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
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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.
City of Menifee Staff Report
Proposed Formation of CFD 2025-5, Nautical Cove July 8, 2025
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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