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:November 18, 2025
Subject:Authorizing the Issuance of Special Tax Bonds for Community Facilities District No. 2022-1 (Alberhill Ranch), Approving Certain Documents, and Certain Actions
Recommendation
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT OF THE CITY OF LAKE ELSINORE NO. 2022-1 (ALBERHILL RANCH) AUTHORIZING THE ISSUANCE OF ITS SPECIAL TAX BONDS, SERIES 2025 IN A PRINCIPAL AMOUNT NOT TO EXCEED ELEVEN MILLION DOLLARS ($11,000,000) AND APPROVING CERTAIN DOCUMENTS AND TAKING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH.
Background
The City of Lake Elsinore (the “City”) formed the City of Lake Elsinore Community Facilities District No. 2021-1 (Alberhill Ranch) (the “District”) in 2022 pursuant to the Mello-Roo’s Community Facilities District Act of 1982, as amended.
The District contains approximately 138 gross acres and is located approximately one mile south of Interstate 15. The developer of the property within the District is Pulte Home Company LLC (“Pulte”). The project is being marketed by Pulte as “Alberhill Ranch” and is being developed in four neighborhoods: “Crestly,” “Ridgeline,” “Fairfield,” and “Linden.” The property within the district is planned for 344 single-family detached homes. As of October 7, 2025, Pulte had completed and conveyed 224 homes within the District to individual homeowners, and as of such date, Pulte owned seven model homes, 28 production homes over 95 percent complete, 17 homes in various stages of construction, and 68 finished lots. Pulte CFD 2022-1 (Alberhill Ranch) Special Tax Bond
currently expects to complete and convey all homes planned within the District to individual homeowners by the end of 2026. The development and ownership status of the planned homes within the District as of October 7, 2025, is shown in the table below.
Ownership and Development Summary (October 7, 2025)
Parcels In Escrow
Individually Owned
Completed 224 --
Developer Owned
Model Homes 7 --
Production Homes (Over 95% Complete) 28 19
Under Construction 17 6
Finished Lots 68 6
Subtotal 120 31
TOTAL344 31
The Resolution before the City Council authorizes the issuance of special tax bonds (the “2025 Special Tax Bonds”) to finance the costs of construction of City facilities, including but not limited to 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. The Resolution also authorizes the approval and execution of certain documents further described on the following pages.
Discussion
The proposed 2025 Special Tax Bonds are estimated to be issued in the principal amount of approximately $10.215 million with a final maturity of September 1, 2055. The final structure and payment schedule will be determined when the 2025 Special Tax Bonds are priced and sold, which is expected to be in early December 2025. The bond closing is expected to occur approximately two weeks after the pricing of the 2025 Special Tax Bonds. The table below highlights preliminary financing statistics of the 2025 Special Tax Bonds based on current market conditions.
Summary of Financing Statistics¹
2025 Special Tax Bonds
Par Amount $10,215,000
True Interest Rate 5.15%
Estimated Cost to Homeowners
FY 2025-26 Assessment²$1,358 - $2,151
¹Preliminary and subject to change.
²Annual Assigned Special Tax will increase at approximately 2% per year.
The Fiscal Year 2025-26 estimated Special Tax levy on homes within the District ranges between $1,358 and $2,151, depending on the size of the home. Such rates will increase 2.0% per year.
CFD 2022-1 (Alberhill Ranch) Special Tax Bond
Given the level of development noted above and pursuant to the City policy, Pulte will provide a Letter of Credit that may be drawn upon by the District to cover payment of special taxes levied on property owned by Pulte. The initial term of the Letter of Credit is one year and will be renewed each year until certain development and conveyance thresholds are met.
As required under Section 5852.1 of the California Government Code, the good faith estimates as provided by the Municipal Advisor and Underwriter are outlined in Exhibit A to this staff report.
Approval of the Resolution with respect to the issuance of the 2025 Special Tax Bonds approves the form of and/or authorizes the execution and delivery of the following documents:
Preliminary Official Statement: The Preliminary Official Statement (the “POS”) is the “offering document” for the 2025 Special Tax Bonds. It describes the District, the 2025 Special Tax Bonds, the proposed development within the District, and any other information that would be material to a prospective investor’s decision on whether to purchase the 2025 Special Tax Bonds. While the City’s counsel, consultants, and the underwriter have participated in preparing the POS, the City Council and staff are ultimately responsible for ensuring that the POS is accurate, contains no misleading information, and does not omit any information necessary to make the POS not misleading to investors.
Bond Indenture: The Bond Indenture is a contract entered into between the District and Wilmington Trust, National Association, as the appointed Trustee for the 2025 Special Tax Bonds. This document contains the terms of the 2025 Special Tax Bonds, including, but not limited to, the payment and redemption provisions, the pledge of revenues to pay the 2025 Special Tax Bonds, rights and duties of the Trustee, remedies upon a default in the payment of the 2025 Special Tax Bonds, and other related matters. Continuing Disclosure Certificate: Executed for the benefit of bondholders, the Continuing Disclosure Certificate obligates the District to file an annual report each Fiscal Year, which includes, among other things, the most recent audited financial statements of the City and financial data relating to the District. The District is also required to report certain events that are significant to bondholders if and when they occur. Bond Purchase Agreement: Pursuant to the Bond Purchase Agreement, the District agrees to sell the 2025 Special Tax Bonds to the underwriter, and the underwriter agrees to purchase the 2025 Special Tax Bonds, subject to typical closing conditions. City staff, the City’s municipal advisor, and bond counsel will sign off on the final pricing of the 2025 Special Tax Bonds before the execution of the Bond Purchase Agreement. Appraisal: The Resolution approves the preparation of the Appraisal, which provides an estimate of the market value of property within the District subject to the special tax lien.
The estimates, provided by an independent and impartial qualified appraiser, will be used to market the 2025 Special Tax Bonds to prospective investors in the POS.
Bond Counsel and the City Attorney have reviewed the attached financing documents on behalf of the City. If this resolution is approved, City staff will continue to work with the financing team to CFD 2022-1 (Alberhill Ranch) Special Tax Bond
finalize all of the aforementioned documents. As previously mentioned, the pricing date is currently targeted for early December 2025.
Fiscal Impact
The 2025 Special Tax Bonds are paid from special taxes levied in the District. There is no fiscal impact to the City’s General Fund. The City will, however, be required to provide administration for the District, which will be funded as part of the annual special tax levy.
As previously mentioned, the Fiscal Year 2025-26 estimated Special Tax levy on homes within the District ranges between $1,358 and $2,151. Such special taxes will increase at 2.0% per year pursuant to an existing agreement with the Developer.
Attachments
Attachment 1 – Good Faith Estimate
Attachment 2 – Resolution
Attachment 3 – Preliminary Official Statement
Attachment 4 – Bond Indenture
Attachment 5 – Continuing Disclosure Certificate (Appendix F to Preliminary Statement) Attachment 6 – Bond Purchase Agreement
Attachment 7 – Appraisal Report
City Manager's Office