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HomeMy WebLinkAboutItem No. 11 - Formation of Community Facilities District No. 2025-2 (Cambern Apartments Servic11)Formation of Community Facilities District No. 2025-2 (Cambern Apartments Services) of the City of Lake Elsinore Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2025-2 OF THE CITY OF LAKE ELSINORE (CAMBERN APARTMENTS SERVICES), TO AUTHORIZE THE LEVY OF A SPECIAL TAX ON PROPERTY WITHIN THE DISTRICT TO PAY THE COSTS OF PROVIDING PUBLIC SAFETY SERVICES. Page 1 of 2 REPORT TO CITY COUNCIL To:Honorable Mayor and Members of the City Council From:Jason Simpson, City Manager Prepared by:Shannon Buckley, Assistant City Manager Date:June 24, 2025 Subject:Formation of Community Facilities District No. 2025-2 (Cambern Apartments Services) of the City of Lake Elsinore Recommendation Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2025-2 OF THE CITY OF LAKE ELSINORE (CAMBERN APARTMENTS SERVICES), TO AUTHORIZE THE LEVY OF A SPECIAL TAX ON PROPERTY WITHIN THE DISTRICT TO PAY THE COSTS OF PROVIDING PUBLIC SAFETY SERVICES. Background On March 13, 2025, the City of Lake Elsinore (the "City") approved Residential Design Review No. 2023-09, an Affordable Housing development comprising 76 apartment units, known as the Cambern Apartments. Upon approval of the project, a Condition of Approval was established for the creation of a community facilities district to provide law enforcement, fire, and paramedic services, thereby mitigating the fiscal impacts of the project on public safety services. The Applicant for the development of Cambern Apartments is Cambern Avenue Development Holding Company, LLC (the "Applicant"), which proposes to develop the 4.02-acre vacant property and build a 76-unit affordable housing apartment complex with two (2) two-story residential buildings, a community room and two (2) maintenance buildings. The Applicant has requested assistance from the City to establish Community Facilities District No. 2025-2 (Cambern Apartments Services) of the City of Lake Elsinore (the "CFD No. 2025-2" or "District") to levy special taxes on parcels of taxable property to provide certain services which are necessary to meet increased demands placed upon the City. Establishing CFD 2025-2 (Cambern Apartments Services) Page 2 of 2 Discussion Cambern Avenue Development Holding Company, LLC is the current landowner. It has provided a Petition and Waiver including a description of the area described in Exhibit "A" of the Resolution of Intention to be included into CFD No. 2025-2 and that a Rate and Method of Apportionment of the special taxes to be levied as described in Exhibit "C." The City has submitted a "Consent and Waiver" form on file in the City Clerk's Office to initiate and conduct proceedings under the Mello- Roos Act of 1982, requesting the formation of CFD No. 2025-2 (Cambern Apartments Services) and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election. The territory proposed to be included in CFD No. 2025-2 is Assessor's Parcel Numbers 377-380- 003 & 377-100-003. The proposed total maximum special tax rate for CFD No. 2025-2 is $150 per Affordable Housing Property per year. The maximum special tax rate is proposed to escalate each year at the greater of the Consumer Price Index (CPI) or 4%. The next step to forming CFD No. 2025-2 is to publish a notification of the proposed District along with the "Resolution of Intention" and Boundary Map. A public hearing on the matter will take place on August 12, 2025, at which time the Council will formally consider the approval of CFD No. 2025-2. Fiscal Impact The rate and method of apportionment establish a maximum tax of $150 per unit per year for Affordable Housing Property, plus an annual escalation of the greater of the CPI or 4%. The District will be required to levy special taxes annually on all taxable property within the District to cover the costs of services and administration of the CFD. Attachments Attachment 1 - Project Map Attachment 2 - Resolution of Intention Exhibits A-G Administrative Services THIRD STCONARD AVE CAMBERN AVE M E L B YDRI-15I-15 SBON I- 1 5 N B O F F §¨¦15 ·|}þ74 ^_RAILRO A D CANYON RDSUMMERHILLDRC A N Y O N D R ·|}þ74 §¨¦15T RELLISLNLAKESHORE DR MAINSTNICHOLS RDFLINT STELTOROR DTH I R D S T M I L L S THAYGOOD WAYRIVERSIDE DRLASTR A DA MINTHORN ST10TH STGREENWA L DAVE CANYON DRWEBER WAYDOWLINGRDW ASSONC A NYONRDSMITH RDCOLLIERAVE PLUMSTCOMMUNITY FACILITIES DISTRICT NO. 2025-2(CAMBERN APARTMENTS SERVICES) PROJECT MAP RESOLUTION NO. 2025-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2025-2 OF THE CITY OF LAKE ELSINORE (CAMBERN APARTMENTS SERVICES), TO AUTHORIZE THE LEVY OF A SPECIAL TAX ON PROPERTY WITHIN THE DISTRICT TO PAY THE COSTS OF PROVIDING PUBLIC SAFETY SERVICES Whereas, the City of Lake Elsinore (the “City”) has received a petition (the “Petition”) signed by the owner (the “Owner”) of certain of the land which is proposed for inclusion in a proposed community facilities district which meets the requirements of Sections 53318 and 53319 of the Government Code of the State of California; and Whereas, the City Council (the “City Council”) of the City 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 Exhibit “A” hereto and incorporated herein by this reference, which the City Council hereby determines shall be known as Community Facilities District No. 2025-2 of the City of Lake Elsinore (Cambern Apartments Services) (“Community Facilities District No. 2025-2” 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 (1) finance police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services described in Exhibit “B” hereto and incorporated herein by this reference (the “Services”), and (2) finance the incidental expenses to be incurred in connection with forming and administering the District and financing the Services (the “Services Incidental Expenses”); and Whereas, the City Council further intends to approve an estimate of the costs of the Services and the Services Incidental Expenses for Community Facilities District No. 2025-2; and Whereas, it is the intention of the City Council to consider financing the Services and the Services Incidental Expenses through the formation of Community Facilities District No. 2025-2 and the levy of a special tax to pay for such Services and Services Incidental expenses; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-2 (CAMBERN APARTMENTS SERVICES) HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. Each of the above recitals are true and correct. 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 Exhibit “A” hereto, which boundaries shall, upon recordation of the boundary map for the District, include the entirety of any parcel initially subject to taxation by the District, and as depicted on the map of the proposed Community Facilities District No. 2025-2 which is on file with the Clerk of the Board. The City Clerk is hereby directed to sign the original map of the District and record it with all proper endorsements thereon with the County 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. CC Res. No. 2025-_____ Page 2 of 4 3 9 0 0 0 Section 3.The name of the proposed community facilities district shall be “Community Facilities District No. 2025-2 of the City of Lake Elsinore (Cambern Apartments Services).” Section 4.The Services proposed to be provided for the benefit of Community Facilities District No. 2025-2 are public services as defined in the Act, and this City Council finds and determines that the Services to be financed are in addition to those provided in the territory of the District at the present time and do not supplant services already available within the territory of the District at the present time. The City Council hereby finds and determines that the description of the Services 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 Services Incidental Expenses expected to be incurred include the costs of planning the Services, the costs of forming the District, the cost of levying and collecting a special tax within the proposed District and the cost of administration. Section 5. Except where funds are otherwise available, a special tax sufficient to pay the costs of the Services (including incidental expenses), secured by recordation of a continuing lien against all nonexempt real property in the District, will be levied annually within the District. The Rate and Method of Apportionment, and manner of collection of the special tax are specified in Exhibit “C”. The special taxes for Services may be increased based on the consumer price index by an amount not to exceed four percent (4%) per year to the extent permitted in the Rate and Method. The special tax for Services may be levied for such period as the Services are needed, as further described in Exhibit “C” hereto, provided that under no circumstances will such special tax be increased with respect to residential property as a consequence of delinquency or default by the owner of any other parcel or parcels within the District by more than ten percent. The special taxes are based on the expected demand that each parcel of real property within proposed Community Facilities District No. 2025-2 will place on the Services. The City Council hereby determines that the proposed Services are necessary to meet the increased demand placed upon the City and the existing police, fire, rescue and paramedic services 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 taxes set forth in Exhibit “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 taxes are not on or based upon the value or ownership of real property. Section 6. A public hearing (the “Hearing”) on the establishment of the proposed Community Facilities District No. 2025-2, the proposed rate and method of apportionment of the special taxes to finance the Services and the Services Incidental Expenses shall be held at 7:00 p.m., or as soon thereafter as practicable, on August 12, 2025, at the City Cultural Center, 183 North Main Street, Lake Elsinore, California. Should the City Council determine to form the District, a special election will be held to authorize the levy of the special taxes 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. The City Council does not intend to make any adjustment in property taxation pursuant to Sections 53313.6 and 53313.7 of the Act. CC Res. No. 2025-_____ Page 3 of 4 3 9 0 0 0 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. 2025-2, may appear and be heard. Section 9.Each City officer who is or will be responsible for administering the proposed Community Facilities District No. 2025-2, 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 services by type which will in his or her opinion be required to meet adequately the needs of Community Facilities District No. 2025-2 and an estimate of the cost of providing those services, and an estimate of the fair and reasonable cost of Services 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. 2025-2. 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. 2025-2. The City Clerk is further directed to mail a copy of the Notice to each landowner 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.This Resolution shall take effect immediately upon its adoption. Section 13. The City Clerk shall certify to the adoption of this Resolution and enter it into the book of original Resolutions. Passed a nd Adopted at a regular meeting of the City Council of the City of Lake Elsinore, California, this 24th day of June, 2025. _____________________________ Brian Tisdale Mayor Attest: _____________________________ Candice Alvarez, MMC City Clerk CC Res. No. 2025-_____ Page 4 of 4 3 9 0 0 0 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Resolution No. 2025-_________ was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of June 24, 2025, and that the same was adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: _____________________________ Candice Alvarez, MMC City Clerk EXHIBIT A DESCRIPTION OF PROPOSED TERRITORY The City of Lake Elsinore Community Facilities District No. 2025-2 (Cambern Apartments Services) (the “CFD No. 2025-2”) is currently comprised of two (2) parcels, located within the city boundaries. The property is identified by the following Riverside County Assessor's Parcel Numbers (APNs). APN Owner Name 377-380-003 Cambern Avenue Development Holding Company, LLC 377-100-003 Cambern Avenue Development Holding Company, LLC EXHIBIT B DESCRIPTION OF AUTHORIZED SERVICES CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2025-2 (CAMBERN APARTMENTS SERVICES) DESCRIPTION OF AUTHORIZED SERVICES The services which may be funded with proceeds of the special tax of CFD No. 2025-2, as provided by Section 53313 of the Act, will include some or all of the costs attributable to public safety. These services include police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services. In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses” as said term is defined in the Rate and Method of Apportionment and to establish an operating reserve for the costs of services as determined by the Administrator. The above services shall be limited to those provided within the boundaries of CFD No. 2025-2 for the benefit of the properties within the boundaries of CFD No. 2025-2 and said services may be financed by proceeds of the special tax of CFD No. 2025-2 only to the extent that they are in addition to those provided in the territory of CFD No. 2025-2 before CFD No. 2025-2 was created. EXHIBIT C RATE AND METHOD OF APPORTIONMENT City of Lake Elsinore Page 1 Community Facilities District No. 2025-2 (Cambern Apartments Services) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT NO. 2025-2 (CAMBERN APARTMENTS SERVICES) OF THE CITY OF LAKE ELSINORE A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2025-2 (Cambern Apartments Services) (the “CFD No. 2025-2” 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 Lake Elsinore, acting in its capacity as the legislative body of CFD No. 2025-2, by applying the rate and method of apportionment set forth below. All of the real property in CFD No. 2025-2, 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 smaller secondary unit(s) that shares an Assessor’s Parcel with Single Family Property that has a stand-alone Residential Unit. “Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation and administration of CFD No. 2025-2 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. 2025-2, or any designee thereof associated with fulfilling the CFD No. 2025-2 reporting requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2025-2 or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees, collection expenses, and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2025-2 for any other administrative purposes of CFD No. 2025-2, 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 Lake Elsinore, or his or her designee. “Affordable Housing” means housing as defined in State Density Bonus Law, as amended, being Chapter 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code of the State of California. “Affordable Housing Property” means any Affordable Housing residential property on an Assessor’s Parcel for which a building permit for new construction has been issued by the City on or prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. “Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number. “Assessor’s Parcel Number” means the identification number assigned to a parcel by the County Assessor of the County of Riverside. City of Lake Elsinore Page 2 Community Facilities District No. 2025-2 (Cambern Apartments Services) “CFD” or “CFD No. 2025-2” means the City of Lake Elsinore Community Facilities District No. 2025-2 (Cambern Apartments Services). “City” means the City of Lake Elsinore. “County” means the County of Riverside. “Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. “Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section D. “Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th. “Maximum Special Tax” means the Maximum Special Tax, as applicable, levied within the CFD for any Fiscal Year. “Multi-Family Property” means all Assessor's Parcels of Developed Property other than an Affordable Housing Property for which a building permit or use permit for the construction of a residential structure with two or more Residential Units that share a single Assessor's Parcel Number, as determined by the Administrator, has been issued prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. “Proportionately” means for Taxable Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels. “Rate and Method of Apportionment” or “RMA" means this Rate and Method of Apportionment of Special Taxes. “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. “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 Property shall not be considered a Residential Unit for purposes of this Rate and Method of Apportionment. “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. 2025-2 as set forth in Appendix B. “Single Family Property” means any residential property other than a Multi-Family Property or an Affordable Housing Property on an Assessor’s Parcel for which a building permit for new construction has been issued by the City on or prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. City of Lake Elsinore Page 3 Community Facilities District No. 2025-2 (Cambern Apartments Services) “Special Tax” means the Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property. "Special Tax Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the public safety needs of CFD No. 2025-2 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for (i) police protection services, (ii) fire protection services and suppression services, (iii) paramedic services, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax Requirement include funds for bonds. "Taxable Property" means all Assessor’s Parcels within CFD No. 2025-2, which are not Exempt Property. “Taxable Unit” means a Residential Unit. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property. B. RATE AND METHOD OF APPORTIONMENT OF MAXIMUM SPECIAL TAX RATES As of July 1 of each Fiscal Year, commencing July 1, 2025, the Council shall determine the Special Tax Requirement and shall levy the Special Tax upon each of the Assessor’s Parcels within the CFD which constitute a Developed Property of Residential Property, including Single Family Property, Multi- Family Property, or an Affordable Housing Property, until the aggregate amount of Special Tax equals the Special Tax Requirement. The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement. No Special Tax shall be levied upon Undeveloped Property for which a Building Permit has not been issued on or prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. The Maximum Special Tax for Fiscal Year 2025-2026 for a Single Family Property, Multi-Family Property, and Affordable Housing Property are shown below in Table 1. TABLE 1 MAXIMUM SPECIAL TAX RATES FISCAL YEAR 2025-2026 Description Taxable Unit Maximum Special Tax Single Family Property RU $1,039.64 Multi-Family Property RU $635.93 Affordable Housing Property RU $150.00 Increase in the Maximum Special Tax C. On each July 1, commencing on July 1, 2026 the Maximum Special Tax for Developed Property shall increase by i) the year-over-year percentage increase for the month of March in the Consumer Price City of Lake Elsinore Page 4 Community Facilities District No. 2025-2 (Cambern Apartments Services) Index (All Items) for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by four percent (4.0%), whichever is greater. D. TERM OF SPECIAL TAX For each Fiscal Year, the Maximum Special Taxes shall be levied as long as the Services are being provided within the boundaries of CFD No. 2025-2. E. EXEMPTIONS The City shall classify as Exempt Property within CFD No. 2025-2, any Assessor’s Parcel in any of the following categories; (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public uses; (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined by the Administrator; or (v) any Assessor’s Parcel which is not a Single Family Property, Multi-Family Property, or an Affordable Housing Property; (vi) any Assessor’s Parcel that qualifies for a welfare exemption under applicable state or local law; or (vii) any Assessor’s Parcel that is owned by a property owner association and used for common area purposes. F. APPEALS Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. The Administrator shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the Administrator’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s). G. MANNER OF COLLECTION The Maximum Special Taxes levied in each Fiscal Year shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes. However, the District may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations. The Maximum Special Taxes when levied shall be secured by the lien imposed pursuant to Section 3115.5 of the Streets and Highways Code. This lien shall be a continuing lien and shall secure each levy of Maximum Special Taxes. The lien of Maximum Special Taxes shall continue in force and effect until the Special Tax ceases to be levied in the manner provided by Section 53330.5 of the Government Code. City of Lake Elsinore Page 5 Community Facilities District No. 2025-2 (Cambern Apartments Services) H. INTERPRETATION Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment. City of Lake Elsinore Page 6 Community Facilities District No. 2025-2 (Cambern Apartments Services) APPENDIX A CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2025-2 (CAMBERN APARTMENTS SERVICES) SUMMARY Services - It is estimated that the cost of providing police, fire protection and suppression services, and paramedic services being funded by the Special Tax for the Community Facilities District No. 2025-2 (Cambern Apartments Services) will be as follows for the Fiscal Year 2025-2026:  $1,039.64 per residential unit for Single Family Property  $635.93 per residential unit for Multi-Family Property  $150.00 per residential unit for Affordable Housing Property Annual Escalation - On each July 1, commencing on July 1, 2026 the Maximum Special Tax for Developed Property shall increase by i) the year-over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by four percent (4.0%), whichever is greater. Fiscal Year APN Development Name No. of Taxable Units Land Use Category Maximum Special Tax Subdivider 2025-26 377-380-003, 377-100-003 Cambern Apartments 76 Affordable Housing Property $150 Cambern Avenue Development Holding Company City of Lake Elsinore Page 7 Community Facilities District No. 2025-2 (Cambern Apartments Services) APPENDIX B CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2025-2 (SAFETY SERVICES) DESCRIPTION OF AUTHORIZED SERVICES The services which may be funded with proceeds of the special tax of CFD No. 2025-2, as provided by Section 53313 of the Act, will include some or all of the costs attributable to public safety. These services include police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services. In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses” as said term is defined in the Rate and Method of Apportionment and to establish an operating reserve for the costs of services as determined by the Administrator. The above services shall be limited to those provided within the boundaries of CFD No. 2025-2 for the benefit of the properties within the boundaries of CFD No. 2025-2 and said services may be financed by proceeds of the special tax of CFD No. 2025-2 only to the extent that they are in addition to those provided in the territory of CFD No. 2025-2 before CFD No. 2025-2 was created. EXHIBIT D ANNEXATION AND POTENTIAL ANNEXATION BOUNDARY MAPS THIRD STCAMBERN AVEALLAN ST377-100-003377-380-003COMMUNITY FACILITIES DISTRICT NO. 2025-2(CAMBERN APARTMENTS SERVICES)CITY OF LAKE ELSINORE,COUNTY OF RIVERSIDE, STATE OF CALIFORNIASHEET 1 OF 1 SHEET\_CFD 2025-2·|}þ74·|}þ74·|}þ74§¨¦15§¨¦215LAKE ELSINORE0450900225FeetPROPOSED BOUNDARY MAPFILED THIS ____ DAY OF _______________, 20____ ATTHE HOUR OF ____ O'CLOCK __M IN BOOK _____OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIESDISTRICTS AT PAGE _____ , IN THE OFFICE OF THECOUNTY RECORDER, IN THE COUNTY OF RIVERSIDE, STATE OFCALIFORNIA. FEE: _____________ NO.: ______________________ PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDERBY: _______________________________ DEPUTY -THIS BOUNDARY MAP CORRECTLY SHOWS THE LOT OR PARCEL OF LANDINCLUDED WITHIN THE BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT.FOR DETAILS CONCERNING THE LINES AND DIMENSIONS OF LOTS OR PARCELREFER TO THE COUNTY ASSESSOR MAPS FOR FISCAL YEAR 2025-26. I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSEDBOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2025-2(CAMBERN APARTMENTS SERVICES), CITY OF LAKE ELSINORE,COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, WAS APPROVEDBY THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE AT AREGULAR MEETING THEREOF, HELD ON ______ DAY OF ______,20____, BY RESOLUTION NO. _______________ ___________________________________CITY CLERK CITY OF LAKE ELSINORE FILED IN THE OFFICE OF THE CITY CLERK, CITY OF LAKE ELSINORE,THIS ____ DAY OF ________, 20____. ______________________________ CITY CLERKCITY OF LAKE ELSINORE LEGEND CITY BOUNDARYCFD BOUNDARYPARCEL LINEXXX-XXX-XXX ASSESSOR PARCEL NUMBEREXHIBIT D EXHIBIT E PETITION PETITION TO THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE REQUESTING CREATION OF A COMMUNITY FACILITIES DISTRICT OF PROPERTY WITHIN THE CITY OF LAKE ELSINORE AND A WAIVER WITH RESPECTS TO CERTAIN PROCEDURAL MATTERS UNDER THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 AND CONSENTING TO THE LEVY OF SPECIAL TAXES THEREON TO PAY THE COSTS OF SERVICES TO BE PROVIDED BY THE COMMUNITY FACILITIES DISTRICT 1. The undersigned requests that the City Council of the City of Lake Elsinore, initiate and conduct proceedings pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”) (Government Code Section 53311 et seq.), for the creation of a Community Facilities District No. 2025-2 (the “Community Facilities District”) of the property described below and consents to the annual levy of special taxes on such property to pay the costs of services to be provided by the community facilities district. 2. The undersigned requests that the community facilities district provide any services that are permitted under the Act including, but not limited to, all necessary service, operations, administration and maintenance to provide police protection services, including but not limited to criminal justice services, and fire protection and suppression services in the area surrounding the subject project. 3. The undersigned hereby certifies that as of the date indicated opposite its signature, it is the owner of all the property within the proposed boundaries of the Community Facilities District as described in Exhibit A hereto and as shown on the map Exhibit B hereto. 4. The undersigned requests that a special election be held under the Act to authorize the special taxes for the proposed community facilities district. The undersigned waives any requirement for the mailing of the ballot for the special election and expressly agrees that said election may be conducted by mailed or hand-delivered ballot to be returned as quickly as possible to the designated election official, being the office of the City Clerk and the undersigned requests that the results of said election be canvassed and reported to the City Council at the same meeting of the City Council as the public hearing on the creation of the Community Facilities District or at the next available meeting. 5. Pursuant to Sections 53326(a) and 53327(b) of the Act, the undersigned expressly waives all applicable waiting periods for the election and waives the requirement for analysis and arguments relating to the special election, and consents to not having such materials provided to the landowner in the ballot packet, and expressly waives any requirements as to the form of the ballot. The undersigned expressly waives all notice requirements relating to hearings and special elections (except for published notices required by the Act), and whether such requirements are found in the California Elections Code, the California Government Code or other laws or procedures, including but not limited to any notice provided for by compliance with the provisions of Section 4101 of the California Elections Code. 6. The undersigned hereby consents to and expressly waives any and all claims based on any irregularity, error, mistake or departure from the provisions of the Act or other laws of the State and any and all laws and requirements incorporated therein. No step or action in any proceeding relative to the creation of Community Facilities District No. 2025-2 within the incorporated area of the City of Lake Elsinore or the special election therein shall be invalidated or affected by any such irregularity, error, mistake or departure. IN WITNESS WHEREOF, I hereunto set my hand this ____ day of __________, 20___. [NAME OF LANDOWNER] By: _____________________________________ Name: Title: OWNER'S PROPERTY: TRACT MAP OR PARCEL MAP NO. or PROJECT NO. OWNER'S MAILING ADDRESS: __________________________________________ __________________________________________ __________________________________________ FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE THIS ____ DAY OF __________, 20___. _____________________________________ City Clerk of the City Council of the City of Lake Elsinore INSERT EXHIBIT A: BOUNDARY DESCRIPTION LEGAL DESCRIPTION The land referred to is situated in the County of Riverside, City of Lake Elsinore, State of California, and is described as follows: PARCEL ONE: Lot 2, Block 13, North Elsinore Tract, as shown by Map on file in Book 5, Page 105 of Maps, Records of Riverside County, California. Excepting therefrom the Northeasterly 264 feet thereof. APN: 377-100-003 PARCEL TWO: That portion of Lot 8 in Block 14 of North Elsinore Tract, as shown by Map on file in Book 5, Page 105, of Maps, in the Office of the County Recorder of said county, described as follows: BEGINNING at a point on the Southwesterly line of said Lot 8, 420 feet Southeasterly from the most Westerly corner of Lot 7 in said Block 14, said point being the most Southerly corner of that certain parcel conveyed to Dewey Elam and Marcella Elam by Deed filed for record November 18, 1953 as Instrument No. 55220; THENCE Northeasterly, parallel with the Northwesterly line of said Lot 7, 210 feet; THENCE Southeasterly, parallel with the Southwesterly line of said Lot 8, 235 feet, more or less, to the center line of Third Avenue; THENCE Southwesterly, on the center line of Third Avenue, 210 feet to the most Southerly corner of Lot 8 in said Block 14; THENCE Northwesterly on the Southwesterly line of said Lot 8, 235 feet, more or less to the POINT OF BEGINNING. Excepting from Parcel Two: an easement for road purposes over those portions in Third Street and Cambern Avenue. APN: 377-380-003 Page 1 of 1 INSERT EXHIBIT B: TRACT/PARCEL/SUBDIVISION MAP EXHIBIT F NOTICE OF PUBLIC HEARING NOTICE OF PUBLIC HEARING ON INTENTION TO FORM COMMUNITY FACILITIES DISTRICT NO. 2025-2 (CAMBERN APARTMENTS SERVICES) NOTICE IS HEREBY GIVEN that the City Council of the City of Lake Elsinore on June 24, 2025 adopted its Resolution No. 2025-___, in which it declared its intention to form Community Facilities District No. 2025- 2 (Cambern Apartments Services) (the "CFD No. 2025-2"), and to levy a special tax to pay for certain maintenance services, all pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be included and describes the rate and method of apportionment of the proposed special tax. NOTICE IS HEREBY FURTHER GIVEN that the City Council has fixed 7:00 p.m., or as soon thereafter as practicable, Tuesday, August 12, 2025 in the City Council Chambers located at 183 N Main St., Lake Elsinore, California 92530, as the time and place when and where the City Council will conduct a public hearing on the annexation of territory to CFD No. 2025-2. At the hearing, the testimony of all interested persons for or against the formation of the territory or the levying of the special taxes will be heard. If and to the extent participation in the August 12, 2025 meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of Lake Elsinore (www.lake- elsinore.org), and outside of City Hall at 130 S. Main Street, Lake Elsinore, CA 92530. A copy of the Agenda will be made available upon request to the Lake Elsinore City Clerk's office at 951-674-3124; Ext. 262 DATED: ____________, 20___ _________________________________________ City Clerk of the City of Lake Elsinore EXHIBIT G BALLOT CITY OF LAKE ELSINORE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA COMMUNITY FACILITIES DISTRICT NO. 2025-2 (CAMBERN APARTMENTS SERVICES) (August 12, 2025) This ballot is for the use of the authorized representative of the following owner of land within Community Facilities District No. 2025-2 (Cambern Apartments Services) (“CFD No. 2025-2”) of the City of Lake Elsinore: Name of Landowner Number of Acres Owned Total Votes Cambern Avenue Development Holding Company, LLC 4.02 5 According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of Lake Elsinore (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax. This special tax ballot is for the use of the property owner of the parcels identified below, which parcels are located within the territory proposed to be annexed to the CFD No. 2025-2, City of Lake Elsinore, County of Riverside, State of California. Please advise the City Clerk, at (951) 674-3124 x 269 if the name set forth below is incorrect or if you are no longer one of the owners of these parcels. This special tax ballot may be used to express either support for or opposition to the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows: Mail Delivery: If by mail, place ballot in the return envelope provided, and mail no later than July 29, 2025, two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted. Personal Delivery: If in person, deliver to the City Clerk at any time up to 7:00 p.m. on August 12, 2025, at the Clerk’s office at 130 N Main St. Lake Elsinore, CA 92530. However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on August 12, 2025. Very truly yours, Candice Alvarez, MMC City Clerk TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE. OFFICIAL SPECIAL TAX BALLOT Name & Address of Property Owner: Assessor’s Parcel Number(s): Cambern Avenue Development Holding Company, LLC Attn: Kevin Leichner 3111 Camino Del Rio N Ste 800 San Diego, CA 92108 377-100-003, 377-380-003 CITY OF LAKE ELSINORE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA COMMUNITY FACILITIES DISTRICT NO. 2025-2 (CAMBERN APARTMENTS SERVICES) AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT SPECIAL TAX BALLOT MEASURE MARK “YES” OR “NO” WITH AN “X”: Shall the City Council of the City of Lake Elsinore be authorized to levy a special tax on an annual basis at the rates and apportioned as described in Exhibit C to the Resolution Declaring its Intention to Establish Community Facilities District No. 2025-2 (Cambern Apartments Services) adopted by the City Council on June 24, 2025 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Proposed Boundary Map Community Facilities District No. 2025-2 (Cambern Apartments Services) City of Lake Elsinore” to finance certain services as set forth in Section 4 to the Resolution (including incidental expenses), and shall an appropriation limit be established for the Community Facilities District No. 2025-2 (Cambern Apartments Services) in the amount of special taxes collected? YES _________ NO _________ Certification for Special Election Ballot The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 20__. Kevin Leichner Senior Vice President Signature Print Name Title