed Development _____________________________________________ 6 5 Rate and Method of Apportionment ____________________________________ 7 6 Certifications ________________________________________________ 8
Tables Page
3-1 Cost Estimate – Special Tax A _______________________________________ 3 3-2 Cost Estimate – Special Tax B _______________________________________ 3 3-3 Cost Estimate – Special Tax C (Contingent) _____________________________ 4 3-4 Maximum Special Taxes for Developed Property _________________________ 5
Appendices P age _____________________________________________ A Rate and Method of Apportionment _____________________________________ B Boundary Map _________________________________________________ C Resolution of Intention _______________________________________________
1042
1 Introduction Page | 1
City of Wildomar
CFD No. 2025-S (Services)
Public Hearing Report
Background
On October 13, 2025, the City Council of the City of Wildomar adopted a Resolution of Intention to form Community Facilities District No. 2025-S (Services) of the City of Wildomar, Resolution No. 2025-53, (the “Resolution of Intention”), 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”).
The City of Wildomar Community Facilities District No. 2025-S (Services) (the “CFD No. 2025-S” or “District”) is currently comprised of one Tax Zone consisting of one tract map that includes one parcel and approximately 22.15 gross acres. Tax Zone Original includes TR 37156 that includes 163 future single family residential units. The tract is located to the southeast of a newly established intersection of Washington Avenue and a newly extended Jefferson Avenue, on the border of the City to the City of Murrieta, within the City of Wildomar, California.
For a map showing the boundaries of CFD No. 2025-S please see Appendix B.
It is anticipated that the Special Taxes levied by the District will provide funding for services and incidental expenses in connection with said services.
At the time of formation, additional prop erty is expected to annex into CFD No. 2025-S in future years as development continues to expand. The annexed property will be subject to the same special tax fo rmula in the Rate and Method of Apportionment of Special Tax (“RMA”) as property that was included in the CFD No. 2025-S at the time of its formation, see Appendix A. As properties annex into CFD No. 2025-S, the City Council shall adopt annexation maps to reflect the inclusion of the annexed property.
Purpose of Public Hearing Report
The adoption of the Resolution of Intention to form CFD No. 2025-S ordered said Public Hearing Report be prepared. This Public Hearing Report is submitted pursuant to Section 53321.5 of the Act, as well as the Resolution of Intention. The law and the Resolution of Intention directs that said Public Hearing Report generally contain the following:
1. A full and complete description of the services proposed to be financed from the levy of the special tax; and
2. A general cost estimate setting forth costs of providing such services; and
3. Further information regarding the implementation of the rate and method of apportionment of the special tax proposed to be levied within the District.
The Rate and Method of Apportionment of the Special Tax which was included in the Resolution of Intention and approved by the City Council.
For particulars, reference is made to the Resolution of Intention as previously approved and adopted and is included in Appendix C.
1043
2 Description of Services Page | 2
City of Wildomar
CFD No. 2025-S (Services)
Public Hearing Report
NOW, THEREFORE, the undersigned, authorized representative of Spicer Consulting Group, LLC, the appointed responsible officer, or person directed to prepare the Public Hearing Report, does hereby submit the following data:
Description of the Services
The services which may be funded with proceeds of the special tax of CFD No. 2025-S, 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-way, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. 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 electr ical power to street lights and traffic signals; 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, catc h basin inserts, infiltration basins, flood control channels, f ossil fuel filters, and similar facilities. Mainte nance services may include but is not limit ed 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 remov al 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. 2025-S; as well as local roads within residential subdivisions located within CFD No. 2025-S; and any portions adjacent to the properties within CFD No. 2025-S; and
(d) police protection services, including but not limited to criminal justice services, and fire protection and suppression services.
Administrative Expenses
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 t hose provided within the boundaries of CFD No. 2025-S or for the benefit of the properties within the boundaries of CFD No. 2025-S, and said services may be financed by proceeds of the special tax of CFD No. 2025-S only to the extent that they are in addition to those provided in the territory of CFD No. 2025-S before CFD No. 2025-S was created.
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3 Cost Estimate Page | 3
City of Wildomar
CFD No. 2025-S (Services)
Public Hearing Report
The estimate is based on the cost of actual services provided by the City of Wildomar. The estimated cost for Fiscal Year 2025-26 of providing such services, based upon current dollars, which is subject to escalation, is as follows:
Services
The estimated annual cost of providing services at build-out for the subject properties are detailed below. The services funded by the special taxes of the CFD No. 2025-S, as outlined above, will be as follows:
Estimated Cost of Service
Special Tax A Service Costs - the costs to be covered shall be the direct costs for maintenance services including 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 oper ating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses.
The estimate breaks down the costs of providing one year's mainte nance services for Fiscal Year 2025-26. These services are being funded by the levy of Special Tax A for Tax Zone Original for Community Facilities District No. 2025-S (Services).
Table 3-1
Cost Estimate – Special Tax A
Tax Zone Original
Item Description Estimated Cost
1 Landscaping $10,010
2 Streetlighting $14,831
3 Street Maintenance $16,910
4 Drainage $6,714
5 Parks $20,483
6 Trails $0
7 Graffiti $767
8 Administration $10,663
9 Reserves $4,382
Total $84,760
Special Tax B Service Costs - 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.
The estimated annual cost of providing safety services at build-out for the subject properties are detailed below:
Table 3-2
Cost Estimate – Special Tax B
Tax Zone Original
Tax Zone Tract No. of Lots
Estimated Cost at
Build‐Out
Original 37156 163 $108,884
Special Tax C (Contingent) Service Costs - the costs to be covered shall be the direct costs for maintenance services including 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.
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3 Cost Estimate Page | 4
City of Wildomar
CFD No. 2025-S (Services)
Public Hearing Report
The estimate breaks down the costs of providing one year's mainte nance services for Fiscal Year 2025-26. These services are eligible to be funded by the levy of Special Tax C (Contingent) for Tax Zone Original for Community Facilities District No. 2025-S (Services). Special Tax C (Contingent) may be levied, commencing in the first Fiscal Year following the occurrence of any of th e following events (each such event, a “Failure to Perform”):
a. the Property Owner Association files a voluntary petition in bankruptcy or the approval by a court of competent jurisdiction of a petition applicable to the Property Owner Association of any proceedings instituted under the Federal Bankruptcy Code, as amended;
b. the Property Owner Association is dissolved;
c. the Property Owner Association fails to levy annual assess ments sufficient to fund (i) the maintenance for the then Property Owner Association owned and/or Property Owner Association maintained Maintenance Services (Contingent) or (ii) the replacement of such facilities related to the Maintenance Services (Contingent) in accordance with (A) the requirements of the then current reserve funding plan of the Property Owner Association performed pursuant to California Civil Code Section 5550 or (B) if California Civil Code 5550 is no longer applicable, the requirements of the then applicable law and/or regulations governing the Property Owner Association’s requirements to budget for and finance such replacement; or
d. the Property Owner Association fails to maintain the Maintenanc e Services (Contingent) at the same level as defined within the Property Owner Association maintenance specifications. In the event the Property Owner Association maintenance specifications do not meet the City maintenance requirements, the City Council will have sole discretion to determine the required level of maintenance required for purposes of this section.
In the event of the occurrence of a Failure to Perform described in “c.” or “d.” above, the City shall give the Property Owner Association written notice of such event. If such Failure to Perfor m is reasonably capable of being cured within sixty (60) day s from the date of such notice, the Property Owner Association shall have such period of time to cure such Failure to Perform prior to the levy by the City Council of Special Tax C (Contingent). If such Failure to Perform is such that it is reasonably capabl e of being cured, but not within such sixty (60) day period and the Property Owner Association (i) initiates corrective action within such sixty (60) day period, and (ii) diligently, continually, and in good faith works to effect a cure of such Failure to Perform as soon as possible, then the Property Owner Association shall have such additio nal time, as is reasonably necessary, to cure such Failure to Perform prior to the levy by the City Council of Special Tax C (Contingent).
The City Council may suspend the levy of Special Tax C (Contingent) if the Property Owner Association has cured the Failure to Perform to the satisfaction of the City Council and the Property Owner Association has agreed to such conditions as the City Council may find necessary to minimize the occurrence of such Failure to Perform in the future. In the event the City Council initiates the Special Tax C (Contingent), it will apply to all Assessor’s Parcels of Taxable Property in addition to, and not in lieu of, the Special Tax A.
Table 3-3
Cost Estimate – Special Tax C (Contingent)
Tax Zone Original
Item Description Estimated Cost
1 Landscaping $0
2 Streetlighting $0
3 Street Maintenance $0
4 Drainage $10,927
5 Parks $0
6 Trails $0
7 Graffiti $0
8 Administration $1,774
9 Reserves $1,639
Total $14,340
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3 Cost Estimate Page | 5
City of Wildomar
CFD No. 2025-S (Services)
Public Hearing Report
Table 3-4
Maximum Special Taxes for Developed Property
Tax
Zone
Fiscal Year
Included Tract
No. of
Taxable
Units
Land Use
Category
Taxable
Unit
Maximum
Special
Tax A
Maximum
Special
Tax B
Maximum
Special Tax C
(Contingent) Subdivider
Original 2025-26 TR 37156 163 SFR RU $520 $668 $88 KB Home
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. 1047
4 Proposed Development Page | 6
City of Wildomar
CFD No. 2025-S (Services)
Public Hearing Report
The District includes one tract that will consist of 163 future single family residential units located in the City of Wildomar on approximately 20 gross acres. The property is located to the southeast of a newly established intersection of Washington Avenue and a newly extended Jefferson Avenue, on the border of the City to the City of Murrieta. CFD No. 2025-S Tax Zone Original and includes the following Assessor Parcel Number:
Assessor
Parcel Number
380-220-010
1. The boundaries of CFD No. 2025-S are those properties and parcels where services are authorized to be provided and upon which special taxes may be levied in order to pay for the costs and expenses of said services. A general description of the area within the boundaries of the CFD No. 2025-S is attached as Appendix B.
2. Additional properties that are within the boundaries of the annexation map may annex to CFD No. 2025-S subsequent to formation of CFD No. 2025-S. The owner of the property to be annexed shall submit a written consent for said annexation to CFD No. 2025-S and the Council, acting ex-officio as the legislative body of CFD No. 2025-S, shall call a special election as to the imposition of the special tax on said property as required by law.
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5 Rate and Method of Apportionment Page | 7
City of Wildomar
CFD No. 2025-S (Services)
Public Hearing Report
The Rate and Method of Apportionment allows each property owner within CFD No. 2025-S 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, and provided further that CFD No. 2025- S 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. 2025-S, unless exem pted by law or by the Rate and Method proposed for CFD No. 2025-S, shall be taxed for the purpose of providing necessary services to serve the District.
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 in crease 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 Spec ial 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.
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 bene fit to any property.” The Special Tax may be based on the benefit received by property, the cost of making facilities or aut horized 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.
For particulars as to the Rate and Method for CFD No. 2025-S, see the attached and incorporated in Appendix A.
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6 Certifications Page | 8
City of Wildomar
CFD No. 2025-S (Services)
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. 2025-S and benefits the lands within said CFD No. 2025-S. Furt her, 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 10, 2025 SPICER CONSULTING GROUP, LLC
__________________________
SHANE SPICER
SPECIAL TAX CONSULTANT FOR
CITY OF WILDOMAR
RIVERSIDE COUNTY
STATE OF CALIFORNIA
1050
Appendix A:
Rate and Method of Apportionment
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City of Wildomar 1
Community Facilities District No. 2025‐S (Services)
RATES AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2025‐S (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. 2025‐S (Services) of the City of Wildomar (the “CFD No. 2025‐S” or
“CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2025, in an amount determined by the City Council of the City of Wildomar, acting ex officio as the legislative body of CFD No. 2025‐S, by applying the rates and method of apportionment set forth below.
All of the real property in CFD No. 2025‐S, 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. 2025‐S 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 costs to the City, CFD No. 2025‐S, or any designee thereof associated with fulfilling the CFD No. 2025‐S disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2025‐S 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. 2025‐ S for any other administrative purposes of CFD No. 2025‐S, 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 January 1
st 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 May 1st 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” means that 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 1052
City of Wildomar 2
Community Facilities District No. 2025‐S (Services)
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" means the period commencing January 1 of any year and ending the following December
31. “CFD” or “CFD No. 2025‐S” means Community Facilities District No. 2025‐S (Services) of the City of Wildomar.
“CFD Boundary Map” means a recorded map of the
CFD that indicates by a boundary line the extent of
the territory identified to be subject to the levy of Special Taxes.
“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. 2025‐S 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 of Taxable Property: (i) that are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) for which a Building Permit(s) for vertical construction has been 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 1 st 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 May 1
st preceding the Fiscal Year in which the Special Tax is being levied.
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"Maintenance Services" means the services permitted under the Act including, without limitation, street sweeping, traffic signal maintenance, the maintenance of landscaping and lighting of publicly owned parks, parkways, streets, roads and open spaces, graffiti abatement, flood and storm protection services, and the operation of storm drainage systems contained within the boundaries of CFD No. 2025‐S and the City as set forth in Appendix B.
"Maintenance Services (Contingent)" means the Maintenance Services described above and permitted under the Act, contained within CFD No. 2025‐S and the City, which are proposed to be maintained and paid for through the Property Owner Association, and all to which the City has been granted an easement allowing such maintenance in any Fiscal Year following a Failure to Perform as defined in Section C.3. hereof.
“Maximum Special Tax” means the Maximum Special Tax A, Maximum Special Tax B, and/or Maximum Special Tax C (Contingent), as
applicable.
“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. 2025‐S.
“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. 2025‐S.
“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 is the 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. 1054
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“RMA" means this Rate and Method of Apportionment of Special Taxes.
"Safety Services" means the services permitted under the Act including, without limitation, police and fire protection, ambulance and paramedic services provided within the boundaries of CFD No. 2025‐S and the City as set forth in Appendix C.
“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. 2025‐S 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 all Parcels of Residential Property, other than Multi‐ Family Residential Property.
“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.
"Special Tax A 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. 2025‐S in the next Fiscal Year. The costs to be covered shall be the (i) direct costs for Maintenance Services, (ii) fund an operating reserve for the costs of Maintenance Services as determined by the Administrator, and (iii) 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 the amount required in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2025‐S for Safety Services in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the (i) direct costs for Safety Services, (ii) amount necessary to fund an operating reserve for the costs of Safety Services as determined by the CFD Administrator, and (iii) Administrative Expenses applicable to the Special Tax B. 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 to pay for certain costs as required to meet the needs of CFD No. 2025‐S for Maintenance Services (Contingent) in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the (i) direct costs for Maintenance Services (Contingent), (ii) amount necessary to fund an operating reserve for the costs of Maintenance Services (Contingent) as determined by the CFD Administrator, and (iii) Administrative Expenses applicable to the Special Tax C (Contingent). Under no circumstances shall the Special Tax C (Contingent) Requirement include funds for bonds or other forms of indebtedness. The Special Tax C (Contingent) Requirement, if initiated, will be applied to all Assessor’s Parcels in addition to, and not in lieu of, the Special Tax A Requirement.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2025‐S, which are not Exempt Property. 1055
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“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. Appendix D identifies the Tax Zone in CFD No. 2025‐S at formation; additional Tax Zones may be created when property is annexed into the CFD.
"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. 2025‐S 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 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, 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 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 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. No Special Tax B shall be levied on Non‐Residential Property.
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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. 2025‐S, 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 2025‐2026 for a Residential Unit of Developed Property within the Tax Zone Original are identified in Table 1 below:
TABLE 1
MAXIMUM SPECIAL TAX A RATES
DEVELOPED PROPERTY
FISCAL YEAR 2025‐2026
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
Original TR 37156
Single Family Residential Property RU $520
Multi‐Family Residential Property RU $520
Non‐Residential Property Acre $5,494
(ii) Increase in the Maximum Special Tax A
On each July 1, commencing on July 1, 2026 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 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
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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. 2025‐S, 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 2025‐2026 per Residential Unit for Approved Property within Tax Zone Original is identified in Table 2 below:
TABLE 2
MAXIMUM SPECIAL TAX A RATES
APPROVED PROPERTY
FISCAL YEAR 2025‐2026
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
Original TR 37156
Single Family Residential Property RU $520
Multi‐Family Residential Property RU $520
Non‐Residential Property Acre $5,494
On each July 1, commencing on July 1, 2026 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 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 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. 2025‐S, 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 2025‐2026 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 2025‐2026
Tax Zone Tracts Taxable Unit Maximum Special Tax A
Original TR 37156 Acre $5,494
On each July 1, commencing on July 1, 2026 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.
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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
The Maximum Special Tax B for Fiscal Year 2025‐2026 for each Land Use Category within Tax Zone Original is shown in Table 4. When additional property is annexed into CFD No. 2025‐S, 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 2025‐2026
Land Use Category Unit Maximum Special Tax B
Single Family Residential Property RU $668
Multi‐Family Residential Property RU $410
On each July 1, commencing on July 1, 2026 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 may levy the Special Tax C (Contingent), applicable to all Zones, commencing in the first Fiscal Year following the occurrence of any of the following events (each such event, a “Failure to Perform”):
a. the Property Owner Association files a voluntary petition in bankruptcy or the approval by a court of competent jurisdiction of a petition applicable to the Property Owner Association of any proceedings instituted under the Federal Bankruptcy Code, as amended;
b. the Property Owner Association is dissolved;
c. the Property Owner Association fails to levy annual assessments sufficient to fund (i) the maintenance for the
then Property Owner Association owned and/or Property Owner Association maintained Maintenance Services (Contingent) or (ii) the replacement of such facilities related to the Maintenance Services (Contingent) in accordance with (A) the requirements of the then current reserve funding plan of the Property Owner Association performed pursuant to California Civil Code Section 5550 or (B) if California Civil Code 5550 is 1059
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no longer applicable, the requirements of the then applicable law and/or regulations governing the Property Owner Association’s requirements to budget for and finance such replacement; or
d. the Property Owner Association fails to maintain the Maintenance Services (Contingent) at the same level as defined within the Property Owner Association maintenance specifications.
In the event the Property Owner Association maintenance specifications do not meet the City maintenance requirements, the City Council will have sole discretion to determine the required level of maintenance required for purposes of this section.
In the event of the occurrence of a Failure to Perform described in “c.” or “d.” above, the City shall give the Property Owner Association written notice of such event. If such Failure to Perform is reasonably capable of being cured within sixty (60) days from the date of such notice, the Property Owner Association shall have such period of time to cure such Failure to Perform prior to the levy by the City Council of Special Tax C (Contingent). If such Failure to Perform is such that it is reasonably capable of being cured, but not within such sixty (60) day period and the Property Owner Association (i) initiates corrective action within such sixty (60) day period, and (ii) diligently, continually, and in good faith works to effect a cure of such Failure to Perform as soon as possible, then the Property Owner Association shall have such additional time, as is reasonably necessary, to cure such Failure to Perform prior to the levy by the City Council of Special Tax C (Contingent).
The City Council may suspend the levy of Special Tax C (Contingent) if the Property Owner Association has cured the Failure to Perform to the satisfaction of the City Council and the Property Owner Association has agreed to such conditions as the City Council may find necessary to minimize the occurrence of such Failure to Perform in the future. In the event the City Council initiates the Special Tax C (Contingent), it will apply to all Assessor’s Parcels of Taxable Property in addition to, and not in lieu of, the Special Tax A.
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. 2025‐ S, 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 for such Tract or Tracts as specified in such updated Appendix A. The Maximum Special Tax C (Contingent) for Fiscal Year 2025‐2026 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 2025‐2026
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax C
(Contingent)
Original TR 37156
Single Family Residential Property RU $88
Multi‐Family Residential Property RU $88
Non‐Residential Property Acre $930
(ii) Increase in the Maximum Special Tax C (Contingent)
On each July 1, commencing on July 1, 2026 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. 2025‐ S, 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 2025‐2026 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 2025‐2026
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax C
(Contingent)
Original TR 37156
Single Family Residential Property RU $88
Multi‐Family Residential Property RU $88
Non‐Residential Property Acre $930
On each July 1, commencing on July 1, 2026 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. 2025‐S, 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 2025‐2026 within Tax Zone Original is identified in Table 7 below: