Agenda — Finance Committee, May 11, 2023

City Council Chambers
29844 Haun Road
Menifee, CA 92586
City of Menifee
Finance Committee
Meeting Agenda
Lesa Sobe
k, Committee Member
Dean Deines, Committee Member
Thursday, May 11, 2023
3:30 PM Regular Meeting
AGENDA

1. CALL TO ORDER

2. ROLL C
ALL

3. PRES

ENTATIONS - NONE

4. PUBLI

C COMMENTS

5. APPRO

VAL OF MEETING MINUTES

5.1 Dec
ember 13, 2022, Minutes

5.2 March 13, 2023, Minutes

6. DISCUS

SION ITEMS

6.1 Pr
oposed Bond Issue for Community Facilities District No. 2021-2 (Sumac Ridge) Recomm
ended Action:

1. Review the proposed bond issue request for Community Facilities District No. 2021-2 (Sumac Ridge) by Meritage Homes to finance the costs of certain public improvements for the development of a residential tract containing 175 units within the City; and

2. Recommend the finance team to proceed with preparation of the Official Statement and other legal documents related to the transaction for presentation to the City Council at a future City Council meeting.

6.2 Pr
oposed Series 2 Bond Issue for Community Facilities District No. 2021-1 (Banner Park)
Recomm
ended Action:

1. Review the proposed bond issue request for Community Facilities District No. 2021-1 by Pulte Home Company to finance the costs of certain public improvements for the development of a residential tract containing 256 units within the City; and

7. STAFF COMMENTS

8. COMMITTEE REPORTS/COMMENTS ON COMMITTEE ACTIVITIES.

9. FUTURE AGENDA ITEMS

Future Meeting Date(s):

• Tuesday, July 11, 2023 2:00 p.m.
• Tuesday, September 12, 2023 2:00 p.m.
• Tuesday, November 7, 2023 2:00 p.m.

10. ADJOURNMENT

Decorum Policy Notes
Please use a speaker request form when you wish to address the Committee. The Committee anticipates and encourages public participation at its Committee meetings, both on agenda items and during the public comments period. Please use respect by not having your cell phones on, refrain from talking in the audience or outbursts that may be disruptive. While we encourage participation, we ask there be a mutual respect for the proceedings.

Agenda Materials
Materials related to an item on this Agenda, including those submitted to the Committee after distribution of the agenda packet, are available for public inspection by contacting the City Clerk, at (951) 672-6777 during normal business hours.

Compliance with the Americans with Disabilities Act
If you need special assistance to participate in this meeting, you should contact the City Clerk’s office at (951) 672-6777. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting.

City Council Chambers City of Menifee
29844 Haun Road Finance Committee
Menifee, CA 92586 Meeting Agenda
Lesa Sob
ek, Committee Member
Dean Deines, Committee Member
Tuesday, December 13, 2022
3:00 PM Regular Meeting

MINUTES

1. CALL TO ORDER: The Meeting was called to order at 2:00 p.m.

2. ROLL CALL: Committee Members Deines and Sobek were present.

3. PRESENTATIONS: None.

4. PUBLIC COMMENTS: None.

5. APPROVAL OF MEETING MINUTES: The following minutes were approved 2-0.

5.1 October 4, 2022 Minutes

6. DISCUSSION ITEMS

6.1 Proposed Formation for Community Facilities District No. 2023-2 Cimarron Ridge Recommended Action:

Review the proposed Community Facilities District No. 2023-2 Cimarron Ridge by Pulte Homes to finance the costs of certain public improvements for the development of a residential tract containing 756 units located within the City, south of McLaughlin Road, west of Byers Road, and north of Sotelo Road and recommend submittal to the City Council for approval at a future City Council meeting.

Shane Spicer gave a pres entation and the committee discussed the different school district boundaries. Deines inquired about the amounts and inquired about particular credits for the developer that were shown on the report and they will need to be explained to council.

Deines expressed concern regarding the soft costs developers pass on the homeowners.

Deines inquired about the EMWD CFD funding and reconfiguring the debt issuance to be entirely under the city. Approved unanimously to bring to council.

6.2 City of Menifee’s Current Outstanding Debt Summary
Recommended Action:

Receive and file summary report of City of Menifee’s current Outstanding Debt.

Discussed the debt held by the city.

Sobek inquired about the purpose and effects of the LED lights and would like an annual report indicating cost differences.

Funderburk suggested that Finance can resume providing a cost benefit analysis report for council.

Deines suggested that a report on the debt be created and placed on the website for the public to see.
3 7. STAFF COMMENTS: None.

8. COMMITTEE REPORTS/COMMENTS ON COMMITTEE ACTIVITIES

9. FUTURE AGENDA ITEMS

9.1 Next M eeting Dates: January 10, 2022 at 2:00 p.m.

9.2 Travel Policy updates

10. ADJOURNMENT: The Meeting was adjourned at 2:49 p.m. 4 City Council Chambers
29844 Haun Road
Menifee, CA 92586
Lesa Sobek, Committee Member
Dean Deines, Committee Member
City of Menifee
Finance Committee
Meeting Minutes
Tuesday, March 14, 2023
2:00 PM Regular Meeting

MINUTES

1. CALL TO ORDER
The
meeting was called to order at 2:02 p.m.

2. RO

LL CALL
Co
mmittee Members Deines and Sobek were present.

3. P

RESENTATIONS - NONE

4. P

UBLIC COMMENTS - NONE

5. A

PPROVAL OF MEETING MINUTES
The m
inutes from February 7, 2023, Finance Committee meeting were approved (2-0).

6. DI

SCUSSION ITEMS
6 .1 Proposed Bond Issue for Community Facilities District No. 2022-1 (Quartz Ranch)
D
eputy Finance Director Margarita Cornejo introduced the item and Shane Spicer provided a presentation.

A
ction

1. Reviewed the proposed Series 1 bond issue request for Community Facilities District No. 2022- 1 (Quartz Ranch) (“CFD No. 2022- 1”) by Lennar Homes t o f
inance the costs of certain public improvements for the development of a residential tract containing 379 units within the City; and

2. Recommended the finance team to proceed with preparation of the Official Statement and other legal documents related to the transaction for presentation to the City Council at a future City Council meeting.

A
pproved 2-0
6 .2 10 Year Financial Forecast Model
D
eputy Finance Director Margarita Cornejo introduced the item and Principal Accountant Dominic Tartaglia provided a presentation.

A
ction

1. Received and filed summary report on City of Menifee’s 10 Year Financial Forecast Model.

7. STAFF COMMENTS - NONE

8. C
OMMITTEE REPORTS/COMMENTS ON COMMITTEE ACTIVITIES – NONE

9. F

UTURE AGENDA ITEMS
Ther
e will no longer be a meeting on Tuesday, November 14, 2023, instead we will c
onvene on November 7, 2023.
1 0. ADJOURNMENT
The
Meeting was adjourned at 2:54 pm
C

ITY OF MENIFEE
SUBJECT: Proposed Bond Issue for Community Facilities District No. 2021-2 (Sumac Ridge)
MEETING DATE: May 9, 2023
TO: Finance Committee
PREPARED BY: Lauri Lockwood, Financial Analyst
REVIEWED BY: Margarita Cornejo, Acting Chief Financial Officer

RECOMMENDED ACTION

1. R
eview the proposed bond issue request for Community Facilities District No. 2021 -2 (
Sumac Ridge) by Meritage Homes to finance the costs of certain public improvements for the development of a residential tract containing 175 units within the City; and

2. R
ecommend the finance team to proceed with preparation of the Official Statement and other legal documents related to the transaction for presentation to the City Council at a future City Council meeting.

SCUSSION
The dev
eloper, Meritage Homes, owns a residential tract approved for 175 lots within the City.

The residential tract is north of Scott Road at the intersection of Lindenberger Road. Table 1 provides a summary of the CFD 2021-2 formation steps completed to date:

T
able 1: Summary of CFD 2021-2 (Sumac Ridge) Formation:

Description Date
Finance Committee CFD Formation Review March 1 9, 2020 and October 15, 2020
Resolution of Intention September 15, 2021
Resolutions of CFD Formation (City Council Approval) Nov. 3, 2021/ 2nd Reading Nov. 17, 2021
Request for Bond Issuance April 12, 2023
Finance Committee Bond Issuance Review May 9, 2023
O
n April 12, 2023, the developer requested the issuance of bonds for Community Faci lities District No. 2021-2 (Sumac Ridge) to fund eligible facilities.

C
urrently, of the 175 lots, 113 lots have building permits issued, 17 have sold and are in escrow, and 60 have sold and closed. Based on the builder’s projections, by Dec. 31, 2023, they should City of Menifee Staff Report
Sumac Ridge – CFD Bond
May 9, 2023

Page 2 of 2 ends

have 93% of their buildin g perm its issued and 73% of their units closed. The builder is requesting to issue the bonds for an estimated $10,280,000. The bond authorization limit for this District is not-to-exceed $15,000,000.

A preliminary bond analysis was prepared by Spic er Consulting Group to evaluat e the viability of the bond issuance e stimating the valuation, delinquency history, and effective tax rates (ETR). The development has a relatively strong value to lien ratio of 10.00:1, greater than the City’s policy o f 4:1 a nd an estima ted ETR less than 2%. In Fiscal Year 2022/2023, administrative fees of approximately $5,000 were levied, and there are no delinquencies.

The improvements proposed to be financed include:

 City Development Impact Fees and Facilities
 EMWD Fees
 Menifee Union School District Fees.

This item is to discuss bond issuance criteria and review the proposed bond issuance for CFD No. 2021-2 (Sumac Ridge).

ATTACHMENTS

1. Proforma Summary – CFD 2021-2

2. Project Map

3. Preliminary Bond Analysis

4. Boundary Map

5. Annex 6 Maintenance Exhibit

6. Bond Issue Request
CFD 2021‐2 (Sumac Ridge)
Proforma Summary Sheet
Applicant: Meritage Homes
Assumptions
Description Amount
Average Coupon 5.00%
Priority Administration $30,000
Cost of Issuance $250,000
Capitalized Interest Period 3‐months
Special Tax Escalation 2%
Bond Term 30 Years
Underwriter Discount 1.75%
Total Special Tax Revenues $394,294
Estimated Sources and Uses
Sources
Par Bond Amount $10,280,000
Uses
Reserve Fund $897,635
Capitalized Interest $85,667
Underwriter Discount $179,900
Cost of Issuance $250,000
Improvement Fund $8,866,798
Allocation of Improvement Fund
Description
City Facilities $2,602,449
City Fees $2,091,425
City Premium $337,295
EMWD Fees $2,744,421
MUSD Fees $1,148,900

Unfunded $483,823
Other Items
Acreage Gross: 56.35; Net: 28.96
Development Description Detached SFR
Number of Units (50 min) 175 Units
Estimated Home Size Range 1,910 SF to 3,247 SF
Average Home Size 2,641 SF
Average Estimated Home Price $587,309
Total Effective Tax Rate (2% Max) 1.94%
CFD Tax Rate Range $3,101 to $3,885
Escalation (2.00% Max) Yes, 2.00%
Maintenance CFD Annexed, CFD 2017‐1
Maintenance CFD Rate $765/Unit

ATTACHMENT #2

PROJECT LOCATION MAP
COMMUNITY FACILITIES DISTRICT NO. 2021-2 (SUMAC RIDGE)
Scott Rd
Lindenberger Rd

CITY OF MENIFEE
Community Facilities District No. 2021-2
(Sumac Ridge)
Preliminary Bond Analysis
As of 4/21/2023
Preliminary Bond Compliance Table
Requirement 2021-2

1. Value to Lien(1)

4.00:1 10.00:1

2. Delinquency Levels Less than 5% N/A

3. Effective Tax Rate(2)

2.00% 1.92% - 1.96%
(1) Value to Lien is based upon estimated sizing information and Proposed Home Prices. (2) Range includes estimated FY 2023-24 enrollment.

1. General Information & Development Status
District Formation Date November 3, 2021
District Assessed Value(1) N/A
Bond Structure 100% Assigned
Estimated Preliminary Par Amount(2)
$0
Preliminary Value to Lien(3)

10.00:1
(1) District Assessed Value information not available via Riverside County as of 4/30/2023 (2) Par amount estimated based on estimated 5.00% Interest Rate. (3) Value to Lien is based upon estimated sizing information and Proposed Home Prices. 4/15/2023 Ownership Status As Of
Tract No. Land Owner Map Recordation
TR 37668 Meritage Homes 4/5/2022
No. Lots @
Buildout
Permits Issued as of
5/1/2023
Developed
Percentage
Sold & In Escrow
to Date
Sold & Closed
to Date
Ave Monthly
Absorption
Five Month
Projection
175 Lots 113 Lots 65% 17 60 10 127 Lots
Remaining 62 Lots Projected Closed 73%
Projected Permitted 93%

2. Special Tax Levy & Delinquency Status
No. Parcels FY 2022-23 Levy Delinquencies
5 Lots $5,000 0

3. Bond Issuance Impact to Property Owners
Avg Home
Value(1) Ad-Valorem Tax Other Taxes CFD Tax Total Tax ETR $587,309 $6,835 $1,116 $3,457 $11,409 1.94%
(1) Based upon Sales Price provided by Meritage on 4/15/2023.

Criteria
Estimated Average Tax Bill for FY 23-24

4. Proposed Use of Proceeds (Preliminary)
Estimated Project Fund Capacity: $14,497,565
Sources Total
Bond Proceeds: Par Amount 10,280,000 $
Facilities Special Tax Levy FY 22-23(2) -$
Total Sources 10,280,000 $
Uses Total
Project Fund Proceeds 8,866,798 $
Underwriter's Discount 179,900 $
Capitalized Interest - 3 months 85,667 $
Debt Service Reserve Fund 897,635 $
Cost of Issuance 250,000 $
Total Uses 10,280,000$
Net Bond Funds -$
(2) No Special Taxes levied for FY 22-23.

CITY OF MENIFEE
Community Facilities District No. 2021‐2
(Sumac Ridge)
Tract Nos. 37668
Calculation of Bond Sizing and Total Tax Rates
I. Home Prices and Combined Tax Rates:

Plan 123 4 5678 CFD TOTAL
Range of Home Sizes in Square Feet per RMA Under 2,000 to 2,201 to 2,401 to 2,601 to 2,801 to 3,001 to Over 2,000 2,200 2,400 2,600 2,800 3,000 3,200 3,200
Estimated Home Size 1,910 2,115 2,320 2,541 2,771 2,948 3,098 3,247 2,641 Estimated Home Price $555,000 $559,000 $563,000 $575,000 $588,000 $601,000 $624,500 $648,000 $587,309 Ad‐Valorem Tax Rate (1.00%) $5,550.00 $5,590.00 $5,630.00 $5,750.00 $5,880.00 $6,010.00 $6,245.00 $6,480.00 $5,873.09 Metro Water West (0.00350%) $19.43 $19.57 $19.71 $20.13 $20.58 $21.04 $21.86 $22.68 $20.56 Menifee School (0.06111%) $339.16 $341.60 $344.05 $351.38 $359.33 $367.27 $381.63 $395.99 $358.90 Perris Union HS (0.08596%) $477.08 $480.52 $483.95 $494.27 $505.44 $516.62 $536.82 $557.02 $504.85 Mt. San Jacinto Jr. College (0.01320%) $73.26 $73.79 $74.32 $75.90 $77.62 $79.33 $82.43 $85.54 $77.52 Subtotal GO Bond Debt $6,458.92 $6,505.47 $6,552.03 $6,691.68 $6,842.97 $6,994.26 $7,267.74 $7,541.23 $6,834.92 Perris Union High School District CFD 92‐1 $310.64 $310.64 $310.64 $310.64 $310.64 $310.64 $310.64 $310.64 $310.64 Flood Control Stormwater / Santa Ana $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 EMWD Standby $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 MWD Standby charge $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 Proposed CFD No. 2017‐1 ‐ Maint Services* $765.00 $765.00 $765.00 $765.00 $765.00 $765.00 $765.00 $765.00 $765.00 Proposed CFD No. 2021‐2 ‐ Facilities Tax** $3,101.43 $3,531.00 $3,275.18 $3,388.58 $3,501.99 $3,588.34 $4,078.00 $3,884.85 $3,457.29 Subtotal Special Assessments and Taxes $4,217.79 $4,647.36 $4,391.54 $4,504.94 $4,618.35 $4,704.70 $5,194.36 $5,001.21 $4,573.65 Total Annual Property Taxes $10,676.71 $11,152.83 $10,943.57 $11,196.62 $11,461.32 $11,698.96 $12,462.10 $12,542.44 $11,408.57 Annual Prop. Tax Rates as % of Home Price 1.92% 2.00% 1.94% 1.95% 1.95% 1.95% 2.00% 1.94% 1.94% Unit Mix 23 ‐ 23 42 24 43 ‐ 20 175 (1)Total CFD ‐ Annual Tax Collections $71,333 $0 $75,329 $142,320 $84,048 $154,299 $0 $77,697 $605,026 (2)Administration $30,000
Total Annual Special Taxes for Bonding
((1)Total Special Taxes ‐ (2)Admin. / 110% Covera $61,633 $0 $65,085 $122,967 $72,618 $133,316 $0 $67,131 $522,751 II. Total Estimated Home Square Footage: 43,930 ‐ 53,360 106,722 66,504 126,764 ‐ 64,940 462,220 * Escalates at greater of 2% or CPI
** Includes a 2% annual escalator for debt service
III. CFD Bond Sizing & Construction Proceeds:
2023 Bond Amount (5.00% Interest, 30 Year Term, 29 Year Amortization) $10,280,000 Underwriter Discount (1.75%) $179,900
Reserve Fund (Maximum Annual Debt Service) $897,635
Capitalized Interest (6 mos.) $85,667
Incidental Costs (Estimate) $250,000
Total Discount, Reserve Fund, Capitalized Interest and Incidental Costs $1,413,202 Net Bond Proceeds $8,866,798
CITY OF MENIFEE
Community Facilities District No. 2021‐2
(Sumac Ridge)
Tract Nos. 37668
Revenue Coverage ‐ Assigned Tax Rate
Year
Period
Ending
Gross
Revenues
Priority
Admin Principal Coupon Interest
Capitalized
Interest
Net Debt
Service
Debt
Service
Coverage
1 9/1/2024 $394,294 $30,000 $0 5.00% $85,667 $85,667 $0 N/A 2 9/1/2025 $617,126 $30,600 $15,000 5.00% $514,000 $529,000 110.87% 3 9/1/2026 $629,469 $31,212 $30,000 5.00% $513,250 $543,250 110.13% 4 9/1/2027 $642,058 $31,836 $40,000 5.00% $511,750 $551,750 110.60% 5 9/1/2028 $654,899 $32,473 $55,000 5.00% $509,750 $564,750 110.21% 6 9/1/2029 $667,997 $33,122 $65,000 5.00% $507,000 $572,000 110.99% 7 9/1/2030 $681,357 $33,785 $80,000 5.00% $503,750 $583,750 110.93% 8 9/1/2031 $694,985 $34,461 $100,000 5.00% $499,750 $599,750 110.13% 9 9/1/2032 $708,884 $35,150 $115,000 5.00% $494,750 $609,750 110.49% 10 9/1/2033 $723,062 $35,853 $135,000 5.00% $489,000 $624,000 110.13% 11 9/1/2034 $737,523 $36,570 $150,000 5.00% $482,250 $632,250 110.87% 12 9/1/2035 $752,274 $37,301 $175,000 5.00% $474,750 $649,750 110.04% 13 9/1/2036 $767,319 $38,047 $195,000 5.00% $466,000 $661,000 110.33% 14 9/1/2037 $782,666 $38,808 $215,000 5.00% $456,250 $671,250 110.82% 15 9/1/2038 $798,319 $39,584 $240,000 5.00% $445,500 $685,500 110.68% 16 9/1/2039 $814,285 $40,376 $265,000 5.00% $433,500 $698,500 110.80% 17 9/1/2040 $830,571 $41,184 $295,000 5.00% $420,250 $715,250 110.37% 18 9/1/2041 $847,182 $42,007 $325,000 5.00% $405,500 $730,500 110.22% 19 9/1/2042 $864,126 $42,847 $355,000 5.00% $389,250 $744,250 110.35% 20 9/1/2043 $881,408 $43,704 $385,000 5.00% $371,500 $756,500 110.73% 21 9/1/2044 $899,037 $44,578 $420,000 5.00% $352,250 $772,250 110.65% 22 9/1/2045 $917,017 $45,470 $460,000 5.00% $331,250 $791,250 110.15% 23 9/1/2046 $935,358 $46,379 $495,000 5.00% $308,250 $803,250 110.67% 24 9/1/2047 $954,065 $47,307 $540,000 5.00% $283,500 $823,500 110.11% 25 9/1/2048 $973,146 $48,253 $580,000 5.00% $256,500 $836,500 110.57% 26 9/1/2049 $992,609 $49,218 $630,000 5.00% $227,500 $857,500 110.02% 27 9/1/2050 $1,012,461 $50,203 $675,000 5.00% $196,000 $871,000 110.48% 28 9/1/2051 $1,032,711 $51,207 $725,000 5.00% $162,250 $887,250 110.62% 29 9/1/2052 $1,053,365 $52,231 $780,000 5.00% $126,000 $906,000 110.50% 30 9/1/2053 $1,074,432 $53,275 $840,000 5.00% $87,000 $927,000 110.16% 31 9/1/2054 $1,095,921 $54,341 $900,000 5.00% $45,000 $945,000 110.22% Total $25,035,633 $1,241,383 $10,280,000 $11,263,250 $21,543,250 110.45%

MENIFEE, CA
MAP 37668
3185 C1 Airway Avenue Costa Mesa, CA 92626
P: 714-545-2898 F: 714-545-2878 bgb-inc.com

VESTING TENTATIVE TRACT
L-6

CFD MAINTENANCE PLAN
0 feet120
1" = 60'
60 180 240

N O R T H
NOTE:

ALL WALLS AND FENCES, EXCEPT TRAIL FENCE,

SHALL BE MAINTAINED BY HOA OR PRIVATE
HOMEOWNER.

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EXISTING CHURCH SITE
APN: 372-1601-01-4
PARCEL 3
PARCEL MAP NO. 9998
P.M.B. 46/51 EXISTING CHURCH SITE
APN: 372-1601-01-4

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PLAN
6B
PLAN
8C
PLAN
7B
PLAN
6C
PLAN
7B
PLAN
6E
PLAN
8B
PLAN
7E
PLAN
8C
PLAN
7B
PLAN
6E
PLAN
8B
PLAN
6C
PLAN
7B
PLAN
7C
PLAN
8B
PLAN
6C
PLAN
8E
PLAN
7C
PLAN
6E
PLAN
6E
PLAN
8C
PLAN
7E
PLAN
8C
PLAN
6B
PLAN
7C
22 21
20 19
18 24
25 26
27 28
PLAN
8B
PLAN
6C
PLAN
8E
PLAN
7B
32 31
30 PLAN
6B
PLAN
7C
34 11
10 9
13 14
15 16
17 PLAN
8B
PLAN
6C
PLAN
7E
PLAN
8C
PLAN
6E
PLAN
4C
PLAN
2B
PLAN 1E
PLAN
5B
PLAN
3C
PLAN
4D
PLAN
5B
PLAN
2C
39 38
37 36
41 42
43 44
45 46
47 48
57 58
59 60
61 56
55 54
53 52
51 50
49 62
PLAN
7E
PLAN
8C
PLAN
6B
PLAN
8C
PLAN
7B
PLAN
6C
PLAN
2B
PLAN
1C
PLAN
3E
PLAN
5D
PLAN
1B
PLAN
4D
PLAN
3E
PLAN
5D
PLAN
6E
PLAN
7B
64 77
76 75
74 73
72 71
70 69
68 67
66 65
79 80
81 83
84 PLAN
8E
PLAN
6C
PLAN
7E
PLAN
8B
PLAN
6E
PLAN
7B
PLAN
8E
PLAN
7B
PLAN
2C
PLAN
5E
PLAN
3D
PLAN
4B
PLAN
3C
PLAN
1E
PLAN
5C
PLAN
4B
PLAN
2C
PLAN
1E
PLAN
3B
PLAN
1D
8889 86 85
PLAN
4C
PLAN
3E
PLAN
1BPLAN
2DPLAN
5E
PLAN
4B
PLAN
1D
PLAN
5B
PLAN
2E
PLAN
4D
PLAN
3B
PLAN
5E
PLAN
2D
PLAN
1C
PLAN
5D
114
116
117
118
119
120
121
122
123
PLAN
5C
PLAN
4E
PLAN
2D
PLAN
3B
PLAN
5D
PLAN
4B
PLAN
1C
PLAN
2B
PLAN
4D
PLAN
2EPLAN
1B
PLAN
5C
PLAN
3E
PLAN
4D
PLAN
5E
PLAN
2C
PLAN
1B
PLAN
3D
PLAN
4E
PLAN
5C
PLAN
2E
PLAN
1C
PLAN
3E
PLAN
4C
PLAN
4B
PLAN
3C
PLAN
2D
PLAN
1E
PLAN
5CPLAN
4D
PLAN
1EPLAN
2C
PLAN
3D
PLAN
5EPLAN
4C
PLAN
1DPLAN
3E
PLAN
2C
PLAN
5D
146
145
144
143
142
141
140
PLAN
2E
PLAN
3B
PLAN
5C
PLAN
2D
PLAN
1C
PLAN
4E
PLAN
3B
PLAN
5D
PLAN
1B
154
148
153
152
151
150
149
PLAN
3C
PLAN
2E
PLAN
1C
PLAN
4D
PLAN
3B
PLAN
5E
PLAN
4B
PLAN
5B
PLAN
3C
PLAN
4B
PLAN
5D
PLAN
2E
PLAN
1C
PLAN
4B
PLAN
1C
PLAN
2B
PLAN
3D
PLAN
4B
PLAN
5D
PLAN
2B
PLAN
1D

STREET G (PUBLIC)

STREET C (PUBLIC)STREET C (PUBLIC)

STREET B (PUBLIC)

STREET A (PUBLIC)STREET A (PUBLIC)

STREET G (PUBLIC)

EAGLE ROAD (PUBLIC)

STREET G (PUBLIC)

STREET D (PUBLIC)STREET D (PUBLIC)

LINDENBERGER ROAD (PUBLIC)

STREET A (PUBLIC)

STREET B (PUBLIC)

STREET C (PUBLIC)

STREET H (PUBLIC)

STREET I (PUBLIC)
D LIC)

EAGLE ROAD (PUBLIC)

LINDENBERGER ROAD
(PUBLIC)

STREET C
(PUBLIC)
35 PLAN
6B
PLAN
7B
13 40
41 42
PLAN
1E
43 LOT C
PLAN
1D
175
WATER

QUALITY BASINOPEN SPACEPARCEL B

BARTON BANKSSTREET (PUBLIC)

SCOTT ROAD (EXISTING PUBLIC)

STREET E (PUBLIC)

BARTONBANKSSTREET(PUBLIC)

EXISTING RIPARIAN AREA

0.23 ACRESPARCEL W
WATER

QUALITY
BASIN

EXISTING RIPARIAN AREA

0.23 ACRESPARCEL W
131
PLAN
2C

WATER QUALITY BASIN

OPEN SPACEPARCEL F

STREET B (PUBLIC)
108
107
PLAN
8B 36 61
PLAN
7B
27 26
25 24
28 STREET TREE 191 EA

CFD MAINTENANCE LEGEND
79 EASTREET LIGHT
STORM DRAIN PIPE 838 LF
TRAFFIC SIGNAL 5 EA STREETSCAPE 75,448 SF = 1.7 AC (SCOTT RD)
PERIMETER STREET 1,948 LF 108,161 SF
INTERIOR STREET 9,826 LF 397,202 SF
SIDEWALK 29,624 SF = 0.7 AC
DG TRAIL 11,374 SF = 0.3 AC PASSIVE TRAIL 10,925 SF = 0.3 AC CATCH BASIN 5 EA EXISTING RIPARIAN / VERNAL POOL AREAS 167,718 SF = 3.9 AC OPEN SPACE 159,515 SF = 3.7 AC

MENIFEE, CA
MAP 37668
3185 C1 Airway Avenue Costa Mesa, CA 92626
P: 714-545-2898 F: 714-545-2878 bgb-inc.com

VESTING TENTATIVE TRACT
L-7

HOA MAINTENANCE PLAN
0 feet120
1" = 60'
60 180 240

N O R T H
NOTE:

ALL WALLS AND FENCES, EXCEPT TRAIL FENCE,

SHALL BE MAINTAINED BY HOA OR PRIVATE
HOMEOWNER.

SIGHT DISTANCE LINE

HOA MAINTENANCE LEGEND
PARK 9,768 SF = 0.2 AC
STREETSCAPE 32,524 SF = 0.6 AC
TREES 162 EA
BASIN LOTS 145,243 SF =
* *
*
*
*
*
*
* *
*
*
* *
*
*
*
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*
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O O O O O

O O O O O O O O O O O

O O O O O O O O O O O O O O
O O O

O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O

O O O O O O O O O O O O O O O

O O O O O O O O O O O O O O O
OO
O O O
O O O
O O O
O O O
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OPEN SPACEPARCEL D

OPEN SPACEPARCEL E
PARCEL
G
WATER

QUALITY BASINOPEN SPACEPARCEL B

WATER QUALITY BASIN

OPEN SPACEPARCEL F
U

PARCEL S

PARCEL K

PARCEL N

PARCEL Y PARCEL M

PARCEL L
PARCEL
T
PARCEL
Z

PARCEL J

PARCEL I

PARCEL P

WATER QUALITY BASIN

PARCEL BB

EXISTING RIPARIAN AREA

0.23 ACRESPARCEL W

STREET F (PUBLIC)

PITMAN LANE (EXISTING PUBLIC)
BAR(EX

STREET J (PUBLIC)STREET G (PUBLIC)

BARTON BANKS STREET (PUBLIC)

STREET E (PUBLIC) STREET E (PUBLIC)

STREET F (PUBLIC)

STREET E (PUBLIC)

STREET F (PUBLIC)

PITMAN LANE (EXISTING PUBLIC)
PARCEL 3
PARCEL MAP NO. 9998
P.M.B. 46/51
PARCEL 3
PARCEL MAP NO. 9998
P.M.B. 46/51

STREET F (PUBLIC)

STREET E (PUBLIC)
1 2
3 4
7 68
5 33
40 87
94 95
96 97
98 91
92 93
90 106 107
115
133134135137 136138
139
147
155 169168
23 29
12 129 126 125132 124131 130 127128
99161 162 175 100 113
105 108167 170156
104 109
103 110
102 111
101 112163 174
164 173
165 172
166 171157
158
159
160
78 82
63 35

PARCEL H

STREET G (PUBLIC)

STREET C (PUBLIC)STREET C (PUBLIC)

STREET B (PUBLIC)STREET B (PUBLIC)

STREET A (PUBLIC)STREET A (PUBLIC)

STREET G (PUBLIC)

STREET D (PUBLIC)STREET D (PUBLIC)

LINDENBERGER ROAD (PUBLIC)

STREET A (PUBLIC)

STREET B (PUBLIC)

STREET C (PUBLIC)

STREET H (PUBLIC)

STREET I (PUBLIC)

LINDENBERGER ROAD (PUBLIC)

LINDENBERGER
ROAD
(PUBLIC)
29 PLAN
7C

STREET C
(PUBLIC)

STREET B
(PUBLIC)

STREET A
(PUBLIC)
35 PLAN
6B
PLAN
7B
13 40
41 42
PLAN
1E
43 LOT C
PLAN
1D
175

OPEN SPACE
LOT A

WATER QUALITY BASIN

PARCEL CC

PARCEL R

PARCEL O

PARCEL Q

WATER QUALITY BASIN

PARCEL AA

EXISTING VERNAL POOL

0.25 ACRESPARCEL X

PARCEL S
WATER

QUALITY BASINOPEN SPACEPARCEL B
WATER

QUALITY BASINOPEN SPACEPARCEL B

EAGLE ROAD (PUBLIC)

EAGLE ROAD (PUBLIC)
UU
PARCEL
G
P.L.

TYP.

TRACT BOUNDARY TRACT BOUNDARY
P.L.

TYP.

R.O.W.

P.L.

TYP.

P.L.

TYP.

TRACT BOUNDARYTRACT BOUNDARY
R.O.W.

P.L.

TYP.

P.L.

TYP.

P.L.

TYP.

R.O.W.

P.L.

TYP.

R.O.W.

28202 CABOT RD | SUITE 620 | LAGUNA NIGUEL, CA 92677
PHONE: (949) 542-7070 | FAX: (949) 542-7076
www.zimmermangroup.com

April 12, 2023

Rochelle Clayton
Assistant City Manager
City of Menifee
29844 Haun Road
Menifee, CA 92586
E. [email protected]

RE: Request for Issuance of Bonds for CFD No. 2021-2 (Sumac Ridge)

Dear Ms. Clayton,

On behalf of Meritage Homes of California, Inc. , we are requesting the City of Menifee initiate the issuance of the bonds for CFD No. 202 1-2 (Sumac Ridge) (“CFD”). The CFD includes 175 residential lots within Tract Map No. 37668 (the “Project”). The summary of the development below shows the Project’s status as of March 31st, and the status as of May 31st based on additional units in escrow with closings expected by the end of May. As shown below, the Project is expected to have 65% of the homes c losed by the end of the year . The first closings for the project occurred in November 2022 and have averaged more than 10 closings per month through March 2023.

Development
Status as of

3.31.23 Units % of
Total
Development
Status as of

5.31.23 Units % of
Total
Development
Status as of

12.31.23 (Forecast)
Units % of
Total
Closings 52 30% Closings 72 41% Closings 114 65%
Total
Permitted
Units
113 65%
Total
Permitted
Units
129 74% Total
Permitted Lots 152 87%

The attached Exhibit A shows the estimated bond sizing and debt service schedule for the bonds, which results in approximately $9 million in construction proceeds. Special tax revenues from Developed P roperty for fiscal year 2023/24 are expected to be $394,294. The balance of the debt service due in 2024 would be funded from capitalized interest so no special taxes would need to be levied on Approved Property or Undeveloped Property. Based on building permit projections, it is expecte d that all 100% of the debt service for 2025 will also be funded from special taxes levied on Developed Property.

As shown in Exhibit B, estimated eligible costs are nearly $10.3 million, which is well in excess of the estimated funding of $9 million . Most of the se costs have already been incurred, so we are hoping to get the bonds issued as soon as possible.

We appreciate your consideration of this request and look forward to working with the City team to issue the Bonds for the Project. If you have any questions, please contact me at (949) 542-7071.

Sincerely,

Jim Zimmerman

CC: Margarita Cornejo, City of Menifee
Regina Funderburk, City of Menifee
Shane Spicer, Spicer Consulting Group
Efrem Joelson, Meritage Homes
Nick Harris, Meritage Homes
Exhibit A
Meritage Homes - Sumac Ridge (TTM 37668)
City of Menifee CFD No. 2021-2
Estimated Debt Service & Bond Sizing Schedule
April 12, 2023

ISSUANCE ASSUMPTIONS ESTIMATED SOURCES AND USES
Closing Date 10/1/2023 Sources
Special Tax Revenue Escalation 2.000% Par Bond Amount 10,420,000$ Annual Administration Expense 30,000$
Administration Expense Escalation 2.000% Uses
Debt Service Coverage Ratio 110% Reserve Fund 871,952$
Underwriter Discount Estimate 1.750% Capitalized Interest 122,047 Issuance Costs Estimate 250,000$ Underwriter Discount 182,350 Months of Capitalized Interest 3.00 Costs Of Issuance 250,000 2022/23 CFD Revenues -$ Construction Fund 8,993,651 Total Uses 10,420,000$

BOND DEBT SERVICE
Period Gross Priority Capitalized Net Debt Debt Service Ending Revenues Admin Principal Yield Interest Interest Service Coverage 9/1/2024 394,294$ 30,600$ -$ 2.720% 447,506$ 122,047$ 325,459$ N/A 9/1/2025 605,626 31,212 30,000 2.820% 488,189 - 518,189 110.85% 9/1/2026 617,739 31,836 45,000 3.310% 487,343 - 532,343 110.06% 9/1/2027 630,094 32,473 55,000 3.670% 485,853 - 540,853 110.50% 9/1/2028 642,695 33,122 70,000 3.800% 483,835 - 553,835 110.06% 9/1/2029 655,549 33,785 80,000 3.900% 481,175 - 561,175 110.80% 9/1/2030 668,660 34,461 95,000 3.970% 478,055 - 573,055 110.67% 9/1/2031 682,033 35,150 110,000 4.060% 474,283 - 584,283 110.71% 9/1/2032 695,674 35,853 125,000 4.130% 469,817 - 594,817 110.93% 9/1/2033 709,588 36,570 145,000 4.200% 464,655 - 609,655 110.39% 9/1/2034 723,779 37,301 165,000 4.270% 458,565 - 623,565 110.09% 9/1/2035 738,255 38,047 185,000 4.531% 451,519 - 636,519 110.01% 9/1/2036 753,020 38,808 205,000 4.531% 443,137 - 648,137 110.19% 9/1/2037 768,080 39,584 225,000 4.531% 433,849 - 658,849 110.57% 9/1/2038 783,442 40,376 250,000 4.531% 423,654 - 673,654 110.30% 9/1/2039 799,111 41,184 275,000 4.531% 412,326 - 687,326 110.27% 9/1/2040 815,093 42,007 300,000 4.720% 399,866 - 699,866 110.46% 9/1/2041 831,395 42,847 330,000 4.720% 385,706 - 715,706 110.18% 9/1/2042 848,023 43,704 360,000 4.720% 370,130 - 730,130 110.16% 9/1/2043 864,983 44,578 390,000 4.720% 353,138 - 743,138 110.40% 9/1/2044 882,283 45,470 425,000 4.720% 334,730 - 759,730 110.15% 9/1/2045 899,929 46,379 460,000 4.781% 314,670 - 774,670 110.18% 9/1/2046 917,927 47,307 495,000 4.781% 292,677 - 787,677 110.53% 9/1/2047 936,286 48,253 535,000 4.781% 269,011 - 804,011 110.45% 9/1/2048 955,012 49,218 580,000 4.781% 243,433 - 823,433 110.00% 9/1/2049 974,112 50,203 620,000 4.781% 215,703 - 835,703 110.55% 9/1/2050 993,594 51,207 670,000 4.814% 186,061 - 856,061 110.08% 9/1/2051 1,013,466 52,231 720,000 4.814% 153,807 - 873,807 110.01% 9/1/2052 1,033,735 53,275 770,000 4.814% 119,147 - 889,147 110.27% 9/1/2053 1,054,410 54,341 825,000 4.814% 82,079 - 907,079 110.25% 9/1/2054 1,075,498 55,428 880,000 4.814% 42,363 - 922,363 110.59% Total 24,963,386$ 1,296,811$ 10,420,000$ 4.750% 11,146,284$ 122,047$ 21,444,237$ 110.00%

Exhibit B
Meritage Homes - Sumac Ridge (TTM 37668)
City of Menifee CFD No. 2021-2
List of CFD Eligible Facilities
April 12, 2023
Per Unit Total
Units 175
City of Menifee Fees
Law Enforcement 250$ 43,750$
Fire Facilities 665 116,375
Circulation 5,060 885,500
Storm Drainage 2,477 433,475
General Government 1,106 193,550
Public Use Facilities 167 29,225
Parks - Improvements 716 125,300
Subtotal - City DIF 10,441$ 1,827,175$
City Projects 2,088 365,435
Total 12,529$ 2,192,610$
City of Menifee Quimby Fees 3,443$ 602,500$
City of Menifee Improvements
Traffic Signal (Scott Road) 2,088$ 365,422$
Offsite Landscaping (Scott & Lindenberger) 5,855 1,024,579 Offsite Streets (Scott Road) 5,708 998,932
Total 13,651$ 2,388,933$
Total City Facilities 29,623$ 5,184,043$
EMWD Fees
Sewer Financial Participation Charge 3,391$ 593,425$ Sewer Treatment Plant Capacity Charge 6,248 1,093,400 Water Financial Participation Charge 7,235 1,266,125 Water Supply Development Fee 393 68,775
1" Meter Drop-In Fee 377 65,975
Landscape Meter Fee (3 x 1.5" meters) 563 98,529 Landscape Meter Drop-In Fee (3 x 1.5" meters) 8 1,461 Total 18,215$ 3,187,690$
Menifee Union School District
Square Footage 2,652 464,058
Developer School Fee 10,978$ 1,921,200$
Total Eligible Fees 58,817$ 10,292,933$

CITY OF MENIFEE

SUBJECT: Proposed Bond Issue for Community Facilities District No. 2021-1 (Banner Park)
MEETING DATE: May 9, 2023
TO: Finance Committee
PREPARED BY: Lauri Lockwood, Financial Analyst
REVIEWED BY: Margarita Cornejo, Acting Chief Financial Officer

RECOMMENDED ACTION

1. Review the proposed S eries 2 bond issue request for Community Facilities District No. 2021-1 (Banner Park ) by Pulte H ome Company to finance the costs of certain public improvements for the development of a residential tract cont aining 256 units within the City; and

DISCUSSION

The developer, Pulte Home Company, owns a residential tract approved for 256 lots within the City. The residential tract is located north of Newport Road and east of Lindenberger Road.

Table 1: Summary of CFD 2021-1 (Banner Park) Formation:

Description Date
Finance Committee CFD Formation Review January 26, 2021 Resolution of Intention April 21, 2021
Resolutions of CFD Formation (City Council Approval) June 2, 2021/ 2nd Reading June 16, 2021
Request for Bond Issuance Series 1 June 7, 2022
Finance Committee Bond Issuance Series 1 Review June 21, 2022 Resolution Authorizing the Issuance of Bonds September 21, 2022 Bonds Issued November 1, 2022
Request for Bond Issuance Series 2 April 26, 2023
Finance Committee Bond Issuance Review May 9, 2023

On April 26 , 2023 , the developer requested the issuance of Series 2 bonds for Community Facilities District No. 2021-1 (Banner Park) (“CFD No. 2021-1”) to fund eligible facilities.

City of Menifee Staff Report
Banner Park – CFD Bond
March 9, 2023

Page 2 of 2 ends

Currently, of the 256 lots, building permits have been issued for all 256, 35 have sold and are in escrow, and 201 have sold and closed. As of May 1, 2023, 100% of the b uilding permits are issued and 79% of the units have been sold and closed. The builder is requesting to issue the last of the bonds eligible to be sold for an estimated $6,975,000. The bond authorization limit for this District is not -to-exceed $17,000,000. In November 2022, the first series of bond s were issued, t otaling $5,375,000. Based on current interest rates it is anticipated that the second series of bonds will f inance approximately $6 million in eligible facilities from this se cond and final bond sale for CFD No. 2021-1.

A preliminary bond analysis was prepared by Spicer Consulting Group to evaluate the viability of the bond issuance e stimating the valuation, delinquency history, and effective tax rates (ETR). The development has a relatively strong value to lien ratio of 7.39:1, greater than the City’s policy of 4:1 and an estimated ETR less than 2%. The first year the CFD taxes were levied was Fiscal Year 2022/2023 and the district has a 0.47% delinquency rate, which is less than the 5% limit. The improvements proposed to be financed include:

 City Development Impact Fees and Facilities
 EMWD Fees
 Menifee Union School District Fees.

This item is to discuss bond issuance criteria and review the proposed bond issuance for CFD No. 2021-1 (Banner Park).

ATTACHMENTS

1. Proforma Summary

2. Project Map

3. Preliminary Bond Analysis -Parity

4. Boundary Map

5. Annex 8 Maintenance Exhibit

6. Bond Issue Request
CFD 2021‐1 (Banner Park)
Proforma Summary Sheet – Parity Bonds
Applicant: Pulte Homes
Assumptions
Average Coupon 5.00%
Priority Administration $30,000
Cost of Issuance $250,000
Capitalized Interest Period None
Special Tax Escalation 2%
Bond Term 30 Years
Underwriter Discount 2.00%
Total Special Tax Revenues – FY 2023‐24 $717,675
Estimated Sources and Uses
Sources
Par Bond Amount $6,975,000
Uses
Reserve Fund $609,491
Capitalized Interest $0
Underwriter Discount $122,063
Cost of Issuance $250,000
Improvement Fund $5,993,446
Allocation of Improvement Fund
Description Total Funded 2022A Bonds Remaining Eligible City Facilities $6,077,222
City Fees $1,936,896
City Premium $387,379
EMWD Fees $3,997,500
MUSD Fees $896,000
Total $13,294,997 $4,542,580 $8,752,417
City Policy
Acreage Gross: 80.58; Net: 37.01
Development Description Detached Single Family Residential Number of Units (50 min) 256 Units
Estimated Home Size Range 2,191 SF to 3,237 SF
Average Home Size 2,680 SF
Average Estimated Home Price $637,752
Total Effective Tax Rate (2.00% Max) 1.77%
CFD Tax Rate Range $2,617 to $3,174
Escalation (2.00% Max) Yes, 2.00%
Maintenance CFD Annexed, CFD 2017‐1
Maintenance CFD Rate $742/Unit

ATTACHMENT #2

PROJECT LOCATION MAP
CFD NO. 2021-1 (BANNER PARK)

CITY OF MENIFEE
Community Facilities District No. 2021-1
(Banner Park)
Preliminary Bond Analysis - Parity
As of 5/1/2023
Preliminary Bond Compliance Table
Requirement 2021-1

1. Value to Lien(1)

4.00:1 7.39:1

2. Delinquency Levels Less than 5% 0.47%

3. Effective Tax Rate(2)

2.00% 1.75% - 1.80%
(1) Value to Lien is based upon estimated sizing information and Proposed Home Prices. (2) Range includes FY 2022-23 enrollment.

1. General Information & Development Status
District Formation Date June 2, 2021
District Assessed Value(1) N/A
Bond Structure 91% Assigned
Estimated Preliminary Par Amount(2)
$6,975,000
Preliminary Value to Lien(3)

7.39:1
(1) District Appraised Value information as of 8/5/2022 (2) Par amount estimated based on estimated 5.00% Interest Rate. (3) Value to Lien is based upon estimated sizing information and Proposed Home Prices. 5/1/2023 Ownership Status As Of
Tract No. Land Owner Map Recordation
32102 Pulte Home 9/30/2020
No. Lots @
Buildout
Permits Issued as of
5/1/2023
Developed
Percentage
Sold & In Escrow
to Date
Sold & Closed
to Date
Ave Monthly
Absorption
Five Month
Projection
256 Lots 256 Lots 100% 35 201 7 236 Lots
Projected Closed 92%
Projected Permitted 100%

2. Special Tax Levy & Delinquency Status
No. Parcels FY 2022-23 Levy Delinquencies(1)
121 $332,335 0.47%
(1) Delinquency information as of 5/1/2023 for FY 2022-23.

3. Bond Issuance Impact to Property Owners
Avg Home
Value(1) Ad-Valorem Tax Other Taxes CFD Tax Total Tax ETR $637,752 $7,410 $1,090 $2,803 $11,303 1.77%
(1) Based upon Sales Price provided by Pulte on May 1, 2023.

Criteria
Estimated Average Tax Bill for FY 23-24

4. Proposed Use of Proceeds (Preliminary)
Estimated Project Fund Capacity: 14,497,565 $
Funded by 2022A Series Bonds 4,542,581 $
Eligible to be Funded $9,954,984
Sources Total
Bond Proceeds: Par Amount 6,975,000 $
Facilities Special Tax Levy FY 22-23(1) -$
Total Sources 6,975,000 $
Uses Total
Project Fund Proceeds 5,993,446 $
Underwriter's Discount 122,063 $
Capitalized Interest -$
Debt Service Reserve Fund 609,491 $
Cost of Issuance 250,000 $
Total Uses 6,975,000$
Net Bond Funds -$
CITY OF MENIFEE
Community Facilities District No. 2021‐1
(Banner Park)
Tract Nos. 32102
Calculation of Bond Sizing and Total Tax Rates
I. Home Prices and Combined Tax Rates:

Plan 23 4 5 67 CFD TOTAL
Range of Home Sizes in Square Feet per RMA 2,100 to 2,301 to 2,501 to 2,701 to 2,901 to Over 2,300 2,500 2,700 2,900 3,100 3,100
Estimated Home Size 2,191 2,388 2,654 2,835 3,047 3,237 2,680 Estimated Home Price $584,987 $595,076 $616,580 $643,290 $691,727 $732,442 $637,752 Ad‐Valorem Tax Rate (1.00%) $5,849.87 $5,950.76 $6,165.80 $6,432.90 $6,917.27 $7,324.42 $6,377.52 Metro Water West (0.00350%) $20.47 $20.83 $21.58 $22.52 $24.21 $25.64 $22.32 Menifee School (0.06277%) $367.20 $373.53 $387.03 $403.79 $434.20 $459.75 $400.32 Perris Union HS (0.08244%) $482.26 $490.58 $508.31 $530.33 $570.26 $603.83 $525.76 Mt. San Jacinto Jr. College (0.01320%) $77.22 $78.55 $81.39 $84.91 $91.31 $96.68 $84.18 Subtotal GO Bond Debt $6,797.02 $6,914.25 $7,164.10 $7,474.45 $8,037.25 $8,510.32 $7,410.10 Flood Control Stormwater / Cleanwater / Santa Ana $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 Valley Wide LMD 88‐1 Parks $311.00 $311.00 $311.00 $311.00 $311.00 $311.00 $311.00 Valley Wide Regional Fac LMD 88‐1 $5.54 $5.54 $5.54 $5.54 $5.54 $5.54 $5.54 EMWD Standby $21.00 $21.00 $21.00 $21.00 $21.00 $21.00 $21.00 MWD Standby charge $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 Proposed CFD No. 2017‐1 ‐ Maintenance Services* $741.66 $741.66 $741.66 $741.66 $741.66 $741.66 $741.66 Proposed CFD No. 2021‐1 ‐ Facilities Special Tax** $2,617.00 $2,642.00 $2,666.00 $2,798.00 $3,060.00 $3,174.00 $2,803.42 Subtotal Special Assessments and Taxes $3,706.92 $3,731.92 $3,755.92 $3,887.92 $4,149.92 $4,263.92 $3,893.34 Total Annual Property Taxes $10,503.94 $10,646.17 $10,920.02 $11,362.37 $12,187.17 $12,774.24 $11,303.44 Annual Prop. Tax Rates as % of Home Price 1.80% 1.79% 1.77% 1.77% 1.76% 1.74% 1.77% Unit Mix 41 71 20 55 30 39 256 (1)Total CFD ‐ Annual Tax Collections $107,297 $187,582 $53,320 $153,890 $91,800 $123,786 $717,675 (2)Administration $30,000
Total Annual Special Taxes for Bonding
((1)Total Special Taxes ‐ (2)Admin. / 110% Coverage) $93,465 $163,401 $46,446 $134,052 $79,966 $107,829 $625,159 II. Total Estimated Home Square Footage: 89,831 169,548 53,080 155,925 91,410 126,243 686,037 * Escalates at greater of 2% or CPI
** Includes a 2% annual escalator for debt service
III. CFD Bond Sizing & Construction Proceeds:
2023 Bond Amount (5.00% Interest, 30 Year Term, 29 Year Amortization) $6,975,000 Underwriter Discount (1.75%) $122,063
Reserve Fund (Maximum Annual Debt Service) $609,491
Capitalized Interest (6 mos.) $0
Incidental Costs (Estimate) $250,000
Total Discount, Reserve Fund, Capitalized Interest and Incidental Costs $981,554 Net Bond Proceeds $5,993,446
CITY OF MENIFEE
Community Facilities District No. 2021‐1
(Banner Park)
Tract Nos. 32102
Revenue Coverage ‐ Assigned Tax Rate
Year
Period
Ending
Gross
Revenues
Priority
Admin
Series 2022A
Debt Service Principal Coupon Interest
Net Debt
Service
Debt
Service
Coverage
1 9/1/2023 $332,335 $30,000 $271,886 $0 5.00% $0 $271,886 111.20% 2 9/1/2024 $717,675 $30,600 $294,869 $5,000 5.00% $348,750 $353,750 110.87% 3 9/1/2025 $732,029 $31,212 $299,369 $15,000 5.00% $348,500 $363,500 110.44% 4 9/1/2026 $746,669 $31,836 $303,619 $25,000 5.00% $347,750 $372,750 110.32% 5 9/1/2027 $761,602 $32,473 $312,619 $30,000 5.00% $346,500 $376,500 110.63% 6 9/1/2028 $776,835 $33,122 $321,119 $35,000 5.00% $345,000 $380,000 111.21% 7 9/1/2029 $792,371 $33,785 $324,119 $50,000 5.00% $343,250 $393,250 110.48% 8 9/1/2030 $808,219 $34,461 $331,869 $60,000 5.00% $340,750 $400,750 110.27% 9 9/1/2031 $824,383 $35,150 $339,119 $70,000 5.00% $337,750 $407,750 110.39% 10 9/1/2032 $840,871 $35,853 $345,869 $80,000 5.00% $334,250 $414,250 110.84% 11 9/1/2033 $857,688 $36,570 $352,119 $95,000 5.00% $330,250 $425,250 110.29% 12 9/1/2034 $874,842 $37,301 $357,869 $110,000 5.00% $325,500 $435,500 110.14% 13 9/1/2035 $892,339 $38,047 $368,119 $120,000 5.00% $320,000 $440,000 110.49% 14 9/1/2036 $910,185 $38,808 $372,619 $135,000 5.00% $314,000 $449,000 111.08% 15 9/1/2037 $928,389 $39,584 $381,619 $150,000 5.00% $307,250 $457,250 110.92% 16 9/1/2038 $946,957 $40,376 $389,869 $170,000 5.00% $299,750 $469,750 110.00% 17 9/1/2039 $965,896 $41,184 $396,994 $185,000 5.00% $291,250 $476,250 110.81% 18 9/1/2040 $985,214 $42,007 $403,331 $205,000 5.00% $282,000 $487,000 110.86% 19 9/1/2041 $1,004,918 $42,847 $413,881 $225,000 5.00% $271,750 $496,750 110.36% 20 9/1/2042 $1,025,017 $43,704 $423,381 $245,000 5.00% $260,500 $505,500 110.37% 21 9/1/2043 $1,045,517 $44,578 $431,831 $265,000 5.00% $248,250 $513,250 110.88% 22 9/1/2044 $1,066,427 $45,470 $438,931 $290,000 5.00% $235,000 $525,000 110.86% 23 9/1/2045 $1,087,756 $46,379 $444,956 $320,000 5.00% $220,500 $540,500 110.35% 24 9/1/2046 $1,109,511 $47,307 $454,906 $345,000 5.00% $204,500 $549,500 110.52% 25 9/1/2047 $1,131,701 $48,253 $463,513 $375,000 5.00% $187,250 $562,250 110.26% 26 9/1/2048 $1,154,335 $49,218 $475,775 $400,000 5.00% $168,500 $568,500 110.70% 27 9/1/2049 $1,177,422 $50,203 $485,975 $430,000 5.00% $148,500 $578,500 110.85% 28 9/1/2050 $1,200,970 $51,207 $494,525 $465,000 5.00% $127,000 $592,000 110.68% 29 9/1/2051 $1,224,990 $52,231 $501,425 $500,000 5.00% $103,750 $603,750 111.19% 30 9/1/2052 $1,249,490 $53,275 $511,675 $540,000 5.00% $78,750 $618,750 110.63% 30 9/1/2053 $1,249,490 $53,275 $0 $1,035,000 5.00% $51,750 $1,086,750 110.07% Total $29,422,042 $1,270,318 $11,707,767 $6,975,000 $7,868,500 $15,115,386 110.78%

CHAPARRAL
DR
FALCON
HILL
DR

LINDENBERGERRD
BRIGGS
RD

DOMENIGONI
PKWY
COMMUNITY FACILITIES DISTRICT NO. 2021-1
(BANNER PARK)

CITY OF MENIFEE,

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
SHEET 1 OF 1 SHEET

I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED
BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2021-1
(BANNER PARK), CITY OF MENIFEE, COUNTY OF RIVERSIDE, STATE

OF CALIFORNIA, WAS APPROVED BY THE CITY COUNCIL

OF THE CITY OF MENIFEE AT A REGULAR MEETING
THEREOF, HELD ON ______ DAY OF ______, 20____,
B Y RE S OL U T I ON N O . _ _ __ _ _ __ _ _ __ _ __ ___________________________________

CITY CLERK

C I T Y O F M E N I F E E

FILED IN THE OFFICE OF THE CITY CLERK, CITY OF MENIFEE, THIS ____ DAY OF ________, 20____.
______________________________

CITY CLERK

CITY OF MENIFEE
RECORDED THIS ____ DAY OF _______________, 20____ AT
THE HOUR OF ____ O'CLOCK __M IN BOOK _____
PAGE _____ OF MAPS OF ASSESSMENT AND COMMUNITY

FACILITIES DISTRICTS IN THE OFFICE OF THE COUNTY

RECORDER, IN THE COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA.

FEE: _____________ NO.: ______________________

PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDER
BY: _______________________________
DEPUTY
CFD 2021-1
\_
·|}þ74·|}þ74
§¨¦215

MENIFEE

THIS BOUNDARY MAP CORRECTLY SHOWS THE BOUNDARIES
OF THE COMMUNITY FACILITIES DISTRICT. FOR DETAILS

CONCERNING THE LINES AND DIMENSIONS OF LOTS OR

PARCEL REFER TO THE COUNTY ASSESSOR'S MAPS FOR
FISCAL YEAR 2020-21.
0 750 1,500 375 Feet
-

PROPOSED BOUNDARY MAP
LEGEND

CFD BOUNDARY

PARCEL LINE

CITY BOUNDARY

XXX-XXX-XXX ASSESSOR PARCEL NUMBER
340-050-032
340-050-032
340-050-034
340-050-034
340-050-034
340-050-034

28202 CABOT RD | SUITE 620 | LAGUNA NIGUEL, CA 92677
PHONE: (949) 542-7070 | FAX: (949) 542-7076
www.zimmermangroup.com

April 26, 2023

Rochelle Clayton
Deputy City Manager
City of Menifee
29844 Haun Road
Menifee, CA 92586
T. (951) 723-3701
E. [email protected]

RE: Request for Issuance of Bonds for CFD No. 2021-1 (Banner Park)

Dear Ms. Clayton,

On behalf of Pulte Home Company (“Developer”), we are requesting the City of Menifee (“City”) move forward with the issuance of the second series of bonds (“Bonds”) for CFD No. 2021-1 (Banner Park) (“CFD”).

As you may be aware, the CFD includes 256 lots within Tract Map Nos. 32102 and 32102-1 (the “Project”). Last year we issued the first series of bonds for 131 lots, we would now like to issue the second series of bonds for the remaining 125 lots within the Project (“Series 2 Bonds”). A summary of the development status of the Project is shown in the table below.

Development Status Units
% of
Total
Closings 201 79%
Completed Models 6 2%
Under Construction* 42 16%
Finished Lots 7 3%
Total Units 256 100%
* Total of 35 sold homes.

The attached Exhibit A shows the estimated debt service schedule for the Series 2 Bonds, which results in approximately $5.6M in construction proceeds. This $5.6M would contribute towards the funding of the CFD eligible facilities shown in the attached Exhibit B.

We appreciate your consideration of this request and look forward to working with the City team to issue at least the Series 2 Bonds for the Project. If you have any questions, please contact me at (949) 542-7072.

Sincerely,

John Zimmerman
Principal

CC: Shane Spicer, Spicer Consulting Group
Daren Warren, Pulte Home Company

EXHIBIT A
Pulte Homes - Banner Park (TR Nos. 32102 and 32102-1)
Estimated Debt Service & Bond Sizing Schedule
April 26, 2023

ISSUANCE ASSUMPTIONS ESTIMATED SOURCES AND USES
Closing Date 9/1/2023 Sources
Special Tax Revenue Escalation 2.000% Par Bond Amount 6,505,000$ Annual Administration Expense 30,000$
Administration Expense Escalation 2.000% Uses
Debt Service Coverage Ratio 110% Reserve Fund 596,328$
Underwriter Discount Estimate 1.500% Capitalized Interest - Issuance Costs Estimate 225,000$ Underwriter Discount 97,575 Months of Capitalized Interest - Costs Of Issuance 225,000 Gross Special Tax Revenues 2023-24 717,603$ Construction Fund 5,586,097 Total Uses 6,505,000$
Estimated Funding Per Unit 21,821$

BOND DEBT SERVICE
Period Gross Series 1 Priority Capitalized Net Debt Debt Service Ending Revenues Debt Service Admin Principal Yield Interest Interest Service Coverage 9/1/2024 717,603$ 294,869$ 30,600$ 10,000$ 1.930% 316,288$ -$ 326,288$ 110.60% 9/1/2025 731,955 299,369 31,212 20,000 1.930% 316,095 - 336,095 110.27% 9/1/2026 746,595 303,619 31,836 30,000 2.180% 315,709 - 345,709 110.08% 9/1/2027 761,526 312,619 32,473 35,000 2.530% 315,055 - 350,055 110.02% 9/1/2028 776,757 321,119 33,122 40,000 2.930% 314,170 - 354,170 110.12% 9/1/2029 792,292 324,119 33,785 50,000 3.230% 312,998 - 362,998 110.39% 9/1/2030 808,138 331,869 34,461 60,000 3.430% 311,383 - 371,383 110.01% 9/1/2031 824,301 339,119 35,150 65,000 3.680% 309,325 - 374,325 110.61% 9/1/2032 840,787 345,869 35,853 75,000 3.930% 306,933 - 381,933 110.60% 9/1/2033 857,603 352,119 36,570 90,000 4.130% 303,985 - 393,985 110.04% 9/1/2034 874,755 357,869 37,301 100,000 4.280% 300,268 - 400,268 110.46% 9/1/2035 892,250 368,119 38,047 110,000 4.380% 295,988 - 405,988 110.35% 9/1/2036 910,095 372,619 38,808 125,000 4.430% 291,170 - 416,170 110.46% 9/1/2037 928,297 381,619 39,584 140,000 4.510% 285,633 - 425,633 110.09% 9/1/2038 946,862 389,869 40,376 150,000 4.580% 279,319 - 429,319 110.66% 9/1/2039 965,800 396,994 41,184 170,000 4.650% 272,449 - 442,449 110.15% 9/1/2040 985,116 403,331 42,007 185,000 4.710% 264,544 - 449,544 110.58% 9/1/2041 1,004,818 413,881 42,847 200,000 4.780% 255,830 - 455,830 110.61% 9/1/2042 1,024,914 423,381 43,704 220,000 4.830% 246,270 - 466,270 110.29% 9/1/2043 1,045,413 431,831 44,578 240,000 4.880% 235,644 - 475,644 110.29% 9/1/2044 1,066,321 438,931 45,470 265,000 4.930% 223,932 - 488,932 110.02% 9/1/2045 1,087,647 444,956 46,379 290,000 4.980% 210,868 - 500,868 110.09% 9/1/2046 1,109,400 454,906 47,307 310,000 5.030% 196,426 - 506,426 110.48% 9/1/2047 1,131,588 463,513 48,253 340,000 5.130% 180,833 - 520,833 110.06% 9/1/2048 1,154,220 475,775 49,218 365,000 5.130% 163,391 - 528,391 110.04% 9/1/2049 1,177,304 485,975 50,203 390,000 5.130% 144,666 - 534,666 110.43% 9/1/2050 1,200,851 494,525 51,207 425,000 5.130% 124,659 - 549,659 110.10% 9/1/2051 1,224,868 501,425 52,231 460,000 5.130% 102,857 - 562,857 110.18% 9/1/2052 1,249,365 511,675 53,275 495,000 5.130% 79,259 - 574,259 110.14% 9/1/2053 1,274,352 - 54,341 1,050,000 5.130% 53,865 - 1,103,865 110.52% Total 29,111,792 1,241,383 6,505,000 5.00% 7,329,805 - 13,834,805 110.01% City of Menifee CFD No. 2021-1 Series 2 Special Tax Bonds

EXHIBIT B
City of Menifee CFD No. 2021-1
Pulte Homes - Banner Park (TR Nos. 32102 and 32102-1)
Preliminary List of CFD Eligible Facilities
April 26, 2023
Total Units 256
Updated Facilities
Per Unit Total
City of Menifee Fees (a)
Law Enforcement 234$ 59,904$
Fire Facilities 622 159,232
Circulation 4,730 1,210,880
General Government 1,034 264,704
Public Use Facilities 156 39,936
Parks - Land Acquisition 218 55,808
Parks - Improvements 670 171,520
Subtotal City DIF fees (b) 7,664$ 1,961,984$
Additional City Faciltiies 1,533 392,397
Total City Fees 9,197$ 2,354,381$
City Improvements Formation
Backbone Street Improvements $3,499 $895,729
Intract Street Improvements $7,751 $1,984,341
Tract/Intract Storm Drain Improvements $8,125 $2,079,982 City 5 Acre Park $11,719 $3,000,000
Surveying / Staking / Geotechnical $840 $215,000
Inspection Fees $581 $148,802
Total City Improvements $32,515 $8,323,854
EMWD Fees & Facilities (b) 2023 Fees
Water Financial Participation Charge 7,235$ 1,852,160$ Sewer Financial Participation Charge 3,391 868,096 Sewer Treatment Plant Capacity Charge 6,428 1,645,568 Meter Fee 377 96,512
Water Development Fee 393 100,608
Irrigation Meter Fees 1.5" (Qty: 6 Meters) 781 199,962 Total EMWD Fees 18,605$ 4,762,906$
Menifee School District Fees (c) 3,500$ 896,000$ Total Eligible Facilities 63,817$ 16,337,141$
Footnotes
(a) Represents the City of Menifee DIF Fees dated July 1, 2018. (b) Represents EMWD's connection and capacity fees effective 1/1/2023. (c) Per the Memorandum of Agreement dated August 18, 2005, Menifee School District agreed to fund the mitigation fee through a CFD.

Finance CommitteeMay 11, 2023

Finance Committee
May 11, 2023