City Council Chambers
29844 Haun Road
Menifee, CA 92586
Ricky Estrada, Mayor
Dean Deines, District 4
AGENDA
Finance Committee
Regular Meeting Agenda
Tuesday, July 8, 2025
4:00 PM Regular Meeting
Travis Hickey, Chief Financial
Officer
Edna A. Aguilar, Meeting Clerk
REGULAR MEETING (4:00 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 May 13, 2025 Finance Committee Meeting Minutes
6. DISCUSSION ITEMS
6.1 Community Facilities District Bond Maturity and First Call Dates RECOMMENDED ACTION
1. Receive and file a report on the maturity dates and first call dates for the City’s Community Facilities District bonds.
6.2 Proposed Formation of Community Facilities District 20255, Nautical Cove, by KB Home
RECOMMENDED ACTION
1. Review the proposed Community Facilities District (CFD) 20255, Nautical Cove, to finance certain costs of public improvements for the development of 233 singlefamily homes located north of Holland Road between Southshore Drive and Briggs Road, and recommend submittal to the City Council for consideration.
6.3 Proposed Formation of Community Facilities District 20253, Quail Hills, by Quail Hills, LP
RECOMMENDED ACTION
1. Review the proposed Community Facilities District (CFD) 20253, Quail Hills, to finance certain costs of public improvements for the development of 130 single family homes located between Williams Drive and Goetz Road and recommend submittal to the City Council for consideration.
6.4 Policy CC20 – Special Assessment and Community Facilities District Goals and Policies Proposed Amendment
RECOMMENDED ACTION
1. Review and provide feedback on the proposed revisions to the Special Assessment and Community Facilities District Goals and Policies (CC20) including additional recommended policy updates.
6.5 Public Safety Services Community Facilities District RECOMMENDED ACTION
1. Provide feedback to staff on the proposed formation of a Public Safety Services Community Facilities District (CFD) and initiation of a fiscal impact analysis study.
7. STAFF COMMENTS
8. COMMITTEE MEMBER UPDATES AND COMMENTS
9. FUTURE AGENDA ITEMS
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.
Affidavit of the Posting
I, Edna A. Aguilar, do hereby certify, under penalty of perjury, that the Tuesday, July 8, 2025 Finance Committee meeting agenda was posted at least 72 hours prior to the meeting in the following locations per Cal. Gov. Code, § 54954.2, subd. (a)(1): Menifee City Hall, 29844 Haun Road, Kay Ceniceros Community Center, 29995 Evans Road, and the City of Menifee website.
Menifee Finance Committee
July 8, 2025
City Council Chambers
29844 Haun Road
Menifee, CA 92586
Ricky Estrada, Mayor
Dean Deines, District 4
AGENDA
Finance Committee
Regular Meeting Agenda
Tuesday, July 8, 2025
4:00 PM Regular Meeting
Travis Hickey, Chief Financial
Officer
Edna A. Aguilar, Meeting Clerk
REGULAR MEETING (4:00 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 May 13, 2025 Finance Committee Meeting Minutes
6. DISCUSSION ITEMS
6.1 Community Facilities District Bond Maturity and First Call Dates RECOMMENDED ACTION
1. Receive and file a report on the maturity dates and first call dates for the City’s Community Facilities District bonds.
6.2 Proposed Formation of Community Facilities District 20255, Nautical Cove, by KB Home
RECOMMENDED ACTION
1. Review the proposed Community Facilities District (CFD) 20255, Nautical Cove, to finance certain costs of public improvements for the development of 233 singlefamily homes located north of Holland Road between Southshore Drive and Briggs Road, and recommend submittal to the City Council for consideration.
6.3 Proposed Formation of Community Facilities District 20253, Quail Hills, by Quail Hills, LP
RECOMMENDED ACTION
1. Review the proposed Community Facilities District (CFD) 20253, Quail Hills, to finance certain costs of public improvements for the development of 130 single family homes located between Williams Drive and Goetz Road and recommend submittal to the City Council for consideration.
6.4 Policy CC20 – Special Assessment and Community Facilities District Goals and Policies Proposed Amendment
RECOMMENDED ACTION
1. Review and provide feedback on the proposed revisions to the Special Assessment and Community Facilities District Goals and Policies (CC20) including additional recommended policy updates.
6.5 Public Safety Services Community Facilities District RECOMMENDED ACTION
1. Provide feedback to staff on the proposed formation of a Public Safety Services Community Facilities District (CFD) and initiation of a fiscal impact analysis study.
7. STAFF COMMENTS
8. COMMITTEE MEMBER UPDATES AND COMMENTS
9. FUTURE AGENDA ITEMS
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.
Affidavit of the Posting
I, Edna A. Aguilar, do hereby certify, under penalty of perjury, that the Tuesday, July 8, 2025 Finance Committee meeting agenda was posted at least 72 hours prior to the meeting in the following locations per Cal. Gov. Code, § 54954.2, subd. (a)(1): Menifee City Hall, 29844 Haun Road, Kay Ceniceros Community Center, 29995 Evans Road, and the City of Menifee website.
Menifee Finance Committee
July 8, 2025
City Council Chambers
29844 Haun Road
Menifee, CA 92586
Ricky Estrada, Mayor
Dean Deines, District 4
AGENDA
Finance Committee
Regular Meeting Agenda
Tuesday, July 8, 2025
4:00 PM Regular Meeting
Travis Hickey, Chief Financial
Officer
Edna A. Aguilar, Meeting Clerk
REGULAR MEETING (4:00 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 May 13, 2025 Finance Committee Meeting Minutes
6. DISCUSSION ITEMS
6.1 Community Facilities District Bond Maturity and First Call Dates RECOMMENDED ACTION
1. Receive and file a report on the maturity dates and first call dates for the City’s Community Facilities District bonds.
6.2 Proposed Formation of Community Facilities District 20255, Nautical Cove, by KB Home
RECOMMENDED ACTION
1. Review the proposed Community Facilities District (CFD) 20255, Nautical Cove, to finance certain costs of public improvements for the development of 233 singlefamily homes located north of Holland Road between Southshore Drive and Briggs Road, and recommend submittal to the City Council for consideration.
6.3 Proposed Formation of Community Facilities District 20253, Quail Hills, by Quail Hills, LP
RECOMMENDED ACTION
1. Review the proposed Community Facilities District (CFD) 20253, Quail Hills, to finance certain costs of public improvements for the development of 130 single family homes located between Williams Drive and Goetz Road and recommend submittal to the City Council for consideration.
6.4 Policy CC20 – Special Assessment and Community Facilities District Goals and Policies Proposed Amendment
RECOMMENDED ACTION
1. Review and provide feedback on the proposed revisions to the Special Assessment and Community Facilities District Goals and Policies (CC20) including additional recommended policy updates.
6.5 Public Safety Services Community Facilities District RECOMMENDED ACTION
1. Provide feedback to staff on the proposed formation of a Public Safety Services Community Facilities District (CFD) and initiation of a fiscal impact analysis study.
7. STAFF COMMENTS
8. COMMITTEE MEMBER UPDATES AND COMMENTS
9. FUTURE AGENDA ITEMS
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.
Affidavit of the Posting
I, Edna A. Aguilar, do hereby certify, under penalty of perjury, that the Tuesday, July 8, 2025 Finance Committee meeting agenda was posted at least 72 hours prior to the meeting in the following locations per Cal. Gov. Code, § 54954.2, subd. (a)(1): Menifee City Hall, 29844 Haun Road, Kay Ceniceros Community Center, 29995 Evans Road, and the City of Menifee website.
Menifee Finance Committee
July 8, 2025
Menifee Finance Committee Minutes
May 13, 2025
City Council Chambers
29844 Haun Road
Menifee, CA 92586
Ricky Estrada, Mayor
Dean Deines, District 4 MINUTES
Finance Committee
Regular Meeting Minutes
Tuesday, May 13, 2025
4:00 PM Regular Meeting
Travis Hickey, Chief Financial Officer
Edna A. Aguilar, Clerk
REGULAR MEETING (4:00 PM)
1. CALL TO ORDER
Mayor Estrada called the meeting to order at 4:00 PM.
2. ROLL CALL
Present: Ricky Estrada, Dean Deines
Absent: None.
3. PRESENTATIONS - NONE
4. PUBLIC COMMENTS (NON-AGENDA ITEMS)
None.
5. APPROVAL OF MINUTES
The March 26, 2025, Finance Committee Meeting Minutes were approved unanimously (2-0).
6. DISCUSSION ITEMS
6.1 Fiscal Year 2025/2026 Annual Investment Policy
Chief Financial Officer Travis Hickey introduced the item and provided a general overview. Finance Manager Ann-Marie Etienne then delivered a presentation on the item.
Mayor Estrada asked general questions regarding the policy and the City’s investment portfolio. Staff addressed the questions and confirmed that the portfolio would be presented to the Committee at a future date. Councilmember Deines expressed support for the policy.
ACTION
1.Reviewed and provided feedback on the proposed Fiscal Year 2025/2026 Investment Policy and recommend submittal to the City Council for approval at a future City Council meeting.
Item: 5.1
Item Page Number: 1
Menifee Finance Committee July 8, 2025 Page 4 of 91
Menifee Finance Committee Minutes
May 13, 2025
7. STAFF COMMENTS
Staff re-confirmed the future meeting date of July 8, 2025, at 4:00 PM.
8. COMMITTEE MEMBER UPDATES AND COMMENTS
None.
9. FUTURE AGENDA ITEMS
List of Menifee Community Facilities Districts (CFDs), including expiration/maturity dates.
10. ADJOURNMENT
The meeting was adjourned at 4:35 PM.
______________________________
Edna A. Aguilar,
Meeting Clerk
Item: 5.1
Item Page Number: 2
Menifee Finance Committee July 8, 2025 Page 5 of 91
CITY OF MENIFEE
SUBJECT: Community Facilities District Bond Maturity and First Call Dates
MEETING DATE: July 8, 2025
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 and file a report on the maturity dates and first call dates for the City’s Community Facilities District bonds.
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 for improvements and services.
The Act allows any county, city, special district, school district or joint powers authority to establish a 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.
The City of Menifee formed its first facilities CFD (Bonded CFD) in late 2019 and issued its first bonds more than two years later in January 2022 for CFD 2019-1, Meadow Run, and CFD 2020- 1, McCall Mesa. To date, the City has formed a total of 16 facilities CFDs and authorized 12 bond issuances.
Prior to a bond issuance, numerous characteristics of the bond are determined, including the bond term, the debt service schedule and any applicable call provisions. Each of the City’s CFD bonds has a 30-year term, meaning taxes will be levied for roughly 30 years after the bond issuance to generate revenue that would be used to pay debt service on the bonds. The City’s existing CFD bonds will mature between September 2051 and September 2055 as shown in Table 1. Assuming there are no delinquencies, the bonds would be paid off at that time. The City does not intend to issue any additional bonds that would extend the stated maturity dates shown.
Item: 6.1
Item Page Number: 1
Menifee Finance Committee July 8, 2025 Page 6 of 91
2 7
8 5
TABLE 1: BOND MATURITY DATES
CFD Bond Maturity Bond Amount
CFD 2019-1 Meadow Run 9/1/2051 $ 2,750,000
CFD 2020-1 McCall Mesa Series 2022A 9/1/2051 $ 11,330,000 CFD 2021-1 Banner Park Series 2022A 9/1/2052 $ 5,375,000 CFD 2020-2 Del Oro 9/1/2052 $ 2,640,000
CFD 2020-1 McCall Mesa Series 2023A 9/1/2053 $ 3,580,000 CFD 2021-1 Banner Park Series 2023A 9/1/2053 $ 6,435,000 CFD 2021-2 Sumac Ridge 9/1/2053 $ 10,050,000
CFD 2022-1 Quartz Ranch Series 2023A 9/1/2053 $ 11,525,000 CFD 2022-1 Quartz Ranch Series 2024A 9/1/2054 $ 9,465,000 CFD 2023-1 Rockport Ranch 9/1/2055 $ 17,275,000
CFD 2023-2 Cimarron Ridge IA1 9/1/2055 $ 4,625,000 Although the bonds do not mature for 30 years, there are still opportunities to reduce residents’ property tax burden by taking advantage of the bonds’ call provisions, which are unique to each issuance and typically begin five or more years after debt service begins. A call premium typically applies for several years after the first call date.
The Finance Department monitors each bond’s call provisions as well as the current interest rate environment to determine when it could be beneficial to taxpayers to issue refunding bonds, which would allow the City to refinance the bonds in order to take advantage of lower interest rates. The first opportunity for refunding existing bonds is September 1, 2028, as shown in Table 2. There are more than $30 million in bonds that would be eligible to be called at 103% of the face value of the bonds on that date. As we approach the call provision date, the Finance Department in collaboration with Urban Futures Inc., the City’s municipal advisor, will evaluate whether the potential savings from refunding would outweigh the associated costs.
Table 2: EARLIEST CALL DATES
CFD Earliest
Call Date
Coupon
Rate
Amount Callable at
103%
CFD 2019-1 Meadow Run 9/1/2028 3.00-4.00% $ 2,565,000 CFD 2020-1 McCall Mesa Series 2022A 9/1/2028 3.00-4.00% $ 10,570,000 CFD 2020-1 McCall Mesa Series 2023A 9/1/2028 5.00% $ 3,550,000 CFD 2020-2 Del Oro 9/1/2028 4.75-5.125% $ 2,555,000 CFD 2021-1 Banner Park Series 2022A 9/1/2028 5.00-5.50% $ 5,220,000 CFD 2021-1 Banner Park Series 2023A 9/1/2028 5.00% $ 6,350,000 CFD 2021-2 Sumac Ridge 9/1/2029 5.00% $ 9,785,000 CFD 2022-1 Quartz Ranch Series 2023A 9/1/2030 5.00% $ 11,095,000 CFD 2022-1 Quartz Ranch Series 2024A 9/1/2030 5.00% $ 9,280,000 CFD 2023-1 Rockport Ranch 9/1/2031 5.00% $ 16,795,000 CFD 2023-2 Cimarron Ridge IA1 9/1/2032 5.00% $ 4,455,000 Item: 6.1
Item Page Number: 2
Menifee Finance Committee July 8, 2025 Page 7 of 91
2 7
8 5
FISCAL IMPACT
There is no fiscal impact associated with the recommended action.
ATTACHMENTS
None.
Item: 6.1
Item Page Number: 3
Menifee Finance Committee July 8, 2025 Page 8 of 91
CITY OF MENIFEE
SUBJECT: Proposed Formation of Community Facilities District 2025-5, Nautical Cove, by KB Home
MEETING DATE: July 8, 2025
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 Community Facilities District (CFD) 2025-5, Nautical Cove, to finance certain costs of public improvements for the development of 233 single-family homes located north of Holland Road between Southshore Drive and Briggs Road and recommend submittal to the City Council for consideration.
DISCUSSION
The landowner, KB Home, is proposing to develop 233 single-family homes on land that sits north of Holland Road, between Southshore Drive and Briggs Road, on the eastern edge of the City of Menifee. KB Home has requested the City form CFD 2025-5 in accordance with the Mello-Roos Community Facilities Act of 1982, as amended. The cost of certain public improvements within the development would be financed by the levy of a special tax and the issuance of bonds in the approximate amount of $16 million.
This application conforms to the requirements in the City’s CFD policy: The landowner has provided the developer deposit required to form the district and the tax rate on homes would not exceed 2%. Bond proceeds would be used to pay for Development Impact Fees (DIF) and City facilities including street improvements, underground utilities and a share of a traffic signal. KB Homes is requesting the City sign a Joint Community Facilities Agreements with Eastern Municipal Water District and Menifee Union School District to pay for facilities and fees within their boundaries, as well.
Item: 6.2
Item Page Number: 1
Menifee Finance Committee July 8, 2025 Page 9 of 91
City of Menifee Staff Report
Proposed Formation of CFD 2025-5, Nautical Cove July 8, 2025
2 7
8 6
ATTACHMENTS
1. CFD 2025-5 Proforma Summary
2. CFD 2025-5 Project Map
3. CFD 2025-5 Proforma
4. CFD 2025-5 Boundary Map
5. CFD 2017-1 Annexation 34 Maintenance Exhibit
6. CFD 2025-5 Facilities CFD Application
Item: 6.2
Item Page Number: 2
Menifee Finance Committee July 8, 2025 Page 10 of 91
CFD 2025‐5 (Nautical Cove)
Proforma Summary Sheet
Applicant: KB Home
Project Description
Acreage Gross: 73.64; Net: 37.60
Development Description Detached Single Family Residential Units Number of Units (50 min) 233 Units
Estimated Home Size Range 1,539 SF to 3,119 SF
Average Home Size 2,364 SF
Average Estimated Home Price $651,698
Total Effective Tax Rate (2.00% Max) 2.00%
CFD Tax Rate Range $3,370 to $4,676
Escalation (2.00% Max) Yes, 2.00%
Maintenance CFD Yes, CFD 2017‐1 Tax Zone 34
Maintenance CFD Rate $957/Unit
Bond Sizing Assumptions
Average Coupon 5.00%
Priority Administration $30,000
Cost of Issuance $250,000
Capitalized Interest Period 0‐months
Special Tax Escalation 2%
Bond Term 30 Years
Underwriter Discount 2.00%
Total Special Tax Revenues $933,789
Estimated Sources and Uses
Sources
Par Bond Amount $15,865,000
Uses
Reserve Fund $1,385,830
Capitalized Interest $0
Underwriter Discount $317,300
Cost of Issuance $250,000
Improvement Fund $13,911,870
Allocation of Improvement Fund
Description % of Total Total Eligible Potentially Funded City Premium (20%) 4% $589,770 $589,770
City Facilities 28% $3,806,766 $3,806,766
City Fees 21% $2,948,848 $2,948,848
EMWD Fees 31% $4,307,238 $4,307,238
MUSD Fees 16% $2,664,327 $2,259,249
Totals 100% $14,316,948 $13,911,870
Unfunded $405,078
Item: 6.2
Item Page Number: 3
Menifee Finance Committee July 8, 2025 Page 11 of 91
Proposed Schedule
Finance Committee July 9, 2025
Resolution of Intention September 3, 2025
Public Hearing October 15, 2025
2nd Reading Ordinance November 5, 2025
Item: 6.2
Item Page Number: 4
Menifee Finance Committee July 8, 2025 Page 12 of 91
HOLLAND RDSOUTHSHORE DR
SHADOW RIDGE DR
MENIFEE
RD
FALL RIVER
L N
T RES LAGOS
DR
DUR HAM
DR
BRIGGS
RD
LA PIEDRA
^_
MENIFEE
RD
NEWPORT RD
ALD ERGATE DR
§¨¦215
HOLLAND RD
HAUN
RD
PALOMAR RD
MELMORE LN
WICKERD RD EUCALYPTUS
RD
MARINO DR
EVANS
RD
STERN DR
COMMUNITY FACILITIES DISTRICT NO. 2025-5
(NAUTICAL COVE)
PROJECT MAP
Item: 6.2
Item Page Number: 5
Menifee Finance Committee July 8, 2025 Page 13 of 91
CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2025‐5
(Nautical Cove)
Tract Nos. 31229
Calculation of Bond Sizing and Total Tax Rates
I. Home Prices and Combined Tax Rates:
Plan 1 234567 CFD TOTAL
Range of Home Sizes in Square Feet per RMA Under 1,800 to 2,051 to 2,301 to 2,551 to 2,801 to Over 1,800 2,050 2,300 2,550 2,800 3,050 3,050
Estimated Home Size 1,539 1,879 2,195 2,415 2,613 2,874 3,119 2,364 Estimated Home Price $576,990 $606,990 $631,990 $650,990 $683,990 $705,990 $729,990 $651,698 Ad‐Valorem Tax Rate (1.00%) $5,769.90 $6,069.90 $6,319.90 $6,509.90 $6,839.90 $7,059.90 $7,299.90 $6,516.98 Metro Water East (0.00700%) $40.39 $42.49 $44.24 $45.57 $47.88 $49.42 $51.10 $45.62 Menifee School (0.05080%) $293.11 $308.35 $321.05 $330.70 $347.47 $358.64 $370.83 $331.06 Perris Union HS (0.06850%) $395.24 $415.79 $432.91 $445.93 $468.53 $483.60 $500.04 $446.41 Mt. San Jacinto Jr. College (0.00268%) $15.46 $16.27 $16.94 $17.45 $18.33 $18.92 $19.56 $17.47 EMWD Improvement District U‐35 (0.00860%) $49.62 $52.20 $54.35 $55.99 $58.82 $60.72 $62.78 $56.05 EMWD Improvement District U‐36 (0.00860%) $49.62 $52.20 $54.35 $55.99 $58.82 $60.72 $62.78 $56.05 Subtotal GO Bond Debt $6,613.34 $6,957.20 $7,243.74 $7,461.52 $7,839.76 $8,091.92 $8,367.00 $7,469.63 Flood Control Stormwater $3.75 $3.75 $3.75 $3.75 $3.75 $3.75 $3.75 $3.75 EMWD Standby $21.00 $21.00 $21.00 $21.00 $21.00 $21.00 $21.00 $21.00 MWD Standby charge $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 Perris Union HS CFD 92‐1 $336.00 $336.00 $336.00 $336.00 $336.00 $336.00 $336.00 $336.00 RivCo CFD 03‐1 (Newport Road) $232.00 $232.00 $232.00 $232.00 $232.00 $232.00 $232.00 $232.00 Proposed CFD No. 2017‐1 ‐ Maint Svcs* $957.00 $957.00 $957.00 $957.00 $957.00 $957.00 $957.00 $957.00 Proposed CFD No. 2025‐5 ‐ Facilities Tax** $3,370.00 $3,626.00 $3,839.00 $4,002.00 $4,283.00 $4,471.00 $4,676.00 $4,007.68 Subtotal Special Assessments and Taxes $4,926.69 $5,182.69 $5,395.69 $5,558.69 $5,839.69 $6,027.69 $6,232.69 $5,564.37 Total Annual Property Taxes $11,540.03 $12,139.89 $12,639.43 $13,020.21 $13,679.45 $14,119.61 $14,599.69 $13,034.00 Annual Prop. Tax Rates as % of Home Price 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Unit Mix 24 25 43 75 18 22 26 233
(1)Total CFD ‐ Annual Tax Collections $80,880 $90,650 $165,077 $300,150 $77,094 $98,362 $121,576 $933,789 (2)Administration $30,000
Total Annual Special Taxes for Bonding
((1)Special Taxes ‐ (2)Admin. / 110% Cov) $71,165 $79,762 $145,249 $264,097 $67,834 $86,547 $106,973 $821,626 II. Total Estimated Home Square Footage: 36,936 46,975 94,385 181,125 47,034 63,228 81,094 550,777 * Escalates at greater of 2% or CPI
** Includes a 2% annual escalator for debt service
III. CFD Bond Sizing & Construction Proceeds:
2025 Bond Amount (5.00% Interest, 30 Year Term, 29 Year Amortization) $15,865,000 Underwriter Discount (2.00%) $317,300
Reserve Fund (Maximum Annual Debt Service) $1,385,830
Capitalized Interest (0 mos.) $0
Incidental Costs (Estimate) $250,000
Total Discount, Reserve Fund, Capitalized Interest and Incidental Costs $1,953,130 Net Bond Proceeds $13,911,870
Item: 6.2
Item Page Number: 6
Menifee Finance Committee July 8, 2025 Page 14 of 91
CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2025‐5
(Nautical Cove)
Tract Nos. 31229
Summary of Acreage, Undeveloped Property
And Backup Special Tax Rates
Tract Nos. 31229
233 Lots
(Nautical Cove)
I. Calculation of Net Taxable Acres:
Gross Acreage 73.64
Less: Exempt Acres 36.04
Net Taxable Acres 37.60
II. Calculation of Undeveloped Property Tax Rate:
Total Developed Property Revenues $933,789
Net Taxable Acres 37.60
Less: Contingency Factor (10%) 3.76
Net Taxable Acres (Adjusted) 33.84
Undeveloped Property Tax Rate per Acre $27,596
Total Exempt Acreage 39.80
III. Calculation of Backup Special Tax Rate:
A. Backup Special Tax Rate per Unit
Total Taxable Acres 37.60
Undeveloped Property Tax Rate per Acre $27,596
Total Units 233
Backup Special Tax per Unit $4,453
B. Backup Special Tax Rate per Lot Square Foot
Total Developed Property Revenues $933,789
Total Net Acres (Square Feet) 1,474,000
Backup Special Tax Rate per Lot Square Foot $0.6335
Item: 6.2
Item Page Number: 7
Menifee Finance Committee July 8, 2025 Page 15 of 91
CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2025‐5
(Nautical Cove)
Tract Nos. 31229
Calculation of Bond Sizing and Total Tax Rates
Debt Service No. of Total Annual
Tax Rate Units Collectable Tax Max Tax Rates
Less than 1,800 $3,370 24 $80,880 $106,873
1,800 to 2,050 $3,626 25 $90,650 $111,326
2,051 to 2,300 $3,839 43 $165,077 $191,481
2,301 to 2,550 $4,002 75 $300,150 $333,979
2,551 to 2,800 $4,283 18 $77,094 $80,155
2,801 to 3,050 $4,471 22 $98,362 $98,362
Greater than 3,050 $4,676 26 $121,576 $121,576
Non‐residential Property $27,596
Backup Tax Rate per Unit $4,453
Backup Tax Rate per S.F. $0.6335
233 $933,789 $1,043,752
Tax Rate for Bonding $921,593
Sizing at Max tax rate $18,000,000
Future Facilities (rounded up) $16,000,000
Range of Home Sizes
Item: 6.2
Item Page Number: 8
Menifee Finance Committee July 8, 2025 Page 16 of 91
CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2025‐5
(Nautical Cove)
Tract Nos. 31229
Use of Bond Proceeds
CFD 2025‐5 Tract Nos. 31229
233 Lots
FUNDING REQUIREMENTS Per Lot (Nautical Cove)
City Fees
Law Enforcement $1,012 $235,796
Fire Facilities $708 $164,964
Circulation $7,764 $1,809,012
General Govt $1,287 $299,871
Parks and Recreation $1,885 $439,205
Subtotal City Fees $12,656 $2,948,848
City Premium (20%) $2,531 $589,770
Total City Fees $15,187 $3,538,618
City Facilities
Street Improvements $10,130 $2,360,231
Utility Undergrounding $2,146 $500,000
Traffic Signal $1,931 $450,000
Design, Planning, Engineering (15%) $2,131 $496,535
Total City Facilities $16,338 $3,806,766
Total City Facilities and Fees $31,525 $7,345,383
$3,514 $818,762
$6,662 $1,552,246
$7,498 $1,747,034
$407 $94,831
$405 $94,365
EMWD Fees
Sewer Connection Fee
Sewer Treatment Plant Capacity Charge
Water Connection Fee
Water Supply Development Fee
1" Meter Drop‐In Fee
Total EMWD Fees $18,486 $4,307,238
Menifee Union School District Fees
Level I School Developer Fee $8,796 $2,049,482
Developer Fee Premium (30%) $2,639 $614,845
Total Menifee Union School District Fees $11,435 $2,664,327 Total Cost $61,446 $14,316,948
Potential Project Funds Available $13,911,870
ALLOCATION OF PROCEEDS % Per Lot Total
City Premium 4% $2,531 $589,770
City Facilities 27% $16,338 $3,806,766
City Fees 21% $12,656 $2,948,848
Other Agency 47% $28,182 $6,566,487
Total Funded by Bond Proceeds 100% $59,708 $13,911,870
UNFUNDED REQUIREMENTS
Net Bond Proceeds Deficit ($0)
Unfunded Requirement $405,078
Total Fees to be Funded by Developer $405,078
Item: 6.2
Item Page Number: 9
Menifee Finance Committee July 8, 2025 Page 17 of 91
CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2025‐5
(Nautical Cove)
Tract Nos. 31229
Revenue Coverage ‐ Assigned Tax Rate
Year
Period
Ending
Gross
Revenues
Priority
Admin Principal Coupon Interest
Net Debt
Service
Debt
Service
Coverage
1 9/1/2026 $933,789 $30,000 $25,000 5.00% $793,250 $818,250 110.45% 2 9/1/2027 $952,465 $30,600 $45,000 5.00% $792,000 $837,000 110.14% 3 9/1/2028 $971,514 $31,212 $60,000 5.00% $789,750 $849,750 110.66% 4 9/1/2029 $990,944 $31,836 $80,000 5.00% $786,750 $866,750 110.66% 5 9/1/2030 $1,010,763 $32,473 $105,000 5.00% $782,750 $887,750 110.20% 6 9/1/2031 $1,030,979 $33,122 $125,000 5.00% $777,500 $902,500 110.57% 7 9/1/2032 $1,051,598 $33,785 $150,000 5.00% $771,250 $921,250 110.48% 8 9/1/2033 $1,072,630 $34,461 $180,000 5.00% $763,750 $943,750 110.00% 9 9/1/2034 $1,094,083 $35,150 $205,000 5.00% $754,750 $959,750 110.33% 10 9/1/2035 $1,115,964 $35,853 $235,000 5.00% $744,500 $979,500 110.27% 11 9/1/2036 $1,138,284 $36,570 $265,000 5.00% $732,750 $997,750 110.42% 12 9/1/2037 $1,161,049 $37,301 $300,000 5.00% $719,500 $1,019,500 110.23% 13 9/1/2038 $1,184,270 $38,047 $335,000 5.00% $704,500 $1,039,500 110.27% 14 9/1/2039 $1,207,956 $38,808 $375,000 5.00% $687,750 $1,062,750 110.01% 15 9/1/2040 $1,232,115 $39,584 $415,000 5.00% $669,000 $1,084,000 110.01% 16 9/1/2041 $1,256,757 $40,376 $455,000 5.00% $648,250 $1,103,250 110.25% 17 9/1/2042 $1,281,892 $41,184 $500,000 5.00% $625,500 $1,125,500 110.24% 18 9/1/2043 $1,307,530 $42,007 $545,000 5.00% $600,500 $1,145,500 110.48% 19 9/1/2044 $1,333,681 $42,847 $600,000 5.00% $573,250 $1,173,250 110.02% 20 9/1/2045 $1,360,354 $43,704 $650,000 5.00% $543,250 $1,193,250 110.34% 21 9/1/2046 $1,387,561 $44,578 $705,000 5.00% $510,750 $1,215,750 110.47% 22 9/1/2047 $1,415,313 $45,470 $765,000 5.00% $475,500 $1,240,500 110.43% 23 9/1/2048 $1,443,619 $46,379 $830,000 5.00% $437,250 $1,267,250 110.26% 24 9/1/2049 $1,472,491 $47,307 $895,000 5.00% $395,750 $1,290,750 110.42% 25 9/1/2050 $1,501,941 $48,253 $970,000 5.00% $351,000 $1,321,000 110.04% 26 9/1/2051 $1,531,980 $49,218 $1,045,000 5.00% $302,500 $1,347,500 110.04% 27 9/1/2052 $1,562,619 $50,203 $1,120,000 5.00% $250,250 $1,370,250 110.38% 28 9/1/2053 $1,593,872 $51,207 $1,205,000 5.00% $194,250 $1,399,250 110.25% 29 9/1/2054 $1,625,749 $52,231 $1,295,000 5.00% $134,000 $1,429,000 110.11% 30 9/1/2055 $1,658,264 $53,275 $1,385,000 5.00% $69,250 $1,454,250 110.37% Total $37,882,026 $1,217,042 $15,865,000 $17,381,000 $33,246,000 110.28% Item: 6.2
Item Page Number: 10
Menifee Finance Committee July 8, 2025 Page 18 of 91
CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2025‐5
(Nautical Cove)
Tract Nos. 31229
Lot Summary
Lot SF Acreage Lot SF Acreage Lot SF Acreage Lot SF Acreage Lot SF Acreage 50 6,266 0.14 100 6,415 0.15 27 6,091 0.14 13 7,312 0.17 1 11,421 0.26 51 6,252 0.14 101 6,680 0.15 28 6,036 0.14 14 6,038 0.14 2 6,314 0.14 52 6,252 0.14 102 7,848 0.18 29 6,010 0.14 15 6,017 0.14 3 8,245 0.19 53 6,252 0.14 103 7,117 0.16 30 6,014 0.14 16 6,144 0.14 4 6,709 0.15 54 6,252 0.14 104 6,031 0.14 31 6,017 0.14 17 6,004 0.14 5 6,769 0.16 55 6,247 0.14 105 6,241 0.14 32 6,021 0.14 18 6,004 0.14 6 6,829 0.16 56 6,034 0.14 106 6,241 0.14 33 6,448 0.15 19 6,074 0.14 7 6,889 0.16 57 6,362 0.15 107 6,241 0.14 34 6,498 0.15 20 6,009 0.14 8 6,938 0.16 58 11,737 0.27 108 6,241 0.14 35 6,277 0.14 21 6,013 0.14 9 6,938 0.16 59 7,817 0.18 109 6,157 0.14 36 7,057 0.16 22 6,092 0.14 10 6,931 0.16 60 6,437 0.15 110 6,370 0.15 37 7,080 0.16 23 6,319 0.15 11 6,925 0.16 61 6,801 0.16 111 8,643 0.20 38 7,104 0.16 24 7,169 0.16 12 6,919 0.16 62 6,335 0.15 112 6,901 0.16 39 7,127 0.16 25 7,643 0.18 13 6,912 0.16 63 6,273 0.14 113 6,805 0.16 40 7,554 0.17 26 8,643 0.20 14 6,906 0.16 64 6,355 0.15 114 6,028 0.14 41 6,612 0.15 27 9,712 0.22 15 6,900 0.16 65 6,365 0.15 115 6,344 0.15 42 6,442 0.15 28 11,847 0.27 16 6,500 0.15 66 6,375 0.15 116 6,880 0.16 43 6,334 0.15 29 9,371 0.22 17 8,955 0.21 67 6,386 0.15 117 9,775 0.22 44 8,631 0.20 30 7,414 0.17 18 6,954 0.16 68 6,459 0.15 118 7,539 0.17 45 8,933 0.21 31 6,175 0.14 19 6,878 0.16 69 8,352 0.19 119 6,185 0.14 46 9,356 0.21 32 6,131 0.14 20 6,792 0.16 70 10,166 0.23 120 6,257 0.14 47 9,841 0.23 33 6,014 0.14 21 6,310 0.14 71 11,413 0.26 48 8,742 0.20 34 6,017 0.14 22 6,301 0.14 72 10,054 0.23 49 6,835 0.16 35 6,014 0.14 23 6,135 0.14 73 10,020 0.23 Lot SF Acreage 50 6,231 0.14 36 7,319 0.17 24 6,154 0.14 74 7,820 0.18 1 6,253 0.14 51 6,227 0.14 37 6,251 0.14 25 6,173 0.14 75 6,010 0.14 2 6,209 0.14 52 6,798 0.16 38 6,767 0.16 26 6,193 0.14 76 6,000 0.14 3 6,188 0.14 53 7,746 0.18 39 6,367 0.15 27 6,220 0.14 77 6,141 0.14 4 6,166 0.14 54 12,375 0.28 40 6,941 0.16 28 6,743 0.15 78 6,010 0.14 5 6,134 0.14 55 10,707 0.25 41 7,221 0.17 29 7,430 0.17 79 6,568 0.15 6 6,082 0.14 56 7,928 0.18 42 6,813 0.16 30 7,494 0.17 80 6,331 0.15 7 6,126 0.14 57 9,157 0.21 43 6,556 0.15 31 7,103 0.16 81 6,036 0.14 8 6,172 0.14 58 7,635 0.18 44 8,458 0.19 32 6,806 0.16 82 6,026 0.14 9 6,012 0.14 59 6,930 0.16 45 7,105 0.16 33 6,841 0.16 83 6,017 0.14 10 6,070 0.14 60 7,350 0.17 46 6,732 0.15 34 6,005 0.14 84 6,008 0.14 11 6,600 0.15 61 6,879 0.16 47 6,214 0.14 35 6,786 0.16 85 6,035 0.14 12 7,326 0.17 48 6,598 0.15 36 6,434 0.15 86 6,054 0.14 13 7,725 0.18 49 7,688 0.18 37 6,708 0.15 87 6,034 0.14 14 7,998 0.18 Lot SF Acreage 50 6,245 0.14 38 6,802 0.16 88 6,005 0.14 15 6,720 0.15 1 6,792 0.16 51 6,620 0.15 39 6,821 0.16 89 6,859 0.16 16 7,945 0.18 2 6,011 0.14 52 6,994 0.16 40 7,275 0.17 90 7,000 0.16 17 7,954 0.18 3 6,062 0.14 41 6,124 0.14 91 7,524 0.17 18 7,925 0.18 4 6,083 0.14 42 6,292 0.14 92 6,724 0.15 19 7,917 0.18 5 7,227 0.17 43 6,300 0.14 93 6,103 0.14 20 6,886 0.16 6 7,141 0.16 44 8,933 0.21 94 6,855 0.16 21 7,155 0.16 7 7,130 0.16 45 14,169 0.33 95 6,764 0.16 22 6,555 0.15 8 7,208 0.17 46 13,314 0.31 96 6,157 0.14 23 6,901 0.16 9 6,485 0.15 47 7,580 0.17 97 6,509 0.15 24 7,821 0.18 10 6,489 0.15 48 7,836 0.18 98 7,242 0.17 25 6,970 0.16 11 6,530 0.15 49 7,691 0.18 99 7,125 0.16 26 6,524 0.15 12 6,443 0.15 Totals 355,597 8.16 345,219 7.93 321,273 7.38 338,624 7.77 277,065 6.36 Grand Total 1,637,778 37.60
TR 31229‐1
TR 31229‐2
TR 31229‐3
Item: 6.2
Item Page Number: 11
Menifee Finance Committee July 8, 2025 Page 19 of 91
CITY OF MENIFEE DRAFT v3
CFD No. 2017-1 (Maintenance Services)
Applicant Development Name Tract No. Res/Comm Date Tax Year KB Home Cal Management Services, LLC Nautical Cove 31229 Residential 5/20/2025 2026 Units Net Acres John Zimmerman Gross Acres Net Acres Units Annex No. 233.00 73.64 Principal 73.64 73.64 233.00 34 Description Measure Tax A Total Tax B Total Per Unit Grand Total Medians - Hardscape SF 9,382 $1,433.89 - $0.00 $1,433.89 Street Frontage SF 86,700 $27,242.76 - $0.00 $27,242.76 Trees Qty 175
$14,027.62 - $0.00 $14,027.62
Other Type Qty -
$0.00 - $0.00 $0.00
Subtotal $183.28 $42,704.27 $0.00 $0.00 $183.28 $42,704.27 100 Watt, 12,300 Lumens Qty 59
$14,175.32 - $0.00 $14,175.32
200 Watt, 24,600 Lumens Qty 25
$8,129.87 - $0.00 $8,129.87
Other Types Qty -
$0.00 - $0.00 $0.00
Subtotal $95.73 $22,305.20 $0.00 $0.00 $95.73 $22,305.20 Street Sweeping LF 46,757 $22,487.64 $0.00 $22,487.64 Sidewalks - (30 year replacement $4.77/SF) SF 144,120 $28,838.50 - $0.00 $28,838.50 Pavement Management - (Every 6 Years) SF 363,197 $23,678.64 - $0.00 $23,678.64 Subtotal $321.91 $75,004.77 $0.00 $0.00 $321.91 $75,004.77 Curb Inlet/Catch Basin EA 5
$1,799.65 36 $12,957.46 $14,757.10
Detention/Debris Basin SF -
$0.00 77,397 $24,319.58 $24,319.58
Storm Drain Pipe LF -
$0.00 7,075 $1,890.39 $1,890.39
Subtotal $7.72 $1,799.65 $168.10 $39,167.43 $175.82 $40,967.08 Neighborhood (5 ac. Per 1,000) Acre 3.69
$57,915.54 - $0.00 $57,915.54
Subtotal $248.56 $57,915.54 $0.00 $0.00 $248.56 $57,915.54 Graffiti
Abatement EA 233 $1,096.68 - $0.00 $1,096.68 Subtotal $4.71 $1,096.68 $0.00 $0.00 $4.71 $1,096.68
Total Direct Costs $861.91 $200,826.11 $168.10 $39,167.43 $1,030.02 $239,993.54 Description Tax A Total Tax B Total Total
Reserves (10%) - Does Not include Parks, Pavement, or Sidewalk $11,978.59 $3,916.74 $15,895.34 Auditor-Controller Fees ($135/Yr) $135.00 $135.00 $270.00 Admin (5%) - Minimum $1,000 $10,041.31 $1,958.37 $11,999.68 Total Soft Costs $95.09 $22,154.90 $25.79 $6,010.11 $120.88 $28,165.01 Grand Total $957.00 $222,981.00 $193.90 $45,177.54 $1,150.90 $268,158.55 Rate/Cost Rate Total Rate Total Rate Total
Per Unit $957.00 $222,981.00 $193.90 $45,177.54 $1,150.90 $268,158.55 Per Acre $3,027.99 $222,981.00 $613.49 $45,177.54 $3,641.48 $268,158.55 Soft Costs
Tax A Tax B ALL
LandLightingStreetsDrain
Item: 6.2
Item Page Number: 12
Menifee Finance Committee July 8, 2025 Page 20 of 91
MenifeeRd
Holland Rd
Southshore Dr
BellMountainRd
Starring
Ln
View Ri dge
Ln
Rockport
Rd
Melmore Ln
Tres
Lagos
Dr
La Piedra
364-200-009
SHEET 1 OF 1 SHEET
RECORDED THIS ____ DAY OF _______________, 20____ AT
THE HOUR OF ____ O'CLOCK __M IN BOOK _____
PAGE _____ OF MAPS OF ASSESSMENT AND COMMUNITY
FACILITIES DISTRICTS IN THE OFFICE OF THE COUNTY
RECORDER, IN THE COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA.
FEE: _____________ NO.: ______________________
PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDER
BY: _______________________________
DEPUTY
\_
CFD 2025-5
·|}þ74
·|}þ74
§¨¦215
MENIFEE
02 , 0 0 0 4 , 0 0 01,000 Feet
PROPOSED BOUNDARY MAP
COMMUNITY FACILITIES DISTRICT NO. 2025-5
(NAUTICAL COVE)
OF THE CITY OF MENIFEE,
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED
BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2025-5
(NAUTICAL COVE), OF THE 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
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 2025-26. - LEGEND
CITY BOUNDARY
CFD BOUNDARY
PARCEL LINE
XXX-XXX-XXX ASSESSOR PARCEL NUMBER
Item: 6.2
Item Page Number: 13
Menifee Finance Committee July 8, 2025 Page 21 of 91
CFD MAINTENANCE EXHIBIT LEGEND
POC 1 STREETSCAPES: 66,555 SF = 1.53 ACPOC 2 STREETSCAPES: 20,145 SF = 0.46 ACSTREET: 363,197 SF = 8.34 ACSIDEWALK: 144,120 SF = 3.30 ACMEDIAN PAVING: 9,382 SF = 0.21 ACSTREET TREE: 175 EA.STREET LIGHT: 84 EA.PUBLIC STREET : 15,520 LNF.TRAFFIC SIGNAL: 1 EA.EXISTING STORM DRAINCATCH BASINS - 5 EACH CFD MAINTAINED AREAS - 312,128 SFNOTE: ALL IRRIGATION TO USE RECYCLED WATER FROM EMWD 59 23456789101112
80 2829303132
333435363738394041424344
464748
5051525354555657586061626364656667686970717273747576777879 33343536
373845464748495051
81828384858687888990919293949596979899100101
103104106107108109110111113114115116120117
102
105
45 52
49 1
131125
54 126
53 112119118
33 BASIN
LAKE
BASIN
BASIN
LOT 129PARK
125
126
V
V
V
V
V
V
V
V
V
V
V
V
V
'H' STREET'A' STREET
'J' STREET
'A' STREET
'I' STREET
'K' STREET
'G' STREET
LAKETRAIL
LAKETRAIL
LAKE TRAIL
LAKETRAIL 'C' STREET
'C' STREET
HOLLAND ROAD
CATCH BASIN
SOUTHSHORE DRIVE
N O R T H0200'Scale: 1"=200'400'800'CITY OF MENIFEE, CALIFORNIACFD M A I N T E N A N C E E X H I B I T - SHEET 1NAUTICAL COVE - TR 31229 MATCHLINE SEE SHEET 2
Item: 6.2
Item Page Number: 14
Menifee Finance Committee July 8, 2025 Page 22 of 91
CFD MAINTENANCE EXHIBIT LEGEND
POC 1 STREETSCAPES: 66,555 SF = 1.53 ACPOC 2 STREETSCAPES: 20,145 SF = 0.46 ACSTREET: 363,197 SF = 8.34 ACSIDEWALK: 144,120 SF = 3.30 ACMEDIAN PAVING: 9,382 SF = 0.21 ACSTREET TREE: 175 EA.STREET LIGHT: 84 EA.PUBLIC STREET : 15,520 LNF.TRAFFIC SIGNAL: 1 EA.EXISTING STORM DRAINCATCH BASINS - 5 EACH CFD MAINTAINED AREAS - 312,128 SFNOTE: ALL IRRIGATION TO USE RECYCLED WATER FROM EMWD 15161718
14151617181920212223242526
12345678910
2122232425262728293031323334353637383940414243444546474849505152535455565758596061 45678910111213141516
1920212223242526
272829303132
39404142434445
13 18
1311
2 17
1 1920
27 1214
129
6263
LOT 129
BASIN
PARK'A' STREETLAKE TRAIL
LAKE TRAIL
'D' STREET
'B' STREET
'B' STREET
'L' STREET'F' STREET'E' STREET
'C' STREET
HOLLAND ROAD
BRIGGS ROAD
'G' STREET
CATCH BASIN
CFD M A I N T E N A N C E E X H I B I T - SHEET 2NAUTICAL COVE - TR 31229N O R T H0200'Scale: 1"=200'400'800'CITY OF MENIFEE, CALIFORNIA MATCHLINE SEE SHEET 1
Item: 6.2
Item Page Number: 15
Menifee Finance Committee July 8, 2025 Page 23 of 91
33 BASIN
LAKE
BASIN
BASIN
LOT 129PARK59
80 2829303132
333435363738394041424344
464748
5051525354555657586061626364656667686970717273747576777879 81828384858687888990919293949596979899100101
103104106107108109110111113114115116120117
102
105
45 49 131125
126
112119118
23456789101112
33343536
373845464748495051521 54
53 LAKE TRAIL TO BEHOA MAINTAINED
LAKE TRAIL TO BEHOA MAINTAINED
HOA MAINTAINED RETAINING WALLS
LAKE TRAIL TO BEHOA MAINTAINED
HOLLAND ROAD
SOUTHSHORE DRIVE
'G' STREET
CATCH BASIN
HOA MAINTAINED AREAS LEGEND
POC 3 LAKESIDE / PARK / BASIN: 173,768 SFPOC 4 LAKESIDE / REC CENTER / BASIN: 170,040 SFPOC 5 SLOPES: 56,423 SFLAKE: 460,713 SFLAKE TRAIL: 78,740 SFRE-GRADED EARTHEN CHANNEL: 30,230 SFRETAINING WALLS: 390 LNFSTORM DRAIN:18" - 2,440 LNF24" - 3,230 LNF30" - 889 LNF36" - 516 LNFCATCH BASINS - 36 EACH HOA MAINTAINED AREAS - 860,944 SFNOTE: ALL IRRIGATION TO USE RECYCLED WATER FROM EMWD N O R T H0200'Scale: 1"=200'400'800'CITY OF MENIFEE, CALIFORNIAHOA M A I N T E N A N C E E X H I B I T - SHEET 1NAUTICAL COVE - TR 31229 MATCHLINE SEE SHEET 2'H' STREET'A' STREET
'J' STREET
'A' STREET
'I' STREET
'K' STREET
'G' STREET
'C' STREET
'C' STREET
Item: 6.2
Item Page Number: 16
Menifee Finance Committee July 8, 2025 Page 24 of 91
HOA MAINTAINED AREAS LEGEND
POC 3 LAKESIDE / PARK / BASIN: 173,768 SFPOC 4 LAKESIDE / REC CENTER / BASIN: 170,040 SFPOC 5 SLOPES: 56,423 SFLAKE: 460,713 SFLAKE TRAIL: 78,740 SFRE-GRADED EARTHEN CHANNEL: 30,230 SFRETAINING WALLS: 390 LNFSTORM DRAIN:18" - 2,440 LNF24" - 3,230 LNF30" - 889 LNF36" - 516 LNFCATCH BASINS - 36 EACH HOA MAINTAINED AREAS - 860,944 SFNOTE: ALL IRRIGATION TO USE RECYCLED WATER FROM EMWD LOT 129
BASIN
PARK 45678910111213141516
1920212223242526 18
2 17
1 27
3 15161718
14151617181920212223242526
12345678910
2122232425262728293031323334353637383940414243444546474849505152535455565758596061 272829303132
39404142434445
13 1311
1920
1214
6263CENTERREC
'A' STREETLAKE TRAIL TO BEHOA MAINTAINED
'D' STREET
'B' STREET
'B' STREET
'L' STREET'F' STREET'E' STREET
'C' STREET
HOLLAND ROAD
BRIGGS ROAD
'G' STREET
CATCH BASIN
LAKE TRAIL TO BEHOA MAINTAINED
RE-GRADED EARTHEN CHANNEL PERCOA #206. DEVELOPMENT SHALLMAINTAIN THE IMPROVEMENTS NAUTICAL COVE - TR 31229N O R T H0200'Scale: 1"=200'400'800'CITY OF MENIFEE, CALIFORNIA MATCHLINE SEE SHEET 1
HOA M A I N T E N A N C E E X H I B I T - SHEET 2
Item: 6.2
Item Page Number: 17
Menifee Finance Committee July 8, 2025 Page 25 of 91
DEPOSIT REQUIREMENTS
Total Deposit of $70,000 required at time application is submitted. $65,000 will be eligible for reimbursement at time bond proceeds are available. $5,000 is non-refundable.
An additional $70,000 will be required fo
r each zone or improvement area.
SPECIAL FUNDING DISTRICT
APPLICATION FORM
Proposed Special District: CFD for Facilities
Proposed Name of Project:
SPICER CONSULTING GROUP USE ONLY
Date Received: Amount:
Proposed Special District Number:
1. IDENTIFICATION OF SUBJECT PROPERTY
Description of Property (include N, S, E &/or W, borders, acreage & tract number) A. APN(s) and/or Master Parcel Number
Attach Backup (if needed)
Include all Assessor Parcel Numbers to be included in the Special District in their entirety (XXX‐XXX‐XXX‐X)
B. Tract/Tentative Tract Map Number
Enclose copy of map
C. Recorded Lot Line Adjustments
Enclose copy of document(s)
D. Mapping Status □ Approved □ Tentative
E. Environmental Permits Required □ Yes □ No
F. Status of Permits □ Application in Process
G. Conditions of Approval Required □ Yes □ No
By Whom
H. Status of Conditions □ In Process □ Completed
X
Nautical Cove (TR 31229)
Approximately 74.00 gross acres located in the City of Menifee North of Holland Road, East of Southshore Drive, West of Briggs Road, and South of Tres Lagos Drive. 364-200-009
31229
■
■
City of Menifee
■
Item: 6.2
Item Page Number: 18
Menifee Finance Committee July 8, 2025 Page 26 of 91
Special District Application
2. PROPERTY OWNER INFORMATION (Attach Grant Deed)
3. CONSULTANT/APPLICANT INFORMATION
4. ENGINEERING INFORMATION
5. PROJECT LAND USE (Per Improvement Area or Zone, When Applicable) A. Number of Taxable Units
B. Proposed Product Mix See below
C. Base Sale Price Information See below
D. Number of Taxable Acres
Attach Backup
E. Number of Exempt Acres
Attach Backup
F. Desired Tax Rate Burden %
G. Anticipated Absorption per month
A. Landowner Name(s)
Attach Backup (if needed)
B. Contact Name
C. Title
D. Mailing Information
E. Phone
F. Fax
G. E -Mail
A. Company Name
B. Contact Name
C. Title
D. Mailing Information
E. Phone
F. Fax
G. E -Mail
A. Company Name
B. Contact Name
C. Title
D. Mailing Information
E. Phone
F. Fax
G. E -Mail
KB Home Cal Management Services LLC
Scott Hansen
36310 Inland Valley Drive, Wildomar, CA 92595
(951) 691-5239
[email protected]
Zimmerman Group
John Zimmerman
Principal
28202 Cabot Rd, Suite 620, Laguna Niguel, CA 92677
(949) 542-7072
(949) 542-7076
[email protected]
ACS Consulting
Frank Artiga
President
43385 Business Park Dr Suite 150, Temecula, CA 92590
(951) 757-5178
[email protected]
233
73.64 7.36
2.00 Item: 6.2
Item Page Number: 19
Menifee Finance Committee July 8, 2025 Page 27 of 91
Special District Application
6. COMPOSITION OF DEVELOPABLE ACREAGE
Attach Additional Backup (if needed)
Residential
Commercial-Retail
Business Park
School Site
PROPOSED RESIDENTIAL PRODUCT MIX
Plan Number
Apartment, Attached, or Detached
Number of Units
Average Lot Size
Prices
Square Footage of Living Area
Occupancies (See Table Below)
Quarter & Year Plan 1 Plan 2 Plan 3 Plan 4
7. FINANCING STRUCTURES OFFERED TO HOMEBUYERS
□ FHA □ VA □ VARIABLE
□ OTHER
8. FINANCING MECHANICS
Acreage Commence Occupancy
(Quarter & Year)
1 2 3 4
sq. ft.
A. Preparation of Boundary Map
Attach if possible
B. Preparation of RMA
Attach if possible
C. Proposed JCFAs
Agency Name
Funding Purpose (i.e. fees, facilities)
Name
Contact Name
Mailing Address
Phone
Fax
Email
See Exhibit C & D
NA
NA
NA
NA
NA
NA
NA
See Exhibit A
See Exhibit A
See Exhibit A
See Exhibit A
See Exhibit A
See Exhibit A
See Exhibit A
See Exhibit A
See Exhibit A
See Exhibit A
See Exhibit A
See Exhibit A
TBD
TBD
TBD
TBD
TBD
TBD
Zimmerman Group / Spicer Consulting Group
Zimmerman Group / Spicer Consulting Group
Yes
EMWD
Sewer/Water Fees & Facilities
Director of Finance
Thomas Hayes
2270 Trumble Road, Perris, CA 92570
(951) 928 3777 Ext. 49180
[email protected]
See Exhibit A
See Exhibit A
See Exhibit A
See Exhibit A
7,031
Item: 6.2
Item Page Number: 20
Menifee Finance Committee July 8, 2025 Page 28 of 91
Special District Application
Agency Name
Funding Purpose (i.e. fees, facilities)
Name
Contact Name
Mailing Address
Phone
Fax
Email
D. Additional Land Secured Financings Proposed
Agency Name & Backup
E. Overlapping Land Secured Financings List all existing special taxes, assessments, & liens as well as agency name(s)* F. Improvement Area(s)/Zone(s) ☐ Yes ☐ No
G. Basis for Either
H. Initial Levy Fiscal Year
I. Final Levy Fiscal Year (Anticipated)
J. Proposed Capitalized Interest Months
K. Proposed Facilities Costs Breakout Between Improvement Area(s)/Zone(s) & Type of Facility/Agency L. Summary of Proposed Methodology Proposed Land Use Categories & Method of Apportionment Questions? Contact our Special Tax Consultant, Spicer Consulting Group at 866-504-2067. Thank you. * Attach backup as needed
Menifee Union School District
Fees
Jim Sellers
29775 Haun Road, Menifee, CA 92586
(951) 672-1851 Ext. 49180
[email protected]
■
2025-2026
To Be Determined
6 See Exhibit A
See Exhibit A
See Exhibit B
Item: 6.2
Item Page Number: 21
Menifee Finance Committee July 8, 2025 Page 29 of 91
EXHIBIT A x
City of Menifee CFD No. XX (Nautical Cove) x
KB Home - Nautical Cove (TR No. 31229) x
Effective Tax Rate Analysis and Bond Sizing x
June 11, 2025 x
Assumptions Estimated Sources & Uses of Funds
City CFD Sources City CFD Total City CFD Per Unit Total Weighted Average Coupon 5.00% Par Bond Amount 16,565,000$ 16,565,000$ City Fees 12,656$ 2,948,848$ Estimated Effective Tax Rate 2.00% City Facilities 16,338 3,806,766 Annual Special Tax Escalation 2.00% Uses MUSD School Fees 10,995 2,561,852 Priority Administrative Expense $30,000 Reserve Fund 1,483,422 1,483,422 EMWD Facilities 18,486 4,307,238 Cost of Issuance $250,000 Capitalized Interest - - Contingency - - Capitalized Interest Period (Months) 0 Underwriter Discount 331,300 331,300 Total City 58,475$ 13,624,704$ Bond Amortization Term 30 Cost of Issuance 250,000 250,000 Underwriter Discount 2.00% City Fee Premium 589,770 589,770 Total CFD Funding 76,961$ 17,931,942$ Total Special Tax Revenues (2025-26) $933,717 Improvement Fund 13,910,509 13,910,509 Total Uses 16,565,000$ 16,565,000$
AD Valorem
Ad Other City EMWD CFD City CFD
Tax Product / Sq. Ft. Home Base Valorem Fixed Special Tax Total Tax Total Tax Unit Annual Tax Annual Tax Zone Min Lot SF Category Plan Size Pricing (a) Taxes (b) Charges (c) Per Unit Per Unit Rate % Mix Collections Collections N/A 40 Series ≤ 1,800 1 1,539 576,990$ 6,613$ 1,557$ 3,369$ 11,540$ 2.00% 24 -$ 80,868$ N/A 40 Series 1,801 - 2,050 2 1,879 606,990 6,957 1,557 3,626 12,140 2.00% 25 - 90,641 N/A 40 Series 2,051 - 2,300 3 2,195 631,990 7,244 1,557 3,839 12,640 2.00% 26 - 99,817 N/A 40 Series 2,301 - 2,550 4 2,415 650,990 7,462 1,557 4,001 13,020 2.00% 29 - 116,038 N/A 40 Series 2,301 - 2,550 5 2,543 660,990 7,576 1,557 4,001 13,134 1.99% 29 - 116,038 N/A 50 Series 2,051 - 2,300 1 2,080 638,990 7,324 1,557 3,839 12,720 1.99% 17 - 65,265 N/A 50 Series 2,301 - 2,550 2 2,321 658,990 7,553 1,557 4,001 13,111 1.99% 17 - 68,022 N/A 50 Series 2,551 - 2,800 3 2,613 683,990 7,840 1,557 4,283 13,680 2.00% 18 - 77,096 N/A 50 Series 2,801 - 3,050 4 2,874 705,990 8,092 1,557 4,471 14,120 2.00% 22 - 98,360 N/A 50 Series ≥ 3,051 5 3,119 729,990 8,367 1,557 4,676 14,600 2.00% 26 - 121,572 Total 2,365 654,037 7,496 1,557 4,007 13,061 2.00% 233 - 933,717$ Footnotes:
(a) Product and pricing provided by developer 4/14/25.
(b) Ad Valorem taxes total 1.14618% of the assessed value for FY 24-25. (c) Estimated other fixed charges and assessments for FY 24-25: Amount Flood Control Stormwater/Cleanwater …………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..3.76$ 3.76$ MWD Standby East …………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..6.94 6.94 EMWD Standby - Combined Charge …………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..21.00 21.00 Perris Joint Union High School District CFD No. 92-1 …………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..336.26 CFD 03-1 Newport Road …………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..232.00 City of Menifee CFD 2017-1 (Annexation) Estimate for Street Lights, Street Sweeping, Landscaping & Drainage, Park Maintenance, etc) …………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..957.00 (Estimate) Total Fixed Charges 1,556.96$ 361.70$
(d) Represents the special tax for the proposed CFD special tax for fiscal year 2024-25 (escalating 1.25% annually in keeping with EMWD policy that their facilities funding does not escalate) 2.05% (e) Represents the fixed charges and total tax rate percentage if Valley-Wide were to levy the charge for the Menifee North Park LMD.
Land Use Information & Total Property Tax Rates Special Assessment Revenues Allocation of Improvement Fund
DRAFT
Item: 6.2
Item Page Number: 22
Menifee Finance Committee July 8, 2025 Page 30 of 91
EXHIBIT B
City of Menifee CFD No. XX (Nautical Cove)
KB Home - Nautical Cove (TR No. 31229)
Preliminary List of CFD Eligible Facilities
June 11, 2025
Total Units 233
Avg SQ. Ft. 2,365
Per Unit Total
City of Menifee Fees (a)
Law Enforcement 1,012$ 235,796$
Transportation Impact Fees 7,764 1,809,012
Fire Facilities 708 164,964
General Government 1,287 299,871
Parks & Rec 1,885 439,205
Subtotal City DIF fees 12,656$ 2,948,848$
City Fee Facilities 2,531 589,770
Total City Fees 15,187$ 3,538,618$
City Improvements
City Street Improvements (Holland, Briggs, South Shore) 10,130$ 2,360,231$ - Traffic Signal 1,931 450,000
- Utility Undergrounding 2,146 500,000
Design, Planning, Engineering 2,131 496,535
Total City Improvements 16,338$ 3,806,766$
Total City Facilities 31,525$ 7,345,383$
EMWD Fees & Facilities (b)
Water Financial Participation Charge 7,498$ 1,747,034$ Drop-in Meter Installation Fees, 1" Meter 405 94,365 Water Supply Development Fee 407 94,831
Sewer Financial particiaption Charge 3,514 818,762 Sewer Treatment Capacity Charge 6,662 1,552,246 Total EMWD Fees 18,486$ 4,307,238$
*Assumes mutual agreement that 1995 Mitigation Agreement no longer applicable.
Menifee Union School District (c) Fee PSF
Total School Fees 10,995$ 2,561,852$
Total Eligible Facilities 61,006$ 14,214,474$
Footnotes
(a) Represents the City of Menifee DIF Fees effective July 1, 2024. (b) Represents EMWD's connection and capacity fees effective 1/1/2025. (c) Represents MUSD's redisential rate effective May 13, 2024.
DRAFT
Item: 6.2
Item Page Number: 23
Menifee Finance Committee July 8, 2025 Page 31 of 91
ISSUANCE ASSUMPTIONS
Closing Date 3/1/2027 Sources
Special Tax Revenue Escalation 2.000% Par Bond Amount 16,565,000$ Annual Administration Expense 30,000$
Administration Expense Escalation 2.000% Uses
Debt Service Coverage Ratio 110% Reserve Fund 1,483,422$ Underwriter Discount Estimate 2.000% Capitalized Interest - Issuance Costs Estimate 250,000$ Underwriter Discount 331,300 Months of Capitalized Interest - Costs Of Issuance 250,000 Gross Special Tax Revenues 2025-2026 933,717$ Construction Fund 14,500,278 Total Uses 16,565,000$
Period Gross Priority Capitalized Net Debt Debt Service Ending Revenues Admin Principal Yield Interest Interest Service Coverage 9/1/2027 952,391$ 30,600$ -$ 1.930% 403,633$ -$ 403,633$ 228.37% 9/1/2028 971,439 31,212 45,000 1.930% 807,267 - 852,267 110.32% 9/1/2029 990,868 31,836 65,000 2.180% 806,398 - 871,398 110.06% 9/1/2030 1,010,685 32,473 80,000 2.530% 804,981 - 884,981 110.53% 9/1/2031 1,030,899 33,122 100,000 2.930% 802,957 - 902,957 110.50% 9/1/2032 1,051,517 33,785 125,000 3.230% 800,027 - 925,027 110.02% 9/1/2033 1,072,547 34,461 145,000 3.430% 795,990 - 940,990 110.32% 9/1/2034 1,093,998 35,150 170,000 3.680% 791,016 - 961,016 110.18% 9/1/2035 1,115,878 35,853 195,000 3.930% 784,760 - 979,760 110.23% 9/1/2036 1,138,196 36,570 220,000 4.130% 777,097 - 997,097 110.48% 9/1/2037 1,160,960 37,301 250,000 4.280% 768,011 - 1,018,011 110.38% 9/1/2038 1,184,179 38,047 280,000 4.380% 757,311 - 1,037,311 110.49% 9/1/2039 1,207,863 38,808 315,000 4.430% 745,047 - 1,060,047 110.28% 9/1/2040 1,232,020 39,584 350,000 4.510% 731,092 - 1,081,092 110.30% 9/1/2041 1,256,660 40,376 390,000 4.580% 715,307 - 1,105,307 110.04% 9/1/2042 1,281,793 41,184 430,000 4.650% 697,445 - 1,127,445 110.04% 9/1/2043 1,307,429 42,007 470,000 4.710% 677,450 - 1,147,450 110.28% 9/1/2044 1,333,578 42,847 515,000 4.780% 655,313 - 1,170,313 110.29% 9/1/2045 1,360,249 43,704 565,000 4.830% 630,696 - 1,195,696 110.11% 9/1/2046 1,387,454 44,578 615,000 4.880% 603,407 - 1,218,407 110.22% 9/1/2047 1,415,203 45,470 670,000 4.930% 573,395 - 1,243,395 110.16% 9/1/2048 1,443,508 46,379 725,000 4.980% 540,364 - 1,265,364 110.41% 9/1/2049 1,472,378 47,307 790,000 5.030% 504,259 - 1,294,259 110.11% 9/1/2050 1,501,825 48,253 855,000 5.130% 464,522 - 1,319,522 110.16% 9/1/2051 1,531,862 49,218 925,000 5.130% 420,660 - 1,345,660 110.18% 9/1/2052 1,562,499 50,203 1,000,000 5.130% 373,208 - 1,373,208 110.13% 9/1/2053 1,593,749 51,207 1,080,000 5.130% 321,908 - 1,401,908 110.03% 9/1/2054 1,625,624 52,231 1,160,000 5.130% 266,504 - 1,426,504 110.30% 9/1/2055 1,658,136 53,275 1,250,000 5.130% 206,996 - 1,456,996 110.15% 9/1/2056 1,691,299 54,341 1,345,000 5.130% 142,871 - 1,487,871 110.02% 9/1/2057 1,725,125 55,428 1,440,000 5.130% 73,872 - 1,513,872 110.29% Total 40,361,813 1,296,811 16,565,000 5.00% 18,443,756 - 35,008,756 110.02%
BOND DEBT SERVICE
ESTIMATED SOURCES AND USES
EXHIBIT C
City of Menifee CFD No. XX (Nautical Cove)
KB Home - Nautical Cove (TR No. 31229)
Estimated Debt Service & Bond Sizing Schedule
June 11, 2025
Item: 6.2
Item Page Number: 24
Menifee Finance Committee July 8, 2025 Page 32 of 91
EXHIBIT D
City of Menifee CFD No. XX (Nautical Cove)
KB Home - Nautical Cove (TR No. 31229)
Summary of Acreage & Undeveloped Property Tax Rate
June 11, 2025
Total
Total Units (1) 233
I. Derivation of Exempt Acreage
Net Taxable Acreage (See Exhibit E) (2) 37.60
Contingency (3) 10%
Contingency Acreage (4) 3.76
Adjusted Minimum Taxable Acreage [ (2) - (4) ] (5) 33.84 II. Maximum Special Tax for Undeveloped Property
Project CFD Special Tax Revenues (See Exhibit B) (6) $933,717 Undeveloped Property Rate Per Acre [ (6) / (5) ] (7) $27,594 Footnotes:
(a) Estimated Developed Property Tax Revenue at Buildout. (b) See Exhibit E.
Item: 6.2
Item Page Number: 25
Menifee Finance Committee July 8, 2025 Page 33 of 91
EXHIBIT E
City of Menifee CFD No. XX (Nautical Cove)
KB Home - Nautical Cove (TR No. 31229)
Net Taxable Acreage
June 11, 2025
Series Lot #
Gross Sq.
Ft. Series Lot #
Gross Sq.
Ft. Series Lot #
Gross
Sq. Ft. Series Lot #
Gross Sq.
Ft. Series Lot #
Gross
Sq. Ft. Series Lot #
Gross Sq.
Ft. Series Lot #
Gross Sq.
Ft.
50 1 11,421 50 41 6,124 40 81 6,036 50 1 6,253 40 41 6,612 50 1 6,792 50 41 7,221 50 2 6,314 50 42 6,292 40 82 6,026 50 2 6,209 40 42 6,442 50 2 6,011 50 42 6,813 50 3 8,245 50 43 6,300 40 83 6,017 50 3 6,188 40 43 6,334 50 3 6,062 50 43 6,556 50 4 6,709 50 44 8,933 40 84 6,008 50 4 6,166 40 44 8,631 50 4 6,083 50 44 8,458 50 5 6,769 50 45 14,169 40 85 6,035 50 5 6,134 40 45 8,933 50 5 7,227 50 45 7,105 50 6 6,829 50 46 13,314 40 86 6,054 50 6 6,082 40 46 9,356 50 6 7,141 50 46 6,732 50 7 6,889 50 47 7,580 40 87 6,034 50 7 6,126 40 47 9,841 50 7 7,130 50 47 6,214 50 8 6,938 50 48 7,836 40 88 6,005 50 8 6,172 40 48 8,742 50 8 7,208 50 48 6,598 50 9 6,938 40 49 7,691 40 89 6,859 50 9 6,012 40 49 6,835 50 9 6,485 50 49 7,688 50 10 6,931 40 50 6,266 40 90 7,000 50 10 6,070 40 50 6,231 50 10 6,489 40 50 6,245 50 11 6,925 40 51 6,252 40 91 7,524 50 11 6,600 40 51 6,227 50 11 6,530 40 51 6,620 50 12 6,919 40 52 6,252 40 92 6,724 50 12 7,326 40 52 6,798 50 12 6,443 40 52 6,994 50 13 6,912 40 53 6,252 40 93 6,103 50 13 7,725 40 53 7,746 40 13 7,312 50 14 6,906 40 54 6,252 40 94 6,855 50 14 7,998 40 54 12,375 40 14 6,038 50 15 6,900 40 55 6,247 40 95 6,764 50 15 6,720 40 55 10,707 40 15 6,017 50 16 6,500 40 56 6,034 40 96 6,157 50 16 7,945 40 56 7,928 40 16 6,144 50 17 8,955 40 57 6,362 40 97 6,509 50 17 7,954 40 57 9,157 40 17 6,004 50 18 6,954 40 58 11,737 40 98 7,242 50 18 7,925 40 58 7,635 40 18 6,004 50 19 6,878 40 59 7,817 40 99 7,125 50 19 7,917 40 59 6,930 40 19 6,074 50 20 6,792 40 60 6,437 40 100 6,415 50 20 6,886 40 60 7,350 40 20 6,009 50 21 6,310 40 61 6,801 40 101 6,680 40 21 7,155 40 61 6,879 40 21 6,013 50 22 6,301 40 62 6,335 40 102 7,848 40 22 6,555 40 22 6,092 50 23 6,135 40 63 6,273 40 103 7,117 40 23 6,901 40 23 6,319 50 24 6,154 40 64 6,355 40 104 6,031 40 24 7,821 40 24 7,169 50 25 6,173 40 65 6,365 40 105 6,241 40 25 6,970 40 25 7,643 50 26 6,193 40 66 6,375 40 106 6,241 40 26 6,524 40 26 8,643 50 27 6,220 40 67 6,386 40 107 6,241 40 27 6,091 40 27 9,712 50 28 6,743 40 68 6,459 40 108 6,241 40 28 6,036 40 28 11,847 50 29 7,430 40 69 8,352 40 109 6,157 40 29 6,010 40 29 9,371 50 30 7,494 40 70 10,166 40 110 6,370 40 30 6,014 40 30 7,414 50 31 7,103 40 71 11,413 40 111 8,643 40 31 6,017 40 31 6,175 50 32 6,806 40 72 10,054 40 112 6,901 40 32 6,021 40 32 6,131 50 33 6,841 40 73 10,020 40 113 6,805 40 33 6,448 40 33 6,014 50 34 6,005 40 74 7,820 40 114 6,028 50 34 6,498 40 34 6,017 50 35 6,786 40 75 6,010 40 115 6,344 50 35 6,277 40 35 6,014 50 36 6,434 40 76 6,000 40 116 6,880 50 36 7,057 40 36 7,319 50 37 6,708 40 77 6,141 40 117 9,775 50 37 7,080 50 37 6,251 50 38 6,802 40 78 6,010 40 118 7,539 50 38 7,104 50 38 6,767 50 39 6,821 40 79 6,568 40 119 6,185 50 39 7,127 50 39 6,367 50 40 7,275 40 80 6,331 40 120 6,257 50 40 7,554 50 40 6,941 Tract 31229-1 Square Footage 843,746 Tract 31229-2 Square Footage Tract 31229-3 Square Footage 356,666 Phase 1 Acres 19.37 Phase 2 Acres 10.04 Phase 3 Acres 8.19 Phase 1 Units 120 Phase 2 Units 61 Phase 3 Units 52 Total
Square Footage 1,637,768
Acres 37.6
Units 233
Notes:
(a) Square footage based on Final Site Plan of Development.
Tract Number 31229-1 (Phase 1) Tract Number 31229-2 (Phase 2) Tract Number 31229-3 (Phase 3) 437,356
Item: 6.2
Item Page Number: 26
Menifee Finance Committee July 8, 2025 Page 34 of 91
CITY OF MENIFEE
SUBJECT: Proposed Formation of Community Facilities District 2025-3, Quail Hills, by Quail Hills, LP
MEETING DATE: July 8, 2025
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 Community Facilities District (CFD) 2025-3, Quail Hills, to finance certain costs of public improvements for the development of 130 single-family homes located between Williams Drive and Goetz Road and recommend submittal to the City Council for consideration.
DISCUSSION
The landowner, Quail Hills LP, is proposing to develop 130 single-family homes on land that sits between Williams Drive and Goetz Road in the Quail Valley area of the City of Menifee. Quail Hills LP has requested the City form CFD 2025-3 in accordance with the Mello-Roos Community Facilities Act of 1982, as amended. The cost of certain public improvements within the development would be financed by the levy of a special tax and the issuance of bonds in the approximate amount of $4 million.
This application conforms to the requirements in the City’s CFD policy: The landowner has provided the developer deposit required to form the district and the tax rate on homes would not exceed 2%. The bond proceeds would be used to pay for development impact fees. There are no Joint Community Facilities Agreements requested. The water district is forming a separate CFD to pay for the cost of water facilities.
ATTACHMENTS
1. CFD 2025-3 Proforma Summary
2. CFD 2025-3 Project Map
3. CFD 2025-3 Proforma
Item: 6.3
Item Page Number: 1
Menifee Finance Committee July 8, 2025 Page 35 of 91
City of Menifee Staff Report
Proposed Formation of CFD 2025-3, Quail Hills, by Quail Hills, LP July 8, 2025
2 7
9 3
4. CFD 2025-3 Boundary Map
5. CFD 2017-1 Annexation 25 Maintenance Exhibit
6. CFD 2025-3 Facilities CFD Application
Item: 6.3
Item Page Number: 2
Menifee Finance Committee July 8, 2025 Page 36 of 91
CFD 2025‐3 (Quail Hills)
Proforma Summary Sheet
Applicant: Arroyo Partners – Quail Hills LP
Project Description
Acreage Gross: 43.42; Net: 16.79
Development Description Detached Single Family Residential Units Number of Units (50 min) 130 Units
Estimated Home Size Range 1,700 SF to 2,850 SF
Average Home Size 2,342 SF
Average Estimated Home Price $603,582
Total Effective Tax Rate (2.00% Max) 1.99%
CFD Tax Rate Range $1,711 to $2,182
Escalation (2.00% Max) Yes, 2.00%
Maintenance CFD Yes, CFD 2017‐1 Tax Zone 25
Maintenance CFD Rate $589/Unit
Bond Sizing Assumptions
Average Coupon 5.00%
Priority Administration $30,000
Cost of Issuance $250,000
Capitalized Interest Period 0‐months
Special Tax Escalation 2%
Bond Term 30 Years
Underwriter Discount 2.00%
Total Special Tax Revenues $258,509
Estimated Sources and Uses
Sources
Par Bond Amount $3,980,000
Uses
Reserve Fund $348,465
Capitalized Interest $0
Underwriter Discount $79,600
Cost of Issuance $250,000
Improvement Fund $3,301,935
Allocation of Improvement Fund
Description % of Total Total Eligible Potentially Funded City Premium (20%) 17% $552,598 $552,598
City Fees 83% $2,762,988 $2,749,337
Totals $3,315,586 $3,301,935
Unfunded $13,651
Proposed Schedule
Finance Committee July 9, 2025
Resolution of Intention September 3, 2025
Public Hearing October 15, 2025
2nd Reading Ordinance November 5, 2025
Item: 6.3
Item Page Number: 3
Menifee Finance Committee July 8, 2025 Page 37 of 91
NEWPORT DR
SPRINGBROOK WAY
CHEYENNE C ANY ON
DR
GOETZ
RD
MOUNTAIN
VIEW
PL
AVENIDA
ESTRELLA
ESCALANTE RD
EAST
DR
MT VERNON PL
W
ILLIAMS DR
CANYON
DR
^_
NORMANDY RD
MURRIETA
RD
OREGONPL
JUNO ST
VALLEY
BLVD
CASAB
ONITA AVE
GEARY
ST
EASTDR
CHAMBERS AVE
CANYON LAKE DRN
NEWPORT RD
CANYON HILLS RD
RAILROAD CAN Y ONRD
VELADR
LUPIN PL
EVANS
RD
LONGHORN
DR
LASFLORES DR
ROBERT ST
MAURICIO ST
VIADELLAGO
BREWER ST
COMMUNITY FACILITIES DISTRICT NO. 2025-3
(QUAIL HILLS)
PROJECT MAP
Item: 6.3
Item Page Number: 4
Menifee Finance Committee July 8, 2025 Page 38 of 91
CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2025‐3
(Quail Hills)
Tract Nos. 37692
Calculation of Bond Sizing and Total Tax Rates
I. Home Prices and Combined Tax Rates:
Plan 1234567 CFD TOTAL
Range of Home Sizes in Square Feet per RMA Under 1,800 to 2,001 to 2,201 to 2,401 to 2,601 to Over 1,800 2,000 2,200 2,400 2,600 2,800 2,800
Estimated Home Size 1,700 1,898 2,150 2,239 2,445 2,650 2,850 2,342 Estimated Home Price $550,990 $565,990 $584,990 $599,990 $612,990 $625,990 $641,990 $603,582 Ad‐Valorem Tax Rate (1.00%) $5,509.90 $5,659.90 $5,849.90 $5,999.90 $6,129.90 $6,259.90 $6,419.90 $6,035.82 Metro Water East (0.00700%) $38.57 $39.62 $40.95 $42.00 $42.91 $43.82 $44.94 $42.25 Menifee School (0.05080%) $279.90 $287.52 $297.17 $304.79 $311.40 $318.00 $326.13 $306.62 Perris Union HS (0.06850%) $377.43 $387.70 $400.72 $410.99 $419.90 $428.80 $439.76 $413.45 Mt. San Jacinto Jr. College (0.00268%) $14.77 $15.17 $15.68 $16.08 $16.43 $16.78 $17.21 $16.18 EMWD Improvement District U‐35 (0.00860%) $47.39 $48.68 $50.31 $51.60 $52.72 $53.84 $55.21 $51.91 EMWD Improvement District U‐36 (0.00860%) $47.39 $48.68 $50.31 $51.60 $52.72 $53.84 $55.21 $51.91 Subtotal GO Bond Debt $6,315.34 $6,487.26 $6,705.04 $6,876.97 $7,025.97 $7,174.97 $7,358.36 $6,918.14 Flood Control Stormwater $3.75 $3.75 $3.75 $3.75 $3.75 $3.75 $3.75 $3.75 EMWD Standby $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 MWD Standby Charge $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 Perris Union HS CFD 92‐1 $336.00 $336.00 $336.00 $336.00 $336.00 $336.00 $336.00 $336.00 EMWD Proposed CFD $2,000.00 $2,050.00 $2,100.00 $2,150.00 $2,200.00 $2,250.00 $2,300.00 $2,168.08 Proposed CFD No. 2017‐1 ‐ Maint Svcs* $589.00 $589.00 $589.00 $589.00 $589.00 $589.00 $589.00 $589.00 Proposed CFD No. 2025‐3 ‐ Facilities Tax** $1,711.00 $1,788.00 $1,899.00 $1,976.00 $2,036.00 $2,097.00 $2,182.00 $1,988.53 Subtotal Special Assessments and Taxes $4,671.69 $4,798.69 $4,959.69 $5,086.69 $5,196.69 $5,307.69 $5,442.69 $5,117.30 Total Annual Property Taxes $10,987.03 $11,285.95 $11,664.73 $11,963.66 $12,222.66 $12,482.66 $12,801.05 $12,035.44 Annual Prop. Tax Rates as % of Home Price 1.99% 1.99% 1.99% 1.99% 1.99% 1.99% 1.99% 1.99% Unit Mix ‐ 21 21 44 ‐ 22 22 130 (1)Total CFD ‐ Annual Tax Collections $0 $37,548 $39,879 $86,944 $0 $46,134 $48,004 $258,509 (2)Administration $30,000
Total Annual Special Taxes for Bonding
((1)Special Taxes ‐ (2)Admin. / 110% Cov) $0 $30,173 $32,046 $69,867 $0 $37,073 $38,576 $207,735 II. Total Estimated Home Square Footage: ‐ 39,858 45,150 98,516 ‐ 58,300 62,700 304,524 * Escalates at greater of 2% or CPI
** Includes a 2% annual escalator for debt service
III. CFD Bond Sizing & Construction Proceeds:
2025 Bond Amount (5.00% Interest, 30 Year Term, 29 Year Amortization) $3,980,000 Underwriter Discount (2.00%) $79,600
Reserve Fund (Maximum Annual Debt Service) $348,465
Capitalized Interest (0 mos.) $0
Incidental Costs (Estimate) $250,000
Total Discount, Reserve Fund, Capitalized Interest and Incidental Costs $678,065 Net Bond Proceeds $3,301,935
Item: 6.3
Item Page Number: 5
Menifee Finance Committee July 8, 2025 Page 39 of 91
CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2025‐3
(Quail Hills)
Tract Nos. 37692
Summary of Acreage, Undeveloped Property
And Backup Special Tax Rates
Tract Nos. 37692
130 Lots
(Quail Hills)
I. Calculation of Net Taxable Acres:
Gross Acreage 43.42
Less: Exempt Acres 26.63
Net Taxable Acres 16.79
II. Calculation of Undeveloped Property Tax Rate:
Total Developed Property Revenues $258,509
Net Taxable Acres 16.79
Less: Contingency Factor (10%) 1.68
Net Taxable Acres (Adjusted) 15.11
Undeveloped Property Tax Rate per Acre $17,106
Total Exempt Acreage 28.31
III. Calculation of Backup Special Tax Rate:
A. Backup Special Tax Rate per Unit
Total Taxable Acres 16.79
Undeveloped Property Tax Rate per Acre $17,106
Total Units 130
Backup Special Tax per Unit $2,209
B. Backup Special Tax Rate per Lot Square Foot
Total Developed Property Revenues $258,509
Total Net Acres (Square Feet) 658,268
Backup Special Tax Rate per Lot Square Foot $0.3927
Item: 6.3
Item Page Number: 6
Menifee Finance Committee July 8, 2025 Page 40 of 91
CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2025‐3
(Quail Hills)
Tract Nos. 37692
Calculation of Bond Sizing and Total Tax Rates
Debt Service No. of Total Annual
Tax Rate Units Collectable Tax Max Tax Rates
Less than 1,800 $1,711 0 $0 $0
1,800 to 2,000 $1,788 21 $37,548 $46,398
2,001 to 2,200 $1,899 21 $39,879 $46,398
2,201 to 2,400 $1,976 44 $86,944 $97,214
2,401 to 2,600 $2,036 0 $0 $0
2,601 to 2,800 $2,097 22 $46,134 $48,607
Greater than 2,800 $2,182 22 $48,004 $48,607
Non‐residential Property $17,106
Backup Tax Rate per Unit $2,209
Backup Tax Rate per S.F. $0.3927
130 $258,509 $287,224
Tax Rate for Bonding $233,840
Sizing at Max tax rate $4,500,000
Future Facilities (rounded up) $4,000,000
Range of Home Sizes
Item: 6.3
Item Page Number: 7
Menifee Finance Committee July 8, 2025 Page 41 of 91
CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2025‐3
(Quail Hills)
Tract Nos. 37692
Lot Summary
Lot SF Acreage Lot SF Acreage Lot SF Acreage Lot SF Acreage 1 6,746 0.15 41 5,432 0.12 81 5,291 0.12 121 6,989 0.16 2 5,332 0.12 42 5,291 0.12 82 5,008 0.11 122 5,657 0.13 3 5,174 0.12 43 5,250 0.12 83 5,004 0.11 123 5,311 0.12 4 5,170 0.12 44 5,250 0.12 84 6,064 0.14 124 5,250 0.12 5 5,170 0.12 45 5,250 0.12 85 6,455 0.15 125 7,524 0.17 6 5,170 0.12 46 5,251 0.12 86 5,270 0.12 126 5,501 0.13 7 5,171 0.12 47 7,464 0.17 87 5,265 0.12 127 5,035 0.12 8 5,300 0.12 48 6,681 0.15 88 5,170 0.12 128 5,035 0.12 9 5,780 0.13 49 5,041 0.12 89 5,595 0.13 129 5,041 0.12 10 6,524 0.15 50 5,035 0.12 90 5,652 0.13 130 6,416 0.15 11 8,335 0.19 51 5,036 0.12 91 5,418 0.12 12 8,638 0.20 52 5,073 0.12 92 5,415 0.12 13 6,389 0.15 53 5,182 0.12 93 5,019 0.12 14 5,714 0.13 54 5,173 0.12 94 5,049 0.12 15 5,725 0.13 55 5,079 0.12 95 5,085 0.12 16 5,256 0.12 56 5,039 0.12 96 5,205 0.12 17 5,239 0.12 57 5,035 0.12 97 5,231 0.12 18 5,239 0.12 58 5,036 0.12 98 5,395 0.12 19 5,239 0.12 59 5,065 0.12 99 6,328 0.15 20 5,239 0.12 60 5,109 0.12 100 5,017 0.12 21 5,257 0.12 61 5,061 0.12 101 5,646 0.13 22 5,390 0.12 62 5,469 0.13 102 5,665 0.13 23 5,461 0.13 63 5,138 0.12 103 5,760 0.13 24 6,350 0.15 64 5,001 0.11 104 5,959 0.14 25 7,544 0.17 65 5,001 0.11 105 5,000 0.11 26 6,029 0.14 66 5,001 0.11 106 5,000 0.11 27 5,684 0.13 67 5,632 0.13 107 5,006 0.11 28 5,733 0.13 68 9,716 0.22 108 5,092 0.12 29 5,775 0.13 69 6,977 0.16 109 6,101 0.14 30 5,796 0.13 70 6,020 0.14 110 6,744 0.15 31 5,910 0.14 71 6,024 0.14 111 6,744 0.15 32 6,221 0.14 72 5,393 0.12 112 5,745 0.13 33 6,276 0.14 73 5,299 0.12 113 5,324 0.12 34 6,006 0.14 74 5,976 0.14 114 5,051 0.12 35 5,810 0.13 75 5,922 0.14 115 5,103 0.12 36 5,775 0.13 76 5,796 0.13 116 5,457 0.13 37 5,314 0.12 77 5,258 0.12 117 5,847 0.13 38 5,279 0.12 78 5,293 0.12 118 5,024 0.12 39 5,381 0.12 79 5,358 0.12 119 5,467 0.13 40 5,478 0.13 80 5,426 0.12 120 5,427 0.12 Totals 233,019 5.35 221,533 5.09 219,098 5.03 57,759 1.33 ‐ ‐ Grand Total 731,409 16.79
Item: 6.3
Item Page Number: 8
Menifee Finance Committee July 8, 2025 Page 42 of 91
CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2025‐3
(Quail Hills)
Tract Nos. 37692
Use of Bond Proceeds
CFD 2025‐3 Tract Nos. 37692
130 Lots
FUNDING REQUIREMENTS Per Lot (Quail Hills)
City Fees
Law Enforcement $1,035 $134,550
Fire Facilities $724 $94,120
Circulation $7,943 $1,032,590
General Govt $1,316 $171,080
Parks and Recreation $1,928 $250,640
Quimby $8,308 $1,080,008
Subtotal City Fees $21,254 $2,762,988
City Premium (20%) $4,251 $552,598
Total City Fees $25,505 $3,315,586
Total Cost $25,505 $3,315,586
Potential Project Funds Available $3,301,935
ALLOCATION OF PROCEEDS % Per Lot Total
City Premium 17% $4,251 $552,598
City Fees 83% $9,852 $2,749,337
Total Funded by Bond Proceeds 100% $14,103 $3,301,935
UNFUNDED REQUIREMENTS
Net Bond Proceeds Deficit ($0)
Unfunded Requirement $13,651
Total Fees to be Funded by Developer $13,651
Item: 6.3
Item Page Number: 9
Menifee Finance Committee July 8, 2025 Page 43 of 91
CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2025‐3
(Quail Hills)
Tract Nos. 37692
Revenue Coverage ‐ Assigned Tax Rate
Year
Period
Ending
Gross
Revenues
Priority
Admin Principal Coupon Interest
Net Debt
Service
Debt
Service
Coverage
1 9/1/2027 $258,509 $30,000 $5,000 5.00% $199,000 $204,000 112.01% 2 9/1/2028 $263,679 $30,600 $10,000 5.00% $198,750 $208,750 111.65% 3 9/1/2029 $268,953 $31,212 $15,000 5.00% $198,250 $213,250 111.48% 4 9/1/2030 $274,332 $31,836 $20,000 5.00% $197,500 $217,500 111.49% 5 9/1/2031 $279,818 $32,473 $25,000 5.00% $196,500 $221,500 111.67% 6 9/1/2032 $285,415 $33,122 $30,000 5.00% $195,250 $225,250 112.01% 7 9/1/2033 $291,123 $33,785 $35,000 5.00% $193,750 $228,750 112.50% 8 9/1/2034 $296,946 $34,461 $45,000 5.00% $192,000 $237,000 110.75% 9 9/1/2035 $302,884 $35,150 $50,000 5.00% $189,750 $239,750 111.67% 10 9/1/2036 $308,942 $35,853 $60,000 5.00% $187,250 $247,250 110.45% 11 9/1/2037 $315,121 $36,570 $65,000 5.00% $184,250 $249,250 111.76% 12 9/1/2038 $321,423 $37,301 $75,000 5.00% $181,000 $256,000 110.99% 13 9/1/2039 $327,852 $38,047 $85,000 5.00% $177,250 $262,250 110.51% 14 9/1/2040 $334,409 $38,808 $95,000 5.00% $173,000 $268,000 110.30% 15 9/1/2041 $341,097 $39,584 $105,000 5.00% $168,250 $273,250 110.34% 16 9/1/2042 $347,919 $40,376 $115,000 5.00% $163,000 $278,000 110.63% 17 9/1/2043 $354,877 $41,184 $125,000 5.00% $157,250 $282,250 111.14% 18 9/1/2044 $361,975 $42,007 $135,000 5.00% $151,000 $286,000 111.88% 19 9/1/2045 $369,215 $42,847 $150,000 5.00% $144,250 $294,250 110.91% 20 9/1/2046 $376,599 $43,704 $165,000 5.00% $136,750 $301,750 110.32% 21 9/1/2047 $384,131 $44,578 $175,000 5.00% $128,500 $303,500 111.88% 22 9/1/2048 $391,813 $45,470 $195,000 5.00% $119,750 $314,750 110.04% 23 9/1/2049 $399,650 $46,379 $210,000 5.00% $110,000 $320,000 110.40% 24 9/1/2050 $407,643 $47,307 $225,000 5.00% $99,500 $324,500 111.04% 25 9/1/2051 $415,796 $48,253 $245,000 5.00% $88,250 $333,250 110.29% 26 9/1/2052 $424,111 $49,218 $260,000 5.00% $76,000 $336,000 111.58% 27 9/1/2053 $432,594 $50,203 $280,000 5.00% $63,000 $343,000 111.48% 28 9/1/2054 $441,246 $51,207 $305,000 5.00% $49,000 $354,000 110.18% 29 9/1/2055 $450,070 $52,231 $325,000 5.00% $33,750 $358,750 110.90% 30 9/1/2056 $459,072 $53,275 $350,000 5.00% $17,500 $367,500 110.42% Total $10,487,214 $1,217,042 $3,980,000 $4,369,250 $8,349,250 111.03% Item: 6.3
Item Page Number: 10
Menifee Finance Committee July 8, 2025 Page 44 of 91
CITY OF MENIFEE DRAFT v5
CFD No. 2017-1 (Maintenance Services)
Applicant Development Name Tract No. Res/Comm Date
Quail Hills LP Quail Hills TR 37692 Residential 6/10/2025 Units Net Acres Paul Onufer Gross Acres Net Acres Units Annex No. 130 16.79 Managing Member 43.42 16.79 130 25
Description Measure Unit Cost Tax A Total Tax B Total Per Unit Grand Total Street Frontage SF $0.314 11,562 $3,633.00 - $0.00 $3,633.00 Trees Qty $80.16 41 $3,286.47 - $0.00 $3,286.47 Other Qty $0.00 - $0.00 - $0.00 $0.00 Subtotal $53.23 $6,919.47 $0.00 $0.00 $53.23 $6,919.47
96 Watt, 12,300 Lumens Qty $240.26 6 $1,441.56 - $0.00 $1,441.56 Other Qty $0.00 - $0.00 - $0.00 $0.00 Subtotal $11.09 $1,441.56 $0.00 $0.00 $11.09 $1,441.56
Street Sweeping LF $0.481 1,984 $954.20 $0.00 $954.20 Sidewalks - (20 year replacement) SF $0.200 10,272 $2,055.43 - $0.00 $2,055.43 Pavement Management SF $0.065 51,490 $3,356.89 - $0.00 $3,356.89 Subtotal $48.97 $6,366.52 $0.00 $0.00 $48.97 $6,366.52
Detention/Debris Basin SF $0.314 - $0.00 51,516 $16,187.29 $16,187.29 Storm Drains Pipe LF $0.267 925 $247.15 1,290 $344.68 $591.83 Curb Inlet Catch Basin EA $359.93 3 $1,079.79 10 $3,599.29 $4,679.08 Other Qty $0.00 - $0.00 - $0.00 $0.00 Subtotal $10.21 $1,326.94 $154.86 $20,131.26 $165.06 $21,458.20 Parks
Neighborhood (5 ac. Per 1,000) 3.164 pph Acre $23,579.60 2.06 $48,493.81 - $0.00 $48,493.81 Subtotal $373.03 $48,493.81 $0.00 $0.00 $373.03 $48,493.81 DG SF $0.11 12,236 $1,307.75 - $0.00 $1,307.75 Other LF $0.00 - $0.00 - $0.00 $0.00 Subtotal $10.06 $1,307.7 5 $0.00 $0.00 $10.06 $1,307.7 5 Graffiti
Abatement Unit $4.71 130 $611.88 - $0.00 $611.88 Subtotal $4.71 $611.88 $0.00 $0.00 $4.71 $611.88
Total Direct Costs $511.29 $66,467.92 $154.86 $20,131.26 $666.15 $86,599.19 Description Tax A Total Tax B Total Total
Reserves (10%) $6,643.68 $2,013.13 $8,656.81
Auditor-Controller Fees ($135/Yr) $135.00 $135.00 $270.00 Admin (5%) - Minimum $750 $3,323.40 $1,006.56 $4,329.96 Total Soft Costs $77.71 $10,102.08 $24.27 $3,154.69 $101.98 $13,256.77 Grand Total $589.00 $76,570.00 $179.12 $23,285.95 $768.12 $99,855.95 Rate/Cost Rate Total Rate Total Rate Total
Per Unit $589.00 $76,570.00 $179.12 $23,285.95 $768.12 $99,855.95 Per Acre $4,560.45 $76,570.00 $1,386.89 $23,285.95 $5,947.35 $99,855.95 Soft Costs
Tax A Tax B ALL
LandLightingStreetsDrainTrails
Item: 6.3
Item Page Number: 11
Menifee Finance Committee July 8, 2025 Page 45 of 91
341-060-012
341-060-002
Palm Dr
Pase
o V
ivora
Goetz Dr
Goetz
Rd
Avenida
de
las
Flores
Cypr
ess Pl
Avenida
Gaviota
Williams Dr
SHEET 1 OF 1 SHEET
RECORDED THIS ____ DAY OF _______________, 20____ AT
THE HOUR OF ____ O'CLOCK __M IN BOOK _____
PAGE _____ OF MAPS OF ASSESSMENT AND COMMUNITY
FACILITIES DISTRICTS IN THE OFFICE OF THE COUNTY
RECORDER, IN THE COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA.
FEE: _____________ NO.: ______________________
PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDER
BY: _______________________________
DEPUTY
\_
CFD 2025-3
·|}þ74·|}þ74
§¨¦215
MENIFEE
0 740 1,480 370 Feet
PROPOSED BOUNDARY MAP
COMMUNITY FACILITIES DISTRICT NO. 2025-3
(QUAIL HILLS)
OF THE CITY OF MENIFEE,
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED
BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2028-3
(QUAIL HILLS), OF THE 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
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 2025-26. - LEGEND
CITY BOUNDARY
CFD BOUNDARY
PARCEL LINE
XXX-XXX-XXX ASSESSOR PARCEL NUMBER
Item: 6.3
Item Page Number: 12
Menifee Finance Committee July 8, 2025 Page 46 of 91
CFD MAINTAINED STREETSCAPE LANDSCAPE - 11,562 SQ. FT/ (0.27 ACRES)LANDSCAPE MAINTENANCE LEGEND HOA MAINTAINED PARKWAY AND STREETSCAPE LANDSCAPE - 17,921 SQ. FT/ (0.41 ACRES)HOA MAINTAINED PARKS - 49,044 SQ. FT/ (1.1 ACRES)HOA MAINTAINED SLOPE LANDSCAPE - 97,152 SQ. FT/ (2.2 ACRES) PRIVATE HOMEOWNER MAINTAINED SLOPE LANDSCAPE - 52,781 SQ. FT/ (1.2 ACRES)PRIVATE HOMEOWNER MAINTAINED LOT AND PARKWAY LANDSCAPE HOA MAINTAINED EVA ACCESS ROAD - 6,408 SQ. FT/ (0.16 ACRES)HOA MAINTAINED DETENTION BASIN LANDSCAPE - 51,516 SQ. FT/ (1.2 ACRES) FIRE PROTECTION PLAN MAP LEGENDTHINNING ZONE 2 (OWNER AND HOA MAINTAINED) APPROX 77,852 SQUARE FEET - AN UN-IRRIGATED AREA LOCATED BETWEEN 30 AND 100 FEET FROM EACHSTRUCTURE. THIS AREA MAY INCLUDE SINGLE OR SMALL CLUSTERS OF TRIMMEDFIRE RESISTANCE NATIVE PLANTS UP TO 18 INCHES IN HEIGHT WHERE 50% OFTHE VEGETATION IS REMOVED. SELECTED NATIVE PLANT CLUSTERS MUST BESEPARATED BY AT LEAST 1-1/2 TIMES THE MATURE HEIGHT OF THE RETAINEDPLANTS. THE GROUNDCOVER AND GRASSES SHALL BE WEED WHIPPED ANDMAINTAINED TO 4" OR LESS IN STUBBLE HEIGHT. SEE FIRE PROTECTION PLANSECTION 5 FOR SPECIFIC DETAILS. 2125 TURNBERRY LANECORONA, CA., 92881T: [email protected]
GOETZ ROAD
SHEET 1 OF 1
CURLEW
KINGLET
WHIMBREL LANE
OSPREY WAY
FINCH DRIVEIBIS COURT
TATLER DRIVE
FULMAR LANE
WILLIAMS DR.
TRACT 37692 TRAFFIC RECOMMENDATIONSSUMMARY OF IMPROVEMENTS BY ANALYSIS SCENARIOOPENING YEAR CUMULATIVE OPENING YEAR CUMULATIVE IMPROVEMENTS IN CITY DIFPROJECT FAIR SHARE INTERSECTIONJURISDICTIONEXISTING 2021) E+P2025 WITHOUT PROJECT 2025 WITH PROJECT OR COUNTY TUMFRESPONSIBILITY % Murrieta Rd & Newport Rd.MenifeeNoneNoneAdd 2nd SB left turn lane byre-striping the SB approachSameNoFair Share6.0% Evans Rd & Newport Rd.MenifeeNoneNoneAdd 3rd EB through-laneSameTUMFFees- Bradley Rd & Newport Rd.MenifeeNoneNoneAdd 2nd SB left turn lane.Add a 2nd EB left turn lane.Modify the signal withoverlap phasing on the WBright turn laneSameNoFair Share3.3% SameSameNoNoFair ShareFair Share Haun Rd & Newport Rd.MenifeeNoneNoneModify the signal withoverlap phasing on the EBand WB right turn lanes.Implement a 140s cyclelength in the PM peak houronly.SameNoFair Share3.0% SameNoFair Share DRIVE
ROAD
FUEL MODIFICATION LIMIT LINE
FUEL MODIFICATION LIMIT LINE
FUEL MODIFICATION LIMIT LINE
FUEL MODIFICATION LIMIT LINE
FUEL MODIFICATIONLIMIT LINE
STREET LIGHT (TYP)
CFD MAINTAINED D.G. TRAILAPPROX. 12,236 S.F.CFD MAINTAINED CONCRETE SIDEWALKAPPROX. 10,272 S.F.
STREET LIGHT (TYP)
CATCH BASIN (TYP)
CATCH BASIN (TYP)
Item: 6.3
Item Page Number: 13
Menifee Finance Committee July 8, 2025 Page 47 of 91
City of Menifee
Proposed Community Facilities District
Special Funding District Application Packet
4XDLO+LOOV
Tract No.
$SULO15, 2024
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4XDLO+LOOV/3
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Item: 6.3
Item Page Number: 14
Menifee Finance Committee July 8, 2025 Page 48 of 91
City of Menifee
Special Funding District Application Packet
7UDFW1R
4XDLO+LOOV/3
$SULO15, 2024
Table of Contents
Special Funding District Application Form
Exhibits
Exhibit : Total Tax Rate Analysis
Exhibit : Facilities List
Exhibit : Proposed Special Tax
Exhibit : Summary of Acreage, Undeveloped and Backup
Special Tax Rates
Exhibit : Lot Summary
Exhibit : Tract Map
Exhibit : Title Report
Item: 6.3
Item Page Number: 15
Menifee Finance Committee July 8, 2025 Page 49 of 91
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Quail Hills
Undeveloped land east of Williams Drive, northwest of Goetz Road, and south of Rancho Drive.
Tentative Tract No. 37692. Gross Acres: 44.70.
341-060-002
341-060-012
37692
■
■
■
City of Menifee
■
✔
Item: 6.3
Item Page Number: 16
Menifee Finance Committee July 8, 2025 Page 50 of 91
Special District Application
2. PROPERTY OWNER INFORMATION (Attach Grant Deed)
3. CONSULTANT/APPLICANT INFORMATION
4. ENGINEERING INFORMATION
5. PROJECT LAND USE (Per Improvement Area or Zone, When Applicable) A. Number of Taxable Units
B. Proposed Product Mix See ([KLELW$WWDFKHG
C. Base Sale Price Information 6HH([KLELW$WWDFKHG D. Number of Taxable Acres
Attach Backup
E. Number of Exempt Acres
Attach Backup
F. Desired Tax Rate Burden %
G. Anticipated Absorption per month
A. Landowner Name(s)
Attach Backup (if needed)
B. Contact Name
C. Title
D. Mailing Information
E. Phone
F. Fax
G. E-Mail
A. Company Name
B. Contact Name
C. Title
D. Mailing Information
E. Phone
F. Fax
G. E-Mail
A. Company Name
B. Contact Name
C. Title
D. Mailing Information
E. Phone
F. Fax
G. E-Mail
Quail Hills LP
Paul Onufer
Managing Member
556 S. Fair Oaks Avenue #337 Pasadena, CA 91105
(626) 263 - 4205
[email protected]
DPFG
Nick Abdulla
Senior Associate
26840 Aliso Viejo Parkway, Suite 110, Aliso Viejo, CA 92656 (949) 388-9269 Ext. 1162
(949) 388-9272
[email protected]
Proactiive Engineering Consultants
Ati Eskandari, P.E.
Associate - Principal Project Manager
200 S. Main Street Suite 300, Corona CA 92882
(951) 280 - 3310
[email protected]
130
16.79 Acres
27.91 Acres
See Exhibit 1 Attached
4 Sales
Item: 6.3
Item Page Number: 17
Menifee Finance Committee July 8, 2025 Page 51 of 91
Special District Application
6. COMPOSITION OF DEVELOPABLE ACREAGE
Attach Additional Backup (if needed)
Residential
Commercial-Retail
Business Park
School Site
PROPOSED RESIDENTIAL PRODUCT MIX
Plan Number
Apartment, Attached, or Detached
Number of Units
Average Lot Size
Prices
Square Footage of Living Area
Occupancies (See Table Below)
Quarter & Year Plan 1 Plan 2 Plan 3 Plan 4
7. FINANCING STRUCTURES OFFERED TO HOMEBUYERS
ڧFHA 伫 VA 伫 VARIABLE
ڧOTHER
8. FINANCING MECHANICS
Acreage Commence Occupancy
(Quarter & Year)
1 2 3 4
sq. ft.
A. Preparation of Boundary Map
Attach if possible
B. Preparation of RMA
Attach if possible
C. Proposed JCFAs
Agency Name
Funding Purpose (i.e. fees, facilities)
Name
Contact Name
Mailing Address
Phone
Fax
Email
44.70 Gross & 16.79 Net Acres Q4 2025
Detached
See Exhibit 1 Attached
See Exhibit 1 Attached
See Exhibit 1 Attached
4 Sales Per Month Starting Q4 2025
■ TBD
Spicer Consulting Group
Spicer Consulting Group
None
5,626
Item: 6.3
Item Page Number: 18
Menifee Finance Committee July 8, 2025 Page 52 of 91
Special District Application
Agency Name
Funding Purpose (i.e. fees, facilities)
Name
Contact Name
Mailing Address
Phone
Fax
Email
D. Additional Land Secured Financings Proposed
Agency Name & Backup
E. Overlapping Land Secured Financings List all existing special taxes, assessments, & liens as well as agency name(s)* F. Improvement Area(s)/Zone(s) 侊 Yes 侊䢢No
G. Basis for Either
H. Initial Levy Fiscal Year
I. Final Levy Fiscal Year (Anticipated)
J. Proposed Capitalized Interest Months
K. Proposed Facilities Costs Breakout Between Improvement Area(s)/Zone(s) & Type of Facility/Agency L. Summary of Proposed Methodology Proposed Land Use Categories & Method of Apportionment Questions? Contact our Special Tax Consultant, Spicer Consulting Group at 866-504-2067. Thank you. * Attach backup as needed
■
Fiscal Year 2025-26
Fiscal Year 2057-58
3 See Exhibit 3.
See Exhibit 1.
See Exhibit 2.
Item: 6.3
Item Page Number: 19
Menifee Finance Committee July 8, 2025 Page 53 of 91
I. Home Prices and Combined Tax Rates:
LAND USE INFORMATION
Proposed 0 FY 24/25 Other Fixed ESTIMATED FY 24/25 Proposed Proposed CFD Base Ad Charges City of Menifee Perris Union City of Menifee EMWD Total Total City of Menifee Product Plan Sq. Ft. Home No. Home Valorem and Maint. CFD 2017-1 High School CFD CFD Tax per Tax SD CFD Type No. Category Size Units Price Tax Rate Assess. Special Tax District CFD 92-1 Special Tax Special Tax Unit Rate Special Taxes (a) (a) (a) (a) (a) (b) (c) (d) (e) (f)
SFD 1 1,800 - 2,000 1,898 21 565,990$ 6,487$ 36$ 589$ 336$ 1,817$ 2,050$ 11,315$ 2.00% 38,158$ SFD 2 2,000 - 2,200 2,150 21 584,990 6,705 36 589 336 1,910 2,100 11,676 2.00% 40,116 SFD 3 2,200 - 2,400 2,239 22 599,990 6,877 36 589 336 1,984 2,150 11,972 2.00% 43,646 SFD 4 2,200 - 2,400 2,397 22 609,990 6,992 36 589 336 1,984 2,150 12,086 1.98% 43,646 SFD 5 2,600 - 2,800 2,650 22 625,990 7,175 36 589 336 2,112 2,250 12,497 2.00% 46,454 SFD 6 > 2,800 2,850 22 641,990 7,358 36 589 336 2,190 2,300 12,809 2.00% 48,182 Total/ Wtd. Avg. 2,369 130 605,275$ 6,938$ 36$ 589$ 336$ 2,002$ 2,168$ 12,068$ 1.99% 260,203$ Total
Total Annual Special Taxes for Bonding (Revenues less $30,000 Annual Admin/ 110% Coverage) 209,276$ lI. CFD Bond Sizing & Construction Proceeds:
Bond Amount (5.00% Interest, 30 Year Term, 29 Year Amortization, 2% Annual Esc.) 4,050,000$ Underwriter Discount (2.00%) (81,000)$
Reserve Fund (125% Annual Avg. Debt Service) (353,746)
Capitalized Interest (3 mos) (50,625)
Incidental Costs (Estimate) (249,044)
Premium to City (20% of DIF Obligation) (552,598)
Total Net Construction Proceeds 2,762,988$
Per Unit 21,254
III. Allocation of Net Construction Proceeds: Per DU Total City of Menifee DIF Fees (100.00% of $2,762,988) 21,254$ 2,762,988$ Total Net Proceeds - City of Menifee CFD 21,254$ 2,762,988$ IV. Footnotes:
(a) Product, mix and pricing per Arroyo Partners as of 5/23/2025. (b) Includes 1.00% plus the following:
Tax of 0.06850% is charged for fiscal year 2024-25 by the Perris Union High School District to pay debt service for outstanding bonds within the district.
Tax of 0.00268% is charged for fiscal year 2024-25 by the Mt. San Jacinto Junior College District to pay debt service for outstanding bonds within the district.
Tax of 0.00700% is charged for fiscal year 2024-25 by the Metropolitan Water District East to all parcels to pay debt service for outstanding bonds.
Tax of 0.05080% is charged for fiscal year 2024-25 by the Menifee Union School District to all parcels to pay debt service for outstanding bonds.
Tax of 0.00860% is charged for fiscal year 2024-25 by the Eastern Municipal Water District Improvement District U-35 to all parcels to pay debt service for outstanding bonds.
Tax of 0.00860% is charged for fiscal year 2024-25 by the Eastern Municpal Water District Improvement District U-36 to all parcels to pay debt service for outstanding bonds. (c) Includes the following:
MWD levies a standby charge of $6.94 per acre, or $6.94 per parcel if less than an acre.
EMWD levies a standby charge of $25.00 per acre, or $25.00 per parcel if less than an acre.
County of Riverside levies an assessment of $3.74 per lot for flood control services. (d)
(e)
(f)
Represents the Assigned Annual Special Tax for Perris Union High School District CFD No. 92-1 for Fiscal Year 2024-25. This amount escalates by 2% each year.
Future City of Menifee Maintenance CFD No. 2017-1 ESTIMATED tax of $589.00 per lot. This assumes HOA maintains everything behind the gates and the CFD maintains Goetz Road landscaping, trail, sidewalk, street sweeping, streetlights, and trees as well as Citywide co park and graffiti maintenance.
Exhibit 1
Arroyo Partners
Quail Hills (Tract No. 37692)
Proposed City CFD Bond Sizing and Total Tax Rate Analysis PROPOSED City of Menifee CFD
Reflects the proposed City of Menifee CFD special taxes to finance the projects Development Impact Fees.
TOTAL TAX RATE ANALYSIS
June 10, 2025
Item: 6.3
Item Page Number: 20
Menifee Finance Committee July 8, 2025 Page 54 of 91
Proposed City of Menifee CFD
Development Impact Fees (2025 Fees) [1] Fee Per Unit No. Units Total General Government 1,316 130 171,080 Fire 724 130 94,120
Law Enforcement 1,035 130 134,550 Parks & Recreation 1,928 130 250,640 Transportation Impact Fees 7,943 130 1,032,590 Quimby (Estimate) [2] 8,308 130 1,080,008 Total City Development Impact Fees 21,254$ 2,762,988$ Footnotes:
[1] Reflects the City of Menifee Development Impact Fees effective 7/1/2025.
Proposed City CFD Bond Sizing and Total Tax Rate Analysis Preliminary Facilities List
[2] The Quimby fee is calculated per section 7.75.070 of the municipal code and is equal to the average number of persons per single family residential unit (2.85) x 0.005 acres x the estimated fair market value per acre ($583,000). The fair market value of the land is estimated to be $583,000 based on a currently completed appraisal for a comparable project that was approved by the City.
Exhibit 2
Arroyo Partners
Quail Hills (Tract No. 37692)
Item: 6.3
Item Page Number: 21
Menifee Finance Committee July 8, 2025 Page 55 of 91
CITY OF MENIFEE
SUBJECT: Policy CC-20 – Special Assessment and Community Facilities District Goals and Policies Proposed Amendment MEETING DATE: July 8, 2025
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 and provide feedback on the proposed revisions to the Special Assessment and Community Facilities District Goals and Policies (CC-20) including additional recommended policy updates.
DISCUSSION
Community Facilities Districts (CFDs) are authorized through the Mello-Roos Community Facilities Act of 1982, which provides a mechanism to fund public improvements and services. By establishing a CFD, an additional property tax is assessed to fund the specific improvements or services identified when the CFD is formed. The Menifee City Council originally approved Policy FN-09 – Special Assessment and Community Facilities District Debt Financing Programs in September 2011 relating to CFDs and Financing. Policy FN-09 was replaced in April 2020 by CC- 20 - Special Assessment and Community Facilities District Goals and Policies. Policy CC-20 governs the formation of a CFD, bond issuances, and CFD administration.
As part of the City’s goal to re-evaluate policies regularly to address changes in the business environment, staff is recommending CC-20 be updated to restrict/eliminate the use of a City-led bonded CFD for a development where bulk sales of property for rental purposes exceed 5% of the units. This update is based on prior feedback received by the Finance Committee to update the current policy to capture this requirement and return for review and discussion. Additionally, staff would like the Committee to review and provide feedback on several other potential bonded CFD policy consideration items including:
Additional Security Requirements for Developments Smaller than 100 Units. A neighboring agency, Eastern Municipal Water District (EMWD), has a policy that does not Item: 6.4
Item Page Number: 1
Menifee Finance Committee July 8, 2025 Page 56 of 91
City of Menifee Staff Report
Policy Amendment – Special Assessment and Community Facilities District Goals and Policies July 8, 2025
2 7
8 8
allow for the formation of districts smaller than 100 units. A development of fewer than 100 units can represent a delinquency risk because each homeowner is responsible for a larger share of the bond debt payment than are homeowners who live in a 400-home development (1 out of 100 versus 1 out of 400 out of 400). An additional security from the developer in the form of the collection of an additional reserve could be used to offset the increased delinquency risk. Review Residents’ Debt Burden: Discuss memorializing in the City’s policy its previously expressed intent to reduce residents’ property tax burden whenever possible by diligently monitoring the economic environment and taking advantage of refunding opportunities. Annual Escalator: Discuss whether the City would like to minimize or eliminate an escalator associated with CFD-related bonds, meaning reducing the 2% increase (escalator) allowed each year, or not allowing an increase at all for all future CFDs.
Existing CFDs would require the escalator put in place be retained for debt service purposes. Either a reduction to 1% or the elimination of the escalator would reduce the amount of bond proceeds. This would keep residents’ property taxes associated with the bond debt service from increasing, but it also could make it more difficult for projects to pencil out for developers. EMWD’s policy does not allow for any escalators on the property taxes, and the agency is exploring a policy update restricting participation in future JCFAs where other agencies’ CFDs carry escalators.
Participation in future Joint Community Facilities Agreements (JCFAs): Review the City’s potential interest in participating in JCFAs where the bond is managed by another agency, such as a school district or water district. Historically, the City has participated in JCFAs where the City is the lead and in other cases where another agency is the lead.
The goal with participation in a JCFA is to achieve tax savings for homeowners by reducing associated costs of issuance, and ongoing administration costs. However, in cases where the City is not the lead, it would not retain control of the specific CFD for future actions such as refinancing the bonds. EMWD is considering revising its policy to require that it be the lead agency when it has the largest dollar amount of eligible costs. As a municipal government, the city can retain the right to be the lead agency for City related facilities and fees, however, the proposed policy change by EMWD could then result in multiple CFDs being necessary.
Maximum Percentage of Reimbursable Fees: Discuss if the city would like to formally specify a maximum percentage of fees that can represent part of the eligible fees/facilities.
Currently, the developer can finance facilities and/or fees with no percentage limitations.
If a developer chooses to finance City fees, there is a 20% premium assessed on the amount of fees financed. The City could choose to cap the percentage of the eligible fees/facilities that fees represent, but that decision could lead to a reduction in the associated City premium. Additionally, it could lead to a lower amount of eligible City fees/facilities, which could leave another agency, such as EMWD, with a larger share of eligible costs.
Item: 6.4
Item Page Number: 2
Menifee Finance Committee July 8, 2025 Page 57 of 91
City of Menifee Staff Report
Policy Amendment – Special Assessment and Community Facilities District Goals and Policies July 8, 2025
2 7
8 8
Line of Credit Requirements: Currently, City policy requires that a developer who owns more than 20% of the homes associated with a bond issuance establish a Line of Credit as an additional security for bondholders to offset the risk associated with the concentration of ownership. As part of the policy review, the City could consider easing this policy to allow for a waiver of that requirement if the provision is only triggered due to homes the developer has “sold” but has not closed on by the date the Preliminary Official Statement (POS) is posted. For instance, the pricing of the McLaughlin Village bonds was delayed by several weeks because the developer would have been over the 20% threshold and would have been required to post a Line of Credit as a result of homes that had been sold but had not yet closed.
This item is to review and provide feedback on the proposed draft revision of Policy CC-20, and other potential changes. The updated draft, incorporating Finance Committee input, would ultimately be presented to the City Council for consideration
ATTACHMENTS
1. Policy CC-20 - Redlined Version
2. Policy CC-20 - Clean Version
Item: 6.4
Item Page Number: 3
Menifee Finance Committee July 8, 2025 Page 58 of 91
4929-4925-4992v1/200299-00004929-4925-4992v3/200299-0000 Subject
Special Assessment and
Community Facilities District Goals
and Policies
CITY OF MENIFEE
City Council Policy
Effective Date: 9/6/11
Last Modified:
4/15/20__/__/25
Policy Number: CC-20
Approving Authority:
City Council
Page | 1
1. PURPOSE
Pursuant to Section 53312.7 of the California Government Code, the City Council of the City o f M enifee ( hereafter t he “ City C ouncil”) h ereby s tates i ts g oals a nd p olicies concerning the use of Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (hereafter the “Mello Roos Act”) in providing adequate public c apital i nfrastructure, f acilities a nd e quipment f or t he r esidents o f t he C ity o f Menifee ( the “ City”). T he f ollowing g oals a nd p olicies s hall a pply t o a ll c ommunity facilities districts (each a “Community Facilities District”) and to all assessment districts (each an “Assessment District” and together with any Community Facilities District, the “Districts” or individually, a “District”) under the improvement acts of 1911, 1913, 1915 and 1 972 ( the “ Improvement A cts”) h ereafter f ormed by t he City. Any policy or g oal stated herein may be supplemented or amended or deviated from upon a determination by t he C ity C ouncil t hat s uch s upplement, a mendment o r d eviation i s n ecessary o r desirable, a nd a ny p olicy o r g oal s tated h erein s hall b e d eemed a mended o r supplemented i n t he e vent, a nd a s o f t he d ate, i f e ver, t hat s uch a mendment o r supplement is required to ensure compliance with the Act or any other laws of the State of California or federal laws of the United States of America.
2. POLICY
The C ity h as d eveloped t he f ollowing P olicies a nd P rocedures o n d ebt f inancing a s guidelines t o a ssist c oncerned p arties i n f ollowing t he C ity’s a pproach t o s pecial assessment a nd c ommunity f acilities d istrict d ebt f inancing. I t i s t he C ity’s g oal t o support p rojects t hat a ddress a p ublic n eed a nd p rovide a p ublic b enefit. P roposed projects requesting special assessment or community facility district debt financing will be evaluated to determine if such financing is financially viable, and in the best interest of t he C ity, a nd c urrent a nd f uture C ity a nd p roject r esidents. T hese P olicies a nd Procedures are designed to comply with Section 53312.7 of the Government Code.
The C ity o f M enifee w ill c onsider d eveloper o r p roperty o wner i nitiated a pplications requesting the 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 n ewly d eveloping r esidential p rojects, a nd m ay c onsider c ommercial a nd/or industrial projects. The following criteria will be applied to all districts by the City staff with final determination and findings to be made by the City Council:
A. When tax-exempt f inancing of project public f acilities will result in a significant public benefit.
Item: 6.4
Item Page Number: 4
Menifee Finance Committee July 8, 2025 Page 59 of 91
City of Menifee Policy CC-20
Special Assessment and Community Facilities District Goals and Policies B. When a S pecific P lan h as b een a dopted o n t he p roperty o r t he C ity h as negotiated a nd e xecuted a D evelopment A greement a ddressing p roject implementation either of which includes requirements to form a District to finance public improvements or services.
C. Each time a District is formed for the benefit of a development project where the maintenance r equirements w ill e xceed n ormal C ity s tandards o r w here s uch development requires the provision of additional services, the City will require the creation o f a n a lternative f inancing m echanism t o p ay f or s uch m aintenance requirement or such additional services, including but not limited to annexation to a City maintenance District.
D. Existing neighborhoods may apply to the City for the use of a District to finance local or neighborhood serving facilities. The City will apply applicable provisions of these policies to those financing programs for existing neighborhoods.
E. The City shall m ake t he determination as t o whether a proposed District shall proceed under the provisions of the Improvement Acts or the Mello-Roos Act.
The City may confer with consultants and the applicant to learn of any unique district r equirements s uch a s f acilities s erving t he r egional a rea o r l ong-term development phasing prior to making any final determination.
F. All C ity a nd c onsultant c osts i ncurred i n t he e valuation o f n ew d evelopment district a pplications a nd t he e stablishment o f d istricts w ill b e p aid b y t he applicant(s) b y a dvance d eposit i ncrements. T he C ity s hall n ot i ncur a ny non-reimbursable e xpense f or p rocessing a ssessment o r c ommunity f acilities districts. Expenses not chargeable to the district shall be borne by the applicant.
G. The City shall not offer CFD financing for projects that consist of condo or single family homes where 5% or more of the proposed units are intended for or used as rental property unless the developer receives express advance approval from the C ity. T he f oregoing r estriction s hall n ot a pply t o m ultifamily r esidential o r commercial property.
3. FINANCE COMMITTEE
All proposed Districts shall be reviewed by the City Finance staff for adherence to policy prior to being presented to the Finance Committee and/or City Council. Any variances from policy as well as any other material information will be noted by the Finance staff and reported to the City Council with recommendation for action.
4. RESOURCE CONSULTANTS
Bond Counsel Financial
Advisor Assessment
Engineer Special Tax
Consultant Appraiser
Economist/Market Absorption Specialist
Bond Underwriter
4929-4925-4992v1/200299-00004929-4925-4992v3/200299-0000 Item: 6.4
Item Page Number: 5
Menifee Finance Committee July 8, 2025 Page 60 of 91
City of Menifee Policy CC-20
Special Assessment and Community Facilities District Goals and Policies 4929-4925-4992v1/200299-00004929-4925-4992v3/200299-0000 Police and fire protection facilities
Street lighting
Governmental facilities
Libraries
Recreation facilities, including golf
courses
Streets, highways and bridges
Sanitary sewer facilities Biological mitigation measures involving land acquisition, dedication
and revegetation
Traffic signals and safety lighting
Flood control facilities
Storm drain facilities
Public utilities
Disclosure Counsel
Fiscal Agent
The City shall have the sole discretion as to selection of consultants and determination of fees and expenses of all consultants necessary for the formation of a Special District and the issuance of bonds. Prior consent of the Proponent(s) shall not be required in the d etermination b y t he C ity o f t he c onsulting a nd f inancing t eam. C osts o f t he Proponent(s) and any costs of consultants working on behalf of the Proponents(s) are not eligible for reimbursement form a future issuance of bonds, No f irm m ay s erve a s b oth d esign e ngineer a nd e ngineer o f w ork a nd a ssessment engineer or special tax consultant on the same project, pursuant to Section 87100 of the Government Code.
5. PROCEDURE
A. ELIGIBLE PUBLIC FACILITIES; PRIORITY
Priority f or C ommunity F acilities D istrict f inancing s hall b e g iven t o p ublic facilities directly benefiting the City as well as those improvements identified by the City as the most necessary to serve the specific needs of the portion of the City in which the Community Facilities District will be located. The financing of public facilities to be owned and operated by public agencies other than the City shall be considered on a case by case basis. The list of eligible public facilities include but are not limited to the following and may include facilities included as part of the City’s or another public agencies development impact fee programs to the extent permitted by the Mello Roos Act or the Improvement Acts:
Potable and reclaimed water facilities Landscaping
Parks
In g eneral, s treets, h ighways a nd b ridges; s treet l ighting; t raffic s ignals a nd safety lighting; parks; and storm drain facilities will have priority over the others, however, t he C ity w ill e valuate t he n eeds o f t he p roject a rea a nd h as f inal determination a s t o a ny f acility’s e ligibility f or f inancing, a s w ell a s t he prioritization of facilities to be included within a financing district. Use of bond proceeds f or g rading a nd r ight-of-way a cquisition w ill b e r eviewed b y t he C ity and bond counsel on a case-by-case basis.
Item: 6.4
Item Page Number: 6
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Special Assessment and Community Facilities District Goals and Policies It is secondarily t he policy of t he City t o assist in the provision of other public facilities when to do so is necessary, in the sole discretion of the City Council acting a s t he l egislative b ody o f t he a ffected C ommunity F acilities D istrict, t o serve taxpayers residing within or owning property within the City boundaries.
Additionally, t he C ity m ay f inance a ny o ne o r m ore o f t he t ypes o f s ervices specified in Section 53313 of the Act. Priority for Community Facilities District financing s hall b e g iven t o s ervices p rovided b y o r d irectly b enefiting t he C ity and, if multiple services are to be financed, with no service having priority over another service; provided, however, t he City has f inal determination as t o any service’s eligibility for financing. The City shall not finance services on behalf of other public agencies.
It is acknowledged the Mello-Roos Act permits the financing of fee obligations imposed by governmental agencies, the proceeds of which fees are to be used to f und p ublic c apital i mprovements. T he C ity w ill c onsider a pplications t o finance f ee o bligations o n a c ase-by-case b asis. T he C ity m ay c ondition t he financing o f f acilities i ncluded a s p art o f t he C ity’s o r a nother p ublic a gency’s development impact fee programs on the applicant’s agreement to participate in the financing of City services for public safety.
When i t i s d etermined b y t he C ity t hat f ees a re t o b e f inanced, t he C ity m ay collect a p remium o f t he t otal f ees t o b e f inanced. S uch p remium s hall n ot 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 specific needs of the portion of the City in which the Community Facilities District will be located.
B. CREDIT QUALITY – VALUE-TO-LIEN RATIO
Credit q uality w ill b e d etermined i n p art b y t he D istrict ( or i mprovement a rea) property value-to-lien ratio which will be at a minimum 4:1, including the value of the f inanced p ublic i mprovements t o b e i nstalled, a nd c onsidering a ll p rior o r pending s pecial t axes o r i mprovement l iens a nd d ebt. V alue-to-lien r atios o f individual parcels will be reviewed to analyze credit quality. Acceptance by the City o f t he v alue-to-lien r atio w ill b e d etermined b y a n a ppraisal w ith recommendations from bond counsel, any financial advisor, and the underwriter with consideration of the project and diversification of land ownership.
The appraisal shall be coordinated by, under the direction of, and addressed to the City. The applicant shall pay all costs associated with the preparation of the appraisal r eport t hrough a n a dvance d eposit o f f unds w ith t he C ity. T he appraiser should be credentialed by the State of California Office of Real Estate Appraisers a nd b e a M ember o f t he A ppraisal I nstitute ( MAI). T he a ppraiser should h ave d emonstrated p rior e xperience i n a ppraising p roperty s ubject t o special assessments or taxes in conjunction with a bond offering.
The a ppraisal s hall b e c onducted i n a ccordance w ith c riteria, s tandards a nd assumptions i n a ccordance w ith t he C alifornia D ebt a nd I nvestment A dvisory 4929-4925-4992v1/200299-00004929-4925-4992v3/200299-0000 Item: 6.4
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City of Menifee Policy CC-20
Special Assessment and Community Facilities District Goals and Policies Commission Appraisal Standards for Land-Secured Financings, and based upon the r ecommendations f rom t he C ity’s f inancing t eam. I n e very c ase, t he appraisal s hall r eflect n ationally U niform S tandards o f P rofessional A ppraisal Practice o f t he A ppraisal F oundation a nd e mploy a ll, o r a c ombination o f:
discounted cash f low, bulk sale comparable, raw land value as is, and project build-out values.
Upon receiving an appraisal, determining the value-to-lien ratio, and evaluating the project and current underwriting criteria, the City will require letters of credit or other security to secure payment of the special taxes to be levied annually on properties w ithin t he D istrict. L etters o f c redit o r o ther s ecurity m ay a lso b e required for individual parcels of specific property ownership within a District.
For p rojects w ith a s ignificant a mount o f d evelopment o r t he r efunding o f outstanding s pecial a ssessment a nd c ommunity f acilities d istrict d ebt, t he assessed value of property or other mass appraisal techniques may be options for the establishment of credit quality.
Depending on the circumstances of the development, a market absorption study may b e r equired. C ity w ill r etain t he c onsultant t o p repare a r eport t o v erify market absorption assumptions and projected base sales prices of the properties subject t o t he s pecial t axes o r a ssessments i n t he D istrict. T he m arket absorption study shall be completed prior to completion of the appraisal, and the appraisal shall take into consideration the conclusions of the market absorption study. T he C ity m ay r equire a m ortgage s tudy t o a nalyze e xisting t ypes o f mortgages i n t he D istrict t o p rovide a dditional i nformation t o p otential b ond investors.
C. SECURITY
The C ity m ay, a t i ts d iscretion, r equire a dditional c redit e nhancement t o b e provided b y o ne o r m ore d evelopers a nd/or l andowners t o i ncrease t he credit quality of any CFD bond issue and to reduce the potential for a bond default.
Such c redit e nhancements m ay b e r equired i n s ituations w here t here i s a n insufficient value-to-lien ratio, where a substantial amount of the property within a CFD i s u ndeveloped, w here p roperty o wnership i s c oncentrated, w here t ax delinquencies are present in parcels within the CFD, and in any other situation as required by the City. The form of any credit enhancement is subject to the approval b y t he C ity, a nd t he C ity s hall i mpose s pecific r equirements w ith respect t o s uch c redit e nhancement; h owever, s uch c redit e nhancement w ill generally b e i n t he f orm o f a n i rrevocable s tandby l etter-of-credit o r a c ash deposit, will be required to be in an amount not less than 200% of the share debt service or a 2-year security payment of the special tax requirement allocable to the a pplicable d eveloper-owned p arcels f or which s uch c redit e nhancement i s required, and will be required to remain in effect until the share of debt service allocable to such developer-owned parcels is less than 20% of the annual debt service o n a ll o utstanding b onds f or s uch C FD. T he c redit e nhancement w ill generally b e r equired t o b e i ssued o r g uaranteed b y a n e ntity, t he l ong-term 4929-4925-4992v1/200299-00004929-4925-4992v3/200299-0000 Item: 6.4
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Special Assessment and Community Facilities District Goals and Policies unsecured obligations of which are rated at least “A” by Moody’s Investor Service or S&P Global Ratings.
6. EQUITY OF SPECIAL TAX FORMULAS AND MAXIMUM SPECIAL TAXES Special tax formulas for Community Facilities Districts shall provide for minimum special tax l evels w hich s atisfy t he f ollowing e xpenses o f a ll C ommunity F acilities D istricts:
(a) at l east 1 10 p ercent d ebt s ervice c overage f or a ll C ommunity F acilities D istrict bonded indebtedness, (b) the reasonable and necessary administrative expenses of the Community F acilities D istrict, a nd ( c) amounts e qual t o t he d ifferences b etween expected earnings on any escrow fund and the interest payments due on bonds of the Community Facilities District. Additionally, the special tax formula may provide for the following: ( a) any a mounts r equired t o e stablish o r r eplenish a ny r eserve f und established i n a ssociation w ith t he i ndebtedness o f t he C ommunity F acilities D istrict, (b) the accumulation of funds reasonably required for future debt service, (c) amounts equal to projected delinquencies of special tax payments, (d) the costs of remarketing, credit e nhancement and liquidity f acility f ees, (e) the cost of acquisition, construction, furnishing o r e quipping o f f acilities, ( f) lease p ayments f or e xisting o r f uture f acilities, (g) costs a ssociated w ith t he r elease o f f unds f rom a n e scrow a ccount, a nd ( h) any other costs or payments permitted by law, including, but not limited to, financing any one or more of the types of services specified in Section 53313 of the Mello Roos Act.
The special tax formula shall be reasonable and equitable in allocating public facilities’ costs to parcels within the Community Facilities District. Unless the City determines that special circumstances warrant a change, the special tax formula originally accepted for the C ommunity F acilities D istrict s hall r emain t he s ame i n o rder t o e nsure e quity a s originally envisioned at the time of Community Facilities District formation. At the time of formation of the Community Facilities District, exemptions from the special tax may be given to parcels which are publicly owned, are held by a property owner’s association, are used for a public purpose such as open space or wetlands, are affected by public utility easements making impractical their utilization for other than the purposes set forth in the easements, or have insufficient value to support bonded indebtedness.
It i s t he g oal o f t he C ity t hat m aximum s pecial t axes o r a ssessments o n r esidential owner-occupied property, when taken together with ad valorem taxes, any other special taxes levied pursuant to the Act and assessments applicable to such property, do not exceed in any year two percent (2%) of the greater of the assessed value or appraised value o f s uch p roperty. N evertheless, s pecial t axes o n r esidential o wner-occupied property, w hen t aken t ogether w ith ad v alorem taxes, a ny o ther s pecial t axes l evied pursuant to the Act and assessments applicable to such property, may exceed in any year two percent (2%) of the greater of the assessed value or appraised value of such property if the City determines at the time of formation of a Community Facilities District that over the term of the bonds, the special taxes, ad valorem taxes and assessments are e xpected t o a verage t wo p ercent ( 2%) o r l ess p er y ear o f t he g reater o f t he assessed value or appraised value of such property. It is further the policy of the City to comply with the provisions of Section 53321 of the Act with respect to the escalation of maximum taxes.
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Special Assessment and Community Facilities District Goals and Policies Special t axes w ill o nly b e l evied o n a n e ntire C ounty A ssessor’s p arcel, a nd a ny allocation o f s pecial t ax l iability o f a C ounty A ssessor’s p arcel t o l easehold o r possessory interest in the fee ownership of such County Assessor’s parcel shall be the responsibility of the fee owner of such parcel (except where the City is the fee owner of the p arcel a nd h as, s ubsequent t o t he d ate o f a doption o f t hese g oals a nd p olicies, leased the parcel pursuant to a lease with a term of at least 5 years, in which case the lessee shall have the responsibility for the special tax liability) and the City shall have no responsibility therefor and has no interest therein. Failure to pay or cause to be paid any s pecial t axes i n f ull w hen d ue s hall s ubject t he e ntire p arcel t o f oreclosure i n accordance with the Act.
The C ity s hall h ave a r eport p repared w hich: ( a) recommends s pecial t ax r ates a nd methods of allocation among parcels in the proposed Community Facilities District, and (b) evaluates t he s pecial t ax p roposed t o d etermine i t a bility t o a dequately f und identified p ublic f acilities, C ity a dministrative c osts, s ervices ( if a pplicable) a nd o ther related expenditures.
A. The City shall retain a special tax consultant to prepare a Rate and Method of Apportionment and the report described above which:
B. Recommends a special tax formula for the proposed community facilities district.
C. Evaluates t he s pecial t ax p roposed t o d etermine i ts a bility t o a dequately f und identified p ublic f acilities a nd p roposed s ervices, C ity a dministrative c osts, services (if applicable) and other related expenditures. The Rate and Method of Apportionment of special taxes shall be designed to ensure sufficient revenues are produced in case of final development at lower densities than anticipated.
D. The special tax consultant shall also address the resulting aggregate tax burden of all proposed special taxes plus existing special taxes, ad valorem taxes levies and assessments on the properties within the community facilities district.
7. TERMS AND CONDITIONS OF BONDS
The C ity s hall e stablish a ll t erms a nd c onditions o f t he b onds. T he C ity will c ontrol, manage a nd i nvest a ll D istrict i ssued b ond p roceeds. E ach b ond i ssue s hall b e structured to adequately protect bond owners and to not adversely impact the bonding capacity o r c redit r ating o f t he C ity. U nless o therwise a uthorized b y t he C ity, t he following shall serve as bond requirements:
A. A reserve f und equal to the lesser of (i.) 10% of the issue price of the bonds, (ii.) maximum annual debt service or (iii.) 125% of average annual debt service, or as otherwise deemed appropriate by the City.
B. For Districts containing residential property, the timing of bond sales(s) and/or Rate and Method of Special Tax Apportionment shall be such that special taxes or special assessments are levied no later than the first fiscal year following the occupancy o f r esidential u nits. F or a ll D istricts, i nterest s hall n ot b e f unded 4929-4925-4992v1/200299-00004929-4925-4992v3/200299-0000 Item: 6.4
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Special Assessment and Community Facilities District Goals and Policies (capitalized) beyond what is permitted in the Mello Roos Act or the Improvement Acts.
C. The repayment of principal shall begin on the earliest principal payment date for which sufficient special tax revenues can be made available.
D. Beginning with t he commencement of t he repayment of principal, annual debt service shall be level. The City may consider an increasing annual debt service, but such increases shall not exceed 2% per year for the term of the bonds.
E. The maximum special tax shall be established to assure that the annual revenue produced by levy of the maximum special tax shall be equal to at least 110% of the maximum annual debt service plus administration. Under no circumstances shall the coverage be used to support the issuance of Bonds.
F. Prior to the issuance of the bonds, the City shall authorize its bond counsel to commence and process to f inal judgment an action establishing the validity of the p roceedings, s pecial t ax a nd i ssuance o f b onds, u nless a dvised t o t he contrary by such bond counsel.
G. In instances where multiple series of bonds are to be issued, the first series shall include public facilities of highest priority acceptable to the City.
H. All s tatements a nd m aterials r elated t o t he s ale o f s pecial a ssessment o r community f acilities d istrict b onds s hall e mphasize a nd s tate t hat n either t he good f aith, n or t he t axing p ower o f t he C ity i s p ledged t o t he s ecurity o r repayment of the bonds. The sole sources of revenues to secure bond owners are special taxes, annual assessments or foreclosure proceeds.
8. AGREEMENTS
Agreements w ill b e p repared i ncidental t o D istrict f ormation p roceedings i n a f orm satisfactory t o t he C ity a nd c onsistent w ith t hese p olicies. T hese a greements m ay include, but not be limited to:
A. Deposit and Reimbursement Agreement.
B. Funding and Acquisition Agreement.
C. Joint Community Facilities Agreements with any other public agency entitled to receive any portion of the bond proceeds or entitled to own and operate any of the public facilities financed by bond proceeds.
Prior to the formation of a District, all of the agreements specified shall be duly approved and e xecuted b y t he r elevant p arties; p rovided t hat a ny J oint C ommunity F acilities Agreement m ay b e a pproved a nd e xecuted p rior t o t he a pproval o f t he i ssuance o f bonds. Prior to execution of any agreements, such agreements shall be reviewed and approved by bond counsel and the City Attorney and approved by the City Council. 4929-4925-4992v1/200299-00004929-4925-4992v3/200299-0000 Item: 6.4
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Special Assessment and Community Facilities District Goals and Policies
9. USE OF CONSULTANTS
The City shall have the sole discretion as to selection of consultants and determination of fees and expenses of all consultants necessary for the formation of the District and the i ssuance o f b onds, i ncluding t he u nderwriter(s), b ond c ounsel, f inancial a dvisor, assessment engineer, appraiser, trustee, paying agent, market absorption consultant, and t he s pecial t ax consultant after reasonable consultation with t he applicant. Prior consent o f t he a pplicant s hall n ot b e r equired i n t he d etermination by t he City of t he consulting and financing team.
The C ity s hall a lso b e r esponsible f or d etermining t he s tructure o f t he b onds t o b e issued, i ncluding t he m ethod o f s ale ( negotiated o r c ompetitive), t he n eed f or b ond ratings, t he n eed f or e scrow p rovisions, i nvestment o f b ond p roceeds, a nd a ll o ther terms and conditions incidental to structuring and closing a bond issuance.
Consultants o f t he C ity f or t he District shall comply with t he requirements of t he Fair Political Practices Commission and of the California Government Code.
10. ACQUISITION PROVISIONS
The City shall have final determination as to whether it will allow the financing of public facilities through acquisition or if the improvements will be constructed by the City.
In the event the acquisition provisions of the Municipal Improvement Act of 1913 or the Mello-Roos Act are utilized, the City, at its sole discretion, will determine the facilities to be a cquired, t he p riority o f a cquisition o f c ompleted f acilities a nd t he m ethod o f determining r easonable a cquisition c osts A pplicable b idding a nd p revailing w age requirements are extensive and will be addressed during the preparation of the funding and acquisition agreement.
The City has determined (pursuant to Section 53329.5(c) of the Government Code) that the public interest will not be served by allowing property owners to elect to enter into agreements w ith t he C ity t o p erform c onstruction w ork a fter c ompetitive c onstruction bids h ave b een r eceived. T he C ity C ouncil w ill m ake s uch a d etermination i n t he resolution of intention regarding the formation of a community facilities district.
11. DISCLOSURE TO PURCHASERS
Developers who are selling lots or parcels that are within a Community Facilities District shall provide disclosure notice t o prospective purchasers t hat complies with all of the requirements s et f orth i n S ection 53341.5 o f t he G overnment C ode. T he d isclosure notice must be provided to prospective purchasers of property at or prior to the time the contract or deposit receipt for the purchase of property is executed. Developers shall keep an executed copy of each disclosure document as evidence that disclosure has been provided to all purchasers of property within a Community Facilities District.
Owners of land securing 20% or more of the debt service on bonds will be required to provide f inancial i nformation, a s d eemed a ppropriate b y t he C ity, f or i nclusion i n t he continuing disclosure document the City must provide annually and will also be required 4929-4925-4992v1/200299-00004929-4925-4992v3/200299-0000 Item: 6.4
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Special Assessment and Community Facilities District Goals and Policies to provide written undertakings to provide financial and operating data as required by the SEC’s Rule 15c2-12 and by the underwriter of the bonds.
Additionally, t he c ontinuing d isclosure d ocument s hall b e r eported t o C ity C ouncil annually, to receive and file.
12. PROPERTY OWNER SUPPORT
In the instance of multiple property owners, the applicant shall be required to produce letters evidencing other property owners’ support for the scope and establishment of the District as an attachment to the application. The applicant must have concurrence of at least 60% of the other property owners to be included in the proposed District, unless there is an overriding need for the public facilities, or the applicant is willing to separately fund the facilities for non-participating property.
13. LAND USE APPROVALS
Properties proposed f or inclusion in a District must possess a land use determination such t hat p roposed d evelopment l and u ses a nd s pecific f acility r equirements c an b e adequately assessed.
14. EXCEPTIONS TO THESE POLICIES
The City may find in limited and exceptional instances that a waiver to any of the above stated p olicies i s r easonable g iven i dentified s pecial C ity b enefits t o b e d erived f rom such waiver. Such waivers are granted only by action of the City Council based upon specific public purpose and/or health and safety findings.
A waiver of certain provisions of these policies may also be relevant for the refunding of outstanding special assessment and community facilities district debt.
15. APPLICATION PROCESS
Early communication with the City is encouraged to assist applicants in evaluating the feasibility of available financing programs and to discuss program procedures.
A. Preapplication Conference: Applicant meets with City to discuss the proposed project and application procedures.
B. Application Submission: Applicant/developer shall submit an application to the City with a deposit and reimbursement agreement in the amount of $50,000 to $70,000 ( as deemed necessary by staff, based on size of proposed District).
The d eposit w ill b e h andled a s s et f orth i n t he D eposit a nd R eimbursement Agreement as established by the City and approved by the applicant/developer.
This d eposit i s f or t he p urpose o f a pplication p rocessing, p reliminary c osts, retention of appropriate consultants, and the compensation of staff time devoted to the formation of the District. The City will conduct an initial evaluation of the application t o d etermine i f i t i s c omplete and whether additional information is required.
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Special Assessment and Community Facilities District Goals and Policies C. Project R eview: Applicant a nd C ity s taff m eet t o d iscuss i nitial a pplication, including a ny i ssues r aised a nd f urther i nformation t hat m ight b e r equired. I f necessary, applicant submits revised application.
D. Application Processing: Upon City determination that application is complete, staff prepares a staff report, which forwards the request for district formation and project financing and staff recommendation to the Finance Committee for review.
E. CITY C OUNCIL C ONSIDERATION: The C ity C ouncil g rants o r d enies t he application.
F. PROJECT I NITIATION: Staff s ubmits c onsultant c ontracts, r eimbursement agreements and other similar items for City Council consideration.
G. PROJECT I MPLEMENTATION: Applicant, s taff a nd c onsultants m eet t o determine p reliminary p roject s chedule a nd b egin w ork n ecessary t o i nitiate district formation. This document outlines district formation procedures.
16. SPECIAL ASSESSMENT DISTRICT FORMATION PROCEEDINGS FORMAT Assessment district proceedings under the Municipal Improvement Act of 1913 normally provide f or t he c onstruction o f i mprovements b y t he C ity a nd t he f inancing o f s uch improvements with improvement bonds, which are secured by a fixed lien assessment on the benefited property. In certain instances, if authorized by the City, the developer may construct the improvements (or portion thereof), which would be acquired by the City as provided in the proceedings.
The f ormation p roceedings a re s ubject t o a nd c ontingent u pon s atisfaction o f a ll environmental z oning a nd l and u se r egulations. T he f ollowing i s a s ummary o f t he proceedings u nder t he M unicipal I mprovement A ct o f 1 913 f or t he f ormation o f a n Assessment D istrict. A ll s uch p roceedings a re s ubject t o t he r equirements o f t he Improvement Acts, as applicable.
A. Initiation of Proceedings. An applicant or landowner petition for City Council action initiates the District. Upon initiation, the design engineer prepares plans, specifications a nd c ost e stimates o f t he p roposed p ublic i mprovements. T he assessment e ngineer b egins p reparing t he E ngineer’s R eport, i ncluding t he assessment d iagram, a ssessment r oll, d escription o f i mprovements a nd preliminary c ost s pread. I f r equired, t he E nvironmental I mpact R eport “ EIR” consultant begins processing the appropriate environmental documentation for the public improvements.
B. Presentation of Report. Upon completion of the preliminary engineering work, the City Council adopts a resolution of intention to form the assessment district, approves the Engineer’s Report, calls for construction bids, authorizes the future sale of bonds, sets the date, time and place for the public hearing and directs assessment notices to be mailed.
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Special Assessment and Community Facilities District Goals and Policies C. Bid P rocess. F inance D epartment r eceives c onstruction b ids. A ssessment engineer m odifies t he a ssessment r oll a nd E ngineer’s R eport a nd n otifies property owners of revised assessments.
D. Public Hearing. City Council holds public hearing at which written protests are presented a nd p ublic t estimony i s t aken. I f a m ajority p rotest h as n ot b een received, C ity C ouncil a pproves d istrict f ormation, a wards b ids, o rders construction work, confirms the assessments, directs Finance Director/Treasurer to mail assessment notices and approves the bond sale.
E. Cash C ollection P eriod. Treasurer m ay r eceive c ash p ayments d uring t he 30 days following confirmation if property owners elect to pay off the assessment or portion thereof prior to the issuance of bonds.
F. Authorize Issuance of Bonds. City Council determines the balance of unpaid assessments and provides for the issuance of bonds to be secured thereby.
G. Sale o f B onds. Bonds a re i ssued i n e xchange f or t he c ash p roceeds o f t he sale, which are held by the City or its fiscal agent (or paying agent/registrar) and utilized for the construction of public improvements described in the Engineer’s Report.
17. MELLO-ROOS COMMUNITY FACILITIES DISTRICT FORMATION PROCEEDINGS A Community Facilities District is a legally constituted governmental entity created for the purpose of financing public facilities and services.
The f ormation p roceedings a re s ubject t o a nd c ontingent u pon s atisfaction o f a ll environmental, z oning a nd l and u se r egulations. T he f ollowing i s a s ummary o f t he proceedings for the formation of a Community Facilities District under the Mello Roos Act. All such proceedings are subject to the requirements of the Mello Roos Act.
A. Initiation o f P roceedings. Proceedings m ust b e i nstituted w hen a w ritten request is made by a petition signed by 10% of the registered voters or 10% of the landowners by area. The petition shall be accompanied by payment of a fee determined b y t he C ity C ouncil t o b e s ufficient t o p ay f or c osts i ncurred i n conducting the proceedings.
B. Resolution of Intention. Within 90 days of the receipt of a written request or petition, t he C ity C ouncil w ill a dopt a r esolution o f i ntention t o e stablish a community f acilities district (“CFD”). T he resolution will state the name of the proposed CFD, the types of facilities or services to be financed and that, except where funds are otherwise available, a special tax to pay for such facilities and services will be annually levied. The resolution of intention shall also fix a time and place for a public hearing between 30 and 60 days after the adoption of the resolution o f i ntention, d escribe t he m ethod o f l evy a nd a pportionment o f t he special t ax a nd d escribe t he p roposed v oting p rocedure. I n a ddition, t he resolution may specify conditions under which the obligation to pay the special tax m ay b e p repaid a nd p ermanently s atisfied. T he C ity C ouncil d irects i ts 4929-4925-4992v1/200299-00004929-4925-4992v3/200299-0000 Item: 6.4
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C. Public Hearing. Protests against the establishment of the community facilities district, the extent of the community facilities district or the furnishing of specified types of public facilities or services may be made orally or in writing by interested persons o r t axpayers. I f 5 0% o r m ore o f t he r egistered v oters, 6 r egistered voters, w hichever i s m ore, r esiding w ithin t he p roposed c ommunity f acilities district o r t he o wners o f 1 /2 o r m ore o f t he a rea o f l and i n t he p roposed community facilities district file written protests against the establishment of the community facilities district, the proceedings are abandoned. If the protests are directed t oward c ertain t ypes o f f acilities o r s ervices, o r a gainst a s pecified special tax, those specific items may be eliminated from the resolution forming the community facilities district. The hearing may be continued for up to 30 days without special findings and up to 6 months if the City Council makes specified findings.
D. Resolution o f F ormation. If t he C ity C ouncil d ecides t o e stablish t he community f acilities d istrict, i t w ill a dopt a r esolution o f f ormation c ontaining similar information as contained in the resolution of intention.
E. Election. If the City Council determines to form the community facilities district, it submits the question of whether special taxes should be levied to an election of the voters ( or l and o wners i f l ess t han 1 2 registered voters preside within t he boundaries of the propose Community Facilities District for each of the 90 days prior t o t he d ate o f t he p ublic h earing) o f t he p roposed c ommunity f acilities district. Combined with the tax proposition, there may be a proposition on the question of incurring bonded indebtedness. The tax, in order to be levied, must be approved by two-thirds of the votes cast and thereafter levied by adoption of an ordinance of the City Council. The Mello-Roos Act provides that the election shall be at the next general election or at a special election to be held between 90 and 1 80 days f ollowing t he c lose o f t he p rotest h earing. T he u nanimous consent of the qualified electors within the proposed district and the concurrence of t he e lection o fficial c onducting t he e lection m ay s horten t he e lection t ime limits.
F. Special T ax B onds. A c ommunity f acilities d istrict m ay b e c reated s olely t o provide the services permitted by statute. However, most community facilities districts have been created specifically for the purpose of levying special taxes to service bonded indebtedness incurred by the community facilities district in order to f inance t he c onstruction o f f acilities. M aintenance D istricts m ay a lso b e created. The proceedings to authorize and incur bonded indebtedness usually parallel the proceedings for formation of the community facilities district and the authorization t o l evy t he s pecial t ax, a lthough t he b ond p roceedings c ould b e conducted separately and at a later date. The proceedings to authorize bonded indebtedness i nvolve a r esolution o f i ntention, p ublic h earing a nd e lection; a ll conducted i n a m anner v ery s imilar t o p roceedings t o f orm t he c ommunity facilities district and levy the tax. Community facilities district bonds may be sold 4929-4925-4992v1/200299-00004929-4925-4992v3/200299-0000 Item: 6.4
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In some cases, a community facilities district may provide specified facilities for only a portion of the land within the community facilities district. In that event, the A ct p rovides f or t he f ormation o f i mprovement a reas f or w hich s eparate elections are conducted and to which a specified special tax applies.
18. ROLES AND RESPONSIBILITIES
A. The Deputy City Manager or designee is responsible for administering this policy and procedure.
B. All employees are responsible for compliance with this policy and procedure.
C. The annual continuing disclosure document shall be reported to City Council, to receive and file.
D. An annual review of outstanding bonds shall be evaluated for refunding.
19. DEFINITIONS
Unless the context otherwise requires, the terms employed in the following policies shall have the meanings specified below:
“Bonds” means bonds authorized and issued under the Mello-Roos Community Facilities Act o f 1 982 o r t he M unicipal I mprovement A ct o f 1 911 a nd t he I mprovement Bond Act of 1915.
“City” means the City of Menifee.
“District” means a community facilities district formed under the Mello-Roos Community Facilities Act of 1982 or an assessment district formed under the Improvement Act of 1911 or the Municipal Improvement Act of 1913, as amended. “Improvement Acts” current enabling legislative Acts of 1911, 1913, 1915 and 1972. “Mello-Roos Act” Mello-Roos Community Facilities Act of 1982. “Public Facilities” means improvements authorized to be constructed or acquired under the M ello-Roos a nd I mprovement A cts i ncluding, b ut n ot limited t o, f ees f or capital f acilities i mposed b y p ublic a gencies a s a c ondition t o a pproval o f t he development encompassed by the district or as a condition to service the district. “Value” or “Fair Market Value” means the value established by the appraisal undertaken to establish value-to-lien ratios for a land-secured financing. 4929-4925-4992v1/200299-00004929-4925-4992v3/200299-0000 Item: 6.4
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4/15/20 City Council Revision, Policy No. Changed to CC-20 Revision No.
0 9/6/11
Date
Approve
City Council
20. Revision History
Original Policy (FN-9)
Approved By:
Bill Zimmerman, Mayor
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4929-4925-4992v3/200299-0000
CITY OF MENIFEE
City Council Policy
Policy Number: CC-20
Approving Authority:
City Council
Effective Date: 9/6/11
Last Modified: __/__/25
Subject
Special Assessment and
Community Facilities District
Goals and Policies
Page | 1
1. PURPOSE
Pursuant to Section 53312.7 of the California Government Code, the City Council of the City of Menifee (hereafter the “City Council”) hereby states its goals and policies concerning the use of Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (hereafter the “Mello Roos Act”) in providing adequate public capital infrastructure, facilities and equipment for the residents of the City of Menifee (the “City”). The following goals and policies shall apply to all community facilities districts (each a “Community Facilities District”) and to all assessment districts (each an “Assessment District” and together with any Community Facilities District, the “Districts” or individually, a “District”) under the improvement acts of 1911, 1913, 1915 and 1972 (the “Improvement Acts”) hereafter formed by the City. Any policy or goal stated herein may be supplemented or amended or deviated from upon a determination by the City Council that such supplement, amendment or deviation is necessary or desirable, and any policy or goal stated herein shall be deemed amended or supplemented in the event, and as of the date, if ever, that such amendment or supplement is required to ensure compliance with the Act or any other laws of the State of California or federal laws of the United States of America.
2. POLICY
The City has developed the following Policies and Procedures on debt financing as guidelines to assist concerned parties in following the City’s approach to special assessment and community facilities district debt financing. It is the City’s goal to support projects that address a public need and provide a public benefit. Proposed projects requesting special assessment or community facility district debt financing will be evaluated to determine if such financing is financially viable, and in the best interest of the City, and current and future City and project residents. These Policies and Procedures are designed to comply with Section 53312.7 of the Government Code.
The City of Menifee will consider developer or property owner initiated applications requesting the 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. The following criteria will be applied to all districts by the City staff with final determination and findings to be made by the City Council:
A. When tax-exempt financing of project public facilities will result in a significant public benefit.
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8 B. When a Specific Plan has been adopted on the property or the City has negotiated and executed a Development Agreement addressing project implementation either of which includes requirements to form a District to finance public improvements or services.
C. Each time a District is formed for the benefit of a development project where the maintenance requirements will exceed normal City standards or where such development requires the provision of additional services, the City will require the creation of an alternative financing mechanism to pay for such maintenance requirement or such additional services, including but not limited to annexation to a City maintenance District.
D. Existing neighborhoods may apply to the City for the use of a District to finance local or neighborhood serving facilities. The City will apply applicable provisions of these policies to those financing programs for existing neighborhoods.
E. The City shall make the determination as to whether a proposed District shall proceed under the provisions of the Improvement Acts or the Mello-Roos Act. The City may confer with consultants and the applicant to learn of any unique district requirements such as facilities serving the regional area or long-term development phasing prior to making any final determination.
F. All City and consultant costs incurred in the evaluation of new development district applications and the establishment of districts will be paid by the applicant(s) by advance deposit increments. The City shall not incur any non-reimbursable expense for processing assessment or community facilities districts. Expenses not chargeable to the district shall be borne by the applicant.
G. The City shall not offer CFD financing for projects that consist of condo or single family homes where 5% or more of the proposed units are intended for or used as rental property unless the developer receives express advance approval from the City. The foregoing restriction shall not apply to multifamily residential or commercial property.
3. FINANCE COMMITTEE
All proposed Districts shall be reviewed by the City Finance staff for adherence to policy prior to being presented to the Finance Committee and/or City Council. Any variances from policy as well as any other material information will be noted by the Finance staff and reported to the City Council with recommendation for action.
4. RESOURCE CONSULTANTS
Bond Counsel Financial
Advisor Assessment
Engineer Special Tax
Consultant Appraiser
Economist/Market Absorption Specialist
Bond Underwriter
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8 Disclosure Counsel
Fiscal Agent
The City shall have the sole discretion as to selection of consultants and determination of fees and expenses of all consultants necessary for the formation of a Special District and the issuance of bonds. Prior consent of the Proponent(s) shall not be required in the determination by the City of the consulting and financing team. Costs of the Proponent(s) and any costs of consultants working on behalf of the Proponents(s) are not eligible for reimbursement form a future issuance of bonds,
No firm may serve as both design engineer and engineer of work and assessment engineer or special tax consultant on the same project, pursuant to Section 87100 of the Government Code.
3. PROCEDURE
A. ELIGIBLE PUBLIC FACILITIES; PRIORITY
Priority for Community Facilities District financing shall be given to public facilities directly benefiting the City as well as those improvements identified by the City as the most necessary to serve the specific needs of the portion of the City in which the Community Facilities District will be located. The financing of public facilities to be owned and operated by public agencies other than the City shall be considered on a case by case basis. The list of eligible public facilities include but are not limited to the following and may include facilities included as part of the City’s or another public agencies development impact fee programs to the extent permitted by the Mello Roos Act or the Improvement Acts:
Streets, highways and bridges Flood control facilities
Street lighting Libraries
Traffic signals and safety lighting Public utilities
Parks Police and fire protection facilities
Governmental facilities Recreation facilities, including golf courses
Sanitary sewer facilities
Storm drain facilities
Biological mitigation measures
involving land acquisition, dedication
and revegetation
Potable and reclaimed water facilities Landscaping
In general, streets, highways and bridges; street lighting; traffic signals and safety lighting; parks; and storm drain facilities will have priority over the others, however, the City will evaluate the needs of the project area and has final determination as to any facility’s eligibility for financing, as well as the prioritization of facilities to be included within a financing district. Use of bond proceeds for grading and right-of- way acquisition will be reviewed by the City and bond counsel on a case-by-case basis.
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8 It is secondarily the policy of the City to assist in the provision of other public facilities when to do so is necessary, in the sole discretion of the City Council acting as the legislative body of the affected Community Facilities District, to serve taxpayers residing within or owning property within the City boundaries.
Additionally, the City may finance any one or more of the types of services specified in Section 53313 of the Act. Priority for Community Facilities District financing shall be given to services provided by or directly benefiting the City and, if multiple services are to be financed, with no service having priority over another service; provided, however, the City has final determination as to any service’s eligibility for financing. The City shall not finance services on behalf of other public agencies.
It is acknowledged the Mello-Roos Act permits the financing of fee obligations imposed by governmental agencies, the proceeds of which fees are to be used to fund public capital improvements. The City will consider applications to finance fee obligations on a case-by-case basis. The City may condition the financing of facilities included as part of the City’s or another public agency’s development impact fee programs on the applicant’s agreement to participate in the financing of City services for public safety.
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 specific needs of the portion of the City in which the Community Facilities District will be located.
B. CREDIT QUALITY – VALUE-TO-LIEN RATIO
Credit quality will be determined in part by the District (or improvement area) property value-to-lien ratio which will be at a minimum 4:1, including the value of the financed public improvements to be installed, and considering all prior or pending special taxes or improvement liens and debt. Value-to-lien ratios of individual parcels will be reviewed to analyze credit quality. Acceptance by the City of the value-to-lien ratio will be determined by an appraisal with recommendations from bond counsel, any financial advisor, and the underwriter with consideration of the project and diversification of land ownership.
The appraisal shall be coordinated by, under the direction of, and addressed to the City. The applicant shall pay all costs associated with the preparation of the appraisal report through an advance deposit of funds with the City. The appraiser should be credentialed by the State of California Office of Real Estate Appraisers and be a Member of the Appraisal Institute (MAI). The appraiser should have demonstrated prior experience in appraising property subject to special assessments or taxes in conjunction with a bond offering.
The appraisal shall be conducted in accordance with criteria, standards and assumptions in accordance with the California Debt and Investment Advisory Item: 6.4
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8 Commission Appraisal Standards for Land-Secured Financings, and based upon the recommendations from the City’s financing team. In every case, the appraisal shall reflect nationally Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation and employ all, or a combination of: discounted cash flow, bulk sale comparable, raw land value as is, and project build-out values.
Upon receiving an appraisal, determining the value-to-lien ratio, and evaluating the project and current underwriting criteria, the City will require letters of credit or other security to secure payment of the special taxes to be levied annually on properties within the District. Letters of credit or other security may also be required for individual parcels of specific property ownership within a District.
For projects with a significant amount of development or the refunding of outstanding special assessment and community facilities district debt, the assessed value of property or other mass appraisal techniques may be options for the establishment of credit quality.
Depending on the circumstances of the development, a market absorption study may be required. City will retain the consultant to prepare a report to verify market absorption assumptions and projected base sales prices of the properties subject to the special taxes or assessments in the District. The market absorption study shall be completed prior to completion of the appraisal, and the appraisal shall take into consideration the conclusions of the market absorption study. The City may require a mortgage study to analyze existing types of mortgages in the District to provide additional information to potential bond investors.
C. SECURITY
The City may, at its discretion, require additional credit enhancement to be provided by one or more developers and/or landowners to increase the credit quality of any CFD bond issue and to reduce the potential for a bond default. Such credit enhancements may be required in situations where there is an insufficient value-to-lien ratio, where a substantial amount of the property within a CFD is undeveloped, where property ownership is concentrated, where tax delinquencies are present in parcels within the CFD, and in any other situation as required by the City. The form of any credit enhancement is subject to the approval by the City, and the City shall impose specific requirements with respect to such credit enhancement; however, such credit enhancement will generally be in the form of an irrevocable standby letter-of-credit or a cash deposit, will be required to be in an amount not less than 200% of the share debt service or a 2-year security payment of the special tax requirement allocable to the applicable developer- owned parcels for which such credit enhancement is required, and will be required to remain in effect until the share of debt service allocable to such developer- owned parcels is less than 20% of the annual debt service on all outstanding bonds for such CFD.
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8 4. EQUITY OF SPECIAL TAX FORMULAS AND MAXIMUM SPECIAL TAXES Special tax formulas for Community Facilities Districts shall provide for minimum special tax levels which satisfy the following expenses of all Community Facilities Districts: (a) at least 110 percent debt service coverage for all Community Facilities District bonded indebtedness, (b) the reasonable and necessary administrative expenses of the Community Facilities District, and (c) amounts equal to the differences between expected earnings on any escrow fund and the interest payments due on bonds of the Community Facilities District. Additionally, the special tax formula may provide for the following:
(a) any amounts required to establish or replenish any reserve fund established in association with the indebtedness of the Community Facilities District, (b) the accumulation of funds reasonably required for future debt service, (c) amounts equal to projected delinquencies of special tax payments, (d) the costs of remarketing, credit enhancement and liquidity facility fees, (e) the cost of acquisition, construction, furnishing or equipping of facilities, (f) lease payments for existing or future facilities, (g) costs associated with the release of funds from an escrow account, and (h) any other costs or payments permitted by law, including, but not limited to, financing any one or more of the types of services specified in Section 53313 of the Mello Roos Act.
The special tax formula shall be reasonable and equitable in allocating public facilities’ costs to parcels within the Community Facilities District. Unless the City determines that special circumstances warrant a change, the special tax formula originally accepted for the Community Facilities District shall remain the same in order to ensure equity as originally envisioned at the time of Community Facilities District formation. At the time of formation of the Community Facilities District, exemptions from the special tax may be given to parcels which are publicly owned, are held by a property owner’s association, are used for a public purpose such as open space or wetlands, are affected by public utility easements making impractical their utilization for other than the purposes set forth in the easements, or have insufficient value to support bonded indebtedness.
It is the goal of the City that maximum special taxes or assessments on residential owner- occupied property, when taken together with ad valorem taxes, any other special taxes levied pursuant to the Act and assessments applicable to such property, do not exceed in any year two percent (2%) of the greater of the assessed value or appraised value of such property. Nevertheless, special taxes on residential owner-occupied property, when taken together with ad valorem taxes, any other special taxes levied pursuant to the Act and assessments applicable to such property, may exceed in any year two percent (2%) of the greater of the assessed value or appraised value of such property if the City determines at the time of formation of a Community Facilities District that over the term of the bonds, the special taxes, ad valorem taxes and assessments are expected to average two percent (2%) or less per year of the greater of the assessed value or appraised value of such property. It is further the policy of the City to comply with the provisions of Section 53321 of the Act with respect to the escalation of maximum taxes.
Special taxes will only be levied on an entire County Assessor’s parcel, and any allocation of special tax liability of a County Assessor’s parcel to leasehold or possessory interest in the fee ownership of such County Assessor’s parcel shall be the responsibility of the fee owner of such parcel (except where the City is the fee owner of the parcel and has, subsequent to the date of adoption of these goals and policies, leased the parcel pursuant Item: 6.4
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8 to a lease with a term of at least 5 years, in which case the lessee shall have the responsibility for the special tax liability) and the City shall have no responsibility therefor and has no interest therein. Failure to pay or cause to be paid any special taxes in full when due shall subject the entire parcel to foreclosure in accordance with the Act.
The City shall have a report prepared which: (a) recommends special tax rates and methods of allocation among parcels in the proposed Community Facilities District, and (b) evaluates the special tax proposed to determine it ability to adequately fund identified public facilities, City administrative costs, services (if applicable) and other related expenditures.
A. The City shall retain a special tax consultant to prepare a Rate and Method of Apportionment and the report described above which:
B. Recommends a special tax formula for the proposed community facilities district.
C. Evaluates the special tax proposed to determine its ability to adequately fund identified public facilities and proposed services, City administrative costs, services (if applicable) and other related expenditures. The Rate and Method of Apportionment of special taxes shall be designed to ensure sufficient revenues are produced in case of final development at lower densities than anticipated.
D. The special tax consultant shall also address the resulting aggregate tax burden of all proposed special taxes plus existing special taxes, ad valorem taxes levies and assessments on the properties within the community facilities district.
7. TERMS AND CONDITIONS OF BONDS
The City shall establish all terms and conditions of the bonds. The City will control, manage and invest all District issued bond proceeds. Each bond issue shall be structured to adequately protect bond owners and to not adversely impact the bonding capacity or credit rating of the City. Unless otherwise authorized by the City, the following shall serve as bond requirements:
A. A reserve fund equal to the lesser of (i.) 10% of the issue price of the bonds, (ii.) maximum annual debt service or (iii.) 125% of average annual debt service, or as otherwise deemed appropriate by the City.
B. For Districts containing residential property, the timing of bond sales(s) and/or Rate and Method of Special Tax Apportionment shall be such that special taxes or special assessments are levied no later than the first fiscal year following the occupancy of residential units. For all Districts, interest shall not be funded (capitalized) beyond what is permitted in the Mello Roos Act or the Improvement Acts.
C. The repayment of principal shall begin on the earliest principal payment date for which sufficient special tax revenues can be made available.
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8 D. Beginning with the commencement of the repayment of principal, annual debt service shall be level. The City may consider an increasing annual debt service, but such increases shall not exceed 2% per year for the term of the bonds.
E. The maximum special tax shall be established to assure that the annual revenue produced by levy of the maximum special tax shall be equal to at least 110% of the maximum annual debt service plus administration. Under no circumstances shall the coverage be used to support the issuance of Bonds.
F. Prior to the issuance of the bonds, the City shall authorize its bond counsel to commence and process to final judgment an action establishing the validity of the proceedings, special tax and issuance of bonds, unless advised to the contrary by such bond counsel.
G. In instances where multiple series of bonds are to be issued, the first series shall include public facilities of highest priority acceptable to the City.
H. All statements and materials related to the sale of special assessment or community facilities district bonds shall emphasize and state that neither the good faith, nor the taxing power of the City is pledged to the security or repayment of the bonds. The sole sources of revenues to secure bond owners are special taxes, annual assessments or foreclosure proceeds.
8. AGREEMENTS
Agreements will be prepared incidental to District formation proceedings in a form satisfactory to the City and consistent with these policies. These agreements may include, but not be limited to:
A. Deposit and Reimbursement Agreement.
B. Funding and Acquisition Agreement.
C. Joint Community Facilities Agreements with any other public agency entitled to receive any portion of the bond proceeds or entitled to own and operate any of the public facilities financed by bond proceeds.
Prior to the formation of a District, all of the agreements specified shall be duly approved and executed by the relevant parties; provided that any Joint Community Facilities Agreement may be approved and executed prior to the approval of the issuance of bonds.
Prior to execution of any agreements, such agreements shall be reviewed and approved by bond counsel and the City Attorney and approved by the City Council.
9. USE OF CONSULTANTS
The City shall have the sole discretion as to selection of consultants and determination of fees and expenses of all consultants necessary for the formation of the District and the issuance of bonds, including the underwriter(s), bond counsel, financial advisor, assessment engineer, appraiser, trustee, paying agent, market absorption consultant, and Item: 6.4
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8 the special tax consultant after reasonable consultation with the applicant. Prior consent of the applicant shall not be required in the determination by the City of the consulting and financing team.
The City shall also be responsible for determining the structure of the bonds to be issued, including the method of sale (negotiated or competitive), the need for bond ratings, the need for escrow provisions, investment of bond proceeds, and all other terms and conditions incidental to structuring and closing a bond issuance.
Consultants of the City for the District shall comply with the requirements of the Fair Political Practices Commission and of the California Government Code.
5. ACQUISITION PROVISIONS
The City shall have final determination as to whether it will allow the financing of public facilities through acquisition or if the improvements will be constructed by the City.
In the event the acquisition provisions of the Municipal Improvement Act of 1913 or the Mello-Roos Act are utilized, the City, at its sole discretion, will determine the facilities to be acquired, the priority of acquisition of completed facilities and the method of determining reasonable acquisition costs Applicable bidding and prevailing wage requirements are extensive and will be addressed during the preparation of the funding and acquisition agreement.
The City has determined (pursuant to Section 53329.5(c) of the Government Code) that the public interest will not be served by allowing property owners to elect to enter into agreements with the City to perform construction work after competitive construction bids have been received. The City Council will make such a determination in the resolution of intention regarding the formation of a community facilities district.
6. DISCLOSURE TO PURCHASERS
Developers who are selling lots or parcels that are within a Community Facilities District shall provide disclosure notice to prospective purchasers that complies with all of the requirements set forth in Section 53341.5 of the Government Code. The disclosure notice must be provided to prospective purchasers of property at or prior to the time the contract or deposit receipt for the purchase of property is executed. Developers shall keep an executed copy of each disclosure document as evidence that disclosure has been provided to all purchasers of property within a Community Facilities District.
Owners of land securing 20% or more of the debt service on bonds will be required to provide financial information, as deemed appropriate by the City, for inclusion in the continuing disclosure document the City must provide annually and will also be required to provide written undertakings to provide financial and operating data as required by the SEC’s Rule 15c2-12 and by the underwriter of the bonds.
Additionally, the continuing disclosure document shall be reported to City Council annually, to receive and file.
Item: 6.4
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8 7. PROPERTY OWNER SUPPORT
In the instance of multiple property owners, the applicant shall be required to produce letters evidencing other property owners’ support for the scope and establishment of the District as an attachment to the application. The applicant must have concurrence of at least 60% of the other property owners to be included in the proposed District, unless there is an overriding need for the public facilities, or the applicant is willing to separately fund the facilities for non-participating property.
8. LAND USE APPROVALS
Properties proposed for inclusion in a District must possess a land use determination such that proposed development land uses and specific facility requirements can be adequately assessed.
9. EXCEPTIONS TO THESE POLICIES
The City may find in limited and exceptional instances that a waiver to any of the above stated policies is reasonable given identified special City benefits to be derived from such waiver. Such waivers are granted only by action of the City Council based upon specific public purpose and/or health and safety findings.
A waiver of certain provisions of these policies may also be relevant for the refunding of outstanding special assessment and community facilities district debt.
10. APPLICATION PROCESS
Early communication with the City is encouraged to assist applicants in evaluating the feasibility of available financing programs and to discuss program procedures.
A.Preapplication Conference: Applicant meets with City to discuss the proposed project and application procedures.
B.Application Submission: Applicant/developer shall submit an application to the City with a deposit and reimbursement agreement in the amount of $50,000 to $70,000 (as deemed necessary by staff, based on size of proposed District). The deposit will be handled as set forth in the Deposit and Reimbursement Agreement as established by the City and approved by the applicant/developer. This deposit is for the purpose of application processing, preliminary costs, retention of appropriate consultants, and the compensation of staff time devoted to the formation of the District. The City will conduct an initial evaluation of the application to determine if it is complete and whether additional information is required.
C.Project Review: Applicant and City staff meet to discuss initial application, including any issues raised and further information that might be required. If necessary, applicant submits revised application.
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8 D.Application Processing: Upon City determination that application is complete, staff prepares a staff report, which forwards the request for district formation and project financing and staff recommendation to the Finance Committee for review.
E.CITY COUNCIL CONSIDERATION: The City Council grants or denies the application.
F.PROJECT INITIATION: Staff submits consultant contracts, reimbursement agreements and other similar items for City Council consideration.
G.PROJECT IMPLEMENTATION: Applicant, staff and consultants meet to determine preliminary project schedule and begin work necessary to initiate district formation. This document outlines district formation procedures.
16. SPECIAL ASSESSMENT DISTRICT FORMATION PROCEEDINGS FORMAT Assessment district proceedings under the Municipal Improvement Act of 1913 normally provide for the construction of improvements by the City and the financing of such improvements with improvement bonds, which are secured by a fixed lien assessment on the benefited property. In certain instances, if authorized by the City, the developer may construct the improvements (or portion thereof), which would be acquired by the City as provided in the proceedings.
The formation proceedings are subject to and contingent upon satisfaction of all environmental zoning and land use regulations. The following is a summary of the proceedings under the Municipal Improvement Act of 1913 for the formation of an Assessment District. All such proceedings are subject to the requirements of the Improvement Acts, as applicable.
A.Initiation of Proceedings. An applicant or landowner petition for City Council action initiates the District. Upon initiation, the design engineer prepares plans, specifications and cost estimates of the proposed public improvements. The assessment engineer begins preparing the Engineer’s Report, including the assessment diagram, assessment roll, description of improvements and preliminary cost spread. If required, the Environmental Impact Report “EIR” consultant begins processing the appropriate environmental documentation for the public improvements.
B.Presentation of Report. Upon completion of the preliminary engineering work, the City Council adopts a resolution of intention to form the assessment district, approves the Engineer’s Report, calls for construction bids, authorizes the future sale of bonds, sets the date, time and place for the public hearing and directs assessment notices to be mailed.
C.Bid Process. Finance Department receives construction bids. Assessment engineer modifies the assessment roll and Engineer’s Report and notifies property owners of revised assessments.
Item: 6.4
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8 D.Public Hearing. City Council holds public hearing at which written protests are presented and public testimony is taken. If a majority protest has not been received, City Council approves district formation, awards bids, orders construction work, confirms the assessments, directs Finance Director/Treasurer to mail assessment notices and approves the bond sale.
E.Cash Collection Period. Treasurer may receive cash payments during the 30 days following confirmation if property owners elect to pay off the assessment or portion thereof prior to the issuance of bonds.
F.Authorize Issuance of Bonds. City Council determines the balance of unpaid assessments and provides for the issuance of bonds to be secured thereby.
G.Sale of Bonds. Bonds are issued in exchange for the cash proceeds of the sale, which are held by the City or its fiscal agent (or paying agent/registrar) and utilized for the construction of public improvements described in the Engineer’s Report.
17. MELLO-ROOS COMMUNITY FACILITIES DISTRICT FORMATION PROCEEDINGS A Community Facilities District is a legally constituted governmental entity created for the purpose of financing public facilities and services.
The formation proceedings are subject to and contingent upon satisfaction of all environmental, zoning and land use regulations. The following is a summary of the proceedings for the formation of a Community Facilities District under the Mello Roos Act.
All such proceedings are subject to the requirements of the Mello Roos Act.
A.Initiation of Proceedings. Proceedings must be instituted when a written request is made by a petition signed by 10% of the registered voters or 10% of the landowners by area. The petition shall be accompanied by payment of a fee determined by the City Council to be sufficient to pay for costs incurred in conducting the proceedings.
B.Resolution of Intention. Within 90 days of the receipt of a written request or petition, the City Council will adopt a resolution of intention to establish a community facilities district (“CFD”). The resolution will state the name of the proposed CFD, the types of facilities or services to be financed and that, except where funds are otherwise available, a special tax to pay for such facilities and services will be annually levied. The resolution of intention shall also fix a time and place for a public hearing between 30 and 60 days after the adoption of the resolution of intention, describe the method of levy and apportionment of the special tax and describe the proposed voting procedure. In addition, the resolution may specify conditions under which the obligation to pay the special tax may be prepaid and permanently satisfied. The City Council directs its responsible officers to study the proposed district and to file a report at or before the public hearing describing the proposed public facilities and services and an estimate of costs.
C.Public Hearing. Protests against the establishment of the community facilities district, the extent of the community facilities district or the furnishing of specified Item: 6.4
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8 types of public facilities or services may be made orally or in writing by interested persons or taxpayers. If 50% or more of the registered voters, 6 registered voters, whichever is more, residing within the proposed community facilities district or the owners of 1/2 or more of the area of land in the proposed community facilities district file written protests against the establishment of the community facilities district, the proceedings are abandoned. If the protests are directed toward certain types of facilities or services, or against a specified special tax, those specific items may be eliminated from the resolution forming the community facilities district. The hearing may be continued for up to 30 days without special findings and up to 6 months if the City Council makes specified findings.
D.Resolution of Formation. If the City Council decides to establish the community facilities district, it will adopt a resolution of formation containing similar information as contained in the resolution of intention.
E.Election. If the City Council determines to form the community facilities district, it submits the question of whether special taxes should be levied to an election of the voters (or land owners if less than 12 registered voters preside within the boundaries of the propose Community Facilities District for each of the 90 days prior to the date of the public hearing) of the proposed community facilities district.
Combined with the tax proposition, there may be a proposition on the question of incurring bonded indebtedness. The tax, in order to be levied, must be approved by two-thirds of the votes cast and thereafter levied by adoption of an ordinance of the City Council. The Mello-Roos Act provides that the election shall be at the next general election or at a special election to be held between 90 and 180 days following the close of the protest hearing. The unanimous consent of the qualified electors within the proposed district and the concurrence of the election official conducting the election may shorten the election time limits.
F.Special Tax Bonds. A community facilities district may be created solely to provide the services permitted by statute. However, most community facilities districts have been created specifically for the purpose of levying special taxes to service bonded indebtedness incurred by the community facilities district in order to finance the construction of facilities. Maintenance Districts may also be created.
The proceedings to authorize and incur bonded indebtedness usually parallel the proceedings for formation of the community facilities district and the authorization to levy the special tax, although the bond proceedings could be conducted separately and at a later date. The proceedings to authorize bonded indebtedness involve a resolution of intention, public hearing and election; all conducted in a manner very similar to proceedings to form the community facilities district and levy the tax. Community facilities district bonds may be sold competitively or through negotiated sale and may bear fixed or variable interest rates.
In some cases, a community facilities district may provide specified facilities for only a portion of the land within the community facilities district. In that event, the Act provides for the formation of improvement areas for which separate elections are conducted and to which a specified special tax applies.
Item: 6.4
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8 11. ROLES AND RESPONSIBILITIES
A. The Deputy City Manager or designee is responsible for administering this policy and procedure.
B. All employees are responsible for compliance with this policy and procedure.
C. The annual continuing disclosure document shall be reported to City Council, to receive and file.
D. An annual review of outstanding bonds shall be evaluated for refunding.
12. DEFINITIONS
Unless the context otherwise requires, the terms employed in the following policies shall have the meanings specified below:
“Bonds” means bonds authorized and issued under the Mello-Roos Community Facilities Act of 1982 or the Municipal Improvement Act of 1911 and the Improvement Bond Act of 1915.
“City” means the City of Menifee.
“District” means a community facilities district formed under the Mello-Roos Community Facilities Act of 1982 or an assessment district formed under the Improvement Act of 1911 or the Municipal Improvement Act of 1913, as amended. “Improvement Acts” current enabling legislative Acts of 1911, 1913, 1915 and 1972. “Mello-Roos Act” Mello-Roos Community Facilities Act of 1982. “Public Facilities” means improvements authorized to be constructed or acquired under the Mello-Roos and Improvement Acts including, but not limited to, fees for capital facilities imposed by public agencies as a condition to approval of the development encompassed by the district or as a condition to service the district. “Value” or “Fair Market Value” means the value established by the appraisal undertaken to establish value-to-lien ratios for a land-secured financing.
13. Revision History
Revision No.
Date
Approve Approved By: Comments
0 9/6/11 City Council Original Policy (FN-9)
1 4/15/20 City Council Revision, Policy No. Changed to CC-20 Item: 6.4
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8 Ricky Estrada, Mayor
Item: 6.4
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CITY OF MENIFEE
SUBJECT: Public Safety Services Community Facilities District MEETING DATE: July 8, 2025
TO: Finance Committee
PREPARED BY: Lauri Lockwood, Financial Analyst
REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Provide feedback to staff on the proposed formation of a Public Safety Services Community Facilities District (CFD) and initiation of a fiscal impact analysis study.
DISCUSSION
Since incorporation, the City of Menifee has seen its population grow significantly, reaching 115,316 as of 2025. As development within the City continues, it is critical to maintain high standards of public safety while managing the fiscal pressures associated with growth. Included within its current Strategic Plan, one of the City’s pillar priorities and goals is to continue to be a safe and vibrant community, with exceptional public safety as well as fostering a thriving economy.
Evaluating other opportunities to diversify revenue streams supporting public safety, could better position the City to financially support increasing service needs. While sales tax, including Quality of Life, property tax and other revenues currently support public safety, an additional dedicated revenue source for such services could come in the form of a public safety services Community Facilities District (CFD).
The State Legislature enacted the Mello-Roos Community Facilities Act of 1982 (1982 Mello- Roos Act) to assist public agencies in financing certain public improvements by either issuing tax exempt securities that are repaid by annual levy of special taxes or providing for the financing of on-going public services through formation of a CFD. Pursuant to Government Code section 53313, a CFD may be established to finance a wide variety of services within an area. A safety services CFD provides a sustainable and legally defensible mechanism for funding enhanced safety services through a special tax applied to new residential development.
In 2015 the city of Menifee initiated the process of forming a Public Safety Services CFD, holding a Resolution of Intent meeting in January 2015. Ultimately, the City elected to not move forward with the proposed CFD at that time. Various surrounding cities have established a safety services CFD, including but not limited to Murrieta, Lake Elsinore, Hemet, San Jacinto, Wildomar and Item: 6.5
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Perris. The proposed CFD would pick up all new residential development projects to ensure that all new housing projects incorporate public safety costs into the cost of the development. Under this scenario, each new house in all new developments will assist in defraying the cost of increasing public safety resources, including, but not limited to, police protection, fire protection, and ambulance and paramedic services
The next step to forming a Public Safety Services CFD is to move forward with completing a Fiscal Impact Analysis (FIA). The FIA is the foundation for forming a defensible and equitable Public Safety Services CFD. It evaluates the net fiscal position of the City under a full build-out scenario and determines the level of funding required to maintain or enhance public safety services. The goal is to assess whether new development generates enough revenue to offset the increased demand on police, fire, and EMS services—or whether a funding shortfall necessitates a special tax. The estimated cost for such a study would be approximately $21,000 based on a proposal received by the City’s special tax consultant, Spicer Consulting Group (SCG). The study would include 2 main components: the FIA (estimated at $13,500) and CFD formation services (estimated at $7,500).
FISCAL IMPACT
Moving forward with the evaluation/consideration of a Public Safety Services CFD, and engaging SCG for completion of the FIA study and subsequently CFD formation services, would have a fiscal impact of $21,000. This cost would be funded with existing approved FY2025/26 budget.
ATTACHMENTS
None.
Item: 6.5
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