Finance Committee
July 9, 2024

City Council Chambers
29844 Haun Road
Menifee, CA 92586
Lesa Sobek, District 3
Dean Deines, District 4
AGENDA
Finance Committee
Regular Meeting Agenda
Tuesday, July 9, 2024
2:00 PM Regular Meeting
Travis Hickey, Chief Financial Officer
Edna Aguilar, Management Analyst
REGULAR MEETING (2:00 PM)

1. CALL TO ORDER

2. ROLL CALL

3. PRESENTATIONS – NONE

4. PUBLIC COMMENTS (NON­AGENDA ITEMS)
This is the time for members of the public to address the Committee Members about items which are NOT listed on the agenda.  The Ralph M. Brown Act limits the Committee’s ability to respon d to comments on non­agendized matters at the time such comments are made. Each speaker will be limited to three minutes on any single item.

5. APPROVAL OF MINUTES

5.1 November 7, 2023 Minutes

5.2 December 12, 2023 Minutes

5.3 February 13, 2024 Minutes

5.4 March 26, 2024 Minutes

5.5 May 7, 2024 Minutes

6. DISCUSSION ITEMS

6.1 Creation of an Underwriters Pool for Land­Secured Community Facility District Bond Issuance
RECOMMENDED ACTION

1. Receive report on CFD Underwriters Pool and intended selection for two upcoming bond issuance and;

2. Recommend using established CFD Underwriter’s Pool on rotating basis.

6.2 Proposed Bond Issuance for Community Facilities District No. 2023­1, Rockport Ranch
RECOMMENDED ACTION

1. Review the proposed bond issuance request for Community Facilities District No. 2023­1, Rockport Ranch, by Lennar Homes, located at the southwest corner of Newport Road and Briggs Road to finance the costs of certain public improvements.

6.3 Proposed Change to Community Facilities District No. 2022­3, Legado, by BLC Fleming
RECOMMENDED ACTION

1.  Review the changes for Community Facilities District 2022­3, located northwest of Antelope Road and Chambers Avenue and south of Rouse Road, proposed by BLC Fleming, to amend the financing plan and for certain public improvements within the residential development and recommend submittal to the City Council for consideration.

6.4 Annual Update on Community Facility District Related Bond Premiums RECOMMENDED ACTION

1.  Receive annual report with updated details on Community Facility District related bond premiums.

7. STAFF COMMENTS

8. COMMITTEE MEMBER UPDATES AND COMMENTS

9. FUTURE AGENDA ITEMS
> End of Fiscal Year Update Provided by Chandler Asset Management

10. ADJOURNMENT
Decorum Policy Notes
The Committee anticipates and encourages public participation at its meetings, both on agenda items and during the public comments period. Please turn your cell phones off, refrain from talking in the audience or outbursts that may be disruptive. We encourage participation and ask for a mutual respect for the proceedings.

Staff Reports
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 Department, at (951) 672­6777, or by coming into City Hall located at 29844 Haun Road, Menifee, CA, 92586 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 Department at (951) 672­6777, or by coming into City Hall located at 29844 Haun Road, Menifee, CA, 92586 during normal business hours. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting.

Menifee Finance Committee
July 9, 2024

City Council Chambers
29844 Haun Road
Menifee, CA 92586
Lesa Sobek, District 3
Dean Deines, District 4
AGENDA
Finance Committee
Regular Meeting Agenda
Tuesday, July 9, 2024
2:00 PM Regular Meeting
Travis Hickey, Chief Financial Officer
Edna Aguilar, Management Analyst
REGULAR MEETING (2:00 PM)

1. CALL TO ORDER

2. ROLL CALL

3. PRESENTATIONS – NONE

4. PUBLIC COMMENTS (NON­AGENDA ITEMS)
This is the time for members of the public to address the Committee Members about items which are NOT listed on the agenda.  The Ralph M. Brown Act limits the Committee’s ability to respon d to comments on non­agendized matters at the time such comments are made. Each speaker will be limited to three minutes on any single item.

5. APPROVAL OF MINUTES

5.1 November 7, 2023 Minutes

5.2 December 12, 2023 Minutes

5.3 February 13, 2024 Minutes

5.4 March 26, 2024 Minutes

5.5 May 7, 2024 Minutes

6. DISCUSSION ITEMS

6.1 Creation of an Underwriters Pool for Land­Secured Community Facility District Bond Issuance
RECOMMENDED ACTION

1. Receive report on CFD Underwriters Pool and intended selection for two upcoming bond issuance and;

2. Recommend using established CFD Underwriter’s Pool on rotating basis.

6.2 Proposed Bond Issuance for Community Facilities District No. 2023­1, Rockport Ranch
RECOMMENDED ACTION

1. Review the proposed bond issuance request for Community Facilities District No. 2023­1, Rockport Ranch, by Lennar Homes, located at the southwest corner of Newport Road and Briggs Road to finance the costs of certain public improvements.

6.3 Proposed Change to Community Facilities District No. 2022­3, Legado, by BLC Fleming
RECOMMENDED ACTION

1. Review the changes for Community Facilities District 2022­3, located northwest of Antelope Road and Chambers Avenue and south of Rouse Road, proposed by BLC Fleming, to amend the financing plan and for certain public improvements within the residential development and recommend submittal to the City Council for consideration.

6.4 Annual Update on Community Facility District Related Bond Premiums RECOMMENDED ACTION

1. Receive annual report with updated details on Community Facility District related bond premiums.

7. STAFF COMMENTS

8. COMMITTEE MEMBER UPDATES AND COMMENTS

9. FUTURE AGENDA ITEMS
> End of Fiscal Year Update Provided by Chandler Asset Management

10. ADJOURNMENT
Decorum Policy Notes
The Committee anticipates and encourages public participation at its meetings, both on agenda items and during the public comments period. Please turn your cell phones off, refrain from talking in the audience or outbursts that may be disruptive. We encourage participation and ask for a mutual respect for the proceedings.

Staff Reports
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 Department, at (951) 672­6777, or by coming into City Hall located at 29844 Haun Road, Menifee, CA, 92586 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 Department at (951) 672­6777, or by coming into City Hall located at 29844 Haun Road, Menifee, CA, 92586 during normal business hours. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting.

Menifee Finance Committee
July 9, 2024 Page 2 of 75
Menifee Finance Committee
November 7, 2023

City Council Chambers
29844 Haun Road
Menifee, CA 92586
Lesa Sobek, District 3
Dean Deines, District 4

MINUTES
Finance Committee
Regular Meeting Minutes
Tuesday, November 7, 2023
2:00 PM Regular Meeting
Travis Hickey, Chief Financial Officer
Sarah Manwaring, City Clerk
REGULAR MEETING (2:00 PM)

1. CALL TO ORDER
Councilmember Deines called the meeting to order at 2:00 PM.

2. ROLL CALL
Councilmembers Deines and Sobek were present.

3. PRESENTATIONS ­ NONE

4. PUBLIC COMMENTS (NON­AGENDA ITEMS)
None.

5. APPROVAL OF MINUTES
The following minutes were approved unanimously.

5.1 September 26, 2023

6. DISCUSSION ITEMS

6.1 Annual Financial Audit Process for Fiscal Year 2022­23 Evelyn Morentin-Barcena, CPA from RAMS (Rogers, Anderson, Malody &Scott, LLP) provided a presentation and reported on the item.

ACTION

1. Received and filed the presentation of City of Menifee Annual Financial Audit Process Overview Presentation.

6.2 Proposed First Amendment to the CFD 2020­1 Acquisition, Construction and Funding Agreement
Chief Finance Officer Travis Hickey reported on the item.

Councilmember Deines stated he was not in favor of amending facilities and would not approve future requests.

Item: 5.1
Item Page Number: 1
Menifee Finance Committee       July 9, 2024        Page 3 of 75 Menifee Finance Committee
November 7, 2023

ACTION

1. Reviewed the proposed First Amendment to the Acquisition, Construction and Funding Agreement for CFD 2020­1, which adds park site land acquisition costs to the list of city improvements constructed by or on behalf of the developer that are eligible for reimbursement with bond proceeds; and

2. Recommended the finance team present the First Amendment to the Acquisition, Construction and Funding Agreement to the City Council for consideration.

6.3 Participation in CAMP Program
Chief Finance Officer Travis Hickey reported on the item.

ACTION

1. Recommended City Council adopt a resolution authorizing the City of Menifee to participate in the California Asset Management Program (CAMP).

6.4 Proposed Finance Committee Meeting Dates for 2024
The Committee discussed and approved the dates below for future meetings and staff stated they would bring back alternate dates for additional meetings between January and March 2024.
• Tuesday, December 12, 2023
• Tuesday, May 7, 2024
• Tuesday, July 9, 2024
• Tuesday, September 10, 2024
• Tuesday, November 12, 2024

7. STAFF COMMENTS
None.

8. COMMITTEE MEMBER UPDATES AND COMMENTS
None.

9. FUTURE AGENDA ITEMS
None.

10. ADJOURNMENT
The meeting was adjourned at 2:41 PM.
_________________________________
Stephanie Roseen, CMC
Acting City Clerk
Item: 5.1
Item Page Number: 2
Menifee Finance Committee       July 9, 2024        Page 4 of 75 Special Finance Committee Meeting
December 12, 2023

City Council Chambers
29844 Haun Road
Menifee, CA 92586
Lesa Sobek, District 3
Dean Deines, D istrict 4 MINUTES
Finance Committee
Special Meeting Minutes
Tuesday, December 12, 2023
2:00 PM Special Meeting
Travis Hickey, Chief Financial Officer
Sarah Manwaring, City Clerk
SPECIAL MEETING (2:00 PM)

1. CAL

L TO ORDER
Counc
ilmember Deines called the meeting to order at 2:02 PM.

2. ROL
L CALL
Counc
ilmembers Deines and Sobek were present.

3. PRE
SENTATIONS ­ NONE

4. PUBL
IC COMMENTS (NON­AGENDA ITEMS)
None
.

5. APPR
OVAL OF MINUTES ­ NONE

6. DIS

CUSSION ITEMS

6.1 P
roposed Development Agreement with Brookfield for the Menifee Valley Specific Plan Project
Com
munity Development Director Cheryl Kitzerow reported on the item. The Councilmembers asked questions of staff and the Brookfield Development Representative, David Bartlett.

ACTION

1. Reviewed the proposed Development Agreement deal points between the City of Menifee and Brookfield for the Menifee Valley Specific Plan Project for the development of approximately 578 acres of land and recommended submittal to Planning Commission and City Council for approval.

6.2 2024
Finance Committee Meeting Schedule
ACTION

1. Reviewed and confirm ed cancellation and schedul ing of the following Finance Committee Meeting dates.

Item: 5.2
Item Page Number: 1
Menifee Finance Committee       July 9, 2024        Page 5 of 75 Special Finance Committee Meeting
December 12, 2023

• Tuesday, January 9, 2024 @ 2:00PM (canceled)
• Tuesday, March 12, 2024 @2:00PM (canceled)
• Tuesday, January 23, 2024 at 3:30 pm (scheduled)
• Tuesday, February 13, 2024 at 2:00 pm (scheduled)
• Tuesday, March 26, 2024 at 2:00 pm (scheduled)

7. S

TAFF COMMENTS
N
one.

8. C

OMMITTEE MEMBER UPDATES AND COMMENTS
N
one.

9. F

UTURE AGENDA ITEMS
N
one.
1 0. ADJOURNMENT
The M
eeting was adjourned at 2:57 PM.

____________________________
S
tephanie Roseen, Acting City Clerk
Item: 5.2
Item Page Number: 2
Menifee Finance Committee       July 9, 2024        Page 6 of 75 Menifee Finance Committee
February 13, 2024

City Council Chambers
29844 Haun Road
Menifee, CA 92586
L
esa Sobek, District 3
Dean Deines, District 4 MINUTES
Finance Committee
Regular Meeting Minutes
T
uesday, February 13, 2024
2:00 PM Regular Meeting
T
ravis Hickey, Chief Financial Officer
Sarah Manwaring, City Clerk
RE
GULAR MEETING (2:00 PM)

1. CA

LL TO ORDER
The m
eeting was called to order at 2:00 PM.

2. RO

LL CALL
C
ouncilmembers Deines and Sobek were present.

3. P
RESENTATIONS ­ NONE

4. P
UBLIC COMMENTS (NON­AGENDA ITEMS)
N
one.

5. A
PPROVAL OF MINUTES ­ NO
NE

6. DI

SCUSSION ITEMS

6. 1 Proposed amendment to the Development Agreement with Pulte Home Company LLC. for the Cimarron Ridge development (Cimarron Ridge Specific Plan) C
ommunity Development Director Cheryl Kitzerow reported on the item. The Councilmembers asked questions of staff and the Pulte Home Company Representative, Patrick Lyman.

The C
ommittee recommended an “all-play” playground for children of all abilities.

RE

COMMENDED ACTION

1. Reviewed the proposed Amendment No. 2 for the existing Development Agreement between the City of Menifee and Pulte Home Company LLC. dated June 7, 2017, for the Cimarron Ridge development and recommended submittal to the City Council for approval.

7. S

TAFF COMMENTS
N
one.

Item: 5.3
Item Page Number: 1
Menifee Finance Committee       July 9, 2024        Page 7 of 75 Menifee Finance Committee
February 13, 2024

8. COMMITTEE MEMBER UPDATES AND COMMENTS
N
one.

9. F

UTURE AGENDA ITEMS
N
one.

10. A

DJOURNMENT
The m
eeting was adjourned at 2:10 PM.
_________
_____________________________
Stephanie Roseen, Acting City Clerk
Item: 5.3
Item Page Number: 2
Menifee Finance Committee       July 9, 2024        Page 8 of 75 Menifee Finance Committee
March 26, 2024

City Council Chambers
29844 Haun Road
Menifee, CA 92586
Lesa Sobek, District 3
Dean Deines, D istrict 4 MINUTES
Finance Committee
Regular Meeting
Minutes
Tuesday, March 26, 2024
2:00 PM Regular Meeting
Travis Hickey, Chief Financial Officer
Stephanie Roseen, Acting City Clerk
REGULAR MEETING (2:00 PM)

1. CA

LL TO ORDER
C
ouncilmember Sobek called the meeting to order at 2:19 PM.

2. RO

LL CALL
P
resent: Dean Deines and Lesa Sobek

3. P
UBLIC COMMENTS (NON­AGENDA ITEMS)
None.

4. A
PPROVAL OF MINUTES ­ NONE

5. DI

SCUSSION ITEMS

5. 1 Proposed Bond Issuance for Community Facilities District No. 2022­1, Quartz Ranch C
hief Financial Officer Travis Hickey introduced the item and welcomed City Consultant Shane Spicer to further discuss the item.

M
over: Lesa Sobek
Seconder: Dean Deines
ACTION

1. Reviewed the proposed Series 2 bond issue request for Community Facilities District No. 2022­1, Quartz Ranch by Lennar Homes, to finance the costs of certain public improvements for the development of a residential tract containing 379 units located south of La Piedra Road, on both the east and west sides of Evans Road; and

2. Recommended that the Finance Department 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.

Item: 5.4
Item Page Number: 1
Menifee Finance Committee       July 9, 2024        Page 9 of 75 Menifee Finance Committee
March 26, 2024

5.2 Proposed Formation of Community Facilities District No. 2024­2, Golden Meadows C
hief Financial Officer Travis Hickey introduced the item and welcomed Consultant Shane Spicer to further discuss the item.

M
over: Lesa Sobek
Seconder: Dean Deines
ACTION

1. Reviewed the proposed Community Facilities District No. 2024­2, Golden Meadows by Richland Communities, to finance certain costs of public improvements within the 552­lot single­family residential development located east of Evans Road, north of Wickerd Road, west of Ascot Way and south of Garbani Road, and recommended the proposal should be forwarded to City Council for consideration.

5. 3 Proposed Formation of Community Facilities District No. 2024­3, River Walk Village C
hief Financial Officer Travis Hickey introduced the item and welcomed Consultant Shane Spicer to further discuss item.

M
over: Dean Deines
Seconder: Lesa Sobek
ACTION

1. Reviewed the proposed Community Facilities District No. 2024­3, River Walk Village by Richmond American Homes, to finance certain costs of public improvements within the 198 ­unit s
ingle­fa
mily residential development located
north of Lazy Creek Road and west of Bradley Road and recommended the proposal should be forwarded to City Council for consideration.

5.4 Cit
y of Menifee Investment Portfolio: Investment Opportunity Review C
hief Financial Officer Travis Hickey introduced the item and provided a general overview of the difference in functions between Chandler Asset Management and Piper Sandler & Co.

Counci
lmembers requested clarification from staff ; st
aff provided clarification when
needed.

ACTION

1. The Councilmembers provided consensus regarding the r ecommendation to i
nvest an additional $50 million into the investment portfolio with Chandler Asset Management and transfer of securities purchased by Piper Sandler & Co. to Chandler Asset Management.

6. S

TAFF COMMENTS
N
one.

Item: 5.4
Item Page Number: 2
Menifee Finance Committee       July 9, 2024        Page 10 of 75 Menifee Finance Committee
March 26, 2024

7. COMMITTEE MEMBER UPDATES AND COMMENTS
N
one.

8. FUTURE AGENDA ITEMS:
­ N
ext Meeting Date: May 7, 2024, at 2:00 p.m.
­ E
nd of Fiscal Year Update provided by Chandler Asset Management

9. A

DJOURNMENT
The m
eeting was adjourned by Councilmember Sobek at 3:17 PM. ______________
________________
Edna Aguliar,
Meeting Clerk
Item: 5.4
Item Page Number: 3
Menifee Finance Committee       July 9, 2024        Page 11 of 75 Menifee Finance Committee
May 7, 2024

City Council Chambers
29844 Haun Road
Menifee, CA 92586
Lesa Sobek, District 3
Dean Deines, District 4

MINUTES
Finance Committee
Regular Meeting
Minutes
Tuesday, May 7, 2024
2:00 PM Regular Meeting
Travis Hickey, Chief Financial Officer
Edna Aguilar, Management Analyst
REGULAR MEETING (2:00 PM)

1. CALL TO ORDER
Counc
ilmember Sobek called the meeting to order at 2:00 PM.

2. ROLL CALL
Pr
esent: Dean Deines and Lesa Sobek

3. PRESENTATIONS ­ NONE

4. PUBLIC COMMENTS (NON­AGENDA ITEMS)
None.

5. APPROVAL OF MINUTES ­ NONE

6. DISCUSSION ITEMS

6.1 Fi
scal Year 2024/2025 Annual Investment Policy Review
Chi
ef Financial Officer Travis Hickey introduced the item and provided a brief overview of the FY24/25 Investment Policy.

Counc
ilmember Deines requested that the Committee receive an update on the creation of an Underwriters Pool through the issuance of an RFP.

Mover
: Dean Deines
Seconder: Lesa Sobek
ACTION

1. Reviewed and provided feedback on the draft Fiscal Year 2024/2025 Investment Policy and recommended it be submitted to the City Council for approval at a future City Council meeting.

Item: 5.5
Item Page Number: 1
Menifee Finance Committee       July 9, 2024        Page 12 of 75 Menifee Finance Committee
May 7, 2024

6.2 Fiscal Year 2024/25 Mid­Cycle Budget Review: Fund Balance Policy for General Fund Chief Financial Officer Travis Hickey introduced the item and provided a brief overview of the recommended updates to the Fund Balance Policy for General Fund. The recommended updates include the increase of the City’s current reserve requirement from 35% to 40% and the review and establishment of assigned fund balances towards public facility costs, pension liability, unfunded liability, and fleet replacements.

Mover: Lesa Sobek
Seconder: Dean Deines
ACTION

1. Reviewed the existing Fund Balance Policy No. CC­07 for the General Fund and provided consensus on City’s recommendation to present a revised policy for Council’s consideration at the June 5, 2024, City Council meeting as part of the Fiscal Year 2024/2025 Mid­Cycle Budget Adoption.

7. STAFF COMMENTS
Chief Financial Officer Travis Hickey provided an update on the Request for Proposals for underwriting services related to CFDs bond issuance, which received a total of 6 responses.

Chief Financial Officer Travis Hickey requested a future meeting be held on June 6, 2024, at 2:00 PM.

8. COMMITTEE MEMBER UPDATES AND COMMENTS
None.

9. FUTURE AGENDA ITEMS
­ End of Fiscal Year Update Provided by Chandler Asset Management

10. ADJOURNMENT
The meeting was adjourned by Councilmember Sobek at 2:57 PM. ______________________________
Edna Aguliar,
Meeting Clerk
Item: 5.5
Item Page Number: 2
Menifee Finance Committee       July 9, 2024        Page 13 of 75

CITY OF MENIFEE
SUBJECT: Creation of an Underwriters Pool for Land-Secured Community Facility District Bond Issuance
MEETING DATE: July 9, 2024
TO: Finance Committee
PREPARED BY: Lauri Lockwood, Financial Analyst
REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Receive report on CFD Underwriters Pool and intended selection for two upcoming bond issuance and;

2. Recommend using established CFD Underwriter’s Pool on rotating basis.

DISCUSSION
At the March 26, 2024, Finance Committee meeting, the committee requested that the Finance Department incorporate a Request for Proposals (RFP) process for underwriting services related to Community Facilities Districts (CFDs) bond issuances, with the intent of establishing a pool of firms to support future CFD related transactions. In the overall financing team of bonded CFD proceedings, the role of the selected underwriter is to structure and market the bond issuance.

As the City’s current municipal financial advisor in bonded CFD items, Urban Futures, Inc. (UFI), acts as the City’s fiduciary consultant and is required to act in the City’s best interests when advising staff and the City Council on municipal securities-related issues. To facilitate the RFP process, staff requested UFI’s assistance with the RFP development, underwriter solicitation and evaluation process.

UFI drafted the RFP document and compiled a list of qualified underwriting firms. After consultation with staff, the RFP was sent to those qualified firms who had worked directly with public agencies in California and had underwritten more than one California land-secured CFD transaction over the last five years. According to publicly available data on Bloomberg and with the California Debt and Investment Advisory Commission (CDIAC), six firms met the criteria Item: 6.1
Item Page Number: 1
Menifee Finance Committee       July 9, 2024        Page 14 of 75 City of Menifee Staff Report
Underwriters RFP
July 9, 2024

2 2
7 4
(Hilltop Securities, Oppenheimer, Piper Sandler, Ramirez & Co., Raymond James, and Stifel) and each of the six submitted a proposal.

Over the past month, a panel composed of City Finance staff members and UFI representatives independently evaluated the proposals. The responding firms were rated on their experience with CFD bonds issued in California, their assigned coverage team, their marketing plan and distribution capabilities for CFD bonds, their previous pricing performance on recent deals and their knowledge about and analysis of City-specific information. While we believe all the firms are qualified to perform the CFD underwriting services, three (3) firms stood out from the others; Stifel, Raymond James and Ramirez & Company. The scoring results are summarized in Table 1.

TABLE 1 - RFP Scoring
Firm Score Out of Possible 82.5
Stifel 77.5
Raymond James 74.5
Ramirez & Co. 67.5
Piper Sandler 59.0
Oppenheimer 57.5
Hilltop Securities 49.0
Rotating CFD Underwriters Pool
Based on the firms’ ratings, the City’s annual bond cycle, current and near future CFD activity volume, staff proposes to create a pool of the three highest-scoring firms that could be utilized to underwrite bond issuances over the next two to three years. The City expects to go to market with at least two bond issuances this fiscal year. A pool of three firms would allow the City to work with each of the underwriters within the next 18 months, assessing the fees charged, the service provided, and interest rates achieved. Staff recommends using the CFD Underwriters Pool for an initial period of 3 years.

As an alternative to rotating between the firms, the City could individually solicit short proposals per CFD from each of them. While an underwriter’s cost is a factor in selecting a firm for a CFD issuance, other important factors include the underwriter’s experience with CFD municipal bond issuance activity and strategy in marketing and selling the bonds within the municipal market.

Ultimately, the larger the pool of interested bond buyers an underwriter can attract, the lower the potential interest rates for the debt issuance. Therefore, staff’s initial recommendation to rotate between the firms will afford an opportunity to see each firm’s overall strengths.

CFD 2022-1 (Quartz Ranch) Bond Issuance & Upcoming CFD Bond Issuance Parity bonds are on track to be issued for CFD 2022-1 (Quartz Ranch) in August. Staff is recommending using Stifel for this bond issuance due to the firm’s familiarity with the development plans and will be able to get up to speed on the transaction quickly. Stifel served as the underwriter for last year’s initial Quartz Ranch issuance and was able to generate very significant investor interest leading to $38 million in orders for a par amount of $13 million. As a result of that strong demand, particularly from individual retail investors, yields were reduced across various Item: 6.1
Item Page Number: 2
Menifee Finance Committee       July 9, 2024        Page 15 of 75 City of Menifee Staff Report
Underwriters RFP
July 9, 2024

2 2
7 4
maturities, lowering true interest costs 0.33% below the estimates presented to the City Council, resulting in $487,000 in additional proceeds. Additionally, Stifel ranked highest among underwriting firms who responded to the RFP, having completed more transactions than any other firm, and has historically provided the City with a high level of service on prior CFD transactions.

An initial issuance of bonds for CFD 2023-1 (Rockport Ranch) is on track to occur by the end of the year. Staff proposes to solicit Raymond James to underwrite that transaction. Raymond James has completed 23 California land secured financings since 2020 and is highly qualified to serve as underwriter on the transaction.

Dates for future issuances have not been established, but staff would incorporate rotation of the three recommended underwriter firms (i.e. the bond issuance after CFD 2023-1 (Rockport Ranch) would utilize Ramirez & Co.).

Lastly, the proposed Underwriter Pool is specific to CFD bond issuances. Should the City need support for future bond issuance proceedings beyond CFD transactions, the City would utilize a separate solicitation process.

FISCAL IMPACT
There is no additional fiscal impact to the City’s General Fund. The underwriter’s fee is paid for with bond proceeds directly.

ATTACHMENTS

1. Presentation for CFD Underwriters Pool
Item: 6.1
Item Page Number: 3
Menifee Finance Committee       July 9, 2024        Page 16 of 75 __________________________________________________________

COMMUNITY FACILITIES
DISTRICTS (CFDs)
RFP for CFD Underwriters Pool
__________________________________________________________

FINANCE COMMITTEE

CITY OF MENIFEE, CA
July 9, 2024
Item: 6.1
Item Page Number: 1
Menifee Finance Committee       July 9, 2024        Page 17 of 75 -11-
BONDED COMMUNITY FACILITIES DISTRICTS (CFDs)
AUTHORIZED UNDER MELLO-ROOS ACT OF 1982 (“MELLO-ROOS ACT”) -1-
CC-20: SPECIAL

ASSESSMENT AND

COMMUNITY FACILITIES

DISTRICT AND POLICIES
(City Council Policy 4/15/20)
Adopted policy regarding
formation of community
facilities or special
assessment districts and
the issuance of bonds to
finance eligible public
facilities and/or public
services necessary to
serve newly developing
residential projects, and
may consider commercial
and/or industrial
projects.

CITY STAFF:
- City Executive Office
- Public Works/Engineering
(Land Development)
- Finance Department

FINANCE COMMITTEE
- Mayor Pro Tem Deines
- Councilmember Sobek
CONSULTING TEAM:
- Special Tax Consultant
(Spicer Consulting Group)
- Financial Advisor
(Urban Futures)
- Bond Counsel
(Stradling Y occa Carlson & Rauth)
- Underwriter
(CFD Underwriter Pool)
Item: 6.1
Item Page Number: 2
Menifee Finance Committee       July 9, 2024        Page 18 of 75 -2-

ROLE OF THE UNDERWRITER
The Underwriter structures and markets the bond
issuance.

Underwriter Selection Components:
- Cost: for underwriting services, competitive relative to industry. - Experience & Strategy with CFD Municipal Bond Market: understanding of pre-marketing activity and best bond sale strategies.
- Familiarity with Community and Administrative Processes: Understanding of the specific projects (underwriting bond sale marketing) and administrative/legislative agenda items/documents/due diligence required to issue CFD bonds.

Item: 6.1
Item Page Number: 3
Menifee Finance Committee       July 9, 2024        Page 19 of 75 -3-
REQUEST FOR PROPOSAL (RFP): CFD UNDERWRITER SERVICES
• RFP issued spring of 2024 for CFD Underwriter Services by Urban Futures (Financial Advisor) on behalf of City.
• 6 Firms with California specific CFD Underwriting Services were invited to submit proposals.
• 6 RFP responses were received:
• Hilltop Securities
• Oppenheimer
• Piper Sandler
• Ramirez & Co.
• Raymond James
• Stifel
Item: 6.1
Item Page Number: 4
Menifee Finance Committee       July 9, 2024        Page 20 of 75 -4-
REQUEST FOR PROPOSAL (RFP): CFD UNDERWRITER SERVICES
Proposal Responses Evaluated by Finance Staff &
Urban Futures based on RFP Evaluation Criteria:
• Experience with CFD Bonds Issuances in CA
• Assigned Team
• Marketing Plan and Distribution Capabilities
• Previous Pricing Performance
• Knowledge and Analysis of City Specific Information
• Cost for Services
Item: 6.1
Item Page Number: 5
Menifee Finance Committee       July 9, 2024        Page 21 of 75

NEXT STEPS & UPCOMING BOND ISSUANCES
-5-
Rotating CFD Underwriters Pool
• Top 3 Firms be used on rotating basis for CFD bond issuances:
• Stifel
• Raymond James
• Ramirez & Co.
• CFD 2022-1 (Quartz Ranch) and CFD 2023-1 (Rockport Ranch) • Quartz Ranch parity bonds issuance scheduled for August 2024, r
ecommended underwriter: Stifel
• CFD 2023-1 (Rockport Ranch) bond issuance anticipated for end of 2024, recommended underwriter: Raymond James
• Next bond issuance following Quartz Ranch and Rockport Ranch, r
ecommended underwriter: Ramirez & Co.

Item: 6.1
Item Page Number: 6
Menifee Finance Committee       July 9, 2024        Page 22 of 75 FINANCE COMMITTEE: RECOMMENDED ACTIONS
• Receive rep ort on CFD Underwriters Pool and intended selection for two upcoming bond issuances, and;
• Recommend us ing established CFD Underwriter’s Pool on rotating basis.
-6-
Item: 6.1
Item Page Number: 7
Menifee Finance Committee       July 9, 2024        Page 23 of 75 Thank You
Questions?
Item: 6.1
Item Page Number: 8
Menifee Finance Committee       July 9, 2024        Page 24 of 75

CITY OF MENIFEE
SUBJECT: Proposed Bond Issuance for Community Facilities District No. 2023-1, Rockport Ranch
MEETING DATE: July 9, 2024
TO: Finance Committee
PREPARED BY: Lauri Lockwood, Financial Analyst
REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Review the proposed bond issuance request for Community Facilities District No. 2023-1, Rockport Ranch, by Lennar Homes, located at the southwest corner of Newport Road and Briggs Road to finance the costs of certain public improvements.

DISCUSSION
The developer, Lennar Homes, owns a residential tract approved for 305 homes within the city.

The tract is located at the southwest corner of Newport Road and Briggs Road, as shown in the attached project map.

Community Facilities District No. 2023-1, Rockport Ranch, (“CFD No. 2023-1”) was approved one year ago, with the City Council setting a not-to-exceed limit of $23 million in bonds that could be issued within the district.

Construction on the development is under way, and as of last month, building permits have been issued for 180 homes. Of those homes, 110 have sold and closed, and 7 have sold and are in escrow.

With 59% of the building permits issued and 36% of the homes sold and closed, the builder has requested that the city authorize the issuance of the first round of bonds to fund eligible facilities.

Given the development status, the city’s tax consultant, Spicer Consulting Group, estimates that $9.1 million in bonds could be issued at this time. A second bond issuance would be requested in the later stages of development.

A preliminary bond analysis was prepared by Spicer Consulting Group to evaluate the viability of the initial bond issuance estimating the valuation, delinquency history, and effective tax rate. The Item: 6.2
Item Page Number: 1
Menifee Finance Committee       July 9, 2024        Page 25 of 75 City of Menifee Staff Report
Proposed Bond Issuance for Community Facilities District No. 2023-1, Rockport Ranch June 6, 2024

2 2
6 9
development has a strong value-to-lien ratio of 12.56:1, greater than the City’s policy of 4:1 and an estimated tax rate ranging from 1.78% to 1.83%, which is less than the City’s 2% limit.

Based on current interest rates, it is anticipated that the bonds would finance approximately $7.82 million in eligible facilities and fees within the boundaries of the City of Menifee and Eastern Municipal Water District.

Staff proposes to select Raymond James as the underwriter for this transaction based on the newly formed “Rotating CFD Underwriters Pool” brought forward as an earlier item in this agenda.

TABLE 1: Summary of CFD 2023-4, Rockport Ranch, Activity:

Description Date
Finance Committee CFD Formation Review October 4, 2022
Resolution of Intention May 3, 2023
Resolutions of CFD Formation (City Council Approval) June 7, 2023 / June 21, 2023 Request for Bond Issuance Series 1 Review July 2024

FISCAL IMPACT
There is no fiscal impact associated with the recommended action.

ATTACHMENTS

1. CFD 2023-1 Proforma Summary

2. CFD 2023-1 Project Map

3. CFD 2023-1 Preliminary Bond Sale Analysis

4. CFD 2023-1 Boundary Map

5. CFD 2023-1 Annex 18 Maintenance Exhibit

6. CFD 2023-1 Series 1 Bond Issuance Request
Item: 6.2
Item Page Number: 2
Menifee Finance Committee       July 9, 2024        Page 26 of 75 CFD 2023‐1 (Rockport Ranch)
Proforma Summary Sheet
Applicant: Lennar Homes
Assumptions
Description  Amount
Average Coupon  5.50%
Priority Administration  $30,000
Cost of Issuance  $250,000
Capitalized Interest Period  3‐months
Special Tax Escalation  2%
Bond Term  30 Years
Underwriter Discount  2.00%
Total Special Tax Revenues  $582,784
Estimated Sources and Uses
Sources
Par Bond Amount  $9,100,000
Uses
Reserve Fund   $846,140
Capitalized Interest   $0
Underwriter Discount   $182,000
Cost of Issuance   $250,000
Improvement Fund   $7,821,860
Allocation of Improvement Fund
Description  Originally Proposed  2024 Bonds
City Facilities  $2,935,000  $0
City Fees  $8,155,934  $4,840,078
City Premium  $849,852  $849,852
EMWD Fees  $5,585,835  $2,131,930
MUSD Fees  $2,708,812  $0
Unfunded  $5,561,380  $12,413,572
Total  $20,235,433  $20,235,433
Other Items
Acreage  Gross: 78.91; Net: 39.77
Development Description  Detached Single Family Residential Number of Units (50 min)  181 Developed Units; 305 Total Units Estimated Home Size Range  1,860 SF to 4,136 SF
Average Home Size  2,481 SF
Average Estimated Home Price  $631,632
Total Effective Tax Rate (2% Max)  1.82%
CFD Tax Rate Range  $2,646 to $4,862
Escalation (2.00% Max)  Yes, 2.00%
Maintenance CFD  Proposed, CFD 2017‐1 Tax Zone 18
Maintenance CFD Rate  $556/Unit
Item: 6.2
Item Page Number: 1
Menifee Finance Committee       July 9, 2024        Page 27 of 75

NEWPORT RD

BRIGGS RD

DOMENIGONI PKWY

LA PIEDRA
0 800 1,600400
Feet
CFD Boundary

LOCATION MAP
COMMUNITY FACILITIES DISTRICT NO. 2023-1 (ROCKPORT)

CITY OF MENIFEE
¹
Item: 6.2
Item Page Number: 1
Menifee Finance Committee       July 9, 2024        Page 28 of 75 CFD 2023-1

MENIFEE

WILDOMAR
PERRIS

MURRIETA

CANYON LAKE
·|}þ79
§¨¦215
§¨¦15

REGIONAL MAP
COMMUNITY FACILITIES DISTRICT NO. 2023-1
(ROCKPORT)
¹
0 1.5 30.75
Miles
Item: 6.2
Item Page Number: 2
Menifee Finance Committee       July 9, 2024        Page 29 of 75

CITY OF MENIFEE
Community Facilities District No. 2023-1
(Rockport Ranch)
Preliminary Bond Analysis
As of 5/20/2024
Preliminary Bond Compliance Table
Requirement 2023-1

1. Value to Lien(1)

4.00:1 12.56:1

2. Delinquency Levels Less than 5% 0.00%

3. Effective Tax Rate(2)

2.00% 1.78% - 1.84%
(1) Value to Lien is based upon estimated sizing information and Proposed Home Prices. (2) Range includes FY 2023-24 enrollment.

1. General Information & Development Status
District Formation Date June 7, 2023
District Assessed Value(1) N/A
Bond Structure 100% Assigned
Estimated Preliminary Par Amount(2)
$9,100,000
Preliminary Value to Lien(3)

12.56:1
(1) District Assessed Value information not available via Riverside County as of 5/21/2024 (2) Par amount estimated based on estimated 5.50% Interest Rate. (3) Value to Lien is based upon estimated sizing information and Proposed Home Prices. 5/9/2024 Ownership Status As Of
Tract No. Land Owner Map Recordation
37131-1 Lennar Home 3/28/2023
No. Lots @
Buildout
Permits Issued as of
5/1/2024
Developed
Percentage
Sold & In Escrow
to Date
Sold & Closed
to Date
Ave Monthly
Absorption
Five Month
Projection
305 Lots 181 Lots 59% 47 110 7 145 Lots
Remaining 124 Lots Projected Closed of 181 Lots 80%
Permitted of 181 Lots 100%

2. Special Tax Levy & Delinquency Status
No. Parcels(1) FY 2023-24 Levy Delinquencies(2)
9 $24,677 $0
(1) Nine developed units levied on one parent parcel.
(2) Delinquency information is as of 5/1/2024.

3. Bond Issuance Impact to Property Owners
Avg Home
Value(1) Ad-Valorem Tax Other Taxes CFD Tax Total Tax ETR $631,632 $7,321 $924 $3,220 $11,465 1.82%
(1) Based upon Sales Price provided by Lennar on May 20, 2024.

4. Proposed Use of Proceeds (Preliminary)
Estimated Project Fund Capacity: $14,497,565
Sources Total
Bond Proceeds: Par Amount 9,100,000$
Facilities Special Tax Levy FY 23-24 24,677$
Total Sources 9,124,677$
Uses Total
Debt Service Reserve Fund 846,140$
Capitalized Interest -$

Underwriter's Discount 182,000$
Cost of Issuance 250,000$
Project Fund Proceeds 7,821,860$
Total Uses 9,100,000$
Net Bond Funds 24,677$
Criteria
Estimated Average Tax Bill for FY 24-25
Item: 6.2
Item Page Number: 1
Menifee Finance Committee       July 9, 2024        Page 30 of 75 CITY OF MENIFEE
Community Facilities District No. 2023‐1
(Rockport Ranch)
Tract No. 37131
Calculation of Bond Sizing and Total Tax Rates
I. Home Prices and Combined Tax Rates:

Tax Zone
Class 1 24124568 1 2
Plan 1 231123245 CFD TOTAL
Range of Home Sizes in Square Feet per RMA Under 1,900  to Over Under 1,900  to 2,301  to 2,501  to 2,701  to 3,101  to Over 1,900 2,050 2,200 1,900 2,100 2,500 2,700 2,900 3,300 3,900 Estimated Home Size  1,860 1,987 2,207 1,764 1,939 2,443 2,612 2,752 3,146 4,136 2,481 Estimated Home Price  $530,545 $552,335 $574,105 $554,245 $623,730 $635,570 $648,020 $648,405 $726,830 $859,540 $631,632 Ad‐Valorem Tax Rate (1.00%) $5,305.45 $5,523.35 $5,741.05 $5,542.45 $6,237.30 $6,355.70 $6,480.20 $6,484.05 $7,268.30 $8,595.40 $6,316.32 Metro Water West (0.00350%) $18.57 $19.33 $20.09 $19.40 $21.83 $22.24 $22.68 $22.69 $25.44 $30.08 $22.11 Menifee School (0.06063%) $321.67 $334.88 $348.08 $336.04 $378.17 $385.35 $392.89 $393.13 $440.68 $521.14 $382.96 Perris Union HS (0.08173%) $433.61 $451.42 $469.22 $452.98 $509.77 $519.45 $529.63 $529.94 $594.04 $702.50 $516.23 Mt. San Jacinto Jr. College (0.01320%) $70.03 $72.91 $75.78 $73.16 $82.33 $83.90 $85.54 $85.59 $95.94 $113.46 $83.38 Subtotal GO Bond Debt $6,149.33 $6,401.89 $6,654.22 $6,424.03 $7,229.40 $7,366.64 $7,510.94 $7,515.40 $8,424.40 $9,962.58 $7,320.99 Perris Union High School District CFD 92‐1 $330.00 $330.00 $330.00 $330.00 $330.00 $330.00 $330.00 $330.00 $330.00 $330.00 $330.00 Flood Control Stormwater / Cleanwater / Santa Ana  $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 EMWD Standby $26.00 $26.00 $26.00 $26.00 $26.00 $26.00 $26.00 $26.00 $26.00 $26.00 $26.00 MWD Standby charge $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 Proposed CFD No. 2017‐1 ‐ Maintenance Services* $556.00 $556.00 $556.00 $556.00 $556.00 $556.00 $556.00 $556.00 $556.00 $556.00 $556.00 Proposed CFD No. 2023‐1 ‐ Facilities Special Tax** $2,646.90 $2,719.32 $2,807.04 $2,797.86 $2,978.40 $3,156.90 $3,259.92 $3,471.06 $3,788.28 $4,862.34 $3,219.80 Subtotal Special Assessments and Taxes $3,569.62 $3,642.04 $3,729.76 $3,720.58 $3,901.12 $4,079.62 $4,183.64 $4,395.78 $4,715.00 $5,793.06 $4,143.84 Total Annual Property Taxes $9,718.95 $10,043.93 $10,383.98 $10,144.61 $11,130.52 $11,446.26 $11,694.58 $11,911.18 $13,139.40 $15,755.64 $11,464.83 Annual Prop. Tax Rates as % of Home Price 1.83% 1.82% 1.81% 1.83% 1.78% 1.80% 1.80% 1.84% 1.81% 1.83% 1.82% Unit Mix 15  14  30  15  12  25  21  19  15  15  181
(1)Total CFD ‐ Annual Tax Collections (2% Escalator) $39,704 $38,070 $84,211 $41,968 $35,741 $78,923 $68,458 $65,950 $56,824 $72,935 $582,784 (2)Administration $30,000
Total Annual Special Taxes for Bonding
((1)Total Special Taxes ‐ (2)Admin. / 110% Coverage) $34,236 $32,828 $72,615 $36,189 $30,819 $68,054 $59,031 $56,868 $48,999 $62,891 $502,531 II. Total Estimated Home Square Footage: 27,900            27,818           66,210           26,460           23,268           61,075           54,852           52,288           47,190           62,040           449,101 III. CFD Bond Sizing & Construction Proceeds:

Bond Amount (5.50% Interest, 30 Year Term, 29 Year Amortization) $9,100,000 Underwriter Discount (2.00%) $182,000
Reserve Fund (Maximum Annual Debt Service) $846,140
Capitalized Interest (0 mos.) $0
Incidental Costs (Estimate) $250,000
Total Discount, Reserve Fund, Capitalized Interest and Incidental Costs $1,278,140 Net Bond Proceeds $7,821,860
12 Item: 6.2
Item Page Number: 2
Menifee Finance Committee       July 9, 2024        Page 31 of 75 CITY OF MENIFEE
Community Facilities District No. 2023‐1
(Rockport Ranch)
Tract No. 37131
Revenue Coverage ‐ Assigned Tax Rate
Year
Period
Ending
Gross
Revenues
Priority
Admin Principal Coupon Interest
Net Debt
Service
Debt
Service
Coverage
1 9/1/2025 $582,784 $30,000 $0 5.50% $500,500 $500,500 110.45% 2 9/1/2026 $594,440 $30,600 $10,000 5.50% $500,500 $510,500 110.45% 3 9/1/2027 $606,329 $31,212 $20,000 5.50% $499,950 $519,950 110.61% 4 9/1/2028 $618,455 $31,836 $30,000 5.50% $498,850 $528,850 110.92% 5 9/1/2029 $630,824 $32,473 $45,000 5.50% $497,200 $542,200 110.36% 6 9/1/2030 $643,441 $33,122 $55,000 5.50% $494,725 $549,725 111.02% 7 9/1/2031 $656,310 $33,785 $70,000 5.50% $491,700 $561,700 110.83% 8 9/1/2032 $669,436 $34,461 $85,000 5.50% $487,850 $572,850 110.84% 9 9/1/2033 $682,825 $35,150 $105,000 5.50% $483,175 $588,175 110.12% 10 9/1/2034 $696,481 $35,853 $120,000 5.50% $477,400 $597,400 110.58% 11 9/1/2035 $710,411 $36,570 $140,000 5.50% $470,800 $610,800 110.32% 12 9/1/2036 $724,619 $37,301 $160,000 5.50% $463,100 $623,100 110.31% 13 9/1/2037 $739,111 $38,047 $180,000 5.50% $454,300 $634,300 110.53% 14 9/1/2038 $753,893 $38,808 $205,000 5.50% $444,400 $649,400 110.11% 15 9/1/2039 $768,971 $39,584 $225,000 5.50% $433,125 $658,125 110.83% 16 9/1/2040 $784,351 $40,376 $255,000 5.50% $420,750 $675,750 110.10% 17 9/1/2041 $800,038 $41,184 $280,000 5.50% $406,725 $686,725 110.50% 18 9/1/2042 $816,038 $42,007 $310,000 5.50% $391,325 $701,325 110.37% 19 9/1/2043 $832,359 $42,847 $340,000 5.50% $374,275 $714,275 110.53% 20 9/1/2044 $849,006 $43,704 $375,000 5.50% $355,575 $730,575 110.23% 21 9/1/2045 $865,987 $44,578 $410,000 5.50% $334,950 $744,950 110.26% 22 9/1/2046 $883,306 $45,470 $445,000 5.50% $312,400 $757,400 110.62% 23 9/1/2047 $900,972 $46,379 $485,000 5.50% $287,925 $772,925 110.57% 24 9/1/2048 $918,992 $47,307 $530,000 5.50% $261,250 $791,250 110.17% 25 9/1/2049 $937,372 $48,253 $575,000 5.50% $232,100 $807,100 110.16% 26 9/1/2050 $956,119 $49,218 $620,000 5.50% $200,475 $820,475 110.53% 27 9/1/2051 $975,242 $50,203 $670,000 5.50% $166,375 $836,375 110.60% 28 9/1/2052 $994,746 $51,207 $725,000 5.50% $129,525 $854,525 110.42% 29 9/1/2053 $1,014,641 $52,231 $785,000 5.50% $89,650 $874,650 110.03% 30 9/1/2054 $1,034,934 $53,275 $845,000 5.50% $46,475 $891,475 110.12% Total $23,642,433 $1,217,042 $9,100,000 $11,207,350 $20,307,350 110.43% Item: 6.2
Item Page Number: 3
Menifee Finance Committee       July 9, 2024        Page 32 of 75 CITY OF MENIFEE
Community Facilities District No. 2023‐1
(Rockport Ranch)
Tract No. 37131
Use of Bond Proceeds
Eligible Preliminary
FUNDING REQUIREMENTS Per Lot 305 181 Lots
City Fees
Law Enforcement $1,390 $423,950 $251,590
Fire Facilities $647 $197,335 $117,107
Circulation $7,090 $2,162,450 $1,283,290
General Govt $1,176 $358,680 $212,856
Storm Drainage (Area B‐B) $1,906 $581,330 $344,986
Parks ‐ Land $1,723 $525,515 $311,863
Subtotal City Fees $13,932 $4,249,260 $2,521,692
City Premium (20%) $2,786 $849,852 $849,852
Fiscal Impact Mitigation Fee $12,809 $3,906,674 $2,318,387 Total City Fees $29,527 $9,005,786 $5,689,931
City Facilities
City Street Improvements $4,902 $1,495,000 $0
Overhead Elecrical Utility Undergrounding $4,721 $1,440,000 $0 Total City Facilities $9,623 $2,935,000 $0
Total City Facilities and Fees $39,150 $11,940,786 $5,689,931 EMWD Fees
Sewer Financial Participation Charge $3,391 $1,034,255 $613,771 Sewer Treatment Plant Capacity Charge $6,428 $1,960,540 $1,163,468 Water Financial Participation Charge $7,235 $2,206,675 $354,691 Water Supply Development Fee $392 $119,560 $0
Irrigation Meter Fees 1.5" $491 $149,820 $0
Meter Fee $377 $114,985 $0
Total EMWD Fees $18,314 $5,585,835 $2,131,930
Menifee Union School District Fees
Menifee Union School District Fees $8,881 $2,708,812 $0 Total School District Fees $8,881 $2,708,812 $0
Total Cost $66,346 $20,235,433 $7,821,861
Potential Project Funds Available  $14,674,053 $7,821,860 ALLOCATION OF PROCEEDS % Per Lot Total Total
City Premium 11% $2,786 $849,852 $849,852
City Fees 62% $13,932 $8,155,934 $4,840,079
City Facilities 0% $0 $2,935,000 $0
Other Agency 27% $11,779 $2,733,267 $2,131,930
Total Funded by Bond Proceeds 100% $28,497 $14,674,053 $7,821,861 UNFUNDED REQUIREMENTS
Net Bond Proceeds Deficit $0 ($0)
Unfunded Requirement $5,561,380 $0
Total Fees to be Funded by Developer $5,561,380 $0
Item: 6.2
Item Page Number: 4
Menifee Finance Committee       July 9, 2024        Page 33 of 75 Item: 6.2
Item Page Number: 1
Menifee Finance Committee       July 9, 2024        Page 34 of 75 22'
-6"
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TRES LAGOS DRIVE

BRIGGS ROAD

OLD NEWPORT ROAD
STREET "C"
STREET "B"
STREET "A"
STREET "E"
STREET "A"
STREET "D"
STREET "C"
STREET "E"
STREET "B"

MOW CURB

BLOCK WALL

MOW CURB

BLOCK WALL

VIEW WALL

VIEW WALL

BLOCK WALL

BLOCK WALL

BLOCK WALL
LAKE
LAKE
TR 30422-3
BLOCK
WALL
MOW
CURB

BLOCK WALL

VIEW WALL
MOW
CURB
MOW
CURB

VIEW FENCE

VIEW FENCE

VIEW FENCE

VIEW FENCE

BLOCK WALL

BLOCK WALLBLOCK WALL

BLOCK WALL
T.S. FENCE W/

MOW CURB

VIEW FENCE

VIEW FENCE

BLOCK WALL

VIEW FENCE

VIEW FENCE

MAINTENANCE EXHIBIT LEGEND
LANDSCAPE:

STREET LIGHTS: 14 EACH
TREES:

STORM DRAIN BOX CULVERTS: 8 EACH
TRAFFIC SIGNALS: 0
STORM DRAIN PIPE: 421 LNF
BOX CULVERT: 1,218 LNF
DUAL CELL REINFORCED BOX CULVERT: 1,684 LNF
LANDSCAPE:

LANDSCAPE EMWD EASEMENT: 109,214 SF
LAKE: 267,531 SF
STREET: 320,342 SF
ALLEY: 47,560 SF
SIDEWALK: 103,781 SF
STORM DRAIN LINE: 3,649 LNF
STORM DRAIN BOX CULVERTS: 33 EACH
STREET LIGHTS: 60 EACH

CFD MAINTAINED AREAS

HOA MAINTAINED AREAS

12.16.22 David
ASSOCIATES Inc.

EAULT
www.dnassociates.com
951 296 3430

MAINTENANCE EXHIBIT
ROCKPORT RANCH - TRACT 37131

MENIFEE, CALIFORNIALENNAR HOMES
240'80' 40'0
NORTH
Item: 6.2
Item Page Number: 1
Menifee Finance Committee       July 9, 2024        Page 35 of 75 28202 CABOT RD | SUITE 620 | LAGUNA NIGUEL, CA 92677
PHONE: (949) 542-7070 | FAX: (949) 542-7076
www.zimmermangroup.com
May 9, 2024
Margarita Cornejo
Deputy Finance Director
City of Menifee
29844 Haun Road
Menifee, CA 92586
T. (951) 723-3716
E. [email protected]
RE: Series 1 Bond Issuance Request, CFD No. 2023-1 (Rockport Ranch) Dear Ms. Cornejo,
On behalf of Lennar Homes (“Developer”), we are requesting the City of Menifee (“City”) move forward with the issuance of a series of bonds (“Bonds”) for CFD No. 2023-1 (Rockport Ranch) (“CFD”). The CFD is includes 305 lots within Tract Map No. 37131 (the “Project”). We would like to issue a series of bonds secured by roughly 60% of the lots within the Project (“Series 1 Bonds”). A summary of the development status for the proposed Series 1 Bonds is included in the table below.

CFD No. 2023-1 (Rockport Ranch)
Development Status Units % of Total
110 61%
9 5%
47 26%
12 7%
Closed Homes*
Completed Homes (8 Models)
Under Construction/Sold
Under Construction/Unsold
Finished Lots (Permitted)
3 2%
Series 1 Bonds - Total Units 181 100%
The attached Exhibit A shows the estimated bond sizing and debt service schedule for the Series 1 Bonds, which results in approximately $7.9M in construction proceeds. The construction proceeds would fund City impact fees and facilities and EMWD facilities. The purpose of issuing two series of bond is to limit the special taxes to be levied on property owned by the Developer. Given that interest rates have remained low and the City’s recent success in selling bonds, w e believe it's on optimal time to move forward with the Series 1 Bonds.

We appreciate your consideration of this request and look forward to working with the City team to i
ssue 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
Sepideh Bastani, Lennar Homes – Project Manager
Wil
liam Sacriste, Lennar Homes – Director of Forward Planning Geoff Smith, Lennar Homes – Vice President
* Estimated closings as of June 2024
Item: 6.2
Item Page Number: 1
Menifee Finance Committee       July 9, 2024        Page 36 of 75

EXHIBIT A
City of Menifee CFD No. 2023-1 (Rockport Ranch)
Lennar Homes - Rockport Ranch (TR No. 37131)
Estimated Debt Service & Bond Sizing Schedule
May 9, 2024

ISSUANCE ASSUMPTIONS ESTIMATED SOURCES AND USES
Closing Date 9/15/2025 Sources
Special Tax Revenue Escalation 2.000% Par Bond Amount 9,170,000$ Annual Administration Expense 30,000$
Administration Expense Escalation 2.000% Uses
Debt Service Coverage Ratio 110% Reserve Fund 846,869$
Underwriter Discount Estimate 2.000% Capitalized Interest - Issuance Costs Estimate 250,000$ Underwriter Discount 183,400 Months of Capitalized Interest - Costs Of Issuance 250,000 Gross Special Tax Revenues 2024-2025 582,604$ Construction Fund 7,889,731 Total Uses 9,170,000$

BOND DEBT SERVICE
Period Gross Priority Capitalized Net Debt Debt Service Ending Revenues Admin Principal Yield Interest Interest Service Coverage 9/1/2026 582,604$ 30,000$ 10,000$ 2.420% 471,932$ -$ 481,932$ 114.66% 9/1/2027 594,256 30,600 20,000 2.420% 490,786 - 510,786 110.35% 9/1/2028 606,141 31,212 30,000 2.670% 490,302 - 520,302 110.50% 9/1/2029 618,264 31,836 40,000 3.020% 489,501 - 529,501 110.75% 9/1/2030 630,629 32,473 55,000 3.420% 488,293 - 543,293 110.10% 9/1/2031 643,241 33,122 65,000 3.720% 486,412 - 551,412 110.65% 9/1/2032 656,106 33,785 80,000 3.920% 483,994 - 563,994 110.34% 9/1/2033 669,228 34,461 95,000 4.170% 480,858 - 575,858 110.23% 9/1/2034 682,613 35,150 110,000 4.420% 476,897 - 586,897 110.32% 9/1/2035 696,265 35,853 125,000 4.620% 472,035 - 597,035 110.62% 9/1/2036 710,191 36,570 145,000 4.770% 466,260 - 611,260 110.20% 9/1/2037 724,394 37,301 165,000 4.870% 459,343 - 624,343 110.05% 9/1/2038 738,882 38,047 185,000 4.920% 451,308 - 636,308 110.14% 9/1/2039 753,660 38,808 205,000 5.000% 442,206 - 647,206 110.45% 9/1/2040 768,733 39,584 230,000 5.070% 431,956 - 661,956 110.15% 9/1/2041 784,108 40,376 255,000 5.140% 420,295 - 675,295 110.13% 9/1/2042 799,790 41,184 280,000 5.200% 407,188 - 687,188 110.39% 9/1/2043 815,786 42,007 310,000 5.270% 392,628 - 702,628 110.13% 9/1/2044 832,101 42,847 340,000 5.320% 376,291 - 716,291 110.19% 9/1/2045 848,743 43,704 370,000 5.370% 358,203 - 728,203 110.55% 9/1/2046 865,718 44,578 405,000 5.420% 338,334 - 743,334 110.47% 9/1/2047 883,033 45,470 445,000 5.470% 316,383 - 761,383 110.01% 9/1/2048 900,693 46,379 480,000 5.520% 292,041 - 772,041 110.66% 9/1/2049 918,707 47,307 525,000 5.620% 265,545 - 790,545 110.23% 9/1/2050 937,081 48,253 570,000 5.620% 236,040 - 806,040 110.27% 9/1/2051 955,823 49,218 615,000 5.620% 204,006 - 819,006 110.70% 9/1/2052 974,939 50,203 670,000 5.620% 169,443 - 839,443 110.16% 9/1/2053 994,438 51,207 725,000 5.620% 131,789 - 856,789 110.09% 9/1/2054 1,014,327 52,231 780,000 5.620% 91,044 - 871,044 110.45% 9/1/2055 1,034,614 53,275 840,000 5.620% 47,208 - 887,208 110.61% Total 23,635,109 1,217,042 9,170,000 5.48% 11,128,515 - 20,298,515 110.01% Item: 6.2
Item Page Number: 2
Menifee Finance Committee       July 9, 2024        Page 37 of 75

CITY OF MENIFEE
SUBJECT: Proposed Change to Community Facilities District No. 2022- 3, Legado, by BLC Fleming
MEETING DATE: July 9, 2024
TO: Finance Committee
PREPARED BY: Lauri Lockwood, Financial Analyst
REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Review the changes for Community Facilities District 2022-3, located northwest of Antelope Road and Chambers Avenue and south of Rouse Road, proposed by BLC Fleming, to amend the financing plan and for certain public improvements within the residential development and recommend submittal to the City Council for consideration.

DISCUSSION
In early 2022, BLC Fleming initiated plans to form a Community Facilities District (CFD) that would include 1,022-homes within a residential development located northwest of Antelope Road and Chambers Avenue and south of Rouse Road. In August 2022, the City Council approved Resolution 22-1187 declaring its intention to establish CFD 2022-3, Legado; and in October 2022 the City Council approved Ordinance 2022-353 authorizing the levy of special taxes within CFD 2022-3. Since then, BLC Fleming entered into a contract to sell the project to Lennar Homes, however, the property is to be acquired in three separate phases.

When the CFD was formed in 2022, the property was divided into two “improvement areas,” Improvement Area No. 1 (“IA 1”) and Improvement Area No. 2 (“IA 2”), as shown in the attached project map. Lennar has purchased the property within IA 1 (491 homesites). Lennar also is under contract to purchase the property within IA 2, but that future acquisition would occur in two phases as shown in the attached amended project map. The boundary of IA 1 is entirely within the Phase 1 property. But the IA 2 property is divided between Phase 2 ( 201 homesites) and Phase 3 (330 homesites).

Amendments to the approved financing plans are being requested in order to align the CFD financing program with the three phases of the sale, making a cleaner process for the bond issuances and reimbursement processes. It is possible that Phase 2 and/or Phase 3 could Item: 6.3
Item Page Number: 1
Menifee Finance Committee       July 9, 2024        Page 38 of 75 City of Menifee Staff Report
Proposed Change to Community Facilities District No. 2022-3, Legado, by BLC Fleming July 9, 2024

2 2
7 6
ultimately be acquired by a developer other than Lennar. If that happens, having a separate improvement area for each builder in the CFD will avoid the potential for different developers wanting to access the same bond proceeds for their respective development costs.

In connection with the closing of Phase 1, BLC Fleming and Lennar entered into partial assignment agreements for the Reimbursement Agreement, the Acquisition, Construction and Funding Agreement, and the Joint Community Facilities Agreement to effectively assign IA 1 to Lennar. Because Phases 2 and 3 will be acquired at different times, BLC Fleming and Lennar would like to amend the boundaries for IA 2 and create a new Improvement Area No. 3 (“IA 3”).

The boundaries for IA 2 would take in the Phase 2 property and the boundaries for IA 3 would encompass the Phase 3 property. No new property would be added to the CFD.

As originally planned, the CFD has multiple tax zones in each improvement area. The tax zone structure that currently exists within IA 2 will stay the same as it is carved into IA 2 and IA 3. Those tax zones are shown in the attached amended boundary map.

In addition to new boundary maps, the project adjustments would necessitate the following changes:
 An amendment to the Rate and Method of Apportionment (“RMA”) for IA 2, and the creation of an RMA for IA 3. The developed property tax rates will remain at the amounts previously approved.
 A reduction to the existing bond authorization for IA 2 and a new bond authorization for IA 3.  Amendments to the existing Joint Community Facilities Agreements with Eastern Municipal Water District to incorporate the addition of IA 3.
 The recordation of a special tax lien for IA 3 and the removal of the existing IA 2 tax lien on properties within the new IA 3.

No changes are requested to the fees and improvements currently authorized to be funded by the CFD.

FISCAL IMPACT
There is no fiscal impact to the General Fund.

ATTACHMENTS

1. CFD 2022-3 IA 2 Proforma Summary

2. CFD 2022-3 (Legado) Initial Project Map and Amended Project Map

3. CFD 2022-3 (Legado) IA 2 Change Proceeding Proforma

4. CFD 2022-3 (Legado) IA 3 Change Proceeding Proforma

5. CFD 2022-3 (Legado) Use of Bond Proceeds

6. CFD 2022-3 (Legado) Proposed Amended Boundary Map

7. CFD 2022-3 (Legado) IA 2 Amendment Request
Item: 6.3
Item Page Number: 2
Menifee Finance Committee       July 9, 2024        Page 39 of 75 CFD 2022‐3 (Legado) IA 2 Change Proceeding
Proforma Summary Sheet
Applicant: Lennar Homes
Project Description
Improvement Area 2 ‐ Original
Tax Zones  3 Separate Tax Zones
Acreage  Gross: 138.40; Net: 80.65
Development Description  Detached Single Family Residential Number of Units (50 min)  531 Units
Estimated Home Size Range  1,300 SF to 3,500 SF
Average Home Size  2,400 SF
Average Estimated Home Price  $582,971
Total Effective Tax Rate (2.00% Max)  2.00%
CFD Tax Rate Range – FY 24‐25  $2,693 to $3,625
Escalation (2.00% Max)  Yes, 2.00%
Maintenance CFD  Yes, CFD 2017‐1 Tax Zone 12
Maintenance CFD Rate  $963/Unit
Proposed Improvement Area 2
Tax Zones  2 Separate Tax Zones
Acreage  Gross: 73.55; Net: 34.28
Development Description  Detached Single Family Residential Number of Units (50 min)  201 Units
Estimated Home Size Range  1,800 SF to 3,500 SF
Average Home Size  2,800 SF
Average Estimated Home Price  $635,134
Total Effective Tax Rate (2.00% Max)  2.00%
CFD Tax Rate Range – FY 24‐25  $2,841 to $3,625
Escalation (2.00% Max)  Yes, 2.00%
Proposed Improvement Area 3
Tax Zones  3 Separate Tax Zones
Acreage  Gross: 64.85; Net: 46.37
Development Description  Detached Single Family Residential Number of Units (50 min)  330 Units
Estimated Home Size Range  1,300 SF to 3,500 SF
Average Home Size  2,006 SF
Average Estimated Home Price  $584,230
Total Effective Tax Rate (2.00% Max)  2.00%
CFD Tax Rate Range  $2,693 to $3,625
Escalation (2.00% Max)  Yes, 2.00%
Total
Tax Zones  5 Separate Tax Zones
Acreage  Gross: 138.40; Net: 80.65
Number of Units (50 min)  531 Units
Item: 6.3
Item Page Number: 1
Menifee Finance Committee       July 9, 2024        Page 40 of 75 Bond Sizing Assumptions
Original Improvement Area 2 – At Formation
Average Coupon  5.00%
Priority Administration  $30,000
Cost of Issuance  $250,000
Capitalized Interest Period  6‐months
Special Tax Escalation  2%
Bond Term  30 Years
Underwriter Discount  2.00%
Total Special Tax Revenues  $1,616,191
Estimated Sources and Uses
Sources
Par Bond Amount  $30,180,000
Uses
Reserve Fund  $2,548,347
Capitalized Interest  $754,500
Underwriter Discount  $452,700
Cost of Issuance  $250,000
Improvement Fund  $26,174,453
Allocation of Improvement Fund
Description  % of Total  Total
City Fees  13%  $3,464,447
City Facilities*  86%  $22,480,248
City Additional Facilities (20%)  1%  $229,758
Eastern Municipal Water District**  0%  $0
Unfunded  $14,175,831
*$4,160,362 City Facilities Unfunded
**$9,015,469 EMWD Fees Unfunded
Item: 6.3
Item Page Number: 2
Menifee Finance Committee       July 9, 2024        Page 41 of 75 Bond Sizing Assumptions
Proposed Improvement Area 2
Average Coupon  5.00%
Priority Administration  $30,000
Cost of Issuance  $250,000
Capitalized Interest Period  6‐months
Special Tax Escalation  2%
Bond Term  30 Years
Underwriter Discount  2.00%
Total Special Tax Revenues  $658,597
Estimated Sources and Uses
Sources
Par Bond Amount  $11,245,000
Uses
Reserve Fund  $949,708
Capitalized Interest  $281,125
Underwriter Discount  $168,675
Cost of Issuance  $250,000
Improvement Fund  $9,595,492
Allocation of Improvement Fund
Description  % of Total  Total
City Fees  14%  $1,311,401
City Facilities*  85%  $8,197,121
City Additional Facilities (20%)  1%  $86,971
Eastern Municipal Water District**  0%  $0
Unfunded  $5,678,344
*$2,265,709 City Facilities Unfunded
**$3,412,635 EMWD Fees Unfunded
Proposed Improvement Area 3
Average Coupon  5.00%
Priority Administration  $30,000
Cost of Issuance  $250,000
Capitalized Interest Period  6‐months
Special Tax Escalation  2%
Bond Term  30 Years
Underwriter Discount  2.00%
Total Special Tax Revenues  $999,493
Estimated Sources and Uses
Sources
Par Bond Amount  $17,365,000
Uses
Reserve Fund  $1,466,371
Capitalized Interest  $434,125
Underwriter Discount  $260,475
Cost of Issuance  $250,000
Improvement Fund  $14,954,029
Item: 6.3
Item Page Number: 3
Menifee Finance Committee       July 9, 2024        Page 42 of 75 Allocation of Improvement Fund
Description  % of Total  Total
City Fees  14%  $2,153,049
City Facilities*  85%  $12,658,195
City Additional Facilities (20%)  1%  $142,787
Eastern Municipal Water District**  0%  $0
Unfunded  $10,122,419
*$4,519,585 City Facilities Unfunded
**$5,602,834 EMWD Fees Unfunded
Proposed Schedule
Finance Committee  July 9, 2024
Resolution of Intention  September 4, 2024
Public Hearing  October 16, 2024
2nd Reading Ordinance  November 6, 2024
Item: 6.3
Item Page Number: 4
Menifee Finance Committee       July 9, 2024        Page 43 of 75

DESERT ROSE LN

MCLAUGHLIN RD

ROUSE RD

SHERMAN RD

MC C AL L
BLVD

MATTHEWS RD

ANTELOPE RD

PALOMAR RD
§¨¦
215
^ _C HAMBERS AVE

ROUSE RD

WATSON RD

MCCALL BLVD

PALOMA WAY

PACKARD ST

MATTHEWS RD
EVANS RD§¨¦215
·|}þ74
CFD NO. 2022-3 (LEGADO)

INITIAL PROJECT MAP

IMPROVEMENT
AREA 1

IMPROVEMENT
AREA 2
Item: 6.3
Item Page Number: 1
Menifee Finance Committee       July 9, 2024        Page 44 of 75

CHAMBERS AVE

SHERMAN RD

ANTELOPE RD
§¨¦
215
^_C HAMBERS AVE

ROUSE RD

WATSON RD

MCCALL BLVD

PALOMA WAY

PACKARD ST

MATTHEWS RD
EVANS RD§¨¦215
·|}þ74
CFD NO. 2022-3 (LEGADO)

AMENDED PROJECT MAP
IA 3
TAX ZONE 3
IA 3
TAX ZONE 1
IA 3
TAX ZONE 1
IA 3
TAX ZONE 2
IA 2
TAX ZONE 1
IA 2
TAX ZONE 2
IMPROVEMENT AREA 1

NOT-A-PART
Item: 6.3
Item Page Number: 2
Menifee Finance Committee       July 9, 2024        Page 45 of 75 CITY OF MENIFEE CHANGE PROCEEDING DRAFT v1
Community Facilities District No. 2022‐3 IA 2
(Legado)
Tract Nos. 37408 & 37409
Calculation of Bond Sizing and Total Tax Rates
I. Home Prices and Combined Tax Rates:

Tax Zone
Class 12345789 1 0 1 1 1 2 1 3
Plan 5500 5500 5500 5500 5500 5500 6/7000 6/7000 6/7000 6/7000 6/7000 6/7000 CFD TOTAL Range of Home Sizes in Square Feet per RMA Under 1,900  to 2,101  to 2,301  to 2,501  to Over Under 2,100  to 2,401  to 2,701  to 3,001  to Over 1,900 2,100 2,300 2,500 2,700 2,700 2,100 2,400 2,700 3,000 3,300 3,300 Estimated Home Size  1,800 2,000 2,200 2,500 2,800 3,100 2,000 2,300 2,600 2,900 3,200 3,500 2,800 Estimated Home Price  $556,000 $582,000 $595,000 $615,000 $630,000 $649,000 $576,000 $602,000 $626,000 $637,000 $653,000 $696,000 $635,134 Ad‐Valorem Tax Rate (1.00%) $5,560.00 $5,820.00 $5,950.00 $6,150.00 $6,300.00 $6,490.00 $5,760.00 $6,020.00 $6,260.00 $6,370.00 $6,530.00 $6,960.00 $6,351.34 Metro Water West (0.00350%) $19.46 $20.37 $20.83 $21.53 $22.05 $22.72 $20.16 $21.07 $21.91 $22.30 $22.86 $24.36 $22.23 Menifee School (0.06319%) $351.34 $367.77 $375.98 $388.62 $398.10 $410.10 $363.97 $380.40 $395.57 $402.52 $412.63 $439.80 $401.34 Perris Union HS (0.08859%) $492.56 $515.59 $527.11 $544.83 $558.12 $574.95 $510.28 $533.31 $554.57 $564.32 $578.49 $616.59 $562.67 Mt. San Jacinto Jr. College (0.01320%) $73.39 $76.82 $78.54 $81.18 $83.16 $85.67 $76.03 $79.46 $82.63 $84.08 $86.20 $91.87 $83.84 Subtotal GO Bond Debt $6,496.75 $6,800.55 $6,952.46 $7,186.15 $7,361.42 $7,583.44 $6,730.44 $7,034.25 $7,314.68 $7,443.22 $7,630.17 $8,132.62 $7,421.42 Perris Union High School District CFD 92‐1
$316.86 $316.86 $316.86 $316.86 $316.86 $316.86 $316.86 $316.86 $316.86 $316.86 $316.86 $316.86 $316.86 Flood Control Stormwater / Cleanwater / Santa Ana  $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 EMWD Standby $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 MWD Standby charge $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 Menifee Union School District CFD $398.14 $442.38 $486.62 $552.97 $619.33 $685.69 $442.38 $508.73 $575.09 $641.45 $707.80 $774.16 $619.33 Proposed CFD No. 2017‐1 ‐ Maintenance Services* $1,049.71 $1,049.71 $1,049.71 $1,049.71 $1,049.71 $1,049.71 $1,049.71 $1,049.71 $1,049.71 $1,049.71 $1,049.71 $1,049.71 $1,049.71 Proposed CFD No. 2022‐3 ‐ Facilities Special Tax** $2,841.33 $3,013.00 $3,073.34 $3,179.46 $3,234.60 $3,324.08 $2,962.02 $3,111.84 $3,243.97 $3,273.10 $3,336.56 $3,624.75 $3,276.60 Subtotal Special Assessments and Taxes $4,627.76 $4,843.66 $4,948.24 $5,120.72 $5,242.22 $5,398.05 $4,792.68 $5,008.86 $5,207.35 $5,302.83 $5,432.65 $5,787.20 $5,284.22 Total Annual Property Taxes $11,124.51 $11,644.22 $11,900.70 $12,306.87 $12,603.64 $12,981.49 $11,523.13 $12,043.11 $12,522.03 $12,746.05 $13,062.83 $13,919.82 $1 2,705.64 Annual Prop. Tax Rates as % of Home Price

2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Unit Mix ‐   21  21  21  ‐   21  ‐   ‐   29  29  30  29  201 (1)Total CFD ‐ Annual Tax Collections (2% Escalator) $0 $63,273 $64,540 $66,769 $0 $69,806 $0 $0 $94,075 $94,920 $100,097 $105,118 $658,597 (2)Administration $30,000
Total Annual Special Taxes for Bonding
((1)Total Special Taxes ‐ (2)Admin. / 110% Coverage) $0 $54,901 $56,000 $57,934 $0 $60,569 $0 $0 $81,627 $82,360 $86,852 $91,209 $571,452 II. Total Estimated Home Square Footage: ‐                  42,000           46,200            52,500           ‐                  65,100           ‐                  ‐                  75,400           84,100           96,000           101,500         562,800 III. CFD Bond Sizing & Construction Proceeds:

Bond Amount (5.00% Interest, 30 Year Term, 29 Year Amortization) $11,245,000 Underwriter Discount (1.50%) $168,675
Reserve Fund (Maximum Annual Debt Service) $949,708
Capitalized Interest (6 mos.) $281,125
Incidental Costs (Estimate) $250,000
Total Discount, Reserve Fund, Capitalized Interest and Incidental Costs $1,649,508 Net Bond Proceeds $9,595,492
1 (Old 2)
2 (Old 3)
Item: 6.3
Item Page Number: 1
Menifee Finance Committee       July 9, 2024        Page 45 of 75 CITY OF MENIFEE CHANGE PROCEEDING DRAFT v1
Community Facilities District No. 2022‐3 IA 2
(Legado)
Tract Nos. 37408 & 37409
Summary of Acreage, Undeveloped Property
And Backup Special Tax Rates
Tax Zone 1 Tax Zone 2
84 Lots 117 Lots
I. Calculation  of Net Taxable Acres:

Gross Acreage 21.37  52.18
Less: Exempt Acres 8.16  31.11
Net Taxable Acres 13.21  21.07
II. Calculation  of Undeveloped Property Tax Rate:

Total Developed Property Revenues $264,387 $394,210
Net Taxable Acres 13.21  21.07
Less: Contingency  Factor (10%) 1.32  2.11
Net Taxable Acres (Adjusted) 11.89  18.96
Undeveloped Property Tax Rate per Acre $22,230 $20,791
Total Exempt Acreage 9.48  33.22
III. Calculation  of Backup Special Tax Rate:

Backup Special Tax Rate per Unit TR 37409‐4T R  37409‐5 Total Taxable Acres (Adjusted) 13.21  8.85
Undeveloped Property Tax Rate per Acre $22,230 $20,791
Total Units 84 49
Backup Special Tax per Unit $3,497 $3,755
Backup Special Tax Rate per Unit TR 37409‐7
Total Taxable Acres (Adjusted) 8.99
Undeveloped Property Tax Rate per Acre $20,791
Total Units 51
Backup Special Tax per Unit $3,665
Backup Special Tax Rate per Unit TR 37408‐4
IA Share IA 1
Total Taxable Acres (Adjusted) 8.07
Bond Amou Undeveloped Property Tax Rate per Acre $19,319 Subtotal Undeveloped Tax $155,904
IA Share IA 2
Total Taxable Acres (Adjusted) 3.22
Undeveloped Property Tax Rate per Acre $20,791
Subtotal Undeveloped Tax $66,947
Total Undeveloped Tax $222,851
Total Units 59
Backup Special Tax per Unit $3,777
Item: 6.3
Item Page Number: 2
Menifee Finance Committee       July 9, 2024        Page 47 of 75 CITY OF MENIFEE CHANGE PROCEEDING DRAFT v1
Community Facilities District No. 2022‐3 IA 2
(Legado)
Tract Nos. 37408 & 37409
Calculation of Bond Sizing and Total Tax Rates
Debt Service No. of Total  Annual
Tax Zone Tax Rate Units Collectable Tax Max Tax Rates
Less than to 1,900 1 $2,841 0 $0 $0
1,901 to 2,100 1 $3,013 21 $63,273 $73,442
2,101 to 2,300 1 $3,073 21 $64,540 $73,442
2,301 to 2,500 1 $3,179 21 $66,769 $73,442
2,501 to 2,700 1 $3,235 0 $0 $0
Greater than to 2,700 1 $3,324 21 $69,806 $73,442
Ave Backup Tax Rate per Unit 1 $3,497 84
Non‐residential Property 1 $22,230
Less than to 2,100 2 $2,962 0 $0 $0
2,101 to 2,400 2 $3,112 0 $0 $0
2,401 to 2,700 2 $3,244 29 $94,075 $108,239
2,701 to 3,000 2 $3,273 29 $94,920 $108,239
3,001 to 3,300 2 $3,337 30 $100,097 $111,972
Greater than 3,300 2 $3,625 29 $105,118 $108,239
Ave Backup Tax Rate per Unit 2 $3,732 117
Non‐residential Property 2 $20,791
201 $658,597 $730,456
Tax Rate for Bonding $636,779
Sizing at Max tax rate $13,000,000
Future Facilities (rounded up) $11,500,000
Range of Home Sizes
Item: 6.3
Item Page Number: 3
Menifee Finance Committee       July 9, 2024        Page 48 of 75 CITY OF MENIFEE CHANGE PROCEEDING DRAFT v1
Community Facilities District No. 2022‐3 IA 2
(Legado)
Tract Nos. 37408 & 37409
Revenue Coverage ‐ Assigned Tax Rate
Year
Period
Ending
Gross
Revenues
Priority
Admin Principal Coupon Interest
Capitalized
Interest
Net Debt
Service
Debt
Service
Coverage
1 9/1/2025 $658,597 $30,000 $0 5.00% $281,125 $281,125 $0 N/A 2 9/1/2026 $671,769 $30,600 $20,000 5.00% $562,250 $582,250 110.12% 3 9/1/2027 $685,204 $31,212 $30,000 5.00% $561,250 $591,250 110.61% 4 9/1/2028 $698,909 $31,836 $45,000 5.00% $559,750 $604,750 110.31% 5 9/1/2029 $712,887 $32,473 $60,000 5.00% $557,500 $617,500 110.19% 6 9/1/2030 $727,144 $33,122 $75,000 5.00% $554,500 $629,500 110.25% 7 9/1/2031 $741,687 $33,785 $90,000 5.00% $550,750 $640,750 110.48% 8 9/1/2032 $756,521 $34,461 $105,000 5.00% $546,250 $651,250 110.87% 9 9/1/2033 $771,652 $35,150 $125,000 5.00% $541,000 $666,000 110.59% 10 9/1/2034 $787,085 $35,853 $145,000 5.00% $534,750 $679,750 110.52% 11 9/1/2035 $802,826 $36,570 $165,000 5.00% $527,500 $692,500 110.65% 12 9/1/2036 $818,883 $37,301 $190,000 5.00% $519,250 $709,250 110.20% 13 9/1/2037 $835,260 $38,047 $210,000 5.00% $509,750 $719,750 110.76% 14 9/1/2038 $851,966 $38,808 $240,000 5.00% $499,250 $739,250 110.00% 15 9/1/2039 $869,005 $39,584 $265,000 5.00% $487,250 $752,250 110.26% 16 9/1/2040 $886,385 $40,376 $295,000 5.00% $474,000 $769,000 110.01% 17 9/1/2041 $904,113 $41,184 $325,000 5.00% $459,250 $784,250 110.03% 18 9/1/2042 $922,195 $42,007 $355,000 5.00% $443,000 $798,000 110.30% 19 9/1/2043 $940,639 $42,847 $390,000 5.00% $425,250 $815,250 110.12% 20 9/1/2044 $959,452 $43,704 $425,000 5.00% $405,750 $830,750 110.23% 21 9/1/2045 $978,641 $44,578 $460,000 5.00% $384,500 $844,500 110.61% 22 9/1/2046 $998,214 $45,470 $500,000 5.00% $361,500 $861,500 110.59% 23 9/1/2047 $1,018,178 $46,379 $545,000 5.00% $336,500 $881,500 110.24% 24 9/1/2048 $1,038,541 $47,307 $590,000 5.00% $309,250 $899,250 110.23% 25 9/1/2049 $1,059,312 $48,253 $635,000 5.00% $279,750 $914,750 110.53% 26 9/1/2050 $1,080,498 $49,218 $685,000 5.00% $248,000 $933,000 110.53% 27 9/1/2051 $1,102,108 $50,203 $740,000 5.00% $213,750 $953,750 110.29% 28 9/1/2052 $1,124,151 $51,207 $795,000 5.00% $176,750 $971,750 110.41% 29 9/1/2053 $1,146,634 $52,231 $855,000 5.00% $137,000 $992,000 110.32% 30 9/1/2054 $1,169,566 $53,275 $920,000 5.00% $94,250 $1,014,250 110.06% 31 9/1/2055 $1,169,566 $53,275 $965,000 5.00% $48,250 $1,013,250 110.17% Total $27,228,990 $1,240,318 $11,245,000 $12,588,875 $23,552,750 110.34% Item: 6.3
Item Page Number: 4
Menifee Finance Committee       July 9, 2024        Page 49 of 75 CITY OF MENIFEE CHANGE PROCEEDING DRAFT v1
Community Facilities District No. 2022‐3 IA 2
(Legado)
Tax Zone 2
Lot Summary
Lot SF Acreage Lot SF Acreage
1 10,504 0.24        46 5,500 0.13
2 7,476 0.17        47 5,500 0.13
3 7,965 0.18        48 5,500 0.13
4 7,156 0.16        49 5,500 0.13
5 7,156 0.16        50 5,500 0.13
6 7,188 0.17        51 5,500 0.13
7 7,558 0.17        52 5,500 0.13
8 6,954 0.16        53 5,500 0.13
9 6,955 0.16        54 5,924 0.14
10 6,955 0.16        55 8,585 0.20
11 6,955 0.16        56 9,340 0.21
12 6,955 0.16        57 6,097 0.14
13 6,955 0.16        58 5,775 0.13
14 6,955 0.16        59 5,775 0.13
15 8,514 0.20        60 6,174 0.14
16 8,514 0.20        61 6,174 0.14
17 8,514 0.20        62 6,174 0.14
18 8,086 0.19        63 6,174 0.14
19 7,602 0.17        64 6,174 0.14
20 12,236 0.28        65 6,174 0.14
21 11,594 0.27        66 6,668 0.15
22 7,416 0.17        67 6,668 0.15
23 7,466 0.17        68 6,667 0.15
24 7,096 0.16        69 6,667 0.15
25 6,764 0.16        70 6,499 0.15
26 6,563 0.15        71 6,436 0.15
27 6,501 0.15        72 5,860 0.13
28 6,576 0.15        73 6,250 0.14
29 6,789 0.16        74 6,250 0.14
30 7,179 0.16        75 6,250 0.14
31 7,235 0.17        76 5,750 0.13
32 6,648 0.15        77 5,750 0.13
33 10,077 0.23        78 5,750 0.13
34 14,278 0.33        79 5,750 0.13
35 5,861 0.13        80 5,750 0.13
36 7,945 0.18        81 5,750 0.13
37 6,679 0.15        82 5,500 0.13
38 6,350 0.15        83 5,582 0.13
39 6,350 0.15        84 6,083 0.14
40 6,350 0.15
41 6,350 0.15
42 5,500 0.13
43 5,500 0.13
44 5,500 0.13
45 5,500 0.13
Totals 337,220         7.74       238,420   5.47         ‐             ‐             ‐             ‐ Grand  575,640       13.21
TR 37409‐4
Item: 6.3
Item Page Number: 5
Menifee Finance Committee       July 9, 2024        Page 50 of 75 CITY OF MENIFEE CHANGE PROCEEDING DRAFT v1
Community Facilities District No. 2022‐3 IA 2
(Legado)
Tax Zone 3
Lot Summary
Lot SF Acreage Lot SF Acreage Lot SF Acreage Lot SF Acreage 1 10,078 0.23        46 7,350 0.17           1 10,839 0.25           27 8,691 0.20 2 7,915 0.18        47 7,350 0.17           2 8,448 0.19           28 7,300 0.17 3 7,961 0.18        48 8,400 0.19           3 7,350 0.17           29 7,300 0.17 4 7,794 0.18        49 8,390 0.19           4 7,350 0.17           30 7,300 0.17 5 7,270 0.17        5 7,350 0.17           31 7,300 0.17 6 7,350 0.17        6 7,350 0.17           32 7,300 0.17 7 7,382 0.17        7 7,350 0.17           33 7,300 0.17 8 7,382 0.17        8 7,350 0.17           34 7,300 0.17 9 7,381 0.17        9 7,350 0.17           35 7,300 0.17 10 7,381 0.17        10 7,350 0.17           36 7,300 0.17 11 7,382 0.17        11 7,495 0.17           37 7,300 0.17 12 7,382 0.17        12 8,078 0.19           38 8,027 0.18 13 7,382 0.17        13 10,142 0.23           39 7,005 0.16 14 7,381 0.17        14 10,675 0.25           40 7,055 0.16 15 7,559 0.17        15 7,801 0.18           41 7,121 0.16 16 8,278 0.19        16 7,987 0.18          42 7,185 0.16 17 10,884 0.25        17 7,844 0.18           43 7,249 0.17 18 7,586 0.17        18 7,780 0.18           44 7,314 0.17 19 8,380 0.19        19 7,716 0.18           45 7,378 0.17 20 8,333 0.19        20 7,652 0.18           46 7,442 0.17 21 8,263 0.19        21 7,588 0.17           47 7,506 0.17 22 8,194 0.19        22 7,524 0.17           48 7,570 0.17 23 8,125 0.19        23 7,459 0.17           49 7,635 0.18 24 8,055 0.18        24 7,395 0.17           50 7,667 0.18 25 7,986 0.18        25 7,064 0.16           51 7,259 0.17 26 8,615 0.20        26 8,348 0.19
27 7,856 0.18
28 7,350 0.17
29 7,350 0.17
30 7,350 0.17        Lot SF Acreage Lot SF Acreage
31 7,350 0.17        1 7,885 0.18           10 7,850 0.18 32 7,350 0.17        2 8,048 0.18           11 8,030 0.18 33 7,350 0.17        3 7,686 0.18           12 8,069 0.19 34 7,350 0.17        4 7,779 0.18           13 8,066 0.19 35 7,350 0.17        5 7,689 0.18           14 8,160 0.19 36 7,347 0.17        6 7,768 0.18           15 7,824 0.18 37 9,175 0.21        7 7,847 0.18           16 8,559 0.20 38 10,093 0.23        8 10,479 0.24           17 9,247 0.21 39 8,608 0.20        9 9,420 0.22
40 7,729 0.18
41 7,350 0.17
42 7,350 0.17
43 7,350 0.17
44 7,350 0.17
45 7,350 0.17
Totals 354,037         8.13       31,490     0.72         281,236   6.46         250,909    5.76         ‐             ‐             ‐            ‐ Grand  917,672       21.07
TR 37409‐5T R  37409‐7
TR 37408‐4
Item: 6.3
Item Page Number: 6
Menifee Finance Committee       July 9, 2024        Page 51 of 75 CITY OF MENIFEE CHANGE PROCEEDING DRAFT v1
Community Facilities District No. 2022-3 IA 3
(Legado)
Tract Nos. 37408 & 37409
Calculation of Bond Sizing and Total Tax Rates
I. Home Prices and Combined Tax Rates:

Tax Zone
Class 123456789 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 Plan 5000 5000 5000 5000 5000 5000 5000 5500 5500 5500 5500 5500 5500 6/700 0 6/7000 6/7000 6/7000 6/7000 6/7000 CFD TOTAL Range of Home Sizes in Square Feet per RMA Under 1,400 to 1,601 to 1,801 to 2,001 to 2,201 to Over Under 1,900 to 2,101 to 2,301 to 2,501 to Over Under 2,100 to 2,401 to 2,701 to 3,001 to Over 1,400 1,600 1,800 2,000 2,200 2,400 2,400 1,900 2,100 2,300 2,500 2,700 2,700 2,100 2,400 2,700 3,000 3,300 3,300 Estimated Home Size 1,300 1,500 1,700 1,900 2,100 2,300 2,500 1,800 2,000 2,200 2,500 2,800 3,100 2,000 2,300 2,600 2,900 3,200 3,500 2,006 Estimated Home Price $525,000 $558,000 $570,000 $577,000 $594,000 $614,000 $626,000 $556,000 $582,000 $595,000 $615,000 $630,000 $649,000 $576,000 $602,000 $626,000 $637,000 $653,000 $696,000 $584,230 Ad-Valorem Tax Rate (1.00%) $5,250.00 $5,580.00 $5,700.00 $5,770.00 $5,940.00 $6,140.00 $6,260.00 $5,560.00 $5,820.00 $5,950.00 $6,150.00 $6,300.00 $6,490.00 $5,760.00 $6,020.00 $6,260.00 $6,370.00 $6,530.00 $6,960.00 $5,842.30 Metro Water West (0.00350%) $18.38 $19.53 $19.95 $20.20 $20.79 $21.49 $21.91 $19.46 $20.37 $20.83 $21.53 $22.05 $22.72 $20.16 $21.07 $21.91 $22.30 $22.86 $24.36 $20.45 Menifee School (0.06319%) $331.75 $352.60 $360.18 $364.61 $375.35 $387.99 $395.57 $351.34 $367.77 $375.98 $388.62 $398.10 $410.10 $363.97 $380.40 $395.57 $402.52 $412.63 $439.80 $369.18 Perris Union HS (0.08859%) $465.10 $494.33 $504.96 $511.16 $526.22 $543.94 $554.57 $492.56 $515.59 $527.11 $544.83 $558.12 $574.95 $510.28 $533.31 $554.57 $564.32 $578.49 $616.59 $517.57 Mt. San Jacinto Jr. College (0.01320%) $69.30 $73.66 $75.24 $76.16 $78.41 $81.05 $82.63 $73.39 $76.82 $78.54 $81.18 $83.16 $85.67 $76.03 $79.46 $82.63 $84.08 $86.20 $91.87 $77.12 Subtotal GO Bond Debt $6,134.52 $6,520.12 $6,660.34 $6,742.13 $6,940.77 $7,174.47 $7,314.68 $6,496.75 $6,800.55 $6,952.46 $7,186.15 $7,361.42 $7,583.44 $6,730.44 $7,034.25 $7,314.68 $7,443.22 $7,630.17 $8,132.62 $6,826.61 Perris Union High School District CFD 92-1 $316.86 $316.86 $316.86 $316.86 $316.86 $316.86 $316.86 $316.86 $316.86 $316.86 $316.86 $316.86 $316.86 $316.86 $316.86 $316.86 $316.86 $316.86 $316.86 $316.86 Flood Control Stormwater / Cleanwater / Santa Ana $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 EMWD Standby $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 MWD Standby charge $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 Menifee Union School District CFD $287.55 $331.78 $376.02 $420.26 $464.5 0 $508.73 $552.97 $398.1 4 $442.38 $486.62 $552.97 $619.33 $685.69 $442.38 $508.73 $575.09 $641.45 $707.8 0 $774.16 $443.65 Proposed CFD No. 2017-1 - Maintenance Services* $1,049.71 $1,049.71 $1,049.71 $1,049.71 $1,049.71 $1,049.71 $1,049.71 $1,049.71 $1,049.71 $1,049.71 $1,049.71 $1,049.71 $1,049.71 $1,049.71 $1,049.71 $1,049.71 $1,049.71 $1,049.71 $1,049.71 $1,049.71 Proposed CFD No. 2022-3 - Facilities Special Tax** $2,692.56 $2,925.60 $2,975.54 $2,992.19 $3,086.87 $3,214.84 $3,265.82 $2,841.33 $3,013.00 $3,073.34 $3,179.46 $3,234.60 $3,324.08 $2,962.02 $3,111.84 $3,243.97 $3,273.10 $3,336.56 $3,624.75 $3,028.77 Subtotal Special Assessments and Taxes $4,368.39 $4,645.67 $4,739.85 $4,800.74 $4,939.65 $5,111.86 $5,207.07 $4,627.76 $4,843.66 $4,948.24 $5,120.72 $5,242.22 $5,398.05 $4,792.68 $5,008.86 $5,207.35 $5,302.83 $5,432.65 $5,787.20 $4,860.70 Total Annual Property Taxes $10,502.91 $11,165.79 $11,400.19 $11,542.87 $11,880.42 $12,286.32 $12,521.76 $11,124.51 $11,644.22 $11,900.70 $12,306.87 $12,603.64 $12,981.49 $11,523.13 $12,043.11 $12,522.03 $12,746.05 $13,062.83 $13,919.82 $11,687.32 Annual Prop. Tax Rates as % of Home Price 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Unit Mix - 45 45 45 45 - - - 17 18 17 - 18 60 20 - - - - 330 (1)Total CFD - Annual Tax Collections (2% Escalator) $0 $131,652 $133,899 $134,649 $138,909 $0 $0 $0 $51,221 $55,320 $54,051 $0 $59,833 $177,721 $62,237 $0 $0 $0 $0 $999,493 (2)Administration $30,000
Total Annual Special Taxes for Bonding
((1)Total Special Taxes - (2)Admin. / 110% Coverage) $0 $116,091 $118,073 $118,734 $122,491 $0 $0 $0 $45,167 $48,782 $47,662 $0 $52,761 $156,715 $54,881 $0 $0 $0 $0 $881,357 II. Total Estimated Home Square Footage: - 67,500 76,500 85,500 94,500 - - - 34,000 39,600 42,500 - 55,800 120,000 46,000 - - - - 661,900 III. CFD Bond Sizing & Construction Proceeds:

Bond Amount (5.00% Interest, 30 Year Term, 29 Year Amortization) - Issued 2026 $17,365,000 Underwriter Discount (1.50%) $260,475
Reserve Fund (Maximum Annual Debt Service) $1,466,371
Capitalized Interest (6 mos.) $434,125
Incidental Costs (Estimate) $250,000
Total Discount, Reserve Fund, Capitalized Interest and Incidental Costs $2,410,971 Net Bond Proceeds $14,954,029
1 2 3
Item: 6.3
Item Page Number: 1
Menifee Finance Committee       July 9, 2024        Page 52 of 75 CITY OF MENIFEE DRAFT v2
Community Facilities District No. 2022-3 IA 3
(Legado)
Tract Nos. 37408 & 37409
Summary of Acreage, Undeveloped Property
And Backup Special Tax Rates
Tax Zone 1 Tax Zone 2 Tax Zone 3
180 Lots 70 Lots 80 Lots
I. Calculation of Net Taxable Acres:

Gross Acreage 33.32 13.67 17.86
Less: Exempt Acres 9.46 3.64 5.37
Net Taxable Acres 23.86 10.03 12.49
II. Calculation of Undeveloped Property Tax Rate:

Total Developed Property Revenues $539,109 $220,425 $239,958 Net Taxable Acres 23.86 10.03 12.49
Less: Contingency Factor (10%) 2.39 1.00 1.25
Net Taxable Acres (Adjusted) 21.47 9.02 11.24
Undeveloped Property Tax Rate per Acre $25,106 $24,428 $21,349 Total Exempt Acreage 11.85 4.65 6.62
III. Calculation of Backup Special Tax Rate:

Backup Special Tax Rate per Unit TR 37408-5 TR 37409-8 TR 37408-6 Total Taxable Acres (Adjusted) 12.91 10.02 12.49
Undeveloped Property Tax Rate per Acre $25,106 $24,428 $21,349 Total Units 99 70 80
Backup Special Tax per Unit $3,275 $3,497 $3,333
Backup Special Tax Rate per Unit TR 37409-6
Total Taxable Acres (Adjusted) 10.95
Undeveloped Property Tax Rate per Acre $25,106
Total Units 81
Backup Special Tax per Unit $3,393
Item: 6.3
Item Page Number: 2
Menifee Finance Committee       July 9, 2024        Page 53 of 75 CITY OF MENIFEE CHANGE PROCEEDING DRAFT v1
Community Facilities District No. 2022-3 IA 3
(Legado)
Tract Nos. 37408 & 37409
Calculation of Bond Sizing and Total Tax Rates
Debt Service No. o f Total Annual
Tax Zone Tax Rate Units Collectable Tax Max Tax Rates
Less than 1,400 1 $2,693 0 $0 $0
1,400 to 1,600 1 $2,926 45 $131,652 $150,017
1,601 to 1,800 1 $2,976 45 $133,899 $150,017
1,801 to 2,000 1 $2,992 45 $134,649 $150,017
2,001 to 2,200 1 $3,087 45 $138,909 $150,017
2,201 to 2,400 1 $3,215 0 $0 $0
Greater than to 2,400 1 $3,266 0 $0 $0
Ave Backup Tax Rate per Unit 1 $3,334 180
Non-residential Property 1 $25,106
Less than to 1,900 2 $2,841 0 $0 $0
1,901 to 2,100 2 $3,013 17 $51,221 $59,444
2,101 to 2,300 2 $3,073 18 $55,320 $62,940
2,301 to 2,500 2 $3,179 17 $54,051 $59,444
2,501 to 2,700 2 $3,235 0 $0 $0
Greater than to 2,700 2 $3,324 18 $59,833 $62,940
Ave Backup Tax Rate per Unit 2 $3,497 70
Non-residential Property 2 $24,428
Less than to 2,100 3 $2,962 60 $177,721 $199,968
2,101 to 2,400 3 $3,112 20 $62,237 $66,656
2,401 to 2,700 3 $3,244 0 $0 $0
2,701 to 3,000 3 $3,273 0 $0 $0
3,001 to 3,300 3 $3,337 0 $0 $0
Greater than 3,300 3 $3,625 0 $0 $0
Ave Backup Tax Rate per Unit 3 $3,333 80
Non-residential Property 3 $21,349
330 $999,493 $1,111,458
Tax Rate for Bonding $983,144
Sizing at Max tax rate $20,000,000
Future Facilities (rounded up) $17,500,000
Range of Home Sizes
Item: 6.3
Item Page Number: 3
Menifee Finance Committee       July 9, 2024        Page 54 of 75 CITY OF MENIFEE CHANGE PROCEEDING DRAFT v1
Community Facilities District No. 2022-3 IA 3
(Legado)
Tract Nos. 37408 & 37409
Revenue Coverage - Assigned Tax Rate
Year
Period
Ending
Gross
Revenues
Priority
Admin Principal Coupon Interest
Capitalized
Interest
Net Debt
Service
Debt
Service
Coverage
1 9/1/2025 $999,493 $30,000 $0 5.00% $434,125 $434,125 $0 N/A 2 9/1/2026 $1,019,482 $30,600 $30,000 5.00% $868,250 $898,250 110.09% 3 9/1/2027 $1,039,872 $31,212 $50,000 5.00% $866,750 $916,750 110.03% 4 9/1/2028 $1,060,669 $31,836 $70,000 5.00% $864,250 $934,250 110.12% 5 9/1/2029 $1,081,883 $32,473 $90,000 5.00% $860,750 $950,750 110.38% 6 9/1/2030 $1,103,520 $33,122 $115,000 5.00% $856,250 $971,250 110.21% 7 9/1/2031 $1,125,591 $33,785 $140,000 5.00% $850,500 $990,500 110.23% 8 9/1/2032 $1,148,103 $34,461 $165,000 5.00% $843,500 $1,008,500 110.43% 9 9/1/2033 $1,171,065 $35,150 $195,000 5.00% $835,250 $1,030,250 110.26% 10 9/1/2034 $1,194,486 $35,853 $225,000 5.00% $825,500 $1,050,500 110.29% 11 9/1/2035 $1,218,376 $36,570 $260,000 5.00% $814,250 $1,074,250 110.01% 12 9/1/2036 $1,242,743 $37,301 $290,000 5.00% $801,250 $1,091,250 110.46% 13 9/1/2037 $1,267,598 $38,047 $330,000 5.00% $786,750 $1,116,750 110.10% 14 9/1/2038 $1,292,950 $38,808 $365,000 5.00% $770,250 $1,135,250 110.47% 15 9/1/2039 $1,318,809 $39,584 $410,000 5.00% $752,000 $1,162,000 110.09% 16 9/1/2040 $1,345,185 $40,376 $450,000 5.00% $731,500 $1,181,500 110.44% 17 9/1/2041 $1,372,089 $41,184 $500,000 5.00% $709,000 $1,209,000 110.08% 18 9/1/2042 $1,399,531 $42,007 $545,000 5.00% $684,000 $1,229,000 110.46% 19 9/1/2043 $1,427,521 $42,847 $600,000 5.00% $656,750 $1,256,750 110.18% 20 9/1/2044 $1,456,072 $43,704 $655,000 5.00% $626,750 $1,281,750 110.19% 21 9/1/2045 $1,485,193 $44,578 $715,000 5.00% $594,000 $1,309,000 110.05% 22 9/1/2046 $1,514,897 $45,470 $775,000 5.00% $558,250 $1,333,250 110.21% 23 9/1/2047 $1,545,195 $46,379 $840,000 5.00% $519,500 $1,359,500 110.25% 24 9/1/2048 $1,576,099 $47,307 $910,000 5.00% $477,500 $1,387,500 110.18% 25 9/1/2049 $1,607,621 $48,253 $985,000 5.00% $432,000 $1,417,000 110.05% 26 9/1/2050 $1,639,773 $49,218 $1,060,000 5.00% $382,750 $1,442,750 110.24% 27 9/1/2051 $1,672,569 $50,203 $1,140,000 5.00% $329,750 $1,469,750 110.38% 28 9/1/2052 $1,706,020 $51,207 $1,230,000 5.00% $272,750 $1,502,750 110.12% 29 9/1/2053 $1,740,141 $52,231 $1,320,000 5.00% $211,250 $1,531,250 110.23% 30 9/1/2054 $1,774,943 $53,275 $1,415,000 5.00% $145,250 $1,560,250 110.35% 31 9/1/2055 $1,774,943 $53,275 $1,490,000 5.00% $74,500 $1,564,500 110.05% Total $41,322,942 $1,240,318 $17,365,000 $19,435,125 $36,366,000 110.22% Item: 6.3
Item Page Number: 4
Menifee Finance Committee       July 9, 2024        Page 55 of 75 CITY OF MENIFEE CHANGE PROCEEDING DRAFT v1
Community Facilities District No. 2022-3 IA 3
(Legado)
Tax Zone 1
Lot Summary
Lot SF Acreage Lot SF Acreage Lot SF A creage Lot SF Acreage Lot SF Acreage 1 5,731 0.13 46 5,000 0.11 91 5,776 0.13 1 6,234 0.14 46 5,206 0.12 2 5,412 0.12 47 5,000 0.11 92 5,250 0.12 2 5,500 0.13 47 6,791 0.16 3 6,520 0.15 48 5,000 0.11 93 5,250 0.12 3 5,500 0.13 48 7,925 0.18 4 5,423 0.12 49 5,000 0.11 94 5,485 0.13 4 6,599 0.15 49 5,382 0.12 5 5,425 0.12 50 5,000 0.11 95 5,547 0.13 5 7,860 0.18 50 5,930 0.14 6 5,485 0.13 51 5,113 0.12 96 6,644 0.15 6 6,204 0.14 51 7,846 0.18 7 5,442 0.12 52 5,000 0.11 97 5,544 0.13 7 6,243 0.14 52 6,211 0.14 8 5,231 0.12 53 5,000 0.11 98 5,631 0.13 8 5,394 0.12 53 7,363 0.17 9 5,154 0.12 54 5,000 0.11 99 5,740 0.13 9 5,309 0.12 54 7,150 0.16 10 6,125 0.14 55 5,000 0.11 10 5,309 0.12 55 5,474 0.13 11 5,258 0.12 56 5,000 0.11 11 5,309 0.12 56 5,524 0.13 12 5,305 0.12 57 6,274 0.14 12 5,309 0.12 57 5,408 0.12 13 5,353 0.12 58 5,688 0.13 13 5,876 0.13 58 5,408 0.12 14 5,401 0.12 59 5,290 0.12 14 5,876 0.13 59 5,408 0.12 15 5,448 0.13 60 5,250 0.12 15 5,876 0.13 60 5,408 0.12 16 6,579 0.15 61 5,250 0.12 16 5,876 0.13 61 5,408 0.12 17 5,657 0.13 62 5,250 0.12 17 5,876 0.13 62 5,408 0.12 18 5,206 0.12 63 5,250 0.12 18 5,876 0.13 63 5,408 0.12 19 15,645 0.36 64 6,300 0.14 19 5,934 0.14 64 5,408 0.12 20 7,186 0.16 65 5,250 0.12 20 5,374 0.12 65 5,408 0.12 21 5,375 0.12 66 5,250 0.12 21 6,399 0.15 66 5,408 0.12 22 5,500 0.13 67 5,250 0.12 22 9,365 0.21 67 6,816 0.16 23 5,500 0.13 68 9,596 0.22 23 10,244 0.24 68 6,473 0.15 24 5,500 0.13 69 5,835 0.13 24 6,855 0.16 69 5,200 0.12 25 5,500 0.13 70 5,639 0.13 25 6,264 0.14 70 5,200 0.12 26 5,500 0.13 71 5,487 0.13 26 6,355 0.15 71 5,200 0.12 27 5,500 0.13 72 5,493 0.13 27 6,379 0.15 72 5,200 0.12 28 5,469 0.13 73 5,400 0.12 28 6,402 0.15 73 5,200 0.12 29 5,600 0.13 74 5,000 0.11 29 6,397 0.15 74 5,200 0.12 30 8,927 0.20 75 5,000 0.11 30 6,307 0.14 75 5,200 0.12 31 10,919 0.25 76 6,000 0.14 31 6,159 0.14 76 5,200 0.12 32 6,552 0.15 77 5,000 0.11 32 5,929 0.14 77 5,200 0.12 33 6,318 0.15 78 5,000 0.11 33 5,500 0.13 78 5,200 0.12 34 5,100 0.12 79 5,000 0.11 34 5,750 0.13 79 5,200 0.12 35 5,100 0.12 80 5,000 0.11 35 5,750 0.13 80 5,200 0.12 36 5,100 0.12 81 6,000 0.14 36 5,750 0.13 81 6,348 0.15 37 5,100 0.12 82 5,049 0.12 37 5,750 0.13 38 5,100 0.12 83 5,452 0.13 38 5,100 0.12 39 5,100 0.12 84 6,433 0.15 39 5,100 0.12 40 5,100 0.12 85 5,325 0.12 40 5,100 0.12 41 5,100 0.12 86 5,965 0.14 41 5,100 0.12 42 5,100 0.12 87 5,252 0.12 42 5,100 0.12 43 5,100 0.12 88 5,252 0.12 43 5,105 0.12 44 5,100 0.12 89 5,252 0.12 44 5,179 0.12 45 6,250 0.14 90 5,252 0.12 45 5,240 0.12 Totals 267,496 6.14 244,097 5.60 50,867 1.17 269,913 6.20 206,919 4.75 Grand 1,039,292 23.86
TR 37409-6TR 37408-5
Item: 6.3
Item Page Number: 5
Menifee Finance Committee       July 9, 2024        Page 56 of 75 CITY OF MENIFEE CHANGE PROCEEDING DRAFT v1
Community Facilities District No. 2022-3 IA 3
(Legado)
Tax Zone 2
Lot Summary
Lot SF Acreage Lot SF Acreage
1 5,853 0.13 46 5,500 0.13
2 5,994 0.14 47 5,500 0.13
3 5,750 0.13 48 5,500 0.13
4 5,750 0.13 49 5,500 0.13
5 5,750 0.13 50 5,500 0.13
6 5,750 0.13 51 5,500 0.13
7 5,750 0.13 52 5,500 0.13
8 5,750 0.13 53 5,500 0.13
9 5,750 0.13 54 5,929 0.14
10 6,450 0.15 55 6,665 0.15
11 6,450 0.15 56 7,459 0.17
12 6,450 0.15 57 6,991 0.16
13 6,450 0.15 58 7,119 0.16
14 6,450 0.15 59 7,119 0.16
15 7,148 0.16 60 7,119 0.16
16 6,611 0.15 61 6,498 0.15
17 6,861 0.16 62 6,498 0.15
18 6,513 0.15 63 6,497 0.15
19 6,599 0.15 64 6,497 0.15
20 6,684 0.15 65 6,498 0.15
21 6,616 0.15 66 6,249 0.14
22 9,388 0.22 67 6,497 0.15
23 9,956 0.23 68 6,498 0.15
24 7,559 0.17 69 6,497 0.15
25 5,962 0.14 70 6,727 0.15
26 5,906 0.14
27 5,850 0.13
28 5,850 0.13
29 5,850 0.13
30 5,850 0.13
31 5,850 0.13
32 5,850 0.13
33 5,850 0.13
34 5,850 0.13
35 5,850 0.13
36 5,850 0.13
37 5,850 0.13
38 5,850 0.13
39 5,962 0.14
40 5,561 0.13
41 5,500 0.13
42 5,500 0.13
43 5,500 0.13
44 5,500 0.13
45 5,500 0.13
Totals 279,373 6.41 157,357 3.61 - - - - Grand 436,730 10.03
TR 37409-8
Item: 6.3
Item Page Number: 6
Menifee Finance Committee       July 9, 2024        Page 57 of 75 CITY OF MENIFEE CHANGE PROCEEDING DRAFT v1
Community Facilities District No. 2022-3 IA 3
(Legado)
Tax Zone 3
Lot Summary
Lot SF Acreage Lot SF Acreage
1 5,767 0.13 46 7,000 0.16
2 7,311 0.17 47 6,000 0.14
3 7,065 0.16 48 6,735 0.15
4 6,600 0.15 49 6,564 0.15
5 6,600 0.15 50 6,000 0.14
6 6,600 0.15 51 7,000 0.16
7 6,600 0.15 52 6,050 0.14
8 6,523 0.15 53 6,050 0.14
9 6,948 0.16 54 6,050 0.14
10 8,162 0.19 55 6,050 0.14
11 9,018 0.21 56 7,003 0.16
12 6,990 0.16 57 7,087 0.16
13 6,571 0.15 58 7,445 0.17
14 6,600 0.15 59 8,435 0.19
15 7,820 0.18 60 9,521 0.22
16 6,680 0.15 61 8,430 0.19
17 6,680 0.15 62 7,833 0.18
18 6,581 0.15 63 7,249 0.17
19 7,108 0.16 64 6,000 0.14
20 9,303 0.21 65 6,000 0.14
21 8,994 0.21 66 6,000 0.14
22 7,307 0.17 67 6,000 0.14
23 6,404 0.15 68 6,000 0.14
24 6,100 0.14 69 6,000 0.14
25 6,100 0.14 70 6,000 0.14
26 6,100 0.14 71 6,720 0.15
27 6,100 0.14 72 7,124 0.16
28 6,100 0.14 73 6,300 0.14
29 6,100 0.14 74 7,300 0.17
30 6,100 0.14 75 6,200 0.14
31 6,100 0.14 76 6,200 0.14
32 6,100 0.14 77 6,757 0.16
33 6,100 0.14 78 8,842 0.20
34 6,100 0.14 79 8,091 0.19
35 6,271 0.14 80 7,507 0.17
36 9,348 0.21
37 7,519 0.17
38 6,000 0.14
39 6,000 0.14
40 7,000 0.16
41 6,000 0.14
42 6,000 0.14
43 7,000 0.16
44 6,000 0.14
45 6,000 0.14
Totals 304,470 6.99 239,543 5.50 - - - - - - - - Grand 544,013 12.49
TR 37408-6
Item: 6.3
Item Page Number: 7
Menifee Finance Committee       July 9, 2024        Page 58 of 75 CITY OF MENIFEE CHANGE PROCEEDING DRAFT v1
Community Facilities District No. 2022‐3 ALL
(Legado)
Tract Nos. 37408 & 37409
Use of Bond Proceeds
491 Lots 201 Lots 330 Lots 1022 Lots
FUNDING REQUIREMENTS IA 1 IA 2 IA 3 Total
City Fees
Law Enforcement $117,348 $44,945 $73,789 $236,082
Fire Facility $311,912 $119,463 $196,133 $627,508
General Government $518,668 $198,651 $326,143 $1,043,462 Pulic Use Facilities $78,232 $29,963 $49,193 $157,388
Parks ‐ Land Acquisition $109,220 $41,831 $68,679 $219,730 Subtotal DIF $1,135,380 $434,853 $713,937 $2,284,170
City Projects $227,076 $86,971 $142,787 $456,834
Fair Share Traffic Impact Fee $2,288,626 $876,548 $1,439,109 $4,604,283 Total City Fees $3,651,082 $1,398,371 $2,295,834 $7,345,287 City Facilities
Circulation Facilities $7,797,030 $2,986,277 $4,902,843 $15,686,150 Circulation Reimbursements ($387,788) ($148,524) ($243,845) ($780,157) Net Circulation Facilities $7,409,242 $2,837,753 $4,658,998 $14,905,993 Storm Drain Facilities $4,638,712 $1,776,635 $2,916,864 $9,332,211 Storm Drain Reimbursements ($835,778) ($320,105) ($525,545) ($1,681,428) Net Storm Drain Facilities $3,802,934 $1,456,530 $2,391,319 $7,650,783 Park Facilities $5,467,710 $2,094,144 $3,438,146 $11,000,000 Park Reimbursements ($1,155,406) ($442,523) ($726,529) ($2,324,458) Net Park Facilities $4,312,304 $1,651,621 $2,711,617 $8,675,542 Interior Road Improvements $11,793,478 $4,516,925 $7,415,847 $23,726,250 Total City Facilities $27,317,958 $10,462,830 $17,177,780 $54,958,568 Total City Fees and Facilities $30,969,040 $11,861,201 $19,473,614 $62,303,855 EWMD Fees
Sewer Financial Participation $1,629,664 $624,164 $1,024,748 $3,278,576 Sewer Treatment Capacity $3,089,148 $1,183,150 $1,942,484 $6,214,782 Water Financial Participation $3,477,260 $1,331,797 $2,186,533 $6,995,590 Water Supply Development Fee $188,976 $72,378 $118,830 $380,184 1" Meter Drop‐In Fee $191,516 $73,351 $120,427 $385,294 Landscape Meter Connection 1 @ 3" $0 $78,399 $128,714 $207,113 Landscape Meter Connection 7 @ 1.5" $124,280 $35,283 $57,927 $217,490 Landscape Meter Connection 7 @ 1" $49,712 $14,113 $23,171 $86,996 Total EMWD Fees $8,750,556 $3,412,635 $5,602,834 $17,766,025 Total Cost $39,719,596 $15,273,836 $25,076,448 $80,069,880 Potential Project Funds Available  $23,079,160 $9,595,492 $14,954,029 $47,628,681 ALLOCATION OF PROCEEDS % IA 1 IA 2 IA 3 Total
City Projects 1% $219,477 $86,971 $142,787 $449,235
City Fees 14% $3,309,423 $1,311,401 $2,153,046 $6,773,870 City Facilities 85% $19,550,260 $8,197,121 $12,658,195 $40,405,576 EMWD Fees 0% $0 $0 $0 $0
Total Funded by Bond Proceeds 100% $23,079,160 $9,595,492 $14,954,029 $47,628,681 UNFUNDED REQUIREMENTS
Total to be Funded by Developer $16,640,436 $5,678,344 $10,122,419 $32,441,199 Item: 6.3
Item Page Number: 1
Menifee Finance Committee       July 9, 2024        Page 59 of 75

ROUSE RD

CHAMBERS A
VE

ENCANTO DR

ANTELOPERD
COMMUNITY FACILITIES DISTRICT NO. 2022-3
(LEGADO)

CITY OF MENIFEE,

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
SHEET 1 OF 3 SHEETS

I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED
BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2022-3
(LEGADO), 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____,
BY RESOLUTION NO. _______________
___________________________________

CITY CLERK

C IT Y OF ME NI FEE

FILED IN THE OFFICE OF THE CITY CLERK, CITY OF MENIFEE, T H I S _ _ __ D A Y O F __ _ _ __ _ _ , 2 0 __ _ _. ______________________________

CITY CLERK

C I T Y O F M E N I F E E
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
THIS MAP AMENDS THE MAP RECORDED IN BOOK 89

OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIES
DISTRICT PAGES 44 THROUGH 47 AS INSTRUMENT No.
2022-0350782 IN THE OFFICE OF THE COUNTY RECORDER,
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA.

CFD 2022-3
\_
·|}þ74·|}þ
74 §¨¦215

MENIFEE
01 ,000 2 ,000500 Feet

PROPOSED AMENDED BOUNDARY MAP
IMPROVEMENT AREA 1
(NOT-A-PART)

IMPROVEMENT
AREA 2
(SHEET 2)

IMPROVEMENT
AREA 3
(SHEET 3)IMPROVEMENT
AREA 3
(SHEET 3)
-

THIS BOUNDARY MAP CORRECTLY SHOWS THE LOT OR PARCEL OF LAND INCLUDED WITHIN THE BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT.

FOR DETAILS CONCERNING THE LINES AND DIMENSIONS OF LOTS OR PARCEL REFER TO THE COUNTY ASSESSOR MAPS FOR FISCAL YEAR 2024-25.

LEGEND

PARCEL LINE

IMPROVEMENT AREA BOUNDARY

CFD BOUNDARY

NOT-A-PART
Item: 6.3
Item Page Number: 1
Menifee Finance Committee       July 9, 2024        Page 60 of 75 1 2
333-020-025
(Por.) 333-020-033
333-020-036
333-020-034

CHAMBERS AV
E

SHERMAN RD

ANTELOPE RD
COMMUNITY FACILITIES DISTRICT NO. 2022-3
(LEGADO)

CITY OF MENIFEE,

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
SHEET 2 OF 3 SHEETS
07 50 1 ,500375 Feet

PROPOSED AMENDED BOUNDARY MAP
IMPROVEMENT AREA 2

XXX-XXX-XXX ASSESSOR PARCEL NUMBER-
1 LEGEND

CFD BOUNDARY

IMPROVEMENT AREA BOUNDARY

TAX ZONE BOUNDARY

TAX ZONE

PARCEL LINE
Item: 6.3
Item Page Number: 2
Menifee Finance Committee       July 9, 2024        Page 61 of 75 1 3
1 2333-020-027
333-020-037
333-020-038
333-020-026
CHA

MBERS AVE

SHERMAN RD

ANTELOPE RD
COMMUNITY FACILITIES DISTRICT NO. 2022-3
(LEGADO)

CITY OF MENIFEE,

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
SHEET 3 OF 3 SHEETS
07 50 1 ,500375 Feet

PROPOSED AMENDED BOUNDARY MAP
IMPROVEMENT AREA 3

XXX-XXX-XXX ASSESSOR PARCEL NUMBER-
1 LEGEND

CFD BOUNDARY

IMPROVEMENT AREA BOUNDARY

TAX ZONE BOUNDARY

TAX ZONE

PARCEL LINE
Item: 6.3
Item Page Number: 3
Menifee Finance Committee       July 9, 2024        Page 62 of 75 28202 CABOT ROAD| SUITE 620 | LAGUNA NIGUEL, CA 92677
PHONE: (949) 542-7070 | FAX: (949) 542-7076
www.zimmermangroup.com
May 16, 2024
Mar
garita Cornejo
Deputy Finance Director
City of Menifee
29844 Haun Road, Menifee, CA 92586
[email protected]
Re: CFD No. 2022-3 (Legado) Improvement Area No. 2 Amendment M
s. Cornejo:

I am writing on behalf of BLC Fleming LLC to request the City of Menifee initiate the process of amending Improvement Area No. 2 of CFD No. 2022- 3 (Legado). As you are aware, Lennar Homes has purchased the property within Improvement Area No. 1 and is under contract to purchase the property within I
mprovement Area No. 2. The attached provides further information regarding the anticipated purchase of the Improvement Area No. 2 property, the details of the proposed CFD amendments, and how the am
endments will lead to a more orderly CFD financing program for both the property owners and the City.

We would appreciate your review of the attached and the opportunity to discuss in further detail with City staff and finance team members. Thank you in advance for your consideration, and pl ease feel free to c
ontact me with any questions or comments.

Sincerely,
Jim Z
immerman
cc: R
ick Nelson; BLC Fleming, LLC
John Lucarelli; BLC Fleming, LLC
Geoff Smith; Lennar Homes
Shane Spicer; Spicer Consulting Group
Item: 6.3
Item Page Number: 1
Menifee Finance Committee       July 9, 2024         Page 63 of 75 CFD No. 2022-3 IA 2 Amendment
May 16, 2024
BLC Fleming, LLC (“Developer”) and the City of Menifee (“City”) previously worked together to form C
ity CFD No. 2022-3 (Legado) (“CFD”) for the development project known as Legado (“Project”). The CFD included two separate improvement areas designated Improvement Area No. 1 (“IA 1”) and Improvement Area No. 2 (“IA 2”). Developer recently entered into a contract to sell the Project to Lennar Homes (“Lennar”), but the property is to be acquired in three separate “Phases” or takedowns. Lennar ha s closed on the Phase 1 property (491 homesites), but the closing of the Phase 2 property (201 homesites) and the Phase 3 property (330 homesites) is scheduled for two separate times in the future. The following image illustrates the property within each Phase.

As
shown below, the boundary of IA 1 is entirely within the Phase 1 property. However, IA 2 includes property in both Phase 2 and Phase 3.

Item: 6.3
Item Page Number: 2
Menifee Finance Committee       July 9, 2024        Page 64 of 75 In c
onnection with the closing of Phase 1, Developer and Lennar entered into several partial assignment agreements to effectively assign IA 1 of the CFD to Lennar for Phase 1 of the Project. The partial assignments related to the Reimbursement Agreement, t he Acquisition, Construction And Funding Agreement, and the Joint Community Facilities Agreement. Since Phases 2 and 3 will be acquired at different times, Developer and Lennar would like to amend the boundary of IA 2 and create a new Improvement Area No. 3 (“IA 3”). The new IA 2 boundary would consist of the Phase 2 property currently within the CFD, and the IA 3 boundary would consist of the Phase 3 property currently with in the CFD.

No new property would be added to the CFD.

Th
e proposed CFD amendment will keep things clear and orderly between the City, Developer and Lennar as the Project develops and as CFD bonds are issued. It is also possible that Phase 2 and/or Phase 3 could ultimately be acquired by a homebuilder other than Lennar. If that happens, having a separate improvement area for each builder in the CFD will keep the CFD bond issuance and reimbursement process very clean and avoid the potential for different parties wanting to access the same CFD funds for their respective development costs. The following image shows the proposed boundaries of IA 2 and IA 3 following the amendment.

In
addition, the tax zone structure that currently exists within IA 2 will stay the same as well as transfer over to the new IA 3. The tax zones are also noted in the image above. In addition to the preparation and approval of a new boundary map, the following items set forth the other CFD related documents that will need to be prepared to effectuate the boundary adjustment.

1. RMA
s – The rate and method of apportionment (“RMA”) for IA 2 will need to be amended. The special tax rates for developed property pursuant to Section D.1.a. of the IA 2 RMA will not change; however, since the acreage of taxable property within IA 2 will change, the minimum taxable acreage will need to be reduced, and the special tax rate for approved property and undeveloped property will be modified accordingly. A new RMA for IA 3 will be prepared which, in all material respects, will be a duplicate of the IA 2 RMA. The developed property tax rates for IA 3 will be the same as those within IA 1 and IA 2.

2. Bond Authorization – The existing maximum bond authorization for IA 2 can be reduced, and a new bond authorization for IA 3 will need to be established.

Item: 6.3
Item Page Number: 3
Menifee Finance Committee       July 9, 2024        Page 65 of 75

3. CFD Facilities – The fees and improvements currently authorized to be funded by the CFD would remain unchanged, except that such facilities would be authorized to be funded from any of IA 1, IA 2, or IA 3.

4. CFD Agreements – Since the CFD funding agreement and JCFA with Eastern Municipal Water District reference only IA 1 and IA 2, amendments or separate agreements should be prepared and approved to incorporate the addition of IA 3.

5. CFD Special Tax Liens – Concurrent with the creation of IA 3 and the recordation of the IA 3 special tax lien on the Phase 3 property, the lien of IA 2 will need to be removed from the Phase 3 property.

As with any community facilities district formation, the Developer will deposit funds with the City to cover the costs of the requested CFD amendment. In addition, it is important to note that the proposed CFD amendment described herein is supported by both Developer and Lennar. Based on the development plan of the Project, this amendment will allow for a cleaner and more orderly CFD financing process for the Project, which is a benefit to Developer, City, Lennar, and any other potential homebuilders.

Item: 6.3
Item Page Number: 4
Menifee Finance Committee       July 9, 2024        Page 66 of 75

CITY OF MENIFEE
SUBJECT: Annual Update on Community Facility District Related Bond Premiums
MEETING DATE: July 9, 2024
TO: Finance Committee
PREPARED BY: Lauri Lockwood, Financial Analyst
REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Receive annual report with updated details on Community Facility District related bond premiums.

DISCUSSION
In 1982, the Mello-Roos Community Facilities Act of 1982 (Government Code §53311-53368.3) was created to provide an alternate method of financing needed improvements and services. The Act allows any county, city, special district, school district or joint powers authority to establish a Mello-Roos Community Facilities District (“CFD”) which allows for financing of public improvements and services. CFDs are normally formed in undeveloped areas and are used to build necessary infrastructure improvements and/or provide essential services for incoming development. A CFD is created by a sponsoring local government agency and will include all properties that will benefit from the improvements to be constructed or the services to be provided.

Roughly five years ago, the City Council decided to allow developers to issue bonds to finance public facilities within CFDs. When that decision was made, the City Council also modified the “City’s Special Assessment and Community Facilities District Goals and Policy”, outlining what costs could be paid for with bond proceeds, the minimum expectations for credit quality and the maximum taxes allowable on properties within CFDs.

Within the revised policy, the City carved out an extra amount the City would receive if the developer pays City fees with bond proceeds. This amount is known as the “City Premium.” Per the policy, “when it is determined by the City that fees are to be financed, the City may collect a premium of the total fees to be financed. Such premium shall not exceed twenty percent (20%) of the total fees to be financed. The City may use the premium to finance public facilities and improvements directly benefiting and identified by the City as the most necessary to serve the Item: 6.4
Item Page Number: 1
Menifee Finance Committee       July 9, 2024        Page 67 of 75 City of Menifee Staff Report
Update on CFD-related bond premiums
July 9, 2024

2 2
7 2
specific needs of the portion of the City in which the Community Facilities District will be located.” Shortly after the closing date of the bond issuance, City staff submits a disbursement request to claim the amount of the City Premium and that amount is set aside for capital projects. During the development and review of the City’s five-year Capital Improvement Program (CIP) program, staff regularly looks for opportunities to use the bond premiums towards high priority projects.

The City closed on its first CFD bonds for CFD 2019-1 (Meadow Run) and CFD 2020-1 (McCall Mesa) on January 26, 2022. Since then, four other CFDs have issued bonds to finance public facilities. To date, the City has collected $1,933,007 in bond premiums summarized in Table 1 and allocated $128,076 toward projects. Today, a little more than $1.8 million remains in the capital projects account from the five other CFDs. However, the CIP Division has identified several prospective projects for several of the CFD premiums, as summarized within Table 1.

TABLE 1: City of Menifee CFD Bond Premiums Received
Looking forward, four other CFDs have been formed and are authorized for six bond issuances (CFDs with multiple improvement areas result in multiple bond issuances and multiple bond premiums). Three other CFDs will be officially formed and authorized for a total of six issuances after public hearings currently scheduled for the August 7, 2024, City Council Meeting. The exact amount of the City’s premiums that correspond to those 12 issuances will not be known until closer to the bonds’ issuance dates.

FISCAL IMPACT
There is no fiscal impact associated with the recommended action of this staff report as this is a receive and file report on the current CFD premiums.

ATTACHMENTS

1. Project Location Maps
CFD No. CFD Name
Series Issue
Amount ($)
City Fees
Financed
Premium
Amount ($)
Premium
Amount
Allocated ** CIP Project
Year
Appropriated
2019-1 Meadow Run 2,750,000$ 640,380$ 128,076.00$ 128,076.00$ CIP 23-03: Bradley Rd/Paloma HS Entrance Street Improvement
22/23
2020-1 McCall Mesa 11,330,000$ 1,952,028$ 390,406.00$ -$ Proposed to be used for median improvements on Menifee Road.

TBD
2020-1 McCall Mesa 3,580,000$ -$ -$ -$ N/A N/A 2020-2 Del Oro 2,640,000$ 581,740$ 116,348.00$ -$ Proposed to be used for improvements to intersection of Albion and Antelope.

TBD
2021-1 Banner Park 5,375,000$ 1,936,896$ 387,379.00$ -$ Proposed to be used to extend a pedestrian trail on Linderberger across Salt Creek.

TBD
2021-1 Banner Park 6,435,000$ -$ -$ -$ N/A N/A 2021-2 Sumac Ridge 10,050,000$ 1,686,475$ 337,295.00$ -$ Proposed for pedestrian and bicycle improvements in the area for the new Menifee elementary school.

TBD
2022-1 Quartz Ranch 11,525,000$ 2,867,514.00$ 573,503.00$ -$ Proposed for widening on Holland Road from just west of Bradley Road to Haun Road.

TBD
** Premium amount is not based on the bond proceeds, but rather the amount of city fees financed with bond proceeds.

Item: 6.4
Item Page Number: 2
Menifee Finance Committee       July 9, 2024        Page 68 of 75 ·|}þ74
§¨¦215

NEWPORT
RD

MURRIETA RD
GOETZ
RD

ETHANAC RD

HOLLAND RD

GARBANI RD
HAUN
RD

ZEIDERS RD

MENIFEE
RD

BRADLEY RD

BRIGGS RD

MATTHEWS RD
CFD 2020-1
CFD 2021-1
CFD 2020-2
CFD 2019-1

COMMUNITY FACILITIES DISTRICTS
(BONDED)

CITY OF MENIFEE
CFD 2022-1
CFD 2021-2
CFD 2019-1 (MEADOW RUN)
CFD 2020-1 (McCALL MESA)
CFD 2020-2 (DEL ORO)
CFD 2021-1 (BANNER PARK)
CFD 2021-2 (SUMAC RIDGE)
CFD 2022-1 (QUARTZ RANCH)

CITY BOUNDARY
Item: 6.4
Item Page Number: 1
Menifee Finance Committee       July 9, 2024        Page 69 of 75 Item: 6.4
Item Page Number: 2
Menifee Finance Committee       July 9, 2024        Page 70 of 75 Item: 6.4
Item Page Number: 3Menifee Finance Committee       July 9, 2024        Page 71 of 75 Item: 6.4
Item Page Number: 4
Menifee Finance Committee       July 9, 2024        Page 72 of 75 Item: 6.4
Item Page Number: 5
Menifee Finance Committee       July 9, 2024        Page 73 of 75 _________________________________________________________________________________________________________ Menifee CFD No. 2021-2 – Sumac Ridge by Meritage Homes (Menifee, CA) Kitty Siino & Associates, Inc. Page iv
Item: 6.4
Item Page Number: 6
Menifee Finance Committee       July 9, 2024        Page 74 of 75 Item: 6.4
Item Page Number: 7
Menifee Finance Committee       July 9, 2024        Page 75 of 75