CITY OF MENIFEE
SUBJECT: Ordinance Introduction and First Reading for Change Proceedings for Improvement Area 1 of Community Facilities District 2022-3, Legado
MEETING DATE: July 16, 2025
TO: Mayor and City Council
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. Adopt a resolution determining to proceed with amending the rate and method of apportionment of special taxes and modifying the authorized facilities for Improvement Area 1 of Community Facilities District 2022-3, Legado, located northwest of Antelope Road and Chambers Avenue and south of Rouse Road; and
2. Adopt a resolution approving the changes to Improvement Area 1 and certifying the election results of the July 16, 2025, Special Election for Community Facilities District No. 2022-3, Legado, of the City of Menifee; and
3. Introduce an ordinance authorizing the levy of special taxes within Improvement Area 1 of Community Facilities District 2022-3, Legado, of the City of Menifee.
DISCUSSION
The City of Menifee previously formed Community Facilities District 2022-3, Legado, of the City of Menifee (CFD), which consists of the development project known as Legado. The property is located northwest of Antelope Road and Chambers Avenue and south of Rouse Road, as shown in the attached Location Map.
The CFD includes three improvement areas. Lennar Homes of California, LLC (Lennar) and KL LB Buy 1 LLC, a Delaware Limited Liability Company, as Lennar’s landbank (Landbank), together own all the property in Improvement Area 1 of the CFD. Lennar and the Landbank have requested that the City undertake change proceedings with respect to Improvement Area 1 to:
(1) amend the Rate and Method of Apportionment (RMA) as a result of changes in home product
City of Menifee Staff Report
Proposed Change Proceedings for Improvement Area 1 of CFD 2022-3, Legado July 16, 2025
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types and pricing since the time the CFD was formed and (2) to add dry utilities to the facilities the CFD is authorized to finance for Improvement Area 1. As indicated the RMA is being updated to reflect the updated square footage ranges of the development product. While the homes sizes, house prices and tax per home changed, the overall effective tax rate remains the same. The two changes do not change the previously approved not to exceed bond issuance amount.
On June 4, 2025, the City Council adopted a resolution to initiate the process for the change proceedings (Resolution of Consideration). The Resolution of Consideration called for a public hearing to be held at the July 16, 2025, City Council meeting. Following the closure of the public hearing, the City Council will be asked to adopt the resolution (Approving Resolution) approving the change proceedings. This resolution calls for an election to submit to the qualified voters of Improvement Area No. 1 the measure of approving the levy of special taxes pursuant to the Amended and Restated Rate and Method of Apportionment for Improvement Area 1, to finance the public facilities and incidental expenses as described in the Resolution of Consideration.
On file with the City Clerk is a Certificate of the Registrar of Voters of Riverside County, attached for reference, certifying that there are no registered voters residing within the boundaries of Improvement Area 1. Accordingly, under the Mello-Roos Act, only landowners in Improvement Area 1 are eligible to vote at the election with each owner having one vote for each acre (or portion thereof) that they own within Improvement Area 1. The Landbank and Lennar, as the owners of the property in Improvement Area 1, will be landowner voters in the election.
If the City Council approves the proposed resolution calling the election, the City Clerk will conduct the election. The City Clerk will announce the election results and the City Council will be asked to adopt the resolution certifying the election results. Based upon certification that two- thirds or more of the votes cast are in favor of each proposition voted upon, the resolution certifying the election results directs the City Clerk to record an amended notice of special tax lien on the property within Improvement Area 1. The City Council will then be asked to introduce the ordinance authorizing the levy of the special tax within Improvement Area 1.
STRATEGIC PLAN OBJECTIVE
Regular City Business
FISCAL IMPACT
All costs for the change proceedings will be covered through the deposit made by Lennar, which may be reimbursed to Lennar in accordance with the reimbursement agreement previously entered into with Lennar. No additional budget appropriation action(s) is required.
ATTACHMENTS
1. Resolution - Approving Change Proceedings
2. Resolution - Certifying Election Results
3. Ordinance Levying Special Taxes
4. Amended Project Map CFD 2022-3 (Legado)
5. Certificate of Registrar of Voters