City Council Chambers
29844 Haun Road
Menifee, CA 92586
Ricky Estrada, Mayor
Dean Deines, District 4
AGENDA
Finance Committee
Regular Meeting Agenda
Tuesday, September 9, 2025
4:00 PM Regular Meeting
Travis Hickey, Chief Financial
Officer
Rachel Valencia, 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 July 8, 2025 Finance Committee Meeting Minutes
6. DISCUSSION ITEMS
6.1 Formation of Community Facilities District 20256 (Coastline) RECOMMENDED ACTION
1. Review the proposed Community Facilities District 20256 to finance certain costs of public improvements for the development of 45 singlefamily homes located at the northwest corner of Menifee Road and Coastline Avenue, and recommend submittal to the City Council for consideration.
6.2 Public Safety Services Community Facilities District (CFD) RECOMMENDED ACTION
1. Recommend that staff forward the fiscal impact analysis related to a potential public safety services CFD to the City Council for consideration.
6.3 Purchasing and Contracting Administrative Manual Update RECOMMENDED ACTION
1. Receive and file update on Purchasing and Contracting Administrative Manual (Administrative Policy AD35).
6.4 Consideration to Establish Section 115 Trust
RECOMMENDED ACTION
1. Review and provide input on consideration of establishing a Section 115 Trust.
6.5 City of Menifee Annual Cash & Investment Overview
RECOMMENDED ACTION
1. Receive and file presentation on City of Menifee’s Annual Cash & Investment Overview for the July 1, 2024 to June 30, 2025 period.
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, Rachel Valencia, do hereby certify, under penalty of perjury, that the Tuesday, September 9, 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
September 9, 2025
City Council Chambers
29844 Haun Road
Menifee, CA 92586
Ricky Estrada, Mayor
Dean Deines, District 4
AGENDA
Finance Committee
Regular Meeting Agenda
Tuesday, September 9, 2025
4:00 PM Regular Meeting
Travis Hickey, Chief Financial
Officer
Rachel Valencia, 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 July 8, 2025 Finance Committee Meeting Minutes
6. DISCUSSION ITEMS
6.1 Formation of Community Facilities District 20256 (Coastline) RECOMMENDED ACTION
1. Review the proposed Community Facilities District 20256 to finance certain costs of public improvements for the development of 45 singlefamily homes located at the northwest corner of Menifee Road and Coastline Avenue, and recommend submittal to the City Council for consideration.
6.2 Public Safety Services Community Facilities District (CFD) RECOMMENDED ACTION
1. Recommend that staff forward the fiscal impact analysis related to a potential public safety services CFD to the City Council for consideration.
6.3 Purchasing and Contracting Administrative Manual Update RECOMMENDED ACTION
1. Receive and file update on Purchasing and Contracting Administrative Manual (Administrative Policy AD35).
6.4 Consideration to Establish Section 115 Trust
RECOMMENDED ACTION
1. Review and provide input on consideration of establishing a Section 115 Trust.
6.5 City of Menifee Annual Cash & Investment Overview
RECOMMENDED ACTION
1. Receive and file presentation on City of Menifee’s Annual Cash & Investment Overview for the July 1, 2024 to June 30, 2025 period.
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, Rachel Valencia, do hereby certify, under penalty of perjury, that the Tuesday, September 9, 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
September 9, 2025
City Council Chambers
29844 Haun Road
Menifee, CA 92586
Ricky Estrada, Mayor
Dean Deines, District 4
MINUTES
Finance Committee
Regular Meeting Minutes
Tuesday, July 08, 2025
2:00 PM Regular Meeting
Travis Hickey, Chief Financial
Officer
Edna A. Aguilar, Meeting Clerk
REGULAR MEETING (4:00 PM)
1. CA
LL TO ORDER
M
ayor Estrada called the meeting to order at 4:01 PM.
2. RO
LL CALL
P
resent: Ricky Estrada, Dean Deines
Absent: None
3. P
RESENTATIONS
Ther
e were no presentations.
4. P
UBLIC COMMENTS (NONAGENDA ITEMS)
Ther
e were no public comments.
5. A
PPROVAL OF MINUTES
The f
ollowing set of minutes were approved unanimously (2-0) with no modifications.
5. 1 May 13, 2025, Finance Committee Meeting Minutes
6. DI
SCUSSION ITEMS
6. 1 Community Facilities District Bond Maturity and First Call Dates Deputy Finance Director Margarita Cornejo introduced the item and provided an overview. Consultants Shane Spicer (Spicer Group, Special Tax Consultant), Branden Kfoury (Urban Futures, Inc.), and Brian Forbath (Stradling, Yocca, Carlson & Rauth, Bond Counsel) were present to respond to questions.
M
ayor Estrada had general questions on formation and issuance of bonds .
Councilmember Deines expressed interest in periodically reviewing bonds to determine whether refunds could be issued to property owners.
The C
ommittee unanimously approved the recommended action.
A
CTION
1. Received and filed a report on the maturity dates and first call dates for the City’s Community Facilities District bonds.
City of Menifee Finance Committee Minutes
July 8, 2025
Item: 5.1
Item Page Number: 1
Menifee Finance Committee September 9, 2025 Page 3 of 125
6.2 Proposed Formation of Community Facilities District 2025-5, N autical Cove, by KB Home
D
eputy Finance Director Margarita Cornejo introduced the item and provided an overview.
Mayor Estrada had general questions about City fees and City premiums.
Councilmember Deines recommended that the City premium fees be used within the district to benefit the homeowners who are paying the special assessment.
The Committee unanimously approved the recommended action.
ACTION
1. Reviewed the proposed Community Facilities District (CFD) 2025 -5, Nautical Cove, to finance certain costs of public improvements for the development of 233 single
- f
amily homes located north of Holland Road between Southshore Drive and Briggs Road and recommended submittal to the City Council for consideration.
6. 3 Proposed Formation of Community Facilities District 2025-3, Q uail Hills, by Quail
Hills, LP
D
eputy Finance Director Margarita Cornejo introduced the item and provided an overview.
Committee members asked questions of staff.
The Committee unanimously approved the recommended action.
ACTION
1. Reviewed the proposed Community Facilities District (CFD) 2025 -3, Quail Hills, to finance certain costs of public improvements for the development of 130 single-f
amily homes located between Williams Drive and Goetz Road and recommended submittal to the City Council for consideration.
6. 4 Policy CC
-2
0 – Special Assessment and Community Facilities District Goals and Policies Proposed Amendment
D
eputy Finance Director Margarita Cornejo introduced the item and provided an overview.
Committee members reviewed and provided feedback to staff on Policy CC-20.
The Committee unanimously approved the recommended action.
ACTION
1. Reviewed and provided feedback on the proposed revisions to the Special Assessment and Community Facilities District Goals and Policies (CC -20)
including additional recommended policy updates.
City of Menifee Finance Committee Minutes
July 8, 2025
Item: 5.1
Item Page Number: 2
Menifee Finance Committee September 9, 2025 Page 4 of 125
6.5 Public Safety Services Community Facilities District
Deputy Finance Director Margarita Cornejo presented the item and provided a general overview of the item.
The Committee unanimously approved the recommended action.
ACTION
1. Provided 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
There were no staff comments.
8. COMMITTEE MEMBER UPDATES AND COMMENTS
There were no reports on Committee activities.
9. FUTURE AGENDA ITEMS
There were no future agenda item requests.
10. ADJOURNMENT
The meeting adjourned at 6:00 PM.
_____________________________________________
Edna A. Aguilar
Management Analyst
City of Menifee Finance Committee Minutes
July 8, 2025
Item: 5.1
Item Page Number: 3
Menifee Finance Committee September 9, 2025 Page 5 of 125
CITY OF MENIFEE
SUBJECT: Formation of Community Facilities District 2025-6 (Coastline) MEETING DATE: September 9, 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 2025-6 to finance certain costs of public improvements for the development of 45 single-family homes located at the northwest corner of Menifee Road and Coastline Avenue, and recommend submittal to the City Council for consideration.
DISCUSSION
Global Investment & Development, LLC (the “Developer”) is requesting the formation of a new Community Facilities District (“CFD”) to finance public improvements and infrastructure necessary to support the development of 45 single-family homes at the northwest corner of Menifee Road and Coastline Avenue.
The average home size within the project would be roughly 2,533 square feet, with an average estimated home price of $623,333.
The proposed CFD would fund a portion of the costs associated with City facilities, Eastern Municipal Water District (“EMWD”) infrastructure, and Romoland School District facilities. The cost of these public improvements would be financed through the levy of a special tax and the issuance of approximately $2.95 million in bonds.
Special tax rates would vary by home size, ranging from $4,298 for homes under 2,400 square feet to $4,851 for homes over 2,700 square feet. The total annual property tax burden, including ad valorem and fixed charges, is estimated at 2% of the home price.
Item: 6.1
Item Page Number: 1
Menifee Finance Committee September 9, 2025 Page 6 of 125
City of Menifee Staff Report
Formation of Community Facilities District 2025-6 (Coastline) September 9, 2025
2 9
3 5
There are two unique circumstances related to the Coastline development: the size of the development and the terms associated with one of the Joint Community Facilities Agreements.
If approved, this CFD would represent the smallest district in the City of Menifee to issue bonds. Previously, the smallest CFDs to issue bonds were Meadow Run, at 65 homes, and Del Oro, at 68 homes. A smaller number of homes creates a risk associated with ownership concentration, as each homeowner is responsible for a larger share of the special taxes used to make debt service payments. There are several tactics the City could consider to mitigate this risk:
Establishing an additional reserve fund requirement beyond the standard coverage;
Delaying bond issuance until the project reaches a defined threshold, such as 90% of homes closed; or
Requiring developer guarantees or credit enhancement during the early years.
Additionally, EMWD has recently revised its CFD policy and now requires that any escalator applied to special taxes does not apply to EMWD’s share of the bond proceeds.
This policy change would be reflected in the Joint Community Facilities Agreement executed with the water district for this CFD. The change would lead to lower special tax rates for homeowners and result in diminished bond proceeds available to reimburse the developer for public improvements.
ATTACHMENTS
1. CFD 2025-6 Proforma Summary
2. CFD 2025-6 Project Map
3. CFD 2025-6 Proforma
4. CFD 2025-6 Boundary Map
5. CFD 2017-1 Annexation 20 Maintenance Exhibit
6. CFD 2025-6 Facilities CFD Application
Item: 6.1
Item Page Number: 2
Menifee Finance Committee September 9, 2025 Page 7 of 125
CFD 2025‐6 (Coastline)
Proforma Summary Sheet
Applicant: Global Investment & Development, LLC
Project Description
Acreage Gross: 39.09; Net: 7.33
Development Description Detached Single Family Residential Units Number of Units (50 min) 45 Units
Estimated Home Size Range 2,300 SF to 2,800 SF
Average Home Size 2,533 SF
Average Estimated Home Price $623,333
Total Effective Tax Rate (2.00% Max) 2.00%
CFD Tax Rate Range $4,298 to $4,851
Escalation (2.00% Max) Yes, 2.00%
Maintenance CFD Yes, CFD 2017‐1 Tax Zone 20
Maintenance CFD Rate $1,139/Unit
Bond Sizing Assumptions
Average Coupon 5.00%
Priority Administration $25,000
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 $583,266
Estimated Sources and Uses
Sources
Par Bond Amount $2,945,000
Uses
Reserve Fund $274,366
Capitalized Interest $0
Underwriter Discount $58,900
Cost of Issuance $250,000
Improvement Fund $2,361,734
Allocation of Improvement Fund
Description % of Total Total Eligible Potentially Funded City Premium (20%) 6% $140,514 $140,514
City Facilities 29% $696,248 $696,248
City Fees 30% $702,570 $702,570
EMWD Fees 35% $831,870 $822,402
Romoland SD Fees 0% $589,950 $0
Totals 100% $2,961,152 $2,361,734
Unfunded $599,418
Item: 6.1
Item Page Number: 3
Menifee Finance Committee September 9, 2025 Page 8 of 125
Proposed Schedule
Finance Committee September 9, 2025
Resolution of Intention November 19, 2025
Public Hearing January 7, 2026
2nd Reading Ordinance January 21, 2026
Item: 6.1
Item Page Number: 4
Menifee Finance Committee September 9, 2025 Page 9 of 125
SIMPSON RD
HERITAGELAKE DR
MCCALL
BLVD
COASTLIN E
AVE
MENIFEE
RD
^_
MENIFEE
RDSHERMAN
RD
MURRIETA
RD
SUNCITYBLVD
ALD ERGATE DR
§¨¦215
NEWPORT RD
BRIGGS RD
MCCALL BLVD
MATTHEWS RD
SIMPSON RD
EMPERORRD
·|}þ74
COMMUNITY FACILITIES DISTRICT No. 2025-6
(MENIFEE 50)
PROJECT MAP
Item: 6.1
Item Page Number: 5
Menifee Finance Committee September 9, 2025 Page 10 of 125
CITY OF MENIFEE DRAFT v2
Community Facilities District No. 2025‐6
(Coastline)
Tract No. 38525
Calculation of Bond Sizing and Total Tax Rates
I. Home Prices and Combined Tax Rates:
Plan 12 3 CFD TOTAL
Range of Home Sizes in Square Feet per RMA Under 2,400 to Over 2,400 2,700 2,700
Estimated Home Size 2,300 2,500 2,800 2,533
Estimated Home Price $595,000 $620,000 $655,000 $623,333 Ad‐Valorem Tax Rate (1.00%) $5,950.00 $6,200.00 $6,550.00 $6,233.33 Metro Water East (0.00700%) $41.65 $43.40 $45.85 $43.63 Perris Union HS (0.06850%) $407.58 $424.70 $448.68 $426.98 Mt. San Jacinto Jr. College (0.00268%) $15.95 $16.62 $17.55 $16.71 Subtotal GO Bond Debt $6,415.17 $6,684.72 $7,062.08 $6,720.66 Flood Control Stormwater $3.75 $3.75 $3.75 $3.75
EMWD Standby $11.00 $11.00 $11.00 $11.00
EMWD Availability Charge $26.00 $26.00 $26.00 $26.00
MWD Standby charge $6.94 $6.94 $6.94 $6.94
Proposed CFD No. 2017‐1 ‐ Maint Svcs* $1,139.00 $1,139.00 $1,139.00 $1,139.00 Proposed CFD No. 2025‐5 ‐ Facilities Tax** $4,298.00 $4,529.00 $4,851.00 $4,559.33 Subtotal Special Assessments and Taxes $5,484.69 $5,715.69 $6,037.69 $5,746.02 Total Annual Property Taxes $11,899.86 $12,400.41 $13,099.77 $12,466.68 Annual Prop. Tax Rates as % of Home Price 2.00% 2.00% 2.00% 2.00% Unit Mix 15 15 15 45 (1)Total CFD ‐ Annual Tax Collections $64,470 $67,935 $72,765 $205,170 (2)Administration $25,000
Total Annual Special Taxes for Bonding
((1)Special Taxes ‐ (2)Admin. / 110% Cov) $51,468 $54,234 $58,090 $163,791 II. Total Estimated Home Square Footage: 34,500 37,500 42,000 114,000 * Escalates at greater of 2% or CPI
** Includes a 2% annual escalator for debt service
III. CFD Bond Sizing & Construction Proceeds:
2026 Bond Amount (5.50% Interest, 30 Year Term, 29 Year Amortization) $2,945,000 Underwriter Discount (2.00%) $58,900
Reserve Fund (Maximum Annual Debt Service) $274,366
Capitalized Interest (0 mos.) $0
Incidental Costs (Estimate) $250,000
Total Discount, Reserve Fund, Capitalized Interest and Incidental Costs $583,266 Net Bond Proceeds $2,361,734
Item: 6.1
Item Page Number: 6
Menifee Finance Committee September 9, 2025 Page 11 of 125
CITY OF MENIFEE DRAFT v2
Community Facilities District No. 2025‐6
(Coastline)
Tract No. 38525
Summary of Acreage, Undeveloped Property
And Backup Special Tax Rates
Tract No. 38525
45 Lots
(Coastline)
I. Calculation of Net Taxable Acres:
Gross Acreage 39.09
Less: Exempt Acres 32.52
Net Taxable Acres 6.57
II. Calculation of Undeveloped Property Tax Rate:
Total Developed Property Revenues $205,170
Net Taxable Acres 6.57
Less: Contingency Factor (10%) 0.66
Net Taxable Acres (Adjusted) 5.92
Undeveloped Property Tax Rate per Acre $34,678
Total Exempt Acreage 33.17
III. Calculation of Backup Special Tax Rate:
A. Backup Special Tax Rate per Unit
Total Taxable Acres 6.57
Undeveloped Property Tax Rate per Acre $34,678
Total Units 45
Backup Special Tax per Unit $5,066
B. Backup Special Tax Rate per Lot Square Foot
Total Developed Property Revenues $205,170
Total Net Acres (Square Feet) 257,719
Backup Special Tax Rate per Lot Square Foot $0.7961
Item: 6.1
Item Page Number: 7
Menifee Finance Committee September 9, 2025 Page 12 of 125
CITY OF MENIFEE DRAFT v2
Community Facilities District No. 2025‐6
(Coastline)
Tract No. 38525
Calculation of Bond Sizing and Total Tax Rates
Debt Service No. of Total Annual
Tax Rate Units Collectable Tax Max Tax Rates
Less than 2,400 $4,298.0 0 15 $64,47 0 $75,989
2,400 to 2,700 $4,529.00 15 $67,935 $75,989
Greater than 2,700 $4,851.00 15 $72,765 $75,989
Non‐residential Property $34,678
Backup Tax Rate per Unit $5,066
Backup Tax Rate per S.F. $0.7961
45 $205,170 $227,966
Tax Rate for Bonding $179,969
Sizing at Max tax rate $3,300,000
Future Facilities (rounded up) $3,000,000
Range of Home Sizes
Item: 6.1
Item Page Number: 8
Menifee Finance Committee September 9, 2025 Page 13 of 125
CITY OF MENIFEE DRAFT v2
Community Facilities District No. 2025‐6
(Coastline)
Tract No. 38525
Use of Bond Proceeds
CFD 2025‐6 Tract No. 38525
45 Lots
FUNDING REQUIREMENTS Per Lot (Coastline)
City Fees
Law Enforcement $1,035 $46,575
Fire Facilities $724 $32,580
Circulation $7,943 $357,435
Fair Share Traffic Impact Fee $444 $20,000
Quimby Fees $2,222 $100,000
General Govt $1,316 $59,220
Parks and Recreation $1,928 $86,760
Subtotal City Fees $15,613 $702,570
City Premium (20%) $3,123 $140,514
Total City Fees $18,735 $843,084
City Facilities
Storm Drain Improvements $15,472 $696,248
Total City Facilities $15,472 $696,248
Total City Facilities and Fees $34,207 $1,539,332
EMWD Fees
Sewer Financial Participation Charge $3,514 $158,130
Sewer Treatment Plant Capacity Charge $6,662 $299,790
Water Financial Participation Charge $7,498 $337,410
Water Supply Development Fee $407 $18,315
1" Meter Drop‐In Fee $405 $18,225
Total EMWD Fees $18,486 $831,870
Romoland School District Fees
Level I School Developer Fee $13,110 $589,950
Total Romoland School District Fees $13,110 $589,950
Total Cost $65,803 $2,961,152
Potential Project Funds Available $2,361,734
ALLOCATION OF PROCEEDS % Per Lot Total
City Premium 6% $3,123 $140,514
City Facilities 29% $15,472 $696,248
City Fees 30% $15,613 $702,570
Other Agency 35% $18,276 $822,402
Total Funded by Bond Proceeds 100% $52,483 $2,361,734
UNFUNDED REQUIREMENTS
Net Bond Proceeds Deficit ($0)
Unfunded Requirement $599,418
Total Fees to be Funded by Developer $599,418
Item: 6.1
Item Page Number: 9
Menifee Finance Committee September 9, 2025 Page 14 of 125
CITY OF MENIFEE DRAFT v2
Community Facilities District No. 2025‐6
(Coastline)
Tract No. 38525
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 $205,170 $25,000 $0 5.50% $161,975 $161,975 111.23% 2 9/1/2027 $209,273 $25,500 $0 5.50% $161,975 $161,975 113.46% 3 9/1/2028 $213,459 $26,010 $5,000 5.50% $161,975 $166,975 112.26% 4 9/1/2029 $217,728 $26,530 $10,000 5.50% $161,700 $171,700 111.36% 5 9/1/2030 $222,083 $27,061 $15,000 5.50% $161,150 $176,150 110.71% 6 9/1/2031 $226,524 $27,602 $20,000 5.50% $160,325 $180,325 110.31% 7 9/1/2032 $231,055 $28,154 $25,000 5.50% $159,225 $184,225 110.14% 8 9/1/2033 $235,676 $28,717 $30,000 5.50% $157,850 $187,850 110.17% 9 9/1/2034 $240,389 $29,291 $35,000 5.50% $156,200 $191,200 110.41% 10 9/1/2035 $245,197 $29,877 $40,000 5.50% $154,275 $194,275 110.83% 11 9/1/2036 $250,101 $30,475 $45,000 5.50% $152,075 $197,075 111.44% 12 9/1/2037 $255,103 $31,084 $50,000 5.50% $149,600 $199,600 112.23% 13 9/1/2038 $260,205 $31,706 $60,000 5.50% $146,850 $206,850 110.47% 14 9/1/2039 $265,409 $32,340 $65,000 5.50% $143,550 $208,550 111.76% 15 9/1/2040 $270,717 $32,987 $75,000 5.50% $139,975 $214,975 110.59% 16 9/1/2041 $276,132 $33,647 $80,000 5.50% $135,850 $215,850 112.34% 17 9/1/2042 $281,654 $34,320 $90,000 5.50% $131,450 $221,450 111.69% 18 9/1/2043 $287,288 $35,006 $100,000 5.50% $126,500 $226,500 111.38% 19 9/1/2044 $293,033 $35,706 $110,000 5.50% $121,000 $231,000 111.40% 20 9/1/2045 $298,894 $36,420 $120,000 5.50% $114,950 $234,950 111.71% 21 9/1/2046 $304,872 $37,149 $130,000 5.50% $108,350 $238,350 112.32% 22 9/1/2047 $310,969 $37,892 $145,000 5.50% $101,200 $246,200 110.92% 23 9/1/2048 $317,189 $38,649 $160,000 5.50% $93,225 $253,225 110.00% 24 9/1/2049 $323,532 $39,422 $170,000 5.50% $84,425 $254,425 111.67% 25 9/1/2050 $330,003 $40,211 $185,000 5.50% $75,075 $260,075 111.43% 26 9/1/2051 $336,603 $41,015 $200,000 5.50% $64,900 $264,900 111.58% 27 9/1/2052 $343,335 $41,835 $215,000 5.50% $53,900 $268,900 112.12% 28 9/1/2053 $350,202 $42,672 $235,000 5.50% $42,075 $277,075 110.99% 29 9/1/2054 $357,206 $43,526 $255,000 5.50% $29,150 $284,150 110.39% 30 9/1/2055 $364,350 $44,396 $275,000 5.50% $15,125 $290,125 110.28% Total $8,323,353 $1,014,202 $2,945,000 $3,625,875 $6,570,875 111.24% Item: 6.1
Item Page Number: 10
Menifee Finance Committee September 9, 2025 Page 15 of 125
CITY OF MENIFEE DRAFT v2
Community Facilities District No. 2025‐6
(Coastline)
Tract No. 38525
Lot Summary
Lot SF Acreage Lot SF Acreage
1 5,332 0.12 40 6,003 0.14
2 5,817 0.13 41 6,013 0.14
3 5,956 0.14 42 6,015 0.14
4 6,024 0.14 43 6,004 0.14
5 5,813 0.13 44 6,034 0.14
6 6,425 0.15 45 6,020 0.14
7 9,064 0.21
8 6,131 0.14
9 5,070 0.12
10 5,907 0.14
11 5,993 0.14
12 5,736 0.13
13 5,006 0.11
14 5,890 0.14
15 5,854 0.13
16 6,227 0.14
17 6,721 0.15
18 6,729 0.15
19 6,920 0.16
20 7,505 0.17
21 6,637 0.15
22 5,177 0.12
23 5,826 0.13
24 5,981 0.14
25 6,821 0.16
26 6,857 0.16
27 6,636 0.15
28 8,110 0.19
29 6,616 0.15
30 7,775 0.18
31 8,892 0.20
32 7,726 0.18
33 6,659 0.15
34 6,079 0.14
35 6,096 0.14
36 6,122 0.14
37 6,015 0.14
38 6,083 0.14
39 6,037 0.14
Totals 250,265 5.75 36,089 0.83 ‐ ‐ Grand Total 286,354 6.57
Item: 6.1
Item Page Number: 11
Menifee Finance Committee September 9, 2025 Page 16 of 125
CITY OF MENIFEE DRAFT v3
CFD No. 2017-1 (Maintenance Services)
Applicant Development Name Tract No. Res/Comm Date Tax Year Jim Zimmerman Menifee 50 38525 Residential 7/31/2025 2026 Units Net Acres Gross Acres Net Acres Units Annex No. 45 8.26
Principal 39.09 8.26 45 20 Description Measure Tax A Total Tax B Total Per Unit Grand Total Street Frontage SF 20,875 $6,559.31 - $0.00 $6,559.31 Other Type Qty - $0.00 - $0.00 $0.00 Subtotal $145.76 $6,559.31 $0.00 $0.00 $145.76 $6,559.31 100 Watt, 12,300 Lumens Qty 12 $2,883.12 - $0.00 $2,883.12 Other Types Qty - $0.00 - $0.00 $0.00 Subtotal $64.07 $2,883.12 $0.00 $0.00 $64.07 $2,883.12
Street Sweeping LF 1,325 $637.25 $0.00 $637.25 Sidewalks - (30 year replacement $4.77/SF) SF 7,820 $1,564.79 - $0.00 $1,564.79 Pavement Management - (Every 6 Years) SF 39,750 $2,591.50 - $0.00 $2,591.50 Subtotal $106.52 $4,793.54 $0.00 $0.00 $106.52 $4,793.54 Channel SF 137,700 $3,775.42 - $0.00 $3,775.42 Curb Inlet/Catch Basin EA 3 $1,108.02 4 $1,477.35 $2,585.37 Detention/Debris Basin SF 12,220 $3,940.13 5,990 $1,931.37 $5,871.50 Storm Drain Pipe LF 1,545 $423.60 365 $100.07 $523.68 WQ Intlet Structure EA 3 $1,612.26 2 $1,074.84 $2,687.10 Paved Access Road EA 1 $500.00 1 $500.00 $1,000.00 Subtotal $252.43 $11,359.43 $112.97 $5,083.64 $365.40 $16,443.08 Neighborhood (5 ac. Per 1,000) Acre 0.71 $16,786.32 - $0.00 $16,786.32 Subtotal $373.03 $16,786.32 $0.00 $0.00 $373.03 $16,786.32 Graffiti
Abatement EA 45 $211.80 - $0.00 $211.80 Subtotal $4.71 $211.80 $0.00 $0.00 $4.71 $211.80
Total Direct Costs $946.52 $42,593.53 $112.97 $5,083.64 $1,059.49 $47,677.17 Description Tax A Total Tax B Total Total
Reserves (15%) $6,389.03 $762.55 $7,151.58
Auditor-Controller Fees ($135/Yr) $135.00 $135.00 $270.00 Admin (5%) - Minimum $1,000 $2,137.44 $1,000.00 $3,137.44 Total Soft Costs $192.48 $8,661.47 $42.17 $1,897.55 $234.64 $10,559.01 Grand Total $1,139.00 $51,255.00 $155.14 $6,981.19 $1,294.14 $58,236.19 Rate/Cost Rate Total Rate Total Rate Total
Per Unit $1,139.00 $51,255.00 $155.14 $6,981.19 $1,294.14 $58,236.19 Per Acre $6,205.21 $51,255.00 $845.18 $6,981.19 $7,050.39 $58,236.19 Soft Costs
Tax A Tax B ALL
LandLightingStreetsDrain
Item: 6.1
Item Page Number: 12
Menifee Finance Committee September 9, 2025 Page 17 of 125
Coastline
Ave
Grand Ave
Menifee Rd
Simps
on Rd
333-210-005
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 2025-6
·|}þ74
·|}þ74
§¨¦215
MENIFEE
01 , 2 5 0 2 , 5 0 0625 Feet
PROPOSED BOUNDARY MAP
COMMUNITY FACILITIES DISTRICT NO. 2025-6
(MENIFEE 50)
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. 2025-6
(MENIFEE 50), 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: 6.1
Item Page Number: 13
Menifee Finance Committee September 9, 2025 Page 18 of 125
"A" THROUGH "E" STREETS
CITY CFD MAINTENANCE AREASITEMUNITSQUANTITYLEGENDSTREET LIGHTSEA 12STREET A.C. PAVINGSF 2,660SIDEWALKSF 7,820LANDSCAPEDMANUFACTUREDCOMMON SLOPESSF 20,875STORM DRAIN PIPELF 1,545STORM DRAINSTRUCTURESEA 3WATER QUALITY BASINSF 12,220MAINTENANCE ACCESSROAD (CLASS II A.B.)SF 1,622CONCRETE CURB ANDGUTTERLF 1,314STORM DRAINRECTAGULAR CHANNEL3'Hx6'WLF 425 engineering consultants
Item: 6.1
Item Page Number: 14
Menifee Finance Committee September 9, 2025 Page 19 of 125
HOA MAINTENANCE AREASITEMUNITSQUANTITYLEGENDLANDSCAPEDMANUFACTUREDCOMMON SLOPESSF162,467FUEL MODIFICATIONZONES SF 87,590SEDIMENT BASINSF 5,990MAINTENANCE ACCESSROAD (CLASS II A.B.)SF 5,475NATURALNON-IRRIGATED OPENSPACE AC24.0STREET A.C. PAVINGSF 73,271SIDEWALKSF 24,890STREET TREESEA 66STORM DRAINSTRUCTURESEA 6STORM DRAIN PIPELF 365CONCRETE CURB ANDGUTTERLF 4,111 engineering consultants
Item: 6.1
Item Page Number: 15
Menifee Finance Committee September 9, 2025 Page 20 of 125
28202 CABOT ROAD| SUITE 620 | LAGUNA NIGUEL, CA 92677
PHONE: (949) 542-7070 | FAX: (949) 542-7076
www.zimmermangroup.com
April 25, 2023
Rochelle Clayton
Assistant City Manager
City of Menifee
29844 Haun Road, Menifee, CA 92586
[email protected]
Re: CFD for Tentative Tract No. 38525
Ms. Clayton:
I am writing on behalf of Global Investment & Development LLC to request the City of Menifee (“City”) consider the formation of a new community facilities district for a residential development project within the City boundaries. I have prepared the enclosed CFD financing plan that provides details regarding the project and the proposed structure of the CFD , and I have attached the City’s Special Funding District Application. An application for annexation into the City’s CFD No. 2017-1 for maintenance services has also been submitted under separate cover.
We would appreciate your review of the attached and the opportunity to discuss in further detail with City staff and finance team members . Thank you in advance for your consideration, and please feel free to contact me with any questions or comments.
Sincerely,
Jim Zimmerman
cc: Joseph Rivani; Global Investment & Development
Nathan Rivani; Global Investment & Development
Shane Spicer; Spicer Consulting Group
Item: 6.1
Item Page Number: 16
Menifee Finance Committee September 9, 2025 Page 21 of 125
CFD Financing Plan
Proposed City of Menifee CFD
April 25, 2023
Global Investment & Development, LLC (“Developer”) is developing approximately 40 acres within Tentative Tract Map No. 38525 (“Project”) in the City of Menifee (“City”). The Project is planned for 51 single family residential units and is located at the northwest corner of Menifee Road and Coastline Ave.
The Project is also within th e boundary of Eastern Municipal Water District (“EMWD”) and Romoland School District (“RSD”). The Tentative Tract Map showing the location of the Project is attached as Exhibit A. Developer is proposing the formation of a community facilities district (“CFD”) to finance certain development costs of the Project related to City, EMWD and R SD facilities. The following outlines the proposed structure of the new CFD. Although the Project size is relatively small in terms of unit count, the amount of bonds to be issued for the proposed CFD is expected to be the same as the bond amount for the City’s CFD 2019-1 for which the City recently issued bonds.
1. Lead Agency – The City would act as the lead agency in forming the new CFD. The City would not incur any costs in forming the CFD since the Developer would deposit funds with the City to pay for the costs of forming the CFD and entering into the associated agreements. All deposits made by, or on behalf of, Developer would be reimbursed from proceeds of the CFD special tax bonds when issued.
2. CFD Boundary – The boundary of the CFD would include only the property within the Project.
3. CFD Facilities – The CFD would be authorized to fund City facilities, EMWD water and sewer facilities, and RSD school facilities. The attached Exhibit B shows the estimated costs of the facilities anticipated to be financed by the CFD. Included in the City facilities section is a “ City Projects Fee” which would be funded from CFD bond proceeds and provide a special City benefit.
4. JCFAs – Developer, City, and EMW D would enter into a Joint Community Facilities Agreement (“JCFA”) to allow for the funding of EMWD facilities, and Developer, City, and RSD would enter into a separate JCFA to allow for the funding of RSD facilities.
5. CFD Special Taxes and Property Tax Rates – The attached Exhibit C details the proposed special tax rates and expected total effective property tax rate for the Project . As shown in Exhibit C, the total property tax rate is expected to be approximately 1.90% of the anticipated home prices. The CFD special taxes and bond debt service would escalate by 2% each year.
6. Term of Special Tax – In order to allow for sufficient time for the CFD to issue bonds once the Project begins to develop, the special tax es would be authorized to be levied until the earlier of (i) the final maturity of the bonds or (ii) fiscal year 2063/2064.
7. Priority Administration Costs – $25,000 as a first priority of special taxes has been assumed for annual costs of administering the CFD. Additional administration costs may be funded from special taxes not needed to pay for bond debt service.
8. Bond Issuance – The CFD would issue bonds with a term of not less than 30 years in the amount that could be supported based on the special tax revenues providing 110% debt service coverage every year.
Developer and City would work together to issue the bonds once there is sufficient development within the Project and subject to sound municipal financing practices . The attached Exhibit D shows the estimated bond proceeds and corresponding estimated debt service schedule.
9. Funding Agreement – Developer and City would enter into a funding agreement regarding the terms of the CFD, the issuance of the bonds, and the funding of the authorized facilities.
Item: 6.1
Item Page Number: 17
Menifee Finance Committee September 9, 2025 Page 22 of 125
TRACTNO.32664
RESIDENTIAL
ZONER-1
APNXXX-XXX-XXX
VACANT
APNXXX-XXX-XXX
VACANT
APNXXX-XXX-XXX
VACANT
Item: 6.1
Item Page Number: 18
Menifee Finance Committee September 9, 2025 Page 23 of 125
TRACTNO.32664
RESIDENTIAL
ZONER-1
DESCRIBE
ADJACENT
RIBE
CENT
Item: 6.1
Item Page Number: 19
Menifee Finance Committee September 9, 2025 Page 24 of 125
Exhibit B
Global Investment & Development
Proposed City of Menifee CFD - Map No. (38525)
Proposed List of CFD Eligible Facilities
April 25, 2023
Per Unit Total
Units 51
City of Menifee Development Impact Fees
Law Enforcement 250$ 12,750$
Fire Facilities 665 33,915
Circulation 5,060 258,060
Storm Drainage - -
General Government 1,106 56,406
Public Use Facilities 167 8,517
Parks - Land Improvements 233 11,883
Parks - Improvements 716 36,516
Subtotal - City DIF 8,197$ 418,047$
City Projects 1,639 83,609
Fair Share Traffic Impact Fee ESTIMATE 392 20,000 Quimby Fees ESTIMATE 1,961 100,000
Total 12,189$ 621,656$
EMWD Fees
Sewer Financial Participation Charge 3,391 172,941$ Sewer Treatment Plant Capacity Charge 6,428 327,828 Water Financial Participation Charge 7,235 368,985 Water Supply Development Fee 392 19,992
1" Meter Drop-In Fee 377 19,227
Total 17,823$ 908,973$
Romoland School District
Square Footage 3,000 153,000
Estimated School Fees (50% Premium) $5.18 / SF 15,525$ 791,775$ Total Eligible Fees 45,537$ 2,322,404$
Item: 6.1
Item Page Number: 20
Menifee Finance Committee September 9, 2025 Page 25 of 125
Exhibit C
Global Investment & Development
Proposed City of Menifee CFD - Map No. (38525)
CFD Effective Tax Rate & Funding Analysis
April 25, 2023
Bond Issuance Assumptions Estimated Sources & Uses of Funds Allocation of Improvement Fund Weighted Average Bond Yield 5.00% Sources 2,925,000$ Agency Per Unit Total Priority Administrative Expense 25,000 City Impact Fees 10,550$ 538,047$ Capitalized Interest (Months) 6 Uses City Projects 1,639 83,609 Underwriter Discount 2.00% Reserve Fund 262,194$ EMWD Fees 17,823 908,973 Debt Service Coverage 110% Capitalized Interest 71,666 Romoland Schl Fees 14,745 752,010 Debt Service Escalation 2.00% Underwriter Discount 58,500 Total 44,758$ 2,282,640$ Total Annual Special Taxes 189,742$ Cost of Issuance 250,000 Improvement Fund 2,282,640
Total Uses 2,925,000$
Land Use Information & Total Property Tax Rates Special Tax Revenues Ad Other Project CFD Annual
Home Sq. Ft. Base Valorem Fixed Special Tax Total Tax Total Tax CFD Special Annual Tax Plan Size (a) Category Price (a) Taxes (b) Charges (c) Per Unit (d) Per Unit Rate % Tax Unit Mix (a) Collections 1 2,500 < 2,750 575,000$ 6,355$ 1,048$ 3,522$ 10,925$ 1.90% 3,522$ 17 59,870$ 2 3,000 2,751 - 3,250 600,000 6,632$ 1,048 3,720$ 11,400 1.90% 3,720 17 63,247 3 3,500 > 3,250 625,000 6,908$ 1,048 3,919$ 11,875 1.90% 3,919 17 66,625 3,000 600,000$ 6,632$ 1,048$ 3,720$ 11,400$ 1.90% 3,720$ 51 189,742$ Footnotes:
(a) Product and pricing estimated by developer.
(b) Ad Valorem taxes total 1.10529% of the assessed value for FY 22-23. (c) Estimated other fixed charges and assessments for FY 22-23: Amount Flood Control Stormwater / Cleanwater 3.88
City of Menifee Maintenance CFD No. 2017-1 (Estimate) 1,000.00 MWD Standby Charge 6.94
EMWD Infrastructure Availability Charge 26.00
EMWD Standby Charge 11.00
Total Fixed Charges 1,047.82
(d) Represents the 2022/23 Special Tax Rates for the proposed City of Menifee CFD. Rates assumed to increase by 2% per year.
Item: 6.1
Item Page Number: 21
Menifee Finance Committee September 9, 2025 Page 26 of 125
Exhibit D
Global Investment & Development
Proposed City of Menifee CFD - Map No. (38525)
Estimated Debt Service & Bond Sizing Schedule
April 25, 2023
ISSUANCE ASSUMPTIONS ESTIMATED SOURCES AND USES
Closing Date 3/1/2024 Sources
Special Tax Rev. Escalation 2.000% Par Bond Amount 2,925,000$ Annual Admin. Expense 25,000$
Admin. Expense Escalation 2.000% Uses
Debt Service Coverage Ratio 110% Reserve Fund 262,194$
Underwriter Discount Est. 2.000% Capitalized Interest 71,666 Issuance Costs Est. 250,000$ Underwriter Discount 58,500 Months of Cap. Interest 6.00 Costs Of Issuance 250,000 Construction Fund 2,282,640
Total Uses 2,925,000$
BOND DEBT SERVICE
Period Fiscal Gross Priority Capitalized Net Debt Debt Service Ending Year Revenues Admin Principal Yield Interest Interest Service Coverage 9/1/2024 2023/2024 189,742$ 25,000$ -$ 2.512% 71,666$ 71,666$ -$ NA 9/1/2025 2024/2025 193,537 25,500 5,000 2.712% 143,332 - 148,332 113.28% 9/1/2026 2025/2026 197,408 26,010 10,000 2.912% 143,196 - 153,196 111.88% 9/1/2027 2026/2027 201,356 26,530 15,000 3.112% 142,905 - 157,905 110.72% 9/1/2028 2027/2028 205,383 27,061 15,000 3.312% 142,438 - 157,438 113.26% 9/1/2029 2028/2029 209,491 27,602 20,000 3.512% 141,942 - 161,942 112.32% 9/1/2030 2029/2030 213,681 28,154 25,000 3.712% 141,239 - 166,239 111.60% 9/1/2031 2030/2031 217,954 28,717 30,000 3.862% 140,311 - 170,311 111.11% 9/1/2032 2031/2032 222,314 29,291 35,000 4.012% 139,153 - 174,153 110.83% 9/1/2033 2032/2033 226,760 29,877 40,000 4.162% 137,748 - 177,748 110.76% 9/1/2034 2033/2034 231,295 30,475 45,000 4.312% 136,084 - 181,084 110.90% 9/1/2035 2034/2035 235,921 31,084 50,000 4.462% 134,143 - 184,143 111.24% 9/1/2036 2035/2036 240,639 31,706 55,000 4.562% 131,912 - 186,912 111.78% 9/1/2037 2036/2037 245,452 32,340 60,000 4.662% 129,403 - 189,403 112.52% 9/1/2038 2037/2038 250,361 32,987 70,000 4.712% 126,606 - 196,606 110.56% 9/1/2039 2038/2039 255,368 33,647 75,000 4.762% 123,308 - 198,308 111.81% 9/1/2040 2039/2040 260,476 34,320 85,000 4.812% 119,736 - 204,736 110.46% 9/1/2041 2040/2041 265,685 35,006 90,000 4.842% 115,646 - 205,646 112.17% 9/1/2042 2041/2042 270,999 35,706 100,000 4.872% 111,288 - 211,288 111.36% 9/1/2043 2042/2043 276,419 36,420 110,000 4.902% 106,416 - 216,416 110.90% 9/1/2044 2043/2044 281,947 37,149 120,000 5.012% 101,024 - 221,024 110.76% 9/1/2045 2044/2045 287,586 37,892 130,000 5.012% 95,009 - 225,009 110.97% 9/1/2046 2045/2046 293,338 38,649 140,000 5.012% 88,494 - 228,494 111.46% 9/1/2047 2046/2047 299,205 39,422 150,000 5.012% 81,477 - 231,477 112.23% 9/1/2048 2047/2048 305,189 40,211 165,000 5.012% 73,959 - 238,959 110.89% 9/1/2049 2048/2049 311,293 41,015 175,000 5.112% 65,689 - 240,689 112.29% 9/1/2050 2049/2050 317,518 41,835 190,000 5.112% 56,743 - 246,743 111.73% 9/1/2051 2050/2051 323,869 42,672 205,000 5.112% 47,030 - 252,030 111.57% 9/1/2052 2051/2052 330,346 43,526 220,000 5.112% 36,551 - 256,551 111.80% 9/1/2053 2052/2053 336,953 44,396 240,000 5.112% 25,304 - 265,304 110.27% 9/1/2054 2053/2054 343,692 45,284 255,000 5.112% 13,036 - 268,036 111.33% Total 8,041,179 1,059,486 2,925,000 5.000% 3,262,789 71,666 6,116,123 110.27% Item: 6.1
Item Page Number: 22
Menifee Finance Committee September 9, 2025 Page 27 of 125
Item: 6.1
Item Page Number: 23
Menifee Finance Committee September 9, 2025 Page 28 of 125
Item: 6.1
Item Page Number: 24
Menifee Finance Committee September 9, 2025 Page 29 of 125
Item: 6.1
Item Page Number: 25
Menifee Finance Committee September 9, 2025 Page 30 of 125
Item: 6.1
Item Page Number: 26
Menifee Finance Committee September 9, 2025 Page 31 of 125
CITY OF MENIFEE
SUBJECT: Public Safety Services Community Facilities District (CFD) MEETING DATE: September 9, 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. Recommend that staff forward the fiscal impact analysis related to a potential public safety services CFD to the City Council for consideration.
DISCUSSION
Since incorporation in 2008, the City of Menifee has experienced steady population growth, with an estimated 115,300 residents as of January 2025. As development continues, maintaining high standards of public safety while managing the financial pressures of growth remains a top priority.
The City’s Strategic Plan identifies public safety as a core pillar, emphasizing the importance of a safe and vibrant community. While current funding sources—such as sales tax (including Measure DD), property tax, and other general revenues—support public safety services, the City is exploring additional, dedicated revenue streams to ensure long-term sustainability. One such opportunity is the formation of a public safety services CFD, which would apply a special tax to all new residential development to offset the costs associated with the development’s increased demand on public safety services, including police and fire.
The Mello-Roos Community Facilities Act of 1982 (Government Code §53311 et seq.) allows cities to form CFDs to finance public improvements and services. A public safety services CFD provides a legally defensible and sustainable funding mechanism to ensure that new development contributes its fair share toward the cost of public safety.
Ten years ago, the City initiated the process of forming such a CFD, including adoption of a Resolution of Intention. However, the City ultimately chose not to proceed at that time. Since then, several neighboring cities—including Murrieta, Lake Elsinore, Hemet, San Jacinto, Wildomar, and Perris—have successfully implemented similar CFDs.
Item: 6.2
Item Page Number: 1
Menifee Finance Committee September 9, 2025 Page 32 of 125
City of Menifee Staff Report
Public Safety Services Community Facilities District (CFD) September 9, 2025
2 9
2 9
At a City Council meeting in June, it was suggested the City explore the idea of a public safety services CFD again. The first step in doing so is to determine the approximate cost of providing public safety services to each new residential unit.
At its July 2025 meeting, the Finance Committee reviewed and approved staff’s recommendation to proceed with a Fiscal Impact Analysis to evaluate the long-term financial impact of new residential development on the City’s General Fund. The analysis was conducted by Spicer Consulting Group, which had conducted a similar analysis for the City previously.
The 2025 General Fund Public Services Analysis Update confirms that new residential development in the City of Menifee will result in a significant net fiscal impact on the General Fund at full build-out. Population is projected to grow from an estimated 115,300 in 2025 to nearly 148,000 by 2045, representing an anticipated increase of 32,700 residents. Based on this growth, new residential development is expected to generate approximately $36.9 million in annual General Fund revenues. This includes $7.4 million from property taxes, $19.6 million from sales and use taxes (inclusive of Measure DD), and $1.8 million from franchise fees, with the remainder derived from property transfer taxes, off-site sales tax, recreation program fees, fines, and miscellaneous sources.
In contrast, the annual cost of providing General Fund services to new development at build-out is projected to be approximately $43.1 million. The resulting net fiscal impact is a negative $6.2 million annually. Public Safety – composed of Police, Fire, and Animal Control -- remains the largest cost driver, representing 60% of General Fund expenditures and totaling $792 per resident. This cost burden translates to an annual shortfall of $562 per new single-family residence and $440 per new multi-family residence.
To offset this impact, the study recommends forming a CFD with an annual levy of $562 per single-family home and $440 per multi-family unit, including a 4% annual escalator to account for cost growth. These proposed rates are competitive with regional peers, falling just below the regional average of approximately $605 per single-family unit. Menifee’s proposed rate is positioned between the high of $1,548 in Coachella and the low of $257 in Hemet.
Compared to the previous fiscal impact analysis completed in 2021, which identified a $7.5 million annual shortfall and recommended rates of $465 per single-family home and $332 per multi-family unit, the 2025 update shows a slightly lower overall deficit but higher per-home impacts. This shift is due to a combination of fewer projected housing units at build-out and rising per-capita service costs, particularly in public safety.
Based on the results of the analysis, staff is recommending the Finance Committee recommend that the City Council consider the possibility of forming a public safety services CFD to ensure that new development covers the costs associated with providing essential services to new residents.
ATTACHMENTS
1. SCG Report - General Fund Services Analysis Findings Item: 6.2
Item Page Number: 2
Menifee Finance Committee September 9, 2025 Page 33 of 125
General Fund Public Services
2025 Analysis
DRAFT REPORT
Item: 6.2
Item Page Number: 3
Menifee Finance Committee September 9, 2025 Page 34 of 125
General Fund Analysis 2025 Update Page | 1
City of Menifee
Background
The City of Menifee (“City”) incorporated October 1, 2008. Immediately following incorporation, the Riverside County (“County”) Transportation department continued to approve tract maps that were already submitted for approval. During the following two years the County transitioned the development approval process to the City. As a function of approving various land use, zone changes, or specific plan amendments submitted by development applicants the City must evaluate the impacts of these changes.
One type of impact that needs consideration is whether there are any fiscal impacts to the City’s general fund for services associated with these changes. Consequently, developers will submit Fiscal Impact Analysis (“FIAs”) that include the proposed development, estimated revenues, and estimated costs that may occur because of the proposed development. These FIAs present various assumptions and statements which analyze proposed development impacts to the City. Typically, these assumptions include using the City’s approved Budget, plan of services, and financial constraints. These budgets are required to be balanced at the time of adoption by the City Council. This is appropriate for the near-ter m prediction or forecasting as it relates to the overall fin ancial condition of the City’s General Fund. However, for long-term planning other factors need to also be considered. These factors include the City’s policies related to service levels for each City service department, including public safety, remaining development within the City, population growth, property tax valuation, sales tax estimates, and increases in service costs. It is necessary to evaluate these to provide sustainable services for growth.
This 2025 update provides a revised evaluation of the City’s General Fund based on the FY 2025-26 and FY 2026-27 Proposed Biennial Budget, revised growth projections, and updated cost escalation assumptions. It builds upon the City’s prior analyses, reflecting more current conditions, including new staffing levels, increased safety service costs, and the City’s updated reven ue outlook.
Approach
Spicer Consulting Group (“SCG”) was engaged to evaluate the City’s General Fund for future development impacts. SCG obtained information germane to the analysis including: the FY 2024-25 Comprehensive Annual Financial Report; the Proposed Biennial Budget for FY 2025-26 & FY 2026-27; the General Plan; the Development Impact Fee Study (DIF Study); Fire Cost information including related County agreements; and line item budget detail data. From this information a line item detailed database was prepared determining the eligible budget items relevant to providing services to the community. Our analysis included information planned for FY 2025-26 and determined the appropriate set of General Fund revenues and expenditures on a per capita basis.
We evaluate this cost per capita assuming a build-out scenario through 2045 and determine the proportionate share associated to the development of new residential properties. Revenues were similarly estimated on a per capita basis, considering property tax, sales tax, franchise fees, fines, fees, and miscellaneous revenues.
Future Growth
Based upon the City’s approved General Plan and DIF Study we determined and evaluated the estimated build-out horizon for the City, the land use categories, and specific plans for residential development, and confirmed the estimated people per household factors available from the State Department of Finance. Additi onally, we obtained estimated assessed value information for new single-family and multi-family residential dwelling units. The current population for the City is 115,316 and is anticipated to grow to 147,972 in the year 2045, an increase of approximately 32,656 residents. This reflects a slower annual growth trajectory (1.2%-
1.5%) compared to the 2021 analysis, which had anticipated nearly 47,000 additional residents by 2035.
The City’s updated household size assumptions are 2.94 persons per single-family unit and 2.30 persons per multi-family unit.
This translates to approximately 26,125 new single-family units and 6,531 new multi-family units at build-out.
Expenditures
The analysis consists of five primary general fund expenditure categories. These categories include: General Government, Community Development, Public Works/Engineering, Community Services, and Public Safety. Gene ral Government consists of the basic functions of running the City’s day-to-day operations and includes; Administrative Services, Building and Safety, Cit y Attorney, City Clerk, City Council, City Manager, Emergency Operations, and Finance. Community Development consists of Community Development/Planning and Economic Development. Community Services and Public Works/Engineering encompass only those functions. Public Safety includes Police, Fire, and Animal Control. Below are the FY 2025-26 expenditures by category:
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General Fund Expenditures FY 2025-26
Description Amount
General Government $19,219,992
Community Development $9,609,189
Public Works/Engineering $8,596,692
Community Services $5,816,301
Public Safety $56,129,969
Total Direct Costs $99,372,143
General Fund Expenditures FY 2026-27
Description Amount
General Government $20,684,175
Community Development $10,402,182
Public Works/Engineering $8,936,201
Community Services $5,975,221
Public Safety $57,836,051
Total Direct Costs $103,860,830
These expenditures represent the recurring costs of providing the basic level of services approved by the City Council and exclude one-time costs and capital projects. For long-term forecasting, service costs are assumed to increase by 3.0% annually for all categories except Public Safety.
Public Safety continues to represent the largest General Fund expenditure, accounting for approximately 60% of total costs at build-out. On a per capita basis, safety services are projected at $498 for Police, $277 for Fire, and $16 for Animal Control, totaling $792 per resident. Over the past four years, Public Safety cost s have grown by an average of 7.0% annually, outpacing other General Fund categories. This trend is consistent with regional and statewide experience, as many agencies face higher year- over-year increases in police and fire services compared to other service areas. For this analysis, a 4.0% annual escalation ra te was applied to Public Safety, reflecting a more moderate but still elevated growth assumption relative to other services.
General Fund Expenditures FY 2044-45
Description Amount
General Government $35,213,423
Community Development $17,709,019
Public Works/Engineering $15,259,250
Community Services $10,172,414
Public Safety $117,165,227
Total Direct Costs $195,519,333
Revenues
The analysis consists of five primary general fund revenue catego ries. These categories include: Property Taxes, Sales Tax, Development-Related Fees, Franchise Fees, and Other Revenues. Property Taxes are derived from the assessed value of all parcels in the City and represent one of the largest and most stable General Fund revenue sources. Sales Tax revenues are generated from taxable retail sales occurring within the Ci ty. Development-Related Fees include building, planning, and engineering fees associated with new growth. Franchise Fees are collected from utility, cable, and solid waste providers operating within the City. Other Revenues encompass Vehicle License Fee (VLF) backfill, business license tax, fines, forfeitures, recreation program revenues, and miscellaneous sources. Below are the FY 2025–26 revenues by category:
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General Fund Revenues FY 2025-26
Description Amount
Property Taxes $24,295,893
Sales Tax $34,621,807
Building/Planning/Engineering Fees $12,845,000
Franchise Fees $5,875,000
Miscellaneous Fines & Fees $429,000
VLF $12,474,953
Business Licenses $250,000
Recreation Program Income $665,910
Other $8,336,200
Transfer In $150,000
Total Direct Revenues $99,943,763
Property Tax - Property Taxes are derived from the assessed valu e of all properties within the City of Menifee. The Riverside County Auditor-Controller-County Clerk levies a 1% tax on the asse ssed valuation of all parcels in the County, consistent with statewide practice. Under Propos ition 13 (1978), Article XIII of the State Constitution establish ed that the maximum increase i n assessed valuation for existing properties is the lesser of 2% annually or the change in the California Consumer Price Index (CPI).
Of this 1% Ad Valorem levy, the City of Menifee receives an average 12.64% share, based on the County’s apportionment formula.
For FY 2025-26, Property Tax revenues are projected at $24.3 million, increasing to $25.9 million in FY 2026-27, representing an estimated 6.7% growth. Property Tax continues to be one of the City’s single largest General Fund revenue sources, comprising approximately 24% of total revenues. This source provides a st able and growing stream of funding that scales with both new residential construction and appreciation in existing property values.
Sales Tax - Sales Tax revenues are derived from 1% of all taxable sales occurring within the City of Menifee. The statewide base sales tax rate is 7.5%, with an additional 0.5% countywide sales tax in Riverside County dedicated to transportation infrastructure.
For FY 2025–26, Sales Tax revenues are projected at $34.6 mill ion, increasing to $36.4 million in FY 2026–27, representing approximately 31% of the City’s General Fund revenues.
In addition to the statewide sales tax, the City benefits from the local voter-approved Measure DD Quality of Life Sales Tax.
Measure DD, adopted by Menifee voters in November 2016, added a 1% transactions and use tax specifically for the City.
Revenues from Measure DD are accounted for in the Quality of Life Fund and are dedicated to enhancing public safety, maintaining streets and infrastructure, and improving community services. For FY 2025–26, Measure DD is projected to generate approximately $21.6 million, growing to $21.9 million in FY 2026–27, and when combined with the base sales tax, makes sales tax revenues the single largest source of funding for City operations.
Together, Sales Tax and Measure DD account for more than half of the City’s flexible discretionary revenues. These funds are critical to sustaining Police and Fire services, which have been the City Council’s top priority, as well as supporting the Cit y’s expanding infrastructure and service delivery needs. While Measure DD significantly strengthens fiscal resiliency, sales tax revenues are inherently sensitive to fluctuations in consumer spending, interest rate conditions, and regional economic growth, making long-term forecasting and fiscal prudence essential.
Franchise Fees - Franchise Fees are collected under agreements with utility providers, cable companies, and the City’s solid waste hauler. Currently, Menifee has six active franchise agreements, including two public utilities, three cable television providers, and one solid waste hauler. For FY 2025–26, Franchise Fee revenues are projected at $5.9 million, with a modest increase to $6.2 million in FY 2026–27.
Other Revenues – Other General Fund revenues include Vehicle License Fee (VLF) backfill, business license taxes, development- related fees, fines and forfeitures, recreation program income, and miscellaneous sources. Together, these categories provide meaningful support to City operations:
• VLF: $12.5 million in FY 2025–26, increasing to $13.1 million in FY 2026–27.
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• Development-related fees (building, planning, and engineering): $12.8 million in FY 2025–26, with slight growth to $12.9 million in FY 2026–27.
• Business licenses, fines, forfeitures, and recreation program income: Combined $1.3 million annually. • Other revenues: Approximately $8.3 million in FY 2025–26, rising to $9.1 million in FY 2026–27.
These revenue sources, while smaller and more volatile than property and sales tax, provide important diversification for the City’s General Fund. They are heavily influenced by growth in development activity, changes in state subventions, and service demand from the community.
Findings
According to the City’s DIF Study, the population of Menifee is projected to grow from 115,316 residents in 2025 to 147,972 residents by 2045, an increase of approximately 32,656 residents. This equates to an average annual growth rate of roughly 1.2% to 1.5%, which is notably slower than the 2021 study that anticipated nearly 47,000 new residents by 2035.
At build-out in FY 2045, new residential development will be responsible for approximately $43.1 million in annual General Fund expenditures. The majority of these costs are attributed to Public Safety, which remains the City’s single largest service responsibility. On a per capita basis, projected costs are $498 for Police, $277 for Fire, and $16 for Animal Control, totaling $792 per resident. By comparison, the 2021 analysis estimated public safety costs at $522 per resident at build-out, illustrating that per capita safety costs have risen by more than 50% in just four years, driven largely by staffing, labor, and contractual cost increases.
On the revenue side, new residential development is projected to generate approximately $36.9 million annually at build-out. This includes $7.4 million in property tax, $19.6 million in sales and use tax (inclusive of Measure DD contributions), and $1.8 mil lion in franchise fees, with the remainder derived from property transfe r tax, off-site sales tax, recr eation program fees, fines, a nd miscellaneous revenues.
The resulting net General Fund impact of new residential development at build-out is a negative $6.2 million annually, which translates to a shortfall of $191.14 per new resident (service unit). When expressed on a per-home basis, this equates to a $562 annual shortfall for each new single-family residence (2.94 persons per unit) and a $440 shortfall for each multi-family reside nce (2.30 persons per unit).
For context, the 2021 study found a similar total shortfall of $7.5 million, but with much lower per-unit impacts: $465 per sin gle- family unit and $332 per multi-family unit. The total deficit has therefore remained relatively stable, but the fiscal burden p er unit has risen substantially because build-out is now expected to yield fewer housing units while per-capita service costs especially in Public Safety have escalated sharply.
Recommendations
Given the persistent net negative impact of new residential development on the City’s General Fund, each future residential project approved will need to mitigate its impact on public services. The recommended approach is the formation of a Community Facilities District (CFD) Services Tax or equivalent recurring funding mechanism. While one-time in-lieu fees collected at permit issuance may be considered, they do not provide the sustainable revenues necessary to address ongoing operating costs for Police, Fire, and Animal Control services.
The proposed Menifee CFD 2025-S Services Tax would establish an annual levy of $562 per single-family residence (SFR) and $440 per multi-family residence (MFR). This directly reflects the fiscal shortfall identified in this study and is necessary to ensure new development pays its proportionate share of General Fund service costs.
When benchmarked against neighboring jurisdictions, Menifee’s proposed CFD rate is competitive and near the regional average.
For FY 2025-26, SFR public safety levies in comparable Southern California cities range from $257 in Hemet (lowest) to $1,548 in Coachella (highest). The regional average is approximately $6 05 per SFR, placing Menifee’s proposed rate of $562 slightly below the average and well within the established range:
• Below Lake Elsinore ($1,037), San Jacinto ($699), Corona ($783), and Coachella ($1,549), and • Comparable to Palm Springs ($528), Murrieta ($580), Beaumont ($643), Wildomar ($674), and • Above Desert Hot Springs ($360), Perris ($456), Hemet ($257), San Bernardino ($408), and Santee ($382).
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This comparison demonstrates that Menifee’s proposed CFD 2025-S rates are aligned with regional norms, neither at the extreme high end nor unusually low. By adopting rate s consistent with this analysis, the City ensures fiscal sustainability without pla cing an excessive burden on new homeowners.
Recommendations to Council:
1. Proceed with CFD 2025-S formation at $562 (SFR) / $440 (MFR) with a 4% annual escalator.
2. Highlight regional comparisons during outreach to show Menifee’s rates are consistent with neighboring jurisdictions.
3. Ensure long-term sustainability by tying annual escalations to cost growth, especially in Public Safety.
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Appendices
Item: 6.2
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City of Menifee DRAFT Population as of 2025 115,316
General Fund Fiscal Impact Analysis Estimated Population Growth (thru 2045) 32,656 Summary Analysis Population at Build-out (2045) 147,972 FY 2025-262
Projected Build-Out 2045
General Fund Expenditures Service Unit 1 Per Service Unit Build-Out LOS General Fund Expenditures Operating
Budget
$ Per
Capita % of Total Escalator
Operating
Budget
$ Per
Capita
% of
Total
General Government 147,972 $237.97 $35,213,42 3 General Government $8,596,692 $75 6% 160% $35,213,42 3 $238 18% Community Development 147,972 $119.68 $17,709,01 9 Community Development $19,219,992 $167 13% 160% $17,709,01 9 $120 9% Public Works/Engineering 147,972 $103.12 $15,259,25 0 Public Works/Engineering $56,129,969 $487 37% 160% $15,259,25 0 $103 8% Community Services 147,972 $68.75 $10,172,41 4 Community Services $9,609,189 $83 6% 160% $10,172,41 4 $69 5% Public Safety Public Safety
Police Services 147,972 $497.89 $73,673,50 3 Police Services $34,760,951 $301 254% $73,673,50 3 $498 Fire Services 147,972 $277.49 $41,060,85 4 Fire Services $20,257,044 $176 254% $41,060,85 4 $277 Animal Control Services 147,972 $16.43 $2,430,87 0 Animal Control Services $1,111,974 $10 254% $2,430,87 0 $16 Total Public Safety 147,97 2 $791.81 $117,165,22 7 Total Public Safety $56,129,969 $487 37% $117,165,227 $792 60 % Total General Fund Expenditures $1,321 $195,519,33 3 Total General Fund Expenditures $149,685,811 $1,298 100% 31% $195,519,33 3 $1,321 100% Total Service Units at Build-out 147,972
New Residential Service Units 32,656
% of Build-out Service Units 22%
Allocable Share of General Fund Expenditures $43,149,240 Notes:
1Service Unit defined as estimated residential population 2FY 25-26 Expenditure totals are budget totals from City Annual Operating Budget Fiscal Year 2025-26 3Sales and Use Tax estimated using FY 25-26 budget per capita rate ($300.23) applied to estimated population growth.
General Fund Revenues - New Development New Homes Per New Home Totals Tax Revenues
Property Tax 11,72 6 $633.97 $7,433,98 5
Property Transfer Tax 11,726 $37.51 $439,81 8 Off-Site Sales Tax Revenue 11,726 $75.86 $889,54 9 Sales and Use Tax3 11,726 $1,672.23 $19,608,622 Subtotal Tax Revenues $2,419.5 8 $28,371,975
Franchise Fee 11,726 $149.78 $1,756,36 8
Recreation Program Fees 11,726 $16.98 $199,07 8 Fines & Forfeiture 11,726 $10.94 $128,252
Misc. Revenues 11,726 $550.22 $6,451,83 5
Subtotal Other Revenues $727.92 $8,535,533
Total General Fund Revenues $36,907,508
General Fund Impact Service Unit1 Per Service Unit Totals Expenditures 32,65 6 $1,321.33 $43,149,24 0
Less: Revenues 32,656 $1,130.19 $36,907,50 8 Shortfall 32,656 ($191.14) ($6,241,732 )
CFD Tax Rates Factor Per Service Uni t Tax Rate
Single Family Residential 2.94 $191.1 4 $562 Multi-Family Residential 2.30 $191.1 4 $440 Item: 6.2
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City of Menifee DRAFT
General Fund Fiscal Impact Analysis
Tax Detail
Residential Development Factor Total Population Estimation Total Cumulative SFR Units 8,886 2025 Actual 115,316 Total Cumulative Residents 2.94 26,125 Estimated Growth 32,656 Constructed SFR Assessed Values $544,000 $4,833,984,000 2045 Total Population 147,972 Total Cumulative Multi-Family Units 2,840 80% SFR Growth 26,125 Total Cumulative Residents 2.30 6,531 20% MFR Growth 6,531 Constructed MFR Assessed Values $368,288 $1,045,937,920 Total Cumulative Residents 32,656
Residential Property Tax Factor Total
Constructed Assessed Values $5,879,921,920
Ad-Valorem 1.00% $58,799,219
Residential Tax Rate 12.64%
Total Residential Ta
x $7,433,985
Residential Property Tax In-Lieu of Sales Tax $0
Residential Property Transfer Tax Factor Total
Residential Property Tax Turnover Rate 13.60%
Transfer Tax Rate 0.055%
Total Residential Property Transfer Ta
x $439,818
Off-Site Sales Tax Factor Total
Sales and Use Tax $34.05 $1,111,937
Less: % Captured at Onsite Retail 20.00% ($222,387)
Total Off-Site Sales Tax Revenue $889,549
Total Tax Revenues $8,763,353
Item: 6.2
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City of Menifee DRAFT
General Fund Fiscal Impact Analysis
Population Growth
Year Population Pop Increase Units/Yr Units/Mo Growth
2026 115,316 1,610 555 46 N/A 2027 117,035 1,719 593 49 1.49% 2028 118,754 1,719 593 49 1.47% 2029 120,473 1,719 593 49 1.45% 2030 122,192 1,719 593 49 1.43% 2031 123,911 1,719 593 49 1.41% 2032 125,630 1,719 593 49 1.39% 2033 127,349 1,719 593 49 1.37% 2034 129,068 1,719 593 49 1.35% 2035 130,787 1,719 593 49 1.33% 2036 132,506 1,719 593 49 1.31% 2037 134,225 1,719 593 49 1.30% 2038 135,944 1,719 593 49 1.28% 2039 137,663 1,719 593 49 1.26% 2040 139,382 1,719 593 49 1.25% 2041 141,101 1,719 593 49 1.23% 2042 142,820 1,719 593 49 1.22% 2043 144,539 1,719 593 49 1.20% 2044 146,258 1,719 593 49 1.19% 2045 147,972 1,714 591 49 1.17% Item: 6.2
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DRAFTCity of Menifee
General Fund Fiscal Impact Analysis
FY 25-26 Escalated Estimates
Year Escalator
General
Government
Community
Development
Public
Works/Engineering Community Services Public Safety Police Services Fire Services Animal Control
Services
Total Public
Safety Total
2026 N/A $19,219,992 $9,609,189 $8,596,692 $5,816,301 N/A $34,760,951 $20,257,044 $1,111,974 $56,129,969 $99,372,143 2027 7.62% $20,684,175 $10,402,182 $8,963,201 $5,975,221 4.62% $36,367,313 $20,268,792 $1,199,946 $57,836,051 $103,860,830 2028 3.00% $21,304,700 $10,714,247 $9,232,097 $6,154,478 4.00% $37,822,006 $21,079,544 $1,247,944 $60,149,493 $107,555,015 2029 3.00% $21,943,841 $11,035,675 $9,509,060 $6,339,112 4.00% $39,334,886 $21,922,725 $1,297,862 $62,555,473 $111,383,161 2030 3.00% $22,602,156 $11,366,745 $9,794,332 $6,529,285 4.00% $40,908,281 $22,799,634 $1,349,776 $65,057,692 $115,350,210 2031 3.00% $23,280,221 $11,707,747 $10,088,162 $6,725,164 4.00% $42,544,612 $23,711,620 $1,403,767 $67,659,999 $119,461,294 2032 3.00% $23,978,628 $12,058,980 $10,390,807 $6,926,919 4.00% $44,246,397 $24,660,085 $1,459,918 $70,366,399 $123,721,732 2033 3.00% $24,697,987 $12,420,749 $10,702,531 $7,134,726 4.00% $46,016,253 $25,646,488 $1,518,314 $73,181,055 $128,137,048 2034 3.00% $25,438,926 $12,793,372 $11,023,607 $7,348,768 4.00% $47,856,903 $26,672,348 $1,579,047 $76,108,297 $132,712,970 2035 3.00% $26,202,094 $13,177,173 $11,354,315 $7,569,231 4.00% $49,771,179 $27,739,241 $1,642,209 $79,152,629 $137,455,442 2036 3.00% $26,988,157 $13,572,488 $11,694,944 $7,796,308 4.00% $51,762,026 $28,848,811 $1,707,897 $82,318,735 $142,370,632 2037 3.00% $27,797,802 $13,979,663 $12,045,793 $8,030,197 4.00% $53,832,507 $30,002,764 $1,776,213 $85,611,484 $147,464,938 2038 3.00% $28,631,736 $14,399,053 $12,407,166 $8,271,103 4.00% $55,985,808 $31,202,874 $1,847,262 $89,035,943 $152,745,001 2039 3.00% $29,490,688 $14,831,024 $12,779,381 $8,519,236 4.00% $58,225,240 $32,450,989 $1,921,152 $92,597,381 $158,217,711 2040 3.00% $30,375,408 $15,275,955 $13,162,763 $8,774,813 4.00% $60,554,249 $33,749,029 $1,997,998 $96,301,276 $163,890,216 2041 3.00% $31,286,671 $15,734,234 $13,557,646 $9,038,058 4.00% $62,976,419 $35,098,990 $2,077,918 $100,153,327 $169,769,935 2042 3.00% $32,225,271 $16,206,261 $13,964,375 $9,309,200 4.00% $65,495,476 $36,502,949 $2,161,035 $104,159,460 $175,864,566 2043 3.00% $33,192,029 $16,692,448 $14,383,306 $9,588,476 4.00% $68,115,295 $37,963,067 $2,247,476 $108,325,839 $182,182,098 2044 3.00% $34,187,790 $17,193,222 $14,814,806 $9,876,130 4.00% $70,839,907 $39,481,590 $2,337,375 $112,658,872 $188,730,819 2045 3.00% $35,213,423 $17,709,019 $15,259,250 $10,172,414 4.00% $73,673,503 $41,060,854 $2,430,870 $117,165,227 $195,519,333 Year AV Sales Other Property Taxes Sales Tax Franchise Fees Other Total Difference 2026 N/A N/A N/A $24,295,893 $34,621,807 $5,875,000 $35,151,063 $99,943,763 $571,620 2027 6.68% 2.10% 3.23% $25,920,064 $35,347,388 $6,160,000 $36,285,507 $103,712,959 ($147,871) 2028 2.00% 3.00% 3.00% $26,438,465 $36,407,810 $6,344,800 $37,374,072 $106,565,147 ($989,868) 2029 2.00% 3.00% 3.00% $26,967,235 $37,500,044 $6,535,144 $38,495,294 $109,497,717 ($1,885,444) 2030 2.00% 3.00% 3.00% $27,506,579 $38,625,045 $6,731,198 $39,650,153 $112,512,976 ($2,837,234) 2031 2.00% 3.00% 3.00% $28,056,711 $39,783,797 $6,933,134 $40,839,658 $115,613,300 ($3,847,994) 2032 2.00% 3.00% 3.00% $28,617,845 $40,977,311 $7,141,128 $42,064,848 $118,801,131 ($4,920,601) 2033 2.00% 3.00% 3.00% $29,190,202 $42,206,630 $7,355,362 $43,326,793 $122,078,987 ($6,058,061) 2034 2.00% 3.00% 3.00% $29,774,006 $43,472,829 $7,576,023 $44,626,597 $125,449,454 ($7,263,516) 2035 2.00% 3.00% 3.00% $30,369,486 $44,777,014 $7,803,304 $45,965,395 $128,915,198 ($8,540,244) 2036 2.00% 3.00% 3.00% $30,976,876 $46,120,324 $8,037,403 $47,344,356 $132,478,959 ($9,891,673) 2037 2.00% 3.00% 3.00% $31,596,413 $47,503,934 $8,278,525 $48,764,687 $136,143,559 ($11,321,379) 2038 2.00% 3.00% 3.00% $32,228,342 $48,929,052 $8,526,881 $50,227,628 $139,911,902 ($12,833,099) 2039 2.00% 3.00% 3.00% $32,872,908 $50,396,923 $8,782,687 $51,734,457 $143,786,975 ($14,430,735) 2040 2.00% 3.00% 3.00% $33,530,367 $51,908,831 $9,046,168 $53,286,490 $147,771,856 ($16,118,360) 2041 2.00% 3.00% 3.00% $34,200,974 $53,466,096 $9,317,553 $54,885,085 $151,869,708 ($17,900,228) 2042 2.00% 3.00% 3.00% $34,884,993 $55,070,079 $9,597,079 $56,531,638 $156,083,789 ($19,780,777) 2043 2.00% 3.00% 3.00% $35,582,693 $56,722,181 $9,884,992 $58,227,587 $160,417,453 ($21,764,645) 2044 2.00% 3.00% 3.00% $36,294,347 $58,423,847 $10,181,541 $59,974,414 $164,874,150 ($23,856,670) 2045 2.00% 3.00% 3.00% $37,020,234 $60,176,562 $10,486,988 $61,773,647 $169,457,431 ($26,061,902) Item: 6.2
Item Page Number: 13
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City of Menifee DRAFT
Safety Tax Comparisons
FY25-26 Rates
Agency District Service
Single Family
Residential
Multi-Family
Residential
Apartments/
Mobile Home
Affordable
Housing Unit
Residential
Desert Hot Springs PTAX 2(1) Public Safety $360.21 $201.35 $115.26 Palm Springs CFD 2005-1(2) Public Safety $528.00 $445.03 CFD 2005-1-Police(2) Police Services $961.43 $961.43
CFD 2005-1-Police(2) Fire Services $587.30 $587.30
CFD 2005-1 Total Public Safety $1,548.73 $1,548.73
Indio CFD 2004-1(3) Public Safety $534.93
CFD 2001-3(3) Public Safety $394.22 $78.84
CFD 1-S(3) Public Safety $455.98 $227.99
Hemet CFD 2005-1(3) Public Safety $257.05
San Jacinto CFD 2003-1(4) Public Safety $699.63
CFD 2003-1(3) Public Safety $463.79 $231.90
CFD 2007-1(3) Public Safety $594.15 $297.08
CFD 2015-1(5) Public Safety $1,037.15 $634.40
CFD 2025-2(5) Public Safety $1,037.15 $634.40 $150.00
CFD 2013-1(7) Public Safety $430.09 $304.94
CFD 2022-1(8) Public Safety $494.22 $350.55
CFD 2025-S(8) Public Safety $674.07 $414.24
Corona CFD 2016-3(7) Public Safety $783.14 $543.34
CFD 2016-2(7) Public Safety $643.19
CFD 2016-3(7) Public Safety $643.19
CFD 2016-4(7) Public Safety $643.19
CFD 2018-1(7) Public Safety $643.19
CFD 2019-1(7) Public Safety $643.19
CFD 2021-1(7) Public Safety $643.19 Note:
San Bernardino CFD 2018-1(6) Police Services $408.41 $379.77 (1) Escalates at lesser of CPI or 3% per year.
San Marcos CFD 98-01(3) Public Safety $390.20
(2) Escalates at CPI annually.
Santee CFD 2017-2(9) Public Safety $382.21
(3) Escalates at 2% per year.
CFD 2025-1(10) Public Safety $580.00 $468.00
(4) Escalates at CPI with Min. 2% - Max. 6% per year.
CFD 2025-S(10) Public Safety $580.00 $468.00 $150.00
(5) Escalates at greater of CPI or 4% per year.
Menifee Proposed CFD 2025-S Public Safety $562.00 $440.00 (6) Escalates at 2% per year, beginning FY 24-25.
(7) Escalates at greater of CPI or 5% per year.
High $1,548.73 $1,548.73
(8) Escalates at greater of CPI or 5% per year, not to exceed 6%.
Low $257.05 $78.84
(9) Escalates at greater of CPI or 3.5% per year.
Average $605.29 $450.40
(10) Escalates at 4% per year.
Murrieta
Classification
Coachella
Perris
Lake Elsinore
Wildomar
Beaumont
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CITY OF MENIFEE
SUBJECT: Purchasing and Contracting Administrative Manual Update MEETING DATE: September 9, 2025
TO: Finance Committee
PREPARED BY: Amir Zaki, Finance Manager
REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------
RECOMMENDED ACTION
1. Receive and file update on Purchasing and Contracting Administrative Manual (Administrative Policy AD-35).
DISCUSSION
Over the past fiscal year, the City examined its existing purchasing ordinance and completed a comprehensive update with a focus on consolidating, re-organizing and updating its procurement methodologies to ensure efficient use of city funds and receipt of quality services and goods. The City Council adopted Ordinance No. 2025-413 to repeal and replace chapter 3.12 and repeal chapter 3.30 of the Menifee Municipal Code to consolidate and revise the procurement procedures for the City of Menifee. This ordinance was introduced and read on April 16, 2025, and passed, approved, and adopted on May 7, 2025. On April 16, 2025, the City Council also adopted Resolution No. 25-1569 to establish rules and procedures for the procurement of goods, services, and construction contracts and the establishment of purchasing and contract execution authority.
On May 7, 2025, the City Council adopted Resolution No. 25-1570 directing the City Manager or designee to establish a purchasing manual consistent with applicable Federal, State, and Local procurement requirements. The purchasing manual is an administrative policy that provides direction regarding policies and practices related to the procurement of goods, supplies, equipment, professional services, and general services for the City of Menifee in accordance with the City’s newly adopted Municipal Code, Chapter 3.12 also known as the Purchasing Ordinance.
The Purchasing unit within the Finance Department is responsible for the oversight of the purchasing and contracting activities for all City Departments. The City’s Purchasing Ordinance, resolutions, policies, and procedures are in place to ensure that all purchasing and contracting activities are conducted in the most efficient and cost-effective manner for the best interest of the Item: 6.3
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City of Menifee Staff Report
Purchasing and Contracting Administrative Manual Update September 9, 2025
2 9
2 8
City and its department’s interest, consistent with the best purchasing practices while ensuring compliance with all Federal, State, and Local laws and regulations.
The attached manual represents the inaugural Purchasing and Contracting Administrative Manual (Administrative Policy AD-35) presented to City Manager for consideration and adoption as an administrative policy. Its purpose is to provide further clarifications, guidance, and tools for City Staff regarding the purchasing authorities, internal administrative approval levels, and other requirements necessary to ensure compliance with the City’s Municipal Code.
Staff will continue to identify more sections to be added to the Purchasing and Contracting Administrative Manual as they become available. These additional sections may include further procedures, forms, and desk guides that would facilitate the implementation of that policy consistently with the adopted ordinance. The Chief Financial Officer or designee shall take all necessary actions to update the manual as needed, and per City Council’s direction, in no event less frequently then every three years to align the manual with applicable laws, procedures, and policies.
This item is brought forth to the Finance Committee as a receive and file and to provide an update on the status of the proposed manual.
FISCAL IMPACT
There is no fiscal impact associated with the recommended action.
ATTACHMENTS
1. Purchasing and Contracting Administrative Policy AD-35 Item: 6.3
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CITY OF MENIFEE
Administrative Policy
Policy Number: AD - 35
Approving Authority:
City Manager
Subject
Purchasing and Contracting Administrative Manual
Effective Date:
Last Modified: N/A
1. PUR
POSE
The purpose of this Purchasing and Contracting Manual is to provide direction regarding the policies and practices related to the procurement of goods, supplies, equipment, professional services, and general services for the City of Menifee in accordance with the City’s Municipal Code, Chapter 3.12 (the “Purchasing Ordinance”) and City Council’s Resolutions No. 25 -1569 and 25 -1570, establishing purchasing authority and contract execution authority.
2. SCOPE / BACKGROUND
The Pur
chasing unit within the Finance Department is responsible for the oversight of the purchasing and contracting activities for all City Departments. The City’s Purchasing Ordinance, resolutions, policies, and procedures are in place to ensure that all purchasing and contracting activities are conducted in the most efficient and cost - effective manner for the best interest of the City and its department’s interest, consistent with the best purchasing practices while ensuring compliance with all Federal, State, and Local laws and regulations.
3. ROLES AND RESPONSIBILITIES
The Chi
ef Financial Officer or designee shall take all necessary actions to update the Purchasing Manual as -needed, and in no event less frequently than every three (3) years to align the Purchasing Manual with applicable laws, procedures, and policies.
Revi
sion History
Revision No. Date Approved: Approved By: Comments
0 City Manager Original Policy
_________________________________
A
rmando G. Villa, City Manager
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CITY OF MENIFEE
PURCHASING AND CONTRACTING
ADMINISTRATIVE MANUAL
FI
NANCE DEPARTMENT - PURCHASING UNIT
AUGUST 2025
Ap
proved by: Armando Villa, City Manager
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Table of Contents
1. Introduction
1.1 Purpose
1.2 Scope
1.3 Purchasing Ordinance Resolution
2. Purchasing Authority & Execution of Contracts
2.1 Designated Purchasing Agents
2.2 Purchasing Approval
2.3 Execution of Legally Binding Documents
2.4 Execution Procedures and Routing
3. Purchasing Approval Levels & Bidding Requirements
3.1 Approval Authority by Dollar Amount
3.2 Procurement Categories
3.3 Competitive Bidding Requirements
3.4 Sole Source, Single Source, Sole Brand
3.5 Exceptions to Bidding Requirements
3.6 Emergency Procurements
4. Requisitions – Authority to Buy
4.1 Requisition Process
4.2 Departmental Responsibilities
5. Invoices – Authority to Pay
5.1 Invoices not associated with PO or Contract
5.2 Invoices associated with PO or Contract
6. Credit Cards
6.1 Credit Card Regulations
6.2 Authorized Users and Threshold Limits
6.3 Allowable and Prohibited Purchases
6.4 Reconciliation and Reporting
Exhibits
A. Standard Purchasing Categories Workflow
B. Standard Purchasing Categories
C. Special and Other Purchasing Categories
D. Exceptions from Competitive Bidding
E. Exceptions from Requisitions/Purchase Orders (POs)
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1. Introduction
1.1 Purpose
The purpose of this Purchasing and Contracting Manual is to provide direction regarding the policies and practices related to the procurement of goods, supplies, equipment, professional services, and general services for the City of Menifee in accordance with the City’s Municipal Code , Chapter 3.12 (the “Purchasing Ordinance”) and City Council’s Resolutions No. 25-1569 and 25-1570, establishing purchasing authority and contract execution authority.
1.2 S
cope
The Purchasing unit within the Finance Department is responsible for the oversight of the purchasing and contracting activities for all City Departments. The City’s Purchasing Ordinance, resolutions, policies, and procedures are in place to ensure that all purchasing and contracting activities are conducted in the most efficient and cost - effective manner for the best interest of the City and its department’s interest, consistent with the best purchasing practices while ensuring compliance with all Federal, State, and Local laws and regulations.
1.3 P
urchasing Ordinance Resolutions
The City Council adopted resolution no. 25 -1569 on April 16, 2025, establishing rules and procedures for the procurement of goods, services, and construction contracts and establishing purchasing authority and contract execution authority . The City Council also adopted resolution no. 25 -1570 on May 7, 2025, directing the City Manager of the City of Menifee or designee to establish a purchasing manual consistent with applicable Federal, State, and Local procurement requirements.
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2. Purchasing Authority & Execution of Contracts
2.1 Designated Purchasing Agents
The City Council and City Manager are vested with the authority and responsibility for the purchase of supplies, equipment, general services, procurement of professional services and disposition of surplus supplies and equipment pursuant to the Purchasing Ordinance.
The
Purchasing Officer, defined in the Purchasing Ordinance, is the designated approval authority for certain procurements identified in this Manual. The Purchasing Officer may delegate their authority to designees, which designees shall be filed in writing with the Finance Department.
The City Council may further authorize the Purchasing Officer, City Manager, or other designee to take further actions not identified in this Manual by subsequent City Council Action. As of the date of this Manual, the City Manager is the Purchasing Office r, pursuant to authority granted by the City Council, including through Resolution No. 1569.
2.2 P
urchasing Approval
The City Council Resolution No. 25 -1569 identified the purchasing approval and execution authority where the City Manager or designee can approve professional services, goods, supplies, equipment, general services , and public projects up to $100,000. Any purchas ing activity above $100,000 would require City Council’s approval. The City Manager or Designee may approve amendment which do not (a) result in an aggregate amendment or change order amount over $100,000, (b) result in an aggregate percent increase of 10% or more of the total contract amount, and/or (c) result in an extension to the term of more than 120 days. In accordance with Resolution No. 21 -1073 approved at the September 15, 2021, City Council meeting, the City Manager is authorized to execute professional services agreements and subsequent amendments between the city and the approved environmental firms to provide on-call environmental and planning consulting services for privately funded development projects for compliance with California Environmental Quality Act (CEQA), even if such amount exceed the $100,00 threshold. Department heads are authorized to approve purchases of less than $10,000 subject to approved budgets.
2.3 Ex
ecution of Legally Binding Documents
Only the City Manager, or a designee formally authorized in writing by the City Manager, shall have the authority to execute and sign contracts, agreements, amendments, terms and conditions, or any other legally binding documents on behalf of the City. No other City employee, elected official, or agent is authorized to enter into any binding
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obligation or commit City resources without the express written authorization of the City Manager, regardless of the dollar amount of that document.
Any legally binding document not executed by an authorized person as stated above will be considered null and void. Pursuant to the Purchasing Ordinance, section 3.12.160, all Memoranda of Understanding (MOU), Memoranda of Agreement (MOA), partnerships, and sponsorships are to be presented to City Council for consideration and approval prior to execution, even if there is no fiscal impact on the City. City Manager or delegated designee can execute those agreements upon City Council approval.
2.4 Execution Procedures and Routing
All legally binding documents, including but not limited to contracts, agreements, amendments, terms and conditions, etc. shall be routed through the Purchasing Unit within the Finance Department prior to execution. The Purchasing Unit is responsible for coordinating the proper routing of such documents to ensure that they are reviewed and approved by Finance Department for funding availability and eligibility, the City Attorney’s Office for legal clearance , the Risk Management Division for insurance and liability considerations, and the City Clerk’s Office for official recordkeeping.
No legally binding document shall be presented for signature unless it has completed the required routing and received all necessary reviews and approvals. This procedure ensures compliance with internal controls and promotes consistency, transparency, and legal integrity in the execution of City obligations.
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3. Purchasing Approval Levels & Bidding Requirements
3.1 Approval Authority by Dollar Amount
This administrative policy establishes citywide internal approval thresholds for purchasing activities across all departments within the City of Menifee. Specific approval authority is delegated to designated job titles or functions based on the dollar value of the purchase, contract, or financial commitment.
All purchasing transactions must be approved by an authorized individual whose approval limit meets or exceeds the total amount of the purchase . Department staff must ensure that proper approvals are obtained prior to initiating a requisition or entering into any financial obligation on behalf of the City . These thresholds also apply to purchases made using City -issued credit cards or placing orders directly with vendors and submitting invoices to the accounts payable unit for payment processing , as these limits must be adhered to regardless of the method of payment utilized.
The following table outlines the designated approval levels by job title/function and indicates the Purchase Order (PO) requirements . Department Heads shall designate these functional roles to their departmental staff based on the operational needs.
Level / Title Approval Level
PO / Contract Requirement
Goods, Supplies,
Equipment
Professional Services,
General Services,
Public Works
Analyst / Coordinator Up to $1,000 PO and/or
Contract Optional
PO and/or Contract
Required
Financial Analyst / Supervisor $1,001 to $2,500 PO and/or Contract Optional
PO and/or Contract
Required
Manager / Deputy Department
Head / PD Captain $2,501 to $5,000 PO and/or
Contract Optional
PO and/or Contract
Required
Department Head / Chief /
ACM / DCM* $5,000 to $10,000 PO and/or
Contract Optional
PO and/or Contract
Required
City Manager or Official
Designee $10,000 & above Contract Required Contract Required *ACM: Assistant City Manager, DCM: Deputy City Manager
All thresholds apply to the total value of the commitment, including taxes, shipping, and any potential contract extensions or amendments. For Fire Department, Chief of Fire and/or Deputy Fire Marshall can act on the capacity of a Department Head ONLY if the purchase is reviewed and authorized by a City Employee overseeing the Fire Department.
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3.2 Procurement Categories
Under the City’s purchasing guidelines, different categories of procurement are defined to ensure appropriate processes are followed. The main procurement categories are:
Goods, Supplies, Equipment: Refer to tangible items purchased for City operations, such as office supplies, vehicles, tools, or technology hardware. These should always be awarded to the lowest bid if bidding requirements are triggered.
General Services: This involves routine or operational services that do not require specialized knowledge, such as janitorial work or equipment rentals.
Public Works Maintenance: This includes routine, recurring, and usual work meant to preserve public facilities in their original condition using public funds, such as painting, landscaping, street sweeping, HVAC servicing, or minor repairs to public roads and/or facilities. This category is subject to prevailing wage and other applicable labor compliance regulations, Department of Industrial Relations (DIR) registration requirements and may also require payment and performance bonds when the contract value exceeds specified thresholds as outlined in the Public Contract Code.
Professional Services: These are specialized services provided by individuals or firms with technical or professional expertise and may require the possession of a professional licensing, such as legal, engineering, finance, architectural, or consulting services, often selected based on qualifications rather than low bid.
Public Projects: This involves construction, alteration, demolition, installation, or major improvement of public infrastructure, including building new facilities, significant renovations, or capital improvement projects. This category is subject to specific Public Contracting Code and bidding requirements in accordance with the California Uniform Public Construction Cost Accounting Act (CUPCCAA) , in addition to the other requirements for prevailing wage and other applicable labor compliance regulations, Department of Industrial Relations (DIR) registration requirements and may also require payment and performance bonds when the contract value exceeds specified thresholds as outlined in the Public Contract Code.
3.3 Competitive Bidding Requirements
In accordance with the Purchasing Ordinance and City Council Resolution No. 25-169, competitive bidding requirements are established to ensure transparency, accountability, and fiscal responsibility in the procurement of goods, services, and public works projects. These requirements apply to all departments and must be followed when the value of a procurement reaches or exceeds specific dollar thresholds.
The competitive process may include informal quotes, formal solicitations such as Request for Information (RFI), Notice Inviting Bids (NIB) , Requests for Proposals (RFP), or Request for Qualifications (RFQ), depending on the nature and estimated cost of the
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purchase. Staff must comply with the appropriate level of competition as triggered by the dollar amount of the proposed purchase.
The following table outlines the competitive bidding thresholds and the corresponding procurement methods required . The amounts shown below are for the aggregate amounts including all optional renewal terms.
Category PO / Contract
Requirement Bidding Requirements
Goods, Supplies, Equipment, General Services (Including Public Works Maintenance) Less than $10,000 PO Optional, Contracts required
only for General Services N/A
$10,001 to $75,000 PO and/or Contract Simplified procurement (3 quotes)
More than $75,000 PO and/or Contract Competitive Formal Bidding (NIB)
Professional Services
Less than $25,000 PO and/or Contract* N/A
$25,001 to $50,000 Contract Simplified procurement
(3 quotes / proposals)
More than $50,000 Contract Formal Solicitation
(RFP or RFQ)
Public Projects (as defined in the Public Contracting Code & CUPCCAA) Less than $75,000 Contract Force Account (City Staff**), negotiated contract
$75,000 to $220,000 Contract Competitive Bidding (Informal NIB)
More than $220,000 Contract Competitive Bidding
(formal NIB)
*In some situations, and depending on the size of the service requested, or the exposure of the City to potential risks, Finance department may waive the contract requirement and issue a PO instead. **If the City chooses to perform the work using its own forces, it must comply with prevailing wage and labor compliance requirements, including tracking and reporting certified payroll.
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3.4 Sole Source, Single Source, Sole Brand
In certain circumstances, competitive bidding may not be feasible due to specific procurement needs. A Sole Source purchase occurs when only one vendor is capable of providing the required goods or services due to unique qualifications, proprietary technology, or the unavailability of comparable alternatives. A Single Source purchase is made when multiple vendors exist, but only one is selected without competition due to specific compatibility, standardization, or operational needs that justify limiting the selection. A Sole Brand specification refers to situations where only one brand meets the technical or performance requirements of the City, although the product may be available through multiple distributors.
All such purchases require submission of written justification on the approved form provided by Finance Department subject to the review and approval in accordance with the City's procurement policies. The form shall demonstrate that the selection is in the best interest of the City. All sole source, single source, and sole brand procurements must comply with the Purchasing Ordinance and the Public Contract Code
3.5 Exceptions to the Bidding Requirements
Certain purchases are exempt from standard competitive bidding requirements and/or the issuance of purchase orders, as outlined in the Purchasing Ordinance, Section
3.12.130 and City Council Resolution No. 25 -1569. These exceptions are provided to ensure operational efficiency in specific situations where competitive bidding is impractical, unnecessary, or not applicable.
Exemptions may include, but are not limited to, utility services, regulatory fees or fees imposed by other government agencies, legal advertising, legal fees, debt services , insurance premiums, claims/settlement payments subject to the appropriate approval level, memberships with professional organizations, intergovernmental agreements, cooperative purchasing agreements, and other categories identified in the resolution or in the purchasing ordinance.
3.6 Emergency Procurements
In cases of emergency, where immediate procurement of goods or services is necessary to prevent disruption of essential City operations, protect public health or safety, or mitigate damage to public property, departments may initiate purchases without foll owing the standard bidding procedures. Emergency purchases may be initiated by a D epartment Director or authorized designee by contacting the Chief Financial Officer or designee providing the nature of the emergency. If approved, the Chief Financial Offic er or designee shall authorize the procurement and cause an emergency purchase order to be issued as soon as possible. All emergency
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procurements must be documented and reported to the City Manager and the Finance Department as soon as practicable to establish eligibility as an emergency procurement and must comply with the provisions of Section 3.12.170 of the Purchasing Ordinance.
Emergency procurements of $50,000 or more must be presented to the City Council for ratification at the earliest available meeting. Emergency procurements on public project must further comply with the Public Contract Code.
Departments are responsible for ensuring that all exceptions are used appropriately and documented in accordance with City policy.
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4. Requisitions – Authority to Buy
4.1 Requisition Process
The requisition process is intended to initiate and support the issuance of a Purchase Order (PO), ensuring that the appropriate purchasing authority is captured and documented in compliance with the City’s procurement policies. While requisitions are not required for purchases under $10,000, departments may choose to submit them optionally if a vendor requests a formal PO or if the department wishes to encumber funds for a specific procurement activity. This practice supports budget monitoring and helps departments better manage their expenditures. POs are also required when utilizing Master on-call agreements.
The requisition approval workflow will follow the approval authority levels for purchases and the bidding requirements as outlined in Sections 3.1 and 3.2 of this policy.
4.2 Departmental Responsibilities
Each department is responsible for ensuring that all procurement activities comply with the City’s purchasing policies and procedures. This includes initiating requisitions when appropriate, providing complete and accurate documentation, securing necessary approvals, and adhering to established purchasing thresholds. Departments must exercise due diligence in vendor selection, price comparison, and scope definition to ensure transparency, accountability, and the responsible use of public funds.
Additionally, departments are expected to plan ahead for their purchasing needs, monitor encumbrances and expenditures against their budgets, and maintain clear records to support audits and financial reporting.
All requisitions must include complete and accurate backup documentation, such as quotes, scopes of work, contracts, sole source / single source / sole brand signed justification letters or other supporting materials, along with relevant notes to provide clear justification and context for the purchase request.
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5. Invoices – Authority to Pay
5.1 Invoices not associated with PO or Contract
The invoice approval process serves as the City's after -the-fact authority to pay for goods or services that have already been received. When an invoice is not associated with a Purchase Order (PO) or an executed contract, it indicates that the purchase was not pre-authorized or pre -approved through the standard procurement process. As a result, to ensure appropriate oversight and accountability , the a pproval authority for such invoices must follow the designated levels based on dollar amount, as outlined in the applicable approval authority sections of this policy, 3.1 and 3.2.
Level / Title Approval Level
PO / Contract Requirement
Goods, Supplies,
Equipment
Professional Services,
General Services,
Public Works
Analyst / Coordinator Up to $1,000 PO and/or
Contract Optional
PO and/or Contract
Required
Financial Analyst / Supervisor $1,001 to $2,500 PO and/or Contract Optional
PO and/or Contract
Required
Manager / Deputy Department
Head / PD Captain $2,501 to $5,000 PO and/or
Contract Optional
PO and/or Contract
Required
Department Head / Chief $5,000 to $10,000 PO and/or
Contract Optional
PO and/or Contract
Required
City Manager or Official
Designee $10,000 & above Contract Required Contract Required
5.2 Invoices associated with PO or Contract
Invoices that are tied to an established Purchase Order (PO) or an executed contract represent purchases that were properly pre -authorized and approved in accordance with the City’s procurement procedures. Since these transactions have already undergone prior review and authorization through the requisition or contract process, higher dollar thresholds apply for their invoice approval workflows. This streamlined process reflects the reduced risk associated with pre -approved purchases and allows for more efficient payment processing.
Level / Title Approval Level
Analyst / Coordinator Up to $10,000
Financial Analyst / Supervisor $10,001 to $15,000
Manager / Deputy Department Head / PD Captain $15,001 to $25,000 Department Head / Chief $25,001 & above
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6. Credit Cards
6.1 Credit Cards Regulations
In addition to the provisions outlined in this purchasing policy, all credit card use is also subject to the City’s separate, citywide Credit Card Policy. That policy provides additional guidance, rules, and regulations governing the issuance, use, reconciliation, and oversight of credit cards. It includes requirements for monthly statement reviews, receipt submission, prohibited purchase types, spending limits, card security, and consequences for misuse. All cardholders and departments must comply with both this purchasing policy and the citywide Credit Card Policy to ensure full accountability and adherence to the City's financial and procurement standards. All credit card purchases must be pre -approved by the Department Head and may not exceed $10,000 without further approval by the City Manager or City Council, as applicable.
City-issued credit cards are considered a purchasing tool and, as such, all purchases made using a City-issued credit card are subject to the same purchasing requirements, documentation standards, and approval processes outlined in this policy. In addition to this policy, They are intended for small purchases and must be used responsibly and in accordance with the City’s procurement policies. There are 2 types of City issued Credit cards:
Individual Credit Card:
Each Department Head shall designate specific staff members within the department and request from Finance Department to issue individual credit cards to the designated staff based on the operational needs. These authorized cardholders are required to sign a credit card holder agreement, acknowledging their responsibilities and obligations.
Cardholders must ensure that all purchases made with the credit card comply with applicable laws, regulations, and internal policies, including spending limits, documentation requirements, and usage restrictions.
Departmental Generic Credit Card:
In addition to individually issued credit cards, some departments may maintain a departmental generic credit card for shared use among staff. These cards are issued to a specific Card Custodian within a City Department.
To ensure proper controls, any employee requesting to use the departmental card must first complete a Credit Card Pre -Approval Form, which must be signed by the Department Head or designee prior to obtaining the card. For credit cards preapprovals initiated by the Fire Department, the preapproval form must be reviewed and approved by a City employee prior to obtaining the approval from Fire Chief or Fire Marshall or
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their designee. The City employee approving the transaction will follow the above - mentioned threshold according to the approver’s job title. Once approved, the employee may check out the card from the designated Card Custodian. After the purchase is completed, the employee must return the card to the Card Custodian along with the final itemized receipt(s) and any supporting documentation. This process ensures accountability, proper tracking of expenditures, and compliance with applicable City policies.
6.2 Authorized Users and Threshold Limits
Authorized credit card users are subject to the same purchasing authority limits as outlined in Section 3.1 of this policy. These threshold limits govern the maximum dollar amounts cardholders may spend per transaction, based on their role and delegated authority. The Finance Department will ensure that these c redit card limits are capped at the authorized purchasing capacity per transaction. Adhering to these thresholds ensures consistency with the City’s overall procurement framework and maintains proper financial controls over credit card expenditures.
6.3 Allowable and Prohibited Purchases
City-issued credit cards are intended strictly for official City business and must be used responsibly in accordance with all applicable policies. Allowable purchases typically include the following:
• Small-dollar items such as office supplies or materials for field operations. • Approved travel expenses such as training or conference registrations , airline tickets, lodging accommodations, parking, transportation, etc. • Memberships in professional organizations.
• Emergency-related items.
Cardholders should generally avoid using credit cards to purchase from vendors that are already registered with the City and can be paid through the regular accounts payable (AP) process, unless there is a justifiable reason.
Prohibited purchases include the following, and others as specified in the Credi t Card Policy:
• Personal items, alcohol, or gift cards.
• Fuel for City fleet or personal vehicles unless pre-approved. • Cash advances.
• Unauthorized recurring payments or subscriptions.
• Professional services such as consulting, legal, or technical services, as these must be procured through a formal purchase order and paid via the AP process. • Any unapproved or undocumented expenditures.
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Cardholders must ensure that purchases are properly documented, comply with the City’s procurement and credit card policies, and fall within their authorized spending thresholds. Any misuse or deviation from established guidelines may result in disciplinary action, including revocation of credit card privileges.
6.4 Reconciliation and Reporting
Proper reconciliation and reporting are essential components of the City’s credit card program to ensure transparency, accountability, and compliance.
For individually issued credit cards, cardholders are required to complete a monthly reconciliation that includes a detailed list of all charges, appropriate general ledger (GL) account coding for each transaction, and a clear description explaining the bu siness purpose of the purchase. Itemized receipts must be scanned and submitted along with the credit card statement to the Finance Department through the designated financial system by the established deadline. Itemized receipts are detailed proof of purc hase documents that list each item or service purchased, including quantities, unit prices, descriptions, and the total amount paid. These receipts must clearly identify the vendor, date of transaction, method of payment, and provide a breakdown of all charges to support accurate coding, verification, and approval of expenditures.
For meal expenses charged to a City issued credit card, itemized meal receipt must show a detailed breakdown of all food and beverage items purchased, including quantities, individual prices, tips (if any), date, time, and the name and location of the establishment. Credit card slips or summaries showing only the total amount are not sufficient. These receipts are necessary to verify the appropriateness of the expense, ensure compliance with City policies, and support accurate reconciliation and accounting. For further information about meals and travel related expenses on any City issued credit card, refer to City credit card policy.
For departmental generic credit cards, a Credit Card Pre -Approval Form must be completed and approved by Department Head or designee prior to checking out the card from the department’s credit card custodian. For Fire Department Purchases, the pre-approval form must be reviewed and signed by a City employee overseeing the Fire Department before getting the signature of the Chief of Fire or Deputy Fire Marshall.
After completing the purchase, the employee must return the card to the department’s credit card custodian along with original itemized receipts and any additional documentation. All credit card activity must be properly reconciled to maintain compliance with City policies and to support financial reporting and audits.
Item: 6.3
Item Page Number: 18
Menifee Finance Committee September 9, 2025 Page 64 of 125
Exhibits
City of Menifee
Purchasing Threshold & Authority Summary (Effective 6/7/2025) A. Standard Purchasing Categories Workflow (5 Steps)
Quick Tips:
-
- All contracts can only be signed by the City Manager regardless of amount. Contact Purchasing to route. -
- All emergency purchases over $50,000 require City Council approval by ratification (after the fact) Purchases of goods, supplies, or equipment less than $10,000 do not require formal quotes or contracts. These purchases can be approved by the department head if included in an approved budget.
All non-emergency purchases or amendments/change orders over $100,000, over 10% of the aggregate contract amount, or extending the contract longer than 120 days require City Council approval. #1: Determine Purchase Category
(What are you trying to buy?)
#2: Determine Estimated Cost
(What is the total (Cumulative) Cost
(labor, tax, how many year(s)?)
#3: Determine Procurement
Method
(What do you need to do to Purchase?)
#4: Determine Purchase Approver
Who has to approve the Purchase
(Before purchasing)?
#5: Do you need a contract or PO?
Do you need a PO or Contract to move
forward with Purchase?
See Exceptions to
Competitive Bidding for
purchases where
quotes, bidding etc. may
not be required.
See Exceptions from
Purchase Orders for
purchases where no
Purchase
Order/Requisition is
required.
QUICK LINKS TO PURCHASING RESOURCES
(CLICK TITLE TO VIEW):
PURCHASING ORDINANCE (MMC Chapter 3.12)
PURCHASING RESOLUTION (25-1569)
SOLE SOURCE/SINGLE SOURCE FORM
PURCHASING UNIT/TEAM CONTACT
Item: 6.3
Item Page Number: 19
Menifee Finance Committee September 9, 2025 Page 65 of 125
Exhibits
City of Menifee
Purchasing Threshold & Authority Summary (Effective 6/7/2025) B. Standard Purchasing Categories
Category Amount ($) Procurement Method Required Approver PO/Contract Required #1: What Is Being Purchased? #2: What is the total
(Cumulative) Cost?
#3:What do you need to do to Purchase? #4: Who has to approve the Purchase ( Before purchasing)?
#5: Do you need a PO or Contract?
Up to $1,000 Direct Quote, reasonability Analyst/Coordinator Optional, General Services required $1,000 to $2,500 Direct Quote, reasonability Financial Analyst/Supervisor Optional, General Services required $2,500 to $5,000 Direct Quote, reasonability Manager/Deputy Dept. Head/Captain Optional, General Services required $5,000 to $10,000 Direct Quote, reasonability Department Head/Chief/ Assistant City Manager/Deputy City Manager
Optional, General Services required
$10,000 -$75,000 Written Quotes (Solicit/Request at least 3) City Manager PO and/or Contract $75,000 - $100,000 Competitive Sealed Bid City Manager PO and/or Contract $100,000 and Higher Competitive Sealed Bid City Council (Staff Report) PO and/or Contract * Quotes must reflect Prevailing Wage if higher than $1k.
Less than $25,000 Direct Proposal (Cost Reasonability) City Manager Contract $25,000 to $50,000 Simplified Procument (3 Quotes/Proposals) City Manager Contract $50,000 to $100,000 Formal Solicitation (RFP or RFQ) City Manager Contract $100,000 and Higher Formal Solicitation (RFP or RFQ) City Council (Staff Report) Contract Less than $75,000 Force Account (City Staff)** or Negotiated contract
City Manager PO and/or Contract
$75,000 - $220,000 Competitive Bidding (Informal NIB) City Manager up to $100,000; City Council $100,000 and Higher
(Staff Report)
PO and/or Contract
$220,000 and Higher Competitive Bidding (formal NIB) City Council (Staff Report) PO and/or Contract **Requires timesheet records, and must be based on total project cost. Contact Purchasing/Payroll to set up Project Tracking for timesheets.
Up to $50,000 N/A (Emergency Purchase) Chief Financial Officer (CFO) PO and/or Contract $50,000 and Higher N/A (Emergency Purchase) City Council (Ratification/After) PO and/or Contract Contracts can ONLY be executed by the City Manager, regardless of Purchase Category and/or Amount.
Goods, Supplies, Equipment, General
Services, Public Works Maintenance
Services*
Public Projects
(Capital)
California Uniform Public Construction
Cost Accounting Act (CUPCCAA)
Professional Services
Emergency Purchase
(Public Health, Preservation of
Life/Property)
Item: 6.3
Item Page Number: 20
Menifee Finance Committee September 9, 2025 Page 66 of 125
Exhibits
City of Menifee
Purchasing Threshold & Authority Summary (Effective 6/7/2025) C. Special & Other Purchasing Categories
Category Amount ($) Procurement Method Required Approver PO/Contract Required #1: What Is Being Purchased? #2: What is the total
(Cumulative) Cost?
#3:What do you need to do to Purchase? #4: Who has to approve the Purchase ( Before purchasing)?
#5: Do you need a PO or
Contract?
120 Days or Less
Extension
N/A City Manager Change Order/Contract
Amendment
More than 120 Days N/A City Council Change Order/Contract Amendment
Up to $100,000 or 10%
(Contract & All
Amendments)
N/A City Manager Change Order/Contract
Amendment
More than $100,000 or
10% (Contract & All
Amendments)*
N/A City Council Change Order/Contract
Amendment
* Urgent Contract Change Orders exceeding thresholds can be approved by City Manager and City Council by ratification, contact Purchasing for additional detail.
CEQA Professional Services
(including Amendments)
All Amounts Department Policy City Manager Contract/Contract Amendment
Real Property Matters
(Leases, Sales, Grants, or Acquisitions)
All Amounts** Negotiation City Council Contract/Contract Amendment
** Automatic lease renewals and/or optional renewals included in the original lease agreement can be approved by the City Manager.
Memorandum of Understanding (MOU)
and Memorandum of Agreementa (MOA)
All Amounts Negotiation City Council Contract/Contract
Amendment
Contracts can ONLY be executed by the City Manager, regardless of Purchase Category and/or Amount.
Contract Change Orders and/or
Amendments
Item: 6.3
Item Page Number: 21
Menifee Finance Committee September 9, 2025 Page 67 of 125
Exhibits
City of Menifee
Purchasing Threshold & Authority Summary (Effective 6/7/2025) D. Exceptions from Competitive Bidding
(MENIFEE MUNICIPAL CODE: § 3.12.130 EXEMPTION FROM BIDDING UPON DETERMINATION OF PURCHASING OFFICER OR CITY COUNCIL) Additional Steps/Actions (Step #3) Required by Department 1) The product is proprietary. Complete Sole Source/Single Source Form 2) Bidding process completed & no bids received. Contact Purchasing to move forward with memo. 3) Emergency Purchase (Preservation of Life/Property) Contact Purchasing to move forward with memo. 4) Contact Purchasing to move forward with memo.
5) Contact Purchasing to move forward with memo.
6) Obtain specific cooperative purchasing agreement/date from vendor, include/reference in applicable quotes.
7) Complete Sole Source/Single Source Form
8) Complete Sole Source/Single Source Form
9) Complete Sole Source/Single Source Form
10) No additional action required.
11) No additional action required.
12) No additional action required.
13) No additional action required.
14) No additional action required.
15) Follow standard land acquisition process (City Council approval) 16) No additional action required.
17) Follow/complete City's Travel (Pre-Approval) process. 18) Contact Purchasing to move forward with memo.
19) Selection shall be based on the basis of requirements and specific evaluation criteria established by the city which result in the best value to the city. Contact Purchasing to move forward.
Paying all travel- and training-related costs as these are regulated by the city's travel policy.
Used equipment due to the lack of availability of new equipment or better value/cost.
IT supplies, equipment, subscriptions, or services including but not limited to, the acquisitions of software and related services.
Exception Category
Executing legal services contracts.
Debt services and related administrative expenses.
The processing of land and property acquisitions, subject to approval by City Council.
City Manager determines bidding will not result in lowest value.
Sufficient satisfactory bids are not received.
Cooperative/Piggyback Purchasing (federal, state, etc)
Payment of membership dues with professional organizations.
The commodity is unique, including, but not limited to, acquisition of data processing, telecommunications and word processing equipment, goods and services.
The product or service can be obtained from only one vendor (sole source).
The purchase of a specific brand name, make or model is necessary to match existing city equipment or facilitate effective maintenance and support or maintain consistency.
The purchase is from a utility provided by another government agency.
The fees assessed, services provided, or acquisitions of supplies and/or equipment originate from another government agency.
Legal advertising and noticing in the local newspapers.
Item: 6.3
Item Page Number: 22
Menifee Finance Committee September 9, 2025 Page 68 of 125
Exhibits
City of Menifee
Purchasing Threshold & Authority Summary (Effective 6/7/2025) E. Exceptions from Requisitions/Purchase Orders (POs)
(RESOLUTION NO. 25-1569 (PAGE 5))
1) Utilities and all related fees. No additional action required. 2) Lease and rental payments from executed lease/rental agreements. No additional action required. 3) Regulatory Fees. No additional action required.
4) Legal Advertising Fees. No additional action required. 5) Debt Service. No additional action required.
6) Insurance Premiums, Claims/settlements No additional action required. (subject to separate City policy)
7) Travel/Training No additional action required.
(subject to separate City policy)
8) Fees, services, acquisitions from other govt. agencies No additional action required. 9) Down Payment Assistance approved grants/loans. No additional action required. 10) Professional memberships No additional action required. 11) Goods, Supplies, General Services, less than $10k total.
Additional Steps/Actions (Step #5) Required by DepartmentException Category The following goods, supplies, and services are exempt from Purchase Requisitions (PO), requirements, and will be processed for payment as direct payment through (AP) or other applicable method.
Determine department approver based on amount, and
moved forward with purchase. General Services require a contract
Item: 6.3
Item Page Number: 23
Menifee Finance Committee September 9, 2025 Page 69 of 125
CITY OF MENIFEE
SUBJECT: Consideration to Establish Section 115 Trust
MEETING DATE: September 9, 2025
TO: Finance Committee
PREPARED BY: Margarita Cornejo, Deputy Finance Director REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------
RECOMMENDED ACTION
1. Review and provide input on consideration of establishing a Section 115 Trust.
DISCUSSION
In its overall financial management, the City proactively assesses and strives for both short-term and long-term financial resilience and stability. For public agencies, unfunded pension and retiree medical (also known as Other Post-Employment Benefits (OPEB)) can often represent significant long-term financial liabilities. Governmental Accounting Standards Board (GASB) No. 68, Accounting and Financial Reporting for Pensions and GASB No. 75, Accounting and Financial Reporting for Post-Employment Benefits Other Than Pensions, require public agencies to recognize its net pension liability and OPEB liability as part of the Annual Comprehensive Financial Report (ACFR) to reflect the significance of these liabilities relative to an agency’s overall financial position.
To address and alleviate larger pension and OPEB liabilities, public agencies have the opportunity to set up a Section 115 Trust. A Section 115 Trust is a tax-exempt investment tool for cities to prefund essential government expenses (i.e., retirement plan benefits). Since these trust assets are designated for essential government expenses, they are exempt from state-mandated investment restrictions placed on the City’s internally managed portfolio. As a result, the City can earn a long-term rate of return greater than what it would attain through its investment pool.
Funds placed in a Section 115 Trust can remain in the Trust until the City chooses to draw down its assets to pay annual benefit obligations. To remain tax-exempt, assets held in a Section 115 Trust are designated as irrevocable, meaning they must be used to fund the City’s pension or OPEB obligations. Therefore, withdrawals from the trust may be made to reimburse the City for current and/or previous year’s payments or to pay pension or OPEB costs directly.
Item: 6.4
Item Page Number: 1
Menifee Finance Committee September 9, 2025 Page 70 of 125
City of Menifee Staff Report
Consideration to Establish Section 115 Trust
September 9, 2025
2 9
3 0
Unfunded Pension Liability
The City’s Unfunded Pension Liability is defined as the difference, or gap, between the total estimated current cost of future pension benefits owed to employees and the actual amount of money currently set aside in the City’s pension fund to pay for those benefits. Since incorporation, the City provides retirement benefits to employees as part of the California Public Employees’ Retirement Systems (CalPERS). The City does not participate in social security. As part of the personnel costs included within the adopted operating budget, the City includes the associated employer portion of retirement benefits. The overall CalPERS pension retirement program, which includes the City’s plan, is heavily impacted by factors like investment returns, increasing retirees, and fewer workers. Historically, the City has been able to pay off its unfunded pension liability in a year-to-year basis. However, as the City’s workforce expands and the annual pension contributions also increase, the City should strategize ways to mitigate sharp increases in its annual unfunded pension costs. Exploring a Section 115 Trust would provide an additional option.
Beginning with FY2024/25, the City established an Assigned Fund Balance for Unfunded Pension Liability. As each fiscal year closes out, the City reviews the opportunity to continue to contribute to this Assigned Fund Balance, as a measure to address any sudden increases on pension liability from year to year. In consideration of establishing a Section 115 Trust, staff would recommend moving a portion of the current Assigned Fund Balance Unfunded Pension Liability. This would formally and fully commit the funds into trust, which as previously indicated could be used to pay annual benefit obligations.
OPEB
The City of Menifee provides certain medical benefits to eligible retirees. To be eligible to receive the benefits, retirees must have retired directly from the City with a service or disability retirement.
State law requires a minimum employer contribution towards retiree medical for cities using CalPERS as their employee medical plan benefit provider, pursuant to the Public Employees’ Medical & Hospital Care Act (PEMHCA). The City of Menifee currently provides the state minimum contribution per employee of $117.75 in 2024.
At present, public agencies have two options for covering OPEB costs. One option is known as “pay-as-you-go,” where the employer makes the required insurance premium payments for its retirees as they are due using the current year’s operating budget. This is the City’s current method of payment. The other option is “pre-funding,” where funds are set aside in a dedicated trust account. Establishing and funding an OPEB trust ensures that an employer can meet its future obligations while leveraging higher yields to decrease the amount to be paid by the City’s General Fund.
GASB 75 requires agencies to account for and disclose their OPEB costs for all active and retired employees. As of the most recent valuation (June 2024) the City's Net OPEB Liability is $3,383,027 for benefits already earned. Without a plan to address the City's OPEB Liability, this amount will continue to grow. The California Policy Center publishes a Local Fiscal Health Dashboard. While the City scores a 90 out of 100 with an overall assessment of “Low Risk,” the one area where the City fell short was in the category of OPEB Funding where the City scored a grade of “F.” The City would quickly improve its overall score dramatically with the establishment and funding of a Section 115 Trust for OPEB.
Item: 6.4
Item Page Number: 2
Menifee Finance Committee September 9, 2025 Page 71 of 125
City of Menifee Staff Report
Consideration to Establish Section 115 Trust
September 9, 2025
2 9
3 0
Benefits of a Section 115 Trust:
Contributions placed in a Section 115 Trust Fund grow at the rate of interest of the trust fund investments which is generally much higher than a city’s general fund investments. This increased rate of return increases assets available to fund pension liabilities and retiree health care. The participation of Section 115 Trust funds has grown significantly, with public agencies of different sizes and structures seeking to manage these longer-term liabilities. Another benefit of a Section 115 Trust is that so long as the contributions and withdrawals are managed in compliance with IRS requirements, the capital gains in the OPEB trust fund are not taxed.
Recognizing the benefits of establishing a Section 115 Trust, staff recommends the City Council consider establishing its own Section 115 Trust and seeks input and feedback from the Finance Committee to move forward.
FISCAL IMPACT
There is no fiscal impact associated with the discussion of potentially forming a Section 115 Trust.
Ultimately, if the City elects to move forward with establishing a Section 115 Trust, an analysis and procurement process of options, including any associated costs would be completed and presented for City Council consideration.
ATTACHMENTS
None.
Item: 6.4
Item Page Number: 3
Menifee Finance Committee September 9, 2025 Page 72 of 125
CITY OF MENIFEE
SUBJECT: City of Menifee Annual Cash & Investment Overview MEETING DATE: September 9, 2025
TO: Finance Committee
PREPARED BY: Ann-Marie Etienne, Finance Manager
REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------
RECOMMENDED ACTION
1. Receive and file presentation on City of Menifee’s Annual Cash & Investment Overview for the July 1, 2024 to June 30, 2025 period.
DISCUSSION
The City of Menifee’s Investment Policy, CC-11, was created in 2008 and is reviewed/updated annually with the purpose to establish guidelines for investment operations of the City. Pursuant to the policy, the City of Menifee will foster a prudent and systematic investment program designed to seek the City of Menifee’s objectives of safety, liquidity, and return through a diversified investment portfolio. The treasury responsibilities of the City are managed by the Finance Department, under direction and oversight of the CFO/City Treasurer, and within the Accounting and Treasury unit. In its treasury operations, the City maintains its cash assets within three main categories:
1.General Checking/Savings Accounts: (Most Liquid/Accessible, no investment returns). The General Checking is not an interest-bearing account. At the end of Fiscal year 2025, Deposits averaged $16.8 million while withdrawals averaged $16.04 million. The City’s savings account received an annual percentage yield of 0.09% monthly and at June 30, 2025 was at a balance of $47,891.79. The City also maintains a separate asset forfeiture account established in 2020 to deposit and manage any funds taken into custody under asset forfeiture by the police department. The balance in this account at June 30, 2025, was $74,880.98.
2.Short-Term Investment Pools (LAIF/CAMP) (Second most liquid, accessible within 24 hour turnaround. Provide opportunity for investment returns and more accessibility to funds than longer term investments, but interest rates can quickly change with economic changes). Over Fiscal Year 2024/25 the monthly average balance of short- Item: 6.5
Item Page Number: 1
Menifee Finance Committee September 9, 2025 Page 73 of 125
City of Menifee Staff Report
City of Menifee Annual Cash & Investment Overview
September 9, 2025
2 9
4 8
term investments represented approximately $98 million, with investment returns of just over $4.8 million for the FY2024/25 period.
3.Longer-Term Investment Portfolio (Managed by Chandler Asset Management) (Least Liquid/Accessible, generally covering investment periods of 2-5 years, but provide the opportunity to lock in favorable interest rates/earnings). Over Fiscal Year 2024/25 the monthly average balance of long-term investments represented approximately $131 million with investment returns of just over $5 million for the FY2024/25 period.
Additionally, the City has other funds and associated investments held by Wilmington Trust.
These are related to the various bonded Community Facility Districts (“CFD”s), as well as debt service payments of the TRIP and Streetlight Retrofit projects. The bonded CFDs which hold larger balance particularly at the initial bond issuance(s) have designated investment options selected at the establishment of the various accounts held by Wilmington Trust.
Overall, the City’s cash management and investment strategy is to ensure that it has immediate access to the necessary cash it needs to support its on-going operational and capital program costs throughout the year, but that it also is able to safely and proactively invest some its cash holdings, providing interest earnings that can ultimately be redirected into providing city services and capital projects.
FY2024/25 Investment Portfolio Performance Summary:
Monthly reporting in the form of a Treasurer’s Report is presented at the City Council meetings throughout the year. Additionally, every three months a more comprehensive Quarterly Report with detailed transactions is included as a regular City Council agenda item.
The purpose of this report is to provide a year long (12-month) lookback at the City’s investment portfolio for Fiscal Year 2024/25. In summary, the City’s investment portfolio maintained compliance with the requirements of the Investment Policy, and investment earnings performed strongly through the past 12 months. This is attributable to important factors such as the consolidation of the City’s Longer-Term Investment Portfolio under one investment advisor beginning with the spring of 2024, additional contributions to increase both short-term investment balances throughout the year, and an overall favorable interest rate environment in both short- term and longer-term investments over this period. Of note is that in this time period the short- term investment return rates were strong, but the agency recognizes these rates are more susceptible to quicker changes resulting from economic uncertainties and changes.
Item: 6.5
Item Page Number: 2
Menifee Finance Committee September 9, 2025 Page 74 of 125
City of Menifee Staff Report
City of Menifee Annual Cash & Investment Overview
September 9, 2025
2 9
4 8
TABLE 1: FY 2025 OVERALL INVESTMENT PORTFOLIO PERFORMANCE SUMMARY:
SHORT-TERM
Investment
Portfolio
Investment
Type/
Investment
Category
Beginning
Market Value
07/01/2024
Ending Market
Value
06/30/2025
Investment
Returns
(Cash
Dividends/
Interest)
Monthly Interest
Earnings Rate (%)
Range
CAMP Pool/
Short-Term $77,125,117.40 $87,788,589.54 $3,914,194.76 4.40 – 5.43% LAIF Pool/
Short-Term 11,250,317.08 35,871,155.71 887,571.62 4.269 – 4.579% Total Short-Term
Investments $88,375,434.48 $123,659,745.25 $4,801,766.38 TABLE 2: FY 2025 OVERALL INVESTMENT PORTFOLIO PERFORMANCE SUMMARY:
LONGER-TERM
Investment
Portfolio
Investment
Type/
Investment
Category
Beginning
Market Value
07/01/2024
Ending Market
Value
06/30/2025
Investment
Returns
Average Market
Yields
Chandler
Asset
Management
Longer-Term $127,474,840 $135,360,677 $5,002,245.64 3.91% - 4.47% The City’s long-term investment portfolio is organized into a single portfolio and is managed with the support of Chandler Asset Management. Chandler supports the long-term investment goals of the City while effectively ensuring the portfolio remains in compliance with the City’s Investment Policy, CA Government Code and any other applicable investment rules/laws.
A presentation on the City’s longer-term investment performance for FY 2025 has been prepared by Chandler Asset Management and is presented to the Finance Committee for receipt and file.
FISCAL IMPACT
There is no fiscal impact associated with the recommended action.
ATTACHMENTS
1. Chandler Asset Management Investment Portfolio Review Item: 6.5
Item Page Number: 3
Menifee Finance Committee September 9, 2025 Page 75 of 125
INVESTMENT REPORT
City of Menifee | As of June 30, 2025
CHANDLER ASSET MANAGEMENT | chandlerasset.com
Chandler Team:
For questions about your account, please call (800) 317-4747, or contact [email protected]
Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement.
Item: 6.5
Item Page Number: 4
Menifee Finance Committee September 9, 2025 Page 76 of 125
TABLE OF CONTENTS
ECONOMIC UPDATE
ACCOUNT PROFILE
PORTFOLIO HOLDINGS
TRANSACTIONS
1 Item: 6.5
Item Page Number: 5
Menifee Finance Committee September 9, 2025 Page 77 of 125
ECONOMIC UPDATE
2 Item: 6.5
Item Page Number: 6
Menifee Finance Committee September 9, 2025 Page 78 of 125
▪
▪
▪
Recent economic data suggest slower growth in 2025 and greater market uncertainty as the effects of fiscal policy unfold. Inflationary trends have subsided, but core levels remain above the Fed’s target, and tariff impacts remain uncertain. The labor market is exhibiting a softening trend. Given the economic outlook, we expect gradual normalization of monetary policy and a steepening yield curve.
As broadly anticipated, the Federal Open Market Committee (FOMC) left the Federal Funds Rate unchanged at the range of 4.25 - 4.50% at the July meeting. Fed governors Waller and Bowman dissented in favor of a rate cut, marking the first time since 1993 that two members have dissented. Chair Powell reaffirmed a cautious, data driven approach, emphasizing that future policy decisions will depend on economic and trade developments.
US Treasury yields rose, and the curve flattened in July. The 2-year Treasury yield jumped 24 basis points to 3.96%, the 5-year Treasury increased 18 basis points to 3.97%, and the 10-year Treasury yield rose 15 basis points to 4.38%. The spread between the 2-year and 10- year Treasury yield points on the curve narrowed to +42 basis points at July month-end versus +51 basis points at June month-end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was -23 basis points. The spread between the 3-month and10- year Treasury yield points on the curve was +4 basis points in July versus -7 basis points in June.
ECONOMIC UPDATE
3 Item: 6.5
Item Page Number: 7
Menifee Finance Committee September 9, 2025 Page 79 of 125
-400
-200
0 200
400
600
800
1,000MOM Change In Thousands (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3-month average (000's)
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
The U.S. economy added 73,000 jobs in July, and the last two months were revised down by 258,000. Gains were primarily driven by healthcare and social assistance. The three-month moving average and six-month moving average payrolls totaled 35,000 and 81,000 respectively. The unemployment rate rose to 4.2% in July from 4.1% in June, due to a shrinking labor force. The labor participation rate dipped to 62.2%, remaining below the pre-pandemic level of 63.3%. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons jumped to 7.9% in July from 7.7% in June. Average hourly earnings increased to 3.9% year-over-year from 3.8% last month.
Source: US Department of Labor Source: US Department of Labor
EMPLOYMENT
4 Item: 6.5
Item Page Number: 8
Menifee Finance Committee September 9, 2025 Page 80 of 125
0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
Job Openings
Recession
Historical Average
In Thousands (000's)
The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) fell to 7.4 million new job openings in June from 7.7 million in May. The quits rate and layoffs remained relatively stable. Job openings indicate a ratio of approximately 1.1 jobs for each unemployed individual, representing a relatively balanced labor market.
Source: US Department of Labor
JOB OPENINGS & LABOR TURNOVER SURVEY
5 Item: 6.5
Item Page Number: 9
Menifee Finance Committee September 9, 2025 Page 81 of 125
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YOY (%) Change
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY % Change
PCE Core Deflator YOY % Change
Fed Target
YOY (%) Change
In July, the Consumer Price Index (CPI) increased 0.2% month-over-month and rose 2.7% year-over-year, while the Core CPI rose 0.3% month-over-month and 3.1% year-over-year. The Personal Consumption Expenditures (PCE) price index increased 0.3% month-over-month and rose 2.6% year-over-yearin June. The Core PCE deflator, which excludes food and energy and is the Fed’s preferred gauge, increased
0.3% month-over-month and 2.8% year-over-year. Although inflation has trended toward the Federal Reserve’s 2% target, the overall impact of tariff policy has not yet fully flowed through to the US economy.
Source: US Department of Labor Source: US Department of Commerce
INFLATION
6 Item: 6.5
Item Page Number: 10
Menifee Finance Committee September 9, 2025 Page 82 of 125
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Retail Sales YOY % Change
YOY (%) Change
Advance Retail Sales increased 0.5% in July after an upwardly revised 0.9% gain in June, in a broad-based advance led by auto sales.
Control group sales, which feed into GDP, also increased by 0.5%. On a year-over-year basis, Retail Sales grew 3.9% in July, following an upward revision to 4.4% in June. The Conference Board’s Consumer Confidence Index roseto 97.2 in July from an upwardly revised 95.2 in June. While consumers became slightly more pessimistic about current employment conditions, future expectations improved. While the consumer has been resilient, rising debt and delinquencies, elevated inflation expectations, and a weakening labor market could pose potential risks to future spending.
0 20
40 60
80 100
120
140
160
Index Level
Consumer Confidence
Recession
Source: US Department of Commerce Source: The Conference Board All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09)
CONSUMER
7 Item: 6.5
Item Page Number: 11
Menifee Finance Committee September 9, 2025 Page 83 of 125
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
Leading Economic Indicators (LEI)
Recession
YOY (%) Change
-1.00
-0.75
-0.50
-0.25
0.00 0.25
0.50 0.75
1.00 Chicago Fed National Activity Index (CFNAI)
Recession
3 Month Average
The Conference Board’s Leading Economic Index (LEI) fell by 0.1% in July, following a 0.3% decline in June. The LEI decreased by 3.6% year-over-year. The Conference Board is expecting economic growth to slow in the second half of 2025 due to consumer pessimism, soft manufacturing new orders, and negative impacts from tariffs. The Chicago Fed National Activity Index (CFNAI) improved slightly to -0.10 in June from an upwardly revised -0.16 in May. The three-month moving average dropped to -0.22 in June from -0.14 in May, indicating below trend growth.
Source: The Conference Board Source: Federal Reserve Bank of Chicago
LEADING INDICATORS OF ECONOMIC ACTIVITY
8 Item: 6.5
Item Page Number: 12
Menifee Finance Committee September 9, 2025 Page 84 of 125
0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
In Thousands of Units
Annualized Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
Housing starts increased 5.2% month-over-month in July to a seasonally adjusted annual rate of 1.428 million units, which surpassed consensus expectations. Starts were up 12.9% from July 2024. The Freddie Mac 30-year fixed rate mortgage averaged approximately
6.7% in July. According to the Case-Shiller 20-City Home Price Index, housing prices rose 2.8% year-over-year in May, compared to 3.4% in April. Limited inventory, elevated mortgage rates, and lack of affordability continue to weigh on the housing market.
Source: US Department of Commerce Source: S&P
-20.0%
-16.0%
-12.0%
-8.0%
-4.0%
0.0%
4.0%
8.0%
12.0%
16.0%
20.0%
24.0%
S&P/Case-Shiller 20 City Composite Home Price Index
Recession
YOY (%) Change
HOUSING
9 Item: 6.5
Item Page Number: 13
Menifee Finance Committee September 9, 2025 Page 85 of 125
40 45
50 55
60 65
70 Institute of Supply Management (ISM) Surveys
ISM Manufacturing ISM Services
EXPANDING
CONTRACTING
The Institute for Supply Management (ISM) Manufacturing index edged downto 48.0 in July from 49.0 in June, indicating a continuation of modest contraction in the sector. Demand weakened and layoffs increased, as firms struggled to manage rising costs. The ISM Services index declined to 50.1 in July from 50.8 in June, with growing concerns about employment and increasing inflationary pressures. A reading over 50 indicates expansion, while a reading under 50 indicates contraction.
Source: Institute for Supply Management
SURVEY BASED MEASURES
10 Item: 6.5
Item Page Number: 14
Menifee Finance Committee September 9, 2025 Page 86 of 125
Components of GDP 9/24 12/24 3/25 6/25
2.5% 2.7% 0.3% 1.0%
0.2% -1.0% 3.9% -3.1%
-0.4% 0.3% -4.6% 5.0%
0.6% 0.3% -0.3% -0.2%
0.3% 0.3% 0.2% 0.3%
3.1% 2.5% -0.5% 3.0%
Personal Consumption Expenditures
Gross Private Domestic Investment
Net Exports and Imports
Federal Government Expenditures
Total
State and Local (Consumption and Gross
Investment)
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Source: US Department of Commerce Source: US Department of Commerce In a sharp rebound from the first quarter, real GDP increasedat an annualized rate of 3.0% in the second quarterof 2025, according to the advance estimate from the Bureau of Economic Analysis. The primary driver of the improvement was the drop in imports following the significant rise in the first quarter in anticipation of higher tariffs. Consumer spending also picked up modestly. The consensus projection calls for 1.0% growth for the third quarter and 1.5% for the full year 2025.
GROSS DOMESTIC PRODUCT (GDP)
11 Item: 6.5
Item Page Number: 15
Menifee Finance Committee September 9, 2025 Page 87 of 125
Source: Federal Reserve Source: Bloomberg
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
Recession
In $ millions
As broadly anticipated, the Federal Open Market Committee (FOMC) left the Federal Funds Rate unchanged at the range of 4.25 - 4.50% at the July meeting. Fed governors Waller and Bowman dissented in favor of a rate cut, marking the first time since 1993 that two members have dissented. Chair Powell reaffirmed a cautious, data driven approach, emphasizing that future policy decisions will depend on economic and trade developments. The monthly redemption capon Treasuries will remain at $5 billion, while the cap on agencies and mortgage-backed securities will be maintained at $35 billion. Since the Fed began its Quantitative Tightening campaign in June 2022, securities holdings have declined by about $2.2 trillion to approximately $6.7 trillion.
FEDERAL RESERVE
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Effective Federal Funds Rate
Recession
Yield (%)
12 Item: 6.5
Item Page Number: 16
Menifee Finance Committee September 9, 2025 Page 88 of 125
Source: Bloomberg Source: Bloomberg
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
US Treasury Yield Curve
Jul-25
Apr-25
Jul-24
Yield (%)
At the end of July, the 2-year Treasury yield was 30 basis points lower, and the 10-Year Treasury yield was 34 basis points higher, year- over-year. The spread between the 2-year and 10-year Treasury yield points on the curve narrowedto +42 basis points at July month-end versus +51 basis points at June month-end. The recent yield curve inversion which began in July 2022 was historically long. The average historical spread (since 2005) is about +99 basis points. The spread between the 3-month and 10-year Treasury yield points on the curve was +4 basis points in July versus -7 basis points in June.
BOND YIELDS
13 Item: 6.5
Item Page Number: 17
Menifee Finance Committee September 9, 2025 Page 89 of 125
ACCOUNT PROFILE
14 Item: 6.5
Item Page Number: 18
Menifee Finance Committee September 9, 2025 Page 90 of 125
OBJECTIVES
Investment Objectives
The City of Menifee's investment objectives, in order of priority, are to provide safety to ensure the preservation of capital in the overall portfolio, provide sufficient liquidity for cash needs and a market rate of return consistent with the investment program.
Chandler Asset Management Performance Objective
The performance objective for the portfolio is to earn a total rate of return through a market cycle that is equal to or above the return on the benchmark index.
Strategy
In order to achieve these objectives, the portfolio invests in high quality fixed income securities consistent with the investment policy and California Government Code. 15 Item: 6.5
Item Page Number: 19
Menifee Finance Committee September 9, 2025 Page 91 of 125
STATEMENT OF COMPLIANCE
City of Menifee | Account #10112 | As of June 30, 2025
Rules Name Limit Actual Compliance
Status Notes
AGENCY MORTGAGE SECURITIES (CMOS)
Max % (MV) 100.0 4.1 Compliant
Max % Issuer (MV; Agencies & Agency CMOs) 25.0 10.7 Compliant Max Maturity (Years) 5.0 4.7 Compliant
ASSET-BACKED SECURITIES (ABS)
Max % (MV; Non Agency ABS & MBS) 20.0 3.7 Compliant
Max % Issuer (MV) 5.0 0.6 Compliant
Max Maturity (Years) 5 4 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant
BANKERS' ACCEPTANCES
Max % (MV) 40.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 180 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Compliant
CERTIFICATE OF DEPOSIT PLACEMENT SERVICE
(CDARS)
Max % (MV) 30.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
COLLATERALIZED BANK DEPOSITS
Max % (MV) 20.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
COLLATERALIZED TIME DEPOSITS (NON-
NEGOTIABLE CD/TD)
Max % (MV) 20.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
COMMERCIAL PAPER
Max % (MV) 25.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 270 0.0 Compliant
16 Item: 6.5
Item Page Number: 20
Menifee Finance Committee September 9, 2025 Page 92 of 125
STATEMENT OF COMPLIANCE
City of Menifee | Account #10112 | As of June 30, 2025
Rules Name Limit Actual Compliance
Status Notes
Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Compliant
CORPORATE MEDIUM TERM NOTES
Max % (MV) 30.0 24.5 Compliant
Max % Issuer (MV) 5.0 1.4 Compliant
Max Maturity (Years) 5 4 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant
FDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE
CD/TD)
Max % (MV) 20.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
FEDERAL AGENCIES
Max % (MV) 100.0 14.6 Compliant
Max % Issuer (MV; Agencies & Agency CMOs) 25.0 10.7 Compliant Max Callables (MV) 20.0 11.6 Compliant
Max Maturity (Years) 5 3 Compliant
LOCAL AGENCY INVESTMENT FUND (LAIF)
Max Concentration (MV) 75.0 0.0 Compliant
MONEY MARKET MUTUAL FUNDS
Max % (MV) 20.0 0.5 Compliant
Max % Issuer (MV) 20.0 0.5 Compliant
Min Rating (AAA by 2) 0.0 0.0 Compliant
MORTGAGE -BACKED SECURITIES (NON-AGENCY)
Max % (MV) 20.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (AA by 1) 0.0 0.0 Compliant
MUNICIPAL SECURITIES (CA, LOCAL AGENCY)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
17 Item: 6.5
Item Page Number: 21
Menifee Finance Committee September 9, 2025 Page 93 of 125
STATEMENT OF COMPLIANCE
City of Menifee | Account #10112 | As of June 30, 2025
Rules Name Limit Actual Compliance
Status Notes
Min Rating (A- by 1) 0.0 0.0 Compliant
MUNICIPAL SECURITIES (CA, OTHER STATES)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant
MUTUAL FUNDS
Max % (MV) 20.0 0.0 Compliant
Max % Issuer (MV) 10.0 0.0 Compliant
Min Rating (AAA by 2) 0.0 0.0 Compliant
NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1 if > FDIC Limit) 0.0 0.0 Compliant
REPURCHASE AGREEMENTS
Max Maturity (Years) 1.0 0.0 Compliant
SUPRANATIONAL OBLIGATIONS
Max % (MV) 30.0 5.0 Compliant
Max % Issuer (MV) 10.0 3.8 Compliant
Max Maturity (Years) 5 4 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant
U.S. TREASURIES
Max % (MV) 100.0 47.6 Compliant
Max Maturity (Years) 5 4 Compliant
18 Item: 6.5
Item Page Number: 22
Menifee Finance Committee September 9, 2025 Page 94 of 125
PORTFOLIO CHARACTERISTICS
City of Menifee | Account #10112 | As of June 30, 2025
Benchmark* 6/30/2025
Portfolio
6/30/2024
Portfolio
Average Maturity (yrs) 2.65 2.89 2.71
Average Modified Duration 2.48 2.49 2.40
Average Purchase Yield 4.05% 3.34%
Average Market Yield 3.78% 4.01% 4.91%
Average Quality** AA+ AA AA+
Total Market Value 135,360,677 127,474,840
*Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 19 Item: 6.5
Item Page Number: 23
Menifee Finance Committee September 9, 2025 Page 95 of 125
SECTOR DISTRIBUTION
City of Menifee | Account #10112 | As of June 30, 2025
Sector as a Percentage of Market Value
Sector 06/30/2025 06/30/2024
US Treasury 47.64% 45.51%
Corporate 24.50% 23.42%
Agency 14.60% 24.86%
Supras 5.03% 1.38%
Agency CMBS 4.06% 3.14%
ABS 3.70% 0.90%
Money Mkt Fd 0.47% 0.69%
Cash 0.00% 0.11%
20 Item: 6.5
Item Page Number: 24
Menifee Finance Committee September 9, 2025 Page 96 of 125
ISSUERS
City of Menifee | Account #10112 | As of June 30, 2025
Issuer Investment Type % Portfolio
Government of The United States US Treasury 47.64%
Federal Home Loan Banks Agency 10.76%
FHLMC Agency CMBS 4.06%
Farm Credit System Agency 3.84%
International Bank for Recon and Dev Supras 3.77%
Bank of America Corporation Corporate 1.35%
JPMorgan Chase & Co. Corporate 1.26%
State Street Corporation Corporate 1.24%
National Rural Utilities Cooperative Corporate 1.22%
Deere & Company Corporate 1.22%
Prologis, Inc. Corporate 1.22%
PACCAR Inc Corporate 1.21%
Public Service Enterprise Group Inco Corporate 1.21%
Toyota Motor Corporation Corporate 1.20%
U.S. Bancorp Corporate 1.20%
BNY Mellon Corp Corporate 1.20%
Honda Motor Co., Ltd. Corporate 1.19%
Inter-American Development Bank Supras 1.19%
Morgan Stanley Corporate 1.17%
Realty Income Corporation Corporate 1.17%
Wells Fargo & Company Corporate 1.14%
AbbVie Inc. Corporate 1.14%
Marsh & McLennan Companies, Inc. Corporate 1.13%
Caterpillar Inc. Corporate 1.05%
Honda Auto Receivables Owner Trust ABS 0.76%
Hyundai Auto Receivables Trust ABS 0.60%
SIMON PROPERTY GROUP, INC. Corporate 0.59%
Ford Credit Auto Owner Trust ABS 0.58%
The Home Depot, Inc. Corporate 0.57%
UnitedHealth Group Incorporated Corporate 0.56%
21 Item: 6.5
Item Page Number: 25
Menifee Finance Committee September 9, 2025 Page 97 of 125
ISSUERS
City of Menifee | Account #10112 | As of June 30, 2025
Issuer Investment Type % Portfolio
Cisco Systems, Inc. Corporate 0.53%
Mercedes-Benz Auto Lease Trust ABS 0.50%
John Deere Owner Trust ABS 0.50%
Federated Hermes, Inc. Money Mkt Fd 0.47%
BMW Vehicle Owner Trust ABS 0.43%
Toyota Auto Receivables Owner Trust ABS 0.31%
Honeywell International Inc. Corporate 0.10%
The PNC Financial Services Group, In Corporate 0.10%
Merck & Co., Inc. Corporate 0.10%
Microsoft Corporation Corporate 0.09%
Apple Inc. Corporate 0.09%
The Charles Schwab Corporation Corporate 0.08%
International Finance Corporation Supras 0.08%
Amazon.com, Inc. Corporate 0.04%
Berkshire Hathaway Inc. Corporate 0.03%
Duke Energy Corporation Corporate 0.03%
Truist Financial Corporation Corporate 0.02%
Costco Wholesale Corporation Corporate 0.01%
Target Corporation Corporate 0.01%
Mercedes-Benz Auto Receivables Trust ABS 0.01%
Northern Trust Corporation Corporate 0.01%
Walmart Inc. Corporate 0.01%
Cash Cash 0.00%
GM Financial Securitized Term ABS 0.00%
TOTAL 100.00%
22 Item: 6.5
Item Page Number: 26
Menifee Finance Committee September 9, 2025 Page 98 of 125
QUALITY DISTRIBUTION
Rating 06/30/2025 06/30/2024
AAA 8.77% 4.30%
AA 66.87% 72.87%
A 21.53% 22.77%
BBB 1.16% --
NA 1.67% 0.06%
Rating 06/30/2025 06/30/2024
AAA 8.56% 76.33%
AA 68.32% 0.11%
A 21.82% 23.28%
BBB 0.02% 0.02%
NA 1.28% 0.26%
Rating 06/30/2025 06/30/2024
AAA 5.83% 3.01%
AA 68.87% 77.98%
A 11.02% 9.84%
NA 14.28% 9.18%
City of Menifee | Account #10112 | As of June 30, 2025
S&P Rating Moody’s Rating Fitch Rating
23 Item: 6.5
Item Page Number: 27
Menifee Finance Committee September 9, 2025 Page 99 of 125
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+
Portfolio 0.6% 0.3% 22.3% 12.7% 21.5% 33.3% 9.4% 0.0% 0.0% ICE BofA 1-5 Year Unsubordinated US Treasury &
Agency Index 0.0% 0.1% 2.6% 34.9% 27.8% 23.4% 11.1% 0.0% 0.0%
DURATION DISTRIBUTION
City of Menifee | Account #10112 | As of June 30, 2025
Portfolio Compared to the Benchmark
24 Item: 6.5
Item Page Number: 28
Menifee Finance Committee September 9, 2025 Page 100 of 125
3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception
TOTAL RATE OF RETURN
City of Menifee 1.51% 6.25% 5.54% 3.72% 1.25% 1.86% 1.84% Benchmark 1.36% 6.06% 5.11% 3.24% 0.92% 1.61% 1.60%
*Periods over 1 year are annualized.
Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending market value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.
INVESTMENT PERFORMANCE
City of Menifee | Account #10112 | As of June 30, 2025
Total Rate of Return : Inception | 02/01/2010
25 Item: 6.5
Item Page Number: 29
Menifee Finance Committee September 9, 2025 Page 101 of 125
PORTFOLIO HOLDINGS
26 Item: 6.5
Item Page Number: 30
Menifee Finance Committee September 9, 2025 Page 102 of 125
HOLDINGS REPORT
City of Menifee | Account #10112 | As of June 30, 2025
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
ABS
43815BAC4 HAROT 2022-1 A3 1.88
05/15/2026 5,811.36 --
4.10%
5,590.02
5,752.80
99.80 4.77%
5,799.59
4.86 0.00%
46.79 Aaa/AAA
NA
0.87 0.07
05602RAD3 BMWOT 2022-A A3 3.21
08/25/2026 1,309.05 05/10/2022
3.63%
1,308.98
1,309.04
99.82 4.56%
1,306.69
0.70 0.00%
(2.35)
Aaa/AAA
NA
1.15 0.14
47787JAC2 JDOT 2022 A3 2.32 09/15/2026 1,035.41 03/10/2022
2.34%
1,035.18
1,035.36
99.72 4.16%
1,032.46
1.07 0.00%
(2.90)
Aaa/NA
AAA
1.21 0.15
362554AC1 GMCAR 2021-4 A3 0.68
09/16/2026 25.20 10/13/2021
0.68%
25.20 25.20
99.84 4.51%
25.16 0.01
0.00%
(0.04)
Aaa/AAA
NA
1.21 0.04
448977AD0 HART 2022-A A3 2.22 10/15/2026 1,631.22 03/09/2022
2.23%
1,631.16
1,631.21
99.83 4.49%
1,628.50
1.61 0.00%
(2.71)
NA/AAA
AAA
1.29 0.07
380146AC4 GMCAR 2022-1 A3 1.26
11/16/2026 307.90 01/11/2022
1.24%
307.87
307.89
99.86 4.72%
307.46
0.16 0.00%
(0.43)
NA/AAA
AAA
1.38 0.04
47800AAC4 JDOT 2022-B A3 3.74 02/16/2027 4,407.77 07/12/2022
3.77%
4,407.35
4,407.65
99.68 4.66%
4,393.50
7.33 0.00%
(14.15)
Aaa/NA
AAA
1.63 0.36
89231CAD9 TAOT 2022-C A3 3.76 04/15/2027 10,104.66 01/09/2023
4.58%
9,936.51
10,035.10
99.70 4.65%
10,074.42
16.89 0.01%
39.32 NA/AAA
AAA
1.79 0.35
47800BAC2 JDOT 2022-C A3 5.09 06/15/2027 11,179.70 10/12/2022
3.29%
11,178.83
11,179.37
100.27
4.59%
11,209.69
25.29 0.01%
30.32 Aaa/NA
AAA
1.96 0.48
58770AAC7 MBART 2023-1 A3 4.51
11/15/2027 17,593.10 01/18/2023
4.56%
17,590.99
17,592.09
100.00
4.56%
17,592.50
35.26 0.01%
0.41 NA/AAA
AAA
2.38 0.51
47800CAC0 JDOT 2023 A3 5.01 11/15/2027 14,143.22 02/22/2023
3.39%
14,140.65
14,141.92
100.30
4.60%
14,185.88
31.49 0.01%
43.95 Aaa/NA
AAA
2.38 0.65
437930AC4 HAROT 2024-2 A3 5.27
11/20/2028 210,000.00 05/14/2024
5.27%
209,974.48
209,980.78
101.20
4.30%
212,510.05
399.64
0.16%
2,529.26
NA/AAA
AAA
3.39 1.16
096919AD7 BMWOT 2024-A A3 5.18
02/26/2029 570,000.00 06/04/2024
5.18%
569,913.42
569,932.79
101.26
4.11%
577,186.56
492.10
0.43%
7,253.77
Aaa/AAA
NA
3.66 1.12
43813YAC6 HAROT 2024-3 A3 4.57
03/21/2029 800,000.00 08/09/2024
4.66%
799,874.32
799,897.91
100.54
4.21%
804,354.16
1,015.56
0.60%
4,456.25
Aaa/NA
AAA
3.72 1.35
58768YAD7 MBALT 2025-A A3 4.61
04/16/2029 670,000.00 05/14/2025
4.66%
669,918.33
669,920.68
101.14
4.13%
677,608.59
1,372.76
0.50%
7,687.91
NA/AAA
AAA
3.79 2.15
89239TAD4 TAOT 2024-D A3 4.4 06/15/2029 405,000.00 10/10/2024
4.51%
404,977.40
404,980.81
100.42
4.15%
406,708.25
792.00
0.30%
1,727.44
Aaa/AAA
NA
3.96 1.44
27 Item: 6.5
Item Page Number: 31
Menifee Finance Committee September 9, 2025 Page 103 of 125
HOLDINGS REPORT
City of Menifee | Account #10112 | As of June 30, 2025
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
34535VAD6 FORDO 2024-D A3 4.61
08/15/2029 775,000.00 11/19/2024
4.66%
774,975.12
774,978.30
101.00
4.08%
782,755.74
1,587.89
0.58%
7,777.43
Aaa/NA
AAA
4.13 1.73
47800DAD6 JDOT 2025 A3 4.23 09/17/2029 635,000.00 03/04/2025
5.09%
634,960.06
634,962.77
100.25
4.16%
636,568.20
1,193.80
0.47%
1,605.43
Aaa/NA
AAA
4.22 2.18
44935CAD3 HART 2025-A A3 4.32 10/15/2029 805,000.00 03/04/2025
4.84%
804,881.26
804,889.11
100.39
4.16%
808,109.39
1,545.60
0.60%
3,220.28
NA/AAA
AAA
4.29 1.98
Total ABS 4,937,548.59 4.81%
4,936,627.14
4,936,960.79
100.73
4.16%
4,973,356.78
8,524.00
3.70%
36,395.99
3.93 1.69
AGENCY
3130AMM33 FEDERAL HOME LOAN BANKS
0.875 06/16/2026 3,500,000.00 05/27/2021
0.88%
3,500,000.00
3,500,000.00
97.03 4.06%
3,396,188.57
1,276.04
2.53%
(103,811.44)
Aa1/AA+
AA+
0.96 0.94
3133EML67 FEDERAL FARM CREDIT BANKS
FUNDING CORP 0.8 06/22/2026 2,500,000.00 06/17/2021
0.89%
2,488,750.00
2,497,811.48
96.83 4.15%
2,420,807.23
500.00
1.80%
(77,004.25)
Aa1/AA+
AA+
0.98 0.95
3130AMWZ1 FEDERAL HOME LOAN BANKS 1.05
06/30/2026 5,000,000.00 06/17/2021
1.05%
5,000,000.00
5,000,000.00
97.11 4.04%
4,855,397.40
145.83
3.62%
(144,602.60)
Aa1/AA+
AA+
1.00 0.97
3130AMT28 FEDERAL HOME LOAN BANKS 1.0
06/30/2026 5,000,000.00 06/07/2021
1.00%
5,000,000.00
5,000,000.00
97.02 4.09%
4,850,754.10
138.89
3.61%
(149,245.90)
Aa1/AA+
AA+
1.00 0.97
3133EP6K6 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.5 03/26/2027 700,000.00 04/24/2024
4.83%
693,700.00
696,255.49
101.11
3.83%
707,788.29
8,312.50
0.53%
11,532.80
Aa1/AA+
AA+
1.74 1.64
3130ATUS4 FEDERAL HOME LOAN BANKS 4.25
12/10/2027 200,000.00 01/30/2023
3.76%
204,274.00
202,149.05
101.10
3.77%
202,206.51
495.83
0.15%
57.47 Aa1/AA+
AA+
2.45 2.30
3130ATS57 FEDERAL HOME LOAN BANKS 4.5
03/10/2028 190,000.00 03/23/2023
3.78%
196,165.50
193,342.90
101.97
3.72%
193,741.68
2,636.25
0.14%
398.78
Aa1/AA+
AA+
2.70 2.49
3133EPGW9 FEDERAL FARM CREDIT BANKS
FUNDING CORP 3.875 04/25/2028 150,000.00 04/24/2023
3.76%
150,753.00
150,424.10
100.16
3.81%
150,240.03
1,065.63
0.11%
(184.07)
Aa1/AA+
AA+
2.82 2.63
3133EPSK2 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.25 08/07/2028 75,000.00 08/17/2023
4.52%
74,100.00
74,438.49
101.23
3.83%
75,919.03
1,275.00
0.06%
1,480.54
Aa1/AA+
AA+
3.10 2.84
3130AWTR1 FEDERAL HOME LOAN BANKS
4.375 09/08/2028 225,000.00 09/12/2023
4.49%
223,860.00
224,270.68
101.97
3.71%
229,423.38
3,089.84
0.17%
5,152.71
Aa1/AA+
AA+
3.19 2.92
3133EPWK7 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.5 09/22/2028 95,000.00 09/27/2023
4.76%
93,915.10
94,297.59
102.15
3.78%
97,046.07
1,175.63
0.07%
2,748.48
Aa1/AA+
AA+
3.23 2.95
28 Item: 6.5
Item Page Number: 32
Menifee Finance Committee September 9, 2025 Page 104 of 125
HOLDINGS REPORT
City of Menifee | Account #10112 | As of June 30, 2025
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
3133EPN50 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.25 12/15/2028 270,000.00 12/18/2023
4.00%
272,999.70
272,078.23
101.62
3.75%
274,367.47
510.00
0.20%
2,289.23
Aa1/AA+
AA+
3.46 3.19
3130AVBD3 FEDERAL HOME LOAN BANKS 4.5
03/09/2029 700,000.00 04/29/2024
4.71%
693,525.00
695,083.53
102.49
3.77%
717,454.45
9,800.00
0.53%
22,370.93
Aa1/AA+
AA+
3.69 3.34
3133ERAK7 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.375 04/10/2029 700,000.00 04/22/2024
4.73%
689,017.00
691,646.14
101.63
3.90%
711,431.41
6,890.63
0.53%
19,785.28
Aa1/AA+
AA+
3.78 3.42
3133ERDH1 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.75 04/30/2029 700,000.00 05/08/2024
4.55%
706,132.00
704,721.34
102.95
3.91%
720,679.93
5,634.03
0.54%
15,958.59
Aa1/AA+
AA+
3.83 3.46
Total Agency 20,005,000.00 1.71%
19,987,191.30
19,996,519.01
98.03 4.02%
19,603,445.54
42,946.09
14.60%
(393,073.47)
1.45 1.37
AGENCY CMBS
3137BLW95 FHMS K-050 A2 3.334 08/25/2025 10,257.11 11/16/2021
1.21%
10,992.74
10,273.99
99.70 4.35%
10,226.31
28.50 0.01%
(47.68)
Aa1/AA+
AAA
0.15 0.15
3137BN6G4 FHMS K-053 A2 2.995 12/25/2025 110,623.10 01/25/2023
4.13%
107,230.94
110,121.80
99.23 4.53%
109,767.32
276.10
0.08%
(354.48)
Aa1/AA+
AAA
0.49 0.38
3137BNGT5 FHMS K-054 A2 2.745 01/25/2026 62,844.90 12/13/2022
4.24%
60,151.89
62,399.29
98.93 4.50%
62,172.25
143.76
0.05%
(227.04)
Aa1/AA+
AAA
0.57 0.51
3137BQYS0 FHMS K-056 A2 2.525 05/25/2026 116,340.37 --
3.93%
112,504.02
115,237.32
98.44 4.37%
114,524.26
244.80
0.09%
(713.06)
Aa1/AA+
AAA
0.90 0.76
3137BSP72 FHMS K-058 A2 2.653 08/25/2026 125,000.00 01/31/2023
4.11%
118,955.08
123,122.52
98.16 4.23%
122,694.08
276.35
0.09%
(428.44)
Aa1/AA+
AAA
1.15 1.07
3137FQXJ7 FHMS K-737 A2 2.525 10/25/2026 125,000.00 02/08/2023
4.29%
117,695.31
122,482.47
97.92 4.22%
122,401.70
263.02
0.09%
(80.77)
Aa1/AA+
AAA
1.32 1.14
3137BUX60CMO FHMS K-062 A2 3.413 12/25/2026 70,000.00 12/12/2022
4.28%
67,716.80
69,182.66
98.79 4.16%
69,151.92
199.09
0.05%
(30.73)
Aa1/AA+
AAA
1.49 1.37
3137BVZ82 FHMS K-063 A2 3.43 01/25/2027 70,000.00 12/12/2022
4.30%
67,711.33
69,149.14
98.81 4.16%
69,168.09
200.08
0.05%
18.95 Aa1/AA+
AAA
1.57 1.36
3137FBU79 FHMS K-069 A2 3.187 09/25/2027 98,136.59 12/15/2023
4.37%
94,153.63
95,801.65
98.15 4.01%
96,320.19
260.63
0.07%
518.54
Aa1/AAA
AA+
2.24 2.06
3137FCJK1 FHMS K-070 A2 3.303 11/25/2027 30,000.00 11/21/2022
4.38%
28,566.80
29,321.08
98.32 4.01%
29,495.13
82.58 0.02%
174.05
Aaa/AA+
AA+
2.41 2.16
29 Item: 6.5
Item Page Number: 33
Menifee Finance Committee September 9, 2025 Page 105 of 125
HOLDINGS REPORT
City of Menifee | Account #10112 | As of June 30, 2025
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
3137FJEH8 FHMS K-081 A2 3.9 08/25/2028 1,500,000.00 05/28/2024
5.00%
1,436,718.75
1,453,172.71
99.55 4.00%
1,493,184.45
4,875.00
1.11%
40,011.74
Aa1/AA+
AAA
3.15 2.89
3137H4BY5 FHMS K-746 A2 2.031 09/25/2028 135,000.00 10/26/2023
5.31%
116,263.48
122,721.06
93.98 4.04%
126,878.59
228.49
0.09%
4,157.53
Aa1/AA+
AAA
3.24 3.02
3137FLMV3 FHMS K-090 A2 3.422 02/25/2029 1,500,000.00 05/30/2024
4.94%
1,405,195.31
1,427,017.65
97.84 4.04%
1,467,575.40
4,277.50
1.09%
40,557.75
Aa1/AAA
AA+
3.66 3.32
3137FMCR1 FHMS K-093 A2 2.982 05/25/2029 992,731.41 09/19/2024
3.82%
957,753.13
963,582.85
96.30 4.05%
956,033.31
2,466.94
0.71%
(7,549.54)
Aa1/AA+
AAA
3.90 3.40
3137HA4B9 FHMS K-751 A2 4.412 03/25/2030 589,000.00 03/27/2025
4.40%
588,424.80
588,454.26
100.99
4.13%
594,809.95
2,165.56
0.44%
6,355.69
Aaa/AA+
AA+
4.73 3.92
Total Agency CMBS 5,534,933.48 4.59%
5,290,034.02
5,362,040.44
98.39 4.07%
5,444,402.96
15,988.39
4.06%
82,362.52
3.31 2.94
CASH
CCYUSD Receivable 1,953.22 -- 1,953.22
1,953.22
1.00 0.00%
1,953.22
0.00 0.00%
0.00 Aaa/AAA
AAA
0.00 0.00
Total Cash 1,953.22
1,953.22
1,953.22
1.00 0.00%
1,953.22
0.00 0.00%
0.00 0.00
0.00 CORPORATE
89788MAA0 TRUIST FINANCIAL CORP 1.2
08/05/2025 30,000.00 02/03/2022
1.85%
29,341.20
29,981.92
99.68 4.54%
29,905.09
146.00
0.02%
(76.83)
Baa1/A-
A-
0.10 0.09
24422EWJ4 JOHN DEERE CAPITAL CORP 4.05
09/08/2025 70,000.00 12/12/2022
4.46%
69,267.10
69,949.38
99.91 4.49%
69,935.65
889.88
0.05%
(13.73)
A1/A
A+
0.19 0.18
594918BJ2 MICROSOFT CORP 3.125
11/03/2025 125,000.00 01/11/2023
4.38%
120,882.50
124,497.87
99.57 4.40%
124,457.32
629.34
0.09%
(40.55)
Aaa/AAA
NA
0.34 0.33
14913R3B1 CATERPILLAR FINANCIAL SERVICES
CORP 4.8 01/06/2026 80,000.00 01/05/2023
4.80%
79,988.80
79,998.15
100.17
4.47%
80,132.93
1,866.67
0.06%
134.78
A2/A
A+
0.52 0.49
037833BY5 APPLE INC 3.25 02/23/2026 100,000.00 12/15/2022
4.28%
96,949.00
99,377.72
99.37 4.24%
99,372.41
1,155.56
0.07%
(5.31)
Aaa/AA+
NA
0.65 0.62
63743HFH0
NATIONAL RURAL UTILITIES
COOPERATIVE FINANCE CORP 4.45
03/13/2026
70,000.00 02/02/2023
4.47%
69,950.30
69,988.96
100.04
4.38%
70,029.40
934.50
0.05%
40.44 A2/A-
A
0.70 0.59
30 Item: 6.5
Item Page Number: 34
Menifee Finance Committee September 9, 2025 Page 106 of 125
HOLDINGS REPORT
City of Menifee | Account #10112 | As of June 30, 2025
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
023135BX3 AMAZON.COM INC 1.0
05/12/2026 60,000.00 05/10/2021
1.09%
59,740.80
59,955.29
97.38 4.11%
58,429.45
81.67 0.04%
(1,525.83)
A1/AA
AA-
0.87 0.84
91324PEC2 UNITEDHEALTH GROUP INC 1.15
05/15/2026 40,000.00 --
1.40%
39,563.60
39,913.28
97.21 4.45%
38,882.26
58.78 0.03%
(1,031.02)
A2/A+
A
0.87 0.85
89236TJK2 TOYOTA MOTOR CREDIT CORP
1.125 06/18/2026 40,000.00 06/15/2021
1.13%
39,982.40
39,996.61
97.05 4.28%
38,821.43
16.25 0.03%
(1,175.18)
A1/A+
A+
0.97 0.94
037833DN7 APPLE INC 2.05 09/11/2026 25,000.00 12/02/2021
1.49%
25,621.00
25,138.78
97.71 4.03%
24,426.75
156.60
0.02%
(712.03)
Aaa/AA+
NA
1.20 1.16
74456QBR6 PUBLIC SERVICE ELECTRIC AND
GAS CO 2.25 09/15/2026 850,000.00 07/29/2024
4.77%
807,126.00
825,666.11
97.76 4.17%
830,938.64
5,631.25
0.62%
5,272.53
A1/A
NA
1.21 1.16
931142ER0 WALMART INC 1.05 09/17/2026 10,000.00 09/08/2021
1.09%
9,981.10
9,995.42
96.64 3.91%
9,664.47
30.33 0.01%
(330.95)
Aa2/AA
AA
1.22 1.18
438516BL9 HONEYWELL INTERNATIONAL INC
2.5 11/01/2026 140,000.00 12/13/2022
4.28%
131,150.60
136,952.36
97.77 4.23%
136,883.96
583.33
0.10%
(68.40)
A2/A
A
1.34 1.29
26442CAS3 DUKE ENERGY CAROLINAS LLC
2.95 12/01/2026 35,000.00 01/13/2022
1.82%
36,755.95
35,444.45
98.37 4.15%
34,429.22
86.04 0.03%
(1,015.23)
Aa3/A
NA
1.42 1.37
87612EBM7 TARGET CORP 1.95 01/15/2027 20,000.00 01/19/2022
1.99%
19,966.00
19,989.46
96.86 4.08%
19,371.90
179.83
0.01%
(617.56)
A2/A
A
1.54 1.48
06051GLE7 BANK OF AMERICA CORP 5.08
01/20/2027 30,000.00 01/17/2023
5.08%
30,000.00
30,000.00
100.27
5.30%
30,079.93
681.57
0.02%
79.93 A1/A-
AA-
1.56 0.53
693475BL8 PNC FINANCIAL SERVICES GROUP
INC 4.758 01/26/2027 135,000.00 01/24/2023
5.18%
134,947.35
134,990.19
100.15
3.10%
135,197.44
2,765.59
0.10%
207.25
A3/A-
A
1.57 0.55
61747YEZ4 MORGAN STANLEY 5.05
01/28/2027 750,000.00 --
5.44%
744,262.05
748,096.71
100.30
5.26%
752,277.70
16,096.88
0.56%
4,180.99
A1/A-
A+
1.58 0.55
46647PBA3 JPMORGAN CHASE & CO 3.96
01/29/2027 400,000.00 04/17/2024
5.71%
388,284.00
396,178.78
99.74 5.31%
398,949.70
6,688.00
0.30%
2,770.91
A1/A
AA-
1.58 0.56
17275RBQ4 CISCO SYSTEMS INC 4.8
02/26/2027 700,000.00 04/30/2024
5.09%
694,694.00
696,889.41
101.21
4.03%
708,488.59
11,666.67
0.53%
11,599.18
A1/AA-
NA
1.66 1.48
808513BY0 CHARLES SCHWAB CORP 2.45
03/03/2027 25,000.00 03/01/2022
2.46%
24,991.70
24,997.71
97.18 4.21%
24,295.59
200.76
0.02%
(702.12)
A2/A-
A
1.67 1.60
02665WFD8 AMERICAN HONDA FINANCE
CORP 4.9 03/12/2027 600,000.00 04/23/2024
5.19%
595,380.00
597,278.99
100.89
4.35%
605,335.32
8,901.67
0.45%
8,056.33
A3/A-
NA
1.70 1.59
084664CZ2 BERKSHIRE HATHAWAY FINANCE
CORP 2.3 03/15/2027 45,000.00 03/07/2022
2.30%
44,991.45
44,997.65
97.49 3.83%
43,870.80
304.75
0.03%
(1,126.85)
Aa2/AA
A+
1.71 1.64
31 Item: 6.5
Item Page Number: 35
Menifee Finance Committee September 9, 2025 Page 107 of 125
HOLDINGS REPORT
City of Menifee | Account #10112 | As of June 30, 2025
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
857477CL5 STATE STREET CORP 4.993
03/18/2027 125,000.00 03/13/2024
4.99%
125,000.00
125,000.00
101.45
4.11%
126,809.04
1,785.69
0.09%
1,809.04
Aa3/A
AA-
1.71 1.53
06051GHT9 BANK OF AMERICA CORP 3.559
04/23/2027 675,000.00 --
4.93%
656,743.45
667,291.10
99.28 5.11%
670,151.07
4,537.73
0.50%
2,859.97
A1/A-
AA-
1.81 0.78
06406RBQ9 BANK OF NEW YORK MELLON
CORP 4.947 04/26/2027 700,000.00 04/23/2024
5.38%
694,316.00
697,675.08
100.46
4.94%
703,245.31
6,252.46
0.52%
5,570.22
Aa3/A
AA-
1.82 0.79
665859AW4 NORTHERN TRUST CORP 4.0
05/10/2027 15,000.00 05/05/2022
4.03%
14,975.70
14,992.44
99.88 4.07%
14,981.66
85.00 0.01%
(10.78)
A2/A+
A+
1.86 1.76
22160KAM7 COSTCO WHOLESALE CORP 3.0
05/18/2027 20,000.00 07/15/2022
3.52%
19,535.80
19,819.48
98.53 3.82%
19,705.02
71.67 0.01%
(114.46)
Aa3/AA
NA
1.88 1.80
756109BG8 REALTY INCOME CORP 3.95
08/15/2027 100,000.00 12/13/2022
4.65%
97,097.00
98,679.68
99.43 4.23%
99,426.41
1,492.22
0.07%
746.73
A3/A-
NA
2.13 1.98
828807DE4 SIMON PROPERTY GROUP LP
3.375 12/01/2027 800,000.00 04/24/2024
5.32%
749,536.00
766,088.50
98.19 4.17%
785,516.85
2,250.00
0.59%
19,428.35
A3/A-
NA
2.42 2.29
69371RS31 PACCAR FINANCIAL CORP 4.6
01/10/2028 100,000.00 01/05/2023
4.71%
99,515.00
99,754.84
101.28
4.06%
101,281.90
2,185.00
0.08%
1,527.05
A1/A+
NA
2.53 2.32
89236TKQ7 TOYOTA MOTOR CREDIT CORP
4.625 01/12/2028 80,000.00 01/09/2023
4.64%
79,947.20
79,973.96
101.21
4.12%
80,967.72
1,736.94
0.06%
993.76
A1/A+
A+
2.54 2.32
02665WED9 AMERICAN HONDA FINANCE
CORP 4.7 01/12/2028 130,000.00 01/24/2023
4.52%
131,033.50
130,527.59
100.91
4.32%
131,184.02
2,868.31
0.10%
656.43
A3/A-
A
2.54 2.31
06051GGF0 BANK OF AMERICA CORP 3.824
01/20/2028 75,000.00 01/17/2023
5.51%
71,563.50
73,656.46
99.13 5.07%
74,346.36
1,282.63
0.06%
689.90
A1/A-
AA-
2.56 1.46
808513AU9 CHARLES SCHWAB CORP 3.2
01/25/2028 85,000.00 01/30/2023
4.32%
80,783.15
82,826.70
97.89 4.07%
83,209.67
1,178.67
0.06%
382.97
A2/A-
A
2.57 2.40
46625HRY8 JPMORGAN CHASE & CO 3.782
02/01/2028 70,000.00 01/30/2023
5.34%
67,053.70
68,475.22
99.13 4.94%
69,391.81
1,103.08
0.05%
916.59
A1/A
AA-
2.59 1.50
91324PEP3 UNITEDHEALTH GROUP INC 5.25
02/15/2028 700,000.00 04/18/2024
5.14%
702,464.00
701,677.62
102.64
4.17%
718,497.56
13,883.33
0.54%
16,819.94
A2/A+
A
2.63 2.32
58933YBH7 MERCK & CO INC 4.05 05/17/2028 130,000.00 --
3.98%
130,394.70
130,224.08
100.46
3.88%
130,597.50
643.50
0.10%
373.42
Aa3/A+
NA
2.88 2.61
74340XCG4 PROLOGIS LP 4.875 06/15/2028 1,600,000.00 --
5.26%
1,577,232.00
1,583,615.89
102.01
4.14%
1,632,198.11
3,466.67
1.22%
48,582.22
A2/A
NA
2.96 2.66
74456QBX3 PUBLIC SERVICE ELECTRIC AND
GAS CO 3.65 09/01/2028 800,000.00 04/25/2024
5.20%
752,432.00
765,268.76
98.46 4.17%
787,648.24
9,733.33
0.59%
22,379.48
A1/A
NA
3.17 2.92
32 Item: 6.5
Item Page Number: 36
Menifee Finance Committee September 9, 2025 Page 108 of 125
HOLDINGS REPORT
City of Menifee | Account #10112 | As of June 30, 2025
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
89236TLB9 TOYOTA MOTOR CREDIT CORP
5.25 09/11/2028 1,450,000.00 --
5.15%
1,455,605.50
1,454,192.92
103.18
4.17%
1,496,099.27
23,260.42
1.11%
41,906.35
A1/A+
A+
3.20 2.88
24422EXH7 JOHN DEERE CAPITAL CORP 4.5
01/16/2029 1,550,000.00 --
5.13%
1,509,761.00
1,519,524.51
101.09
4.16%
1,566,926.65
31,968.75
1.17%
47,402.14
A1/A
A+
3.55 3.18
46647PAM8 JPMORGAN CHASE & CO 3.509
01/23/2029 1,250,000.00 --
5.47%
1,169,226.50
1,193,857.69
97.95 4.67%
1,224,428.55
19,250.76
0.91%
30,570.86
A1/A
AA-
3.57 2.38
69371RS80 PACCAR FINANCIAL CORP 4.6
01/31/2029 1,500,000.00 --
5.10%
1,468,515.00
1,476,109.75
101.37
4.18%
1,520,512.97
28,941.67
1.13%
44,403.21
A1/A+
NA
3.59 3.22
91159HJK7 US BANCORP 4.653 02/01/2029 1,600,000.00 --
5.58%
1,550,764.50
1,565,841.84
100.65
4.72%
1,610,379.57
31,020.00
1.20%
44,537.73
A3/A
A
3.59 2.37
06406RBN6 BANK OF NEW YORK MELLON
CORP 4.543 02/01/2029 900,000.00 06/07/2024
5.16%
881,811.00
887,085.95
100.76
4.58%
906,882.78
17,036.25
0.68%
19,796.83
Aa3/A
AA-
3.59 2.37
756109CF9 REALTY INCOME CORP 4.75
02/15/2029 1,450,000.00 --
5.40%
1,410,895.00
1,420,256.63
101.10
4.42%
1,465,926.71
26,019.44
1.09%
45,670.08
A3/A-
NA
3.63 3.17
14913UAJ9 CATERPILLAR FINANCIAL SERVICES
CORP 4.85 02/27/2029 1,300,000.00 --
5.02%
1,290,499.00
1,292,816.51
102.30
4.16%
1,329,962.32
21,717.22
0.99%
37,145.81
A2/A
A+
3.66 3.28
06051GHG7 BANK OF AMERICA CORP 3.97
03/05/2029 1,050,000.00 --
5.58%
992,729.50
1,009,694.30
98.89 4.73%
1,038,383.46
13,431.83
0.77%
28,689.16
A1/A-
AA-
3.68 2.48
02665WFE6 AMERICAN HONDA FINANCE
CORP 4.9 03/13/2029 850,000.00 05/31/2024
5.08%
843,616.50
845,063.48
101.53
4.45%
862,989.51
12,495.00
0.64%
17,926.04
A3/A-
NA
3.70 3.31
637432NS0
NATIONAL RURAL UTILITIES
COOPERATIVE FINANCE CORP 3.7
03/15/2029
1,600,000.00 06/07/2024
5.08%
1,507,712.00
1,528,196.86
98.04 4.27%
1,568,717.86
17,431.11
1.17%
40,521.00
A1/A-
A+
3.71 3.38
437076CW0 HOME DEPOT INC 4.9 04/15/2029 750,000.00 04/19/2024
5.12%
742,725.00
744,461.72
102.60
4.15%
769,471.63
7,758.33
0.57%
25,009.91
A2/A
A
3.79 3.34
61747YFD2 MORGAN STANLEY 5.164
04/20/2029 800,000.00 05/31/2024
5.36%
794,520.00
796,048.23
101.96
4.80%
815,680.12
8,147.64
0.61%
19,631.89
A1/A-
A+
3.80 2.57
857449AE2 STATE STREET BANK AND TRUST
CO 4.782 11/23/2029 1,500,000.00 02/10/2025
4.74%
1,502,820.00
1,502,593.88
102.13
4.24%
1,531,950.92
7,571.50
1.14%
29,357.03
Aa2/AA-
AA
4.40 3.92
95000U3J0 WELLS FARGO & CO 5.198
01/23/2030 1,500,000.00 05/28/2025
4.78%
1,520,880.00
1,520,363.87
102.43
4.74%
1,536,453.02
34,220.17
1.14%
16,089.15
A1/BBB+
A+
4.57 3.16
571748CA8 MARSH & MCLENNAN
COMPANIES INC 4.65 03/15/2030 1,500,000.00 04/24/2025
4.62%
1,502,070.00
1,501,991.06
101.13
4.38%
1,516,917.08
20,537.50
1.13%
14,926.01
A3/A-
A-
4.71 4.07
33 Item: 6.5
Item Page Number: 37
Menifee Finance Committee September 9, 2025 Page 109 of 125
HOLDINGS REPORT
City of Menifee | Account #10112 | As of June 30, 2025
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
00287YDZ9 ABBVIE INC 4.875 03/15/2030 1,500,000.00 06/10/2025
4.55%
1,520,099.99
1,519,864.90
102.40
4.30%
1,535,999.76
25,390.63
1.14%
16,134.86
A3/A-
NA
4.71 4.05
Total Corporate 32,635,000.00 5.06%
32,007,690.09
32,223,786.68
100.81
4.41%
32,891,016.32
460,506.35
24.50%
667,229.64
3.29 2.68
MONEY MARKET
FUND
60934N104 FEDERATED HRMS GV O INST 629,858.18 --
4.21%
629,858.18
629,858.18
1.00 4.21%
629,858.18
0.00 0.47%
0.00 Aaa/AAAm
AAA
0.00 0.00
Total Money Market
Fund 629,858.18 4.21%
629,858.18
629,858.18
1.00 4.21%
629,858.18
0.00 0.47%
0.00 0.00
0.00 SUPRANATIONAL
459058JL8
INTERNATIONAL BANK FOR
RECONSTRUCTION AND
DEVELOPM 0.5 10/28/2025
75,000.00 --
0.59%
74,670.05
74,977.15
98.74 4.43%
74,054.87
65.63 0.06%
(922.29)
Aaa/AAA
NA
0.33 0.32
4581X0DV7 INTER-AMERICAN DEVELOPMENT
BANK 0.875 04/20/2026 75,000.00 04/13/2021
0.97%
74,656.50
74,944.88
97.47 4.11%
73,100.41
129.43
0.05%
(1,844.48)
Aaa/AAA
NA
0.80 0.78
459058KT9
INTERNATIONAL BANK FOR
RECONSTRUCTION AND
DEVELOPM 3.5 07/12/2028
1,300,000.00 06/07/2024
4.56%
1,248,988.00
1,262,176.64
99.26 3.76%
1,290,321.81
21,359.72
0.96%
28,145.18
Aaa/AAA
NA
3.03 2.80
45950KDD9 INTERNATIONAL FINANCE CORP
4.5 07/13/2028 100,000.00 07/06/2023
4.53%
99,889.00
99,932.68
102.12
3.75%
102,118.14
2,100.00
0.08%
2,185.45
Aaa/AAA
NA
3.04 2.76
4581X0DC9 INTER-AMERICAN DEVELOPMENT
BANK 3.125 09/18/2028 120,000.00 11/27/2023
4.55%
112,706.40
115,116.82
98.05 3.77%
117,659.37
1,072.92
0.09%
2,542.55
Aaa/AAA
NA
3.22 3.00
4581X0EN4 INTER-AMERICAN DEVELOPMENT
BANK 4.125 02/15/2029 1,385,000.00 --
4.19%
1,381,426.20
1,382,233.64
101.10
3.80%
1,400,179.30
21,582.92
1.04%
17,945.66
Aaa/AAA
NA
3.63 3.29
459058KL6
INTERNATIONAL BANK FOR
RECONSTRUCTION AND
DEVELOPM 3.625 09/21/2029
1,350,000.00 09/26/2024
3.61%
1,350,850.50
1,350,721.06
99.28 3.81%
1,340,277.19
13,593.75
1.00%
(10,443.86)
Aaa/AAA
NA
4.23 3.84
459058LN1
INTERNATIONAL BANK FOR
RECONSTRUCTION AND
DEVELOPM 3.875 10/16/2029
2,345,000.00 10/08/2024
3.93%
2,338,879.55
2,339,744.32
100.24
3.81%
2,350,512.11
18,930.99
1.75%
10,767.79
Aaa/AAA
NA
4.30 3.89
34 Item: 6.5
Item Page Number: 38
Menifee Finance Committee September 9, 2025 Page 110 of 125
HOLDINGS REPORT
City of Menifee | Account #10112 | As of June 30, 2025
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
Total Supranational 6,750,000.00 3.99%
6,682,066.20
6,699,847.19
99.98 3.81%
6,748,223.19
78,835.35
5.03%
48,375.99
3.78 3.44
US TREASURY
9128286A3 UNITED STATES TREASURY 2.625
01/31/2026 800,000.00 04/25/2024
5.07%
767,375.00
789,175.58
99.08 4.24%
792,625.00
8,759.67
0.59%
3,449.42
Aa1/AA+
AA+
0.59 0.56
91282CJV4 UNITED STATES TREASURY 4.25
01/31/2026 800,000.00 04/18/2024
5.04%
789,312.50
796,492.14
100.00
4.25%
799,968.75
14,182.32
0.60%
3,476.61
Aa1/AA+
AA+
0.59 0.56
9128286F2 UNITED STATES TREASURY 2.5
02/28/2026 800,000.00 --
4.88%
765,630.86
788,080.92
98.90 4.19%
791,187.50
6,684.78
0.59%
3,106.58
Aa1/AA+
AA+
0.67 0.65
91282CKB6 UNITED STATES TREASURY 4.625
02/28/2026 800,000.00 04/18/2024
5.01%
794,500.00
798,042.65
100.28
4.19%
802,226.56
12,366.85
0.60%
4,183.91
Aa1/AA+
AA+
0.67 0.64
91282CBT7 UNITED STATES TREASURY 0.75
03/31/2026 4,000,000.00 06/01/2021
0.76%
3,998,750.00
3,999,806.44
97.53 4.13%
3,901,328.12
7,540.98
2.91%
(98,478.32)
Aa1/AA+
AA+
0.75 0.73
91282CKH3 UNITED STATES TREASURY 4.5
03/31/2026 850,000.00 04/17/2024
4.96%
842,828.13
847,250.11
100.27
4.12%
852,324.22
9,614.75
0.63%
5,074.11
Aa1/AA+
AA+
0.75 0.72
91282CKK6 UNITED STATES TREASURY 4.875
04/30/2026 800,000.00 04/24/2024
4.93%
799,125.00
799,636.82
100.63
4.10%
805,000.00
6,570.65
0.60%
5,363.18
Aa1/AA+
AA+
0.83 0.80
91282CHB0 UNITED STATES TREASURY 3.625
05/15/2026 800,000.00 04/23/2024
4.90%
780,187.50
791,610.69
99.63 4.06%
797,031.25
3,703.80
0.59%
5,420.56
Aa1/AA+
AA+
0.87 0.85
91282CHH7 UNITED STATES TREASURY 4.125
06/15/2026 800,000.00 04/22/2024
4.94%
786,781.25
794,108.12
100.12
3.99%
800,984.38
1,442.62
0.60%
6,876.26
Aa1/AA+
AA+
0.96 0.93
91282CHM6 UNITED STATES TREASURY 4.5
07/15/2026 850,000.00 04/29/2024
4.94%
842,164.06
846,315.36
100.53
3.98%
854,474.12
17,645.72
0.64%
8,158.76
Aa1/AA+
AA+
1.04 0.99
91282CHU8 UNITED STATES TREASURY 4.375
08/15/2026 800,000.00 04/23/2024
4.87%
791,375.00
795,805.16
100.43
3.97%
803,468.75
13,149.17
0.60%
7,663.59
Aa1/AA+
AA+
1.13 1.07
91282CCZ2 UNITED STATES TREASURY 0.875
09/30/2026 120,000.00 --
1.08%
118,806.25
119,699.42
96.33 3.92%
115,593.75
263.93
0.09%
(4,105.67)
Aa1/AA+
AA+
1.25 1.22
912828YQ7 UNITED STATES TREASURY 1.625
10/31/2026 200,000.00 01/30/2023
3.82%
184,765.63
194,580.61
97.09 3.89%
194,179.69
547.55
0.14%
(400.93)
Aa1/AA+
AA+
1.34 1.29
912828U24 UNITED STATES TREASURY 2.0
11/15/2026 870,000.00 --
4.58%
812,147.27
841,403.10
97.50 3.88%
848,283.98
2,222.28
0.63%
6,880.88
Aa1/AA+
AA+
1.38 1.33
35 Item: 6.5
Item Page Number: 39
Menifee Finance Committee September 9, 2025 Page 111 of 125
HOLDINGS REPORT
City of Menifee | Account #10112 | As of June 30, 2025
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CJP7 UNITED STATES TREASURY 4.375
12/15/2026 800,000.00 04/18/2024
4.87%
790,250.00
794,652.58
100.75
3.84%
805,968.75
1,530.05
0.60%
11,316.17
Aa1/AA+
AA+
1.46 1.40
91282CJT9 UNITED STATES TREASURY 4.0
01/15/2027 800,000.00 04/22/2024
4.84%
782,968.75
790,382.55
100.24
3.84%
801,906.25
14,762.43
0.60%
11,523.69
Aa1/AA+
AA+
1.54 1.45
912828V98 UNITED STATES TREASURY 2.25
02/15/2027 800,000.00 --
4.57%
748,375.00
772,149.89
97.56 3.81%
780,500.00
6,762.43
0.58%
8,350.11
Aa1/AA+
AA+
1.63 1.56
91282CKJ9 UNITED STATES TREASURY 4.5
04/15/2027 800,000.00 04/16/2024
4.81%
793,125.00
795,892.61
101.25
3.77%
809,968.75
7,573.77
0.60%
14,076.14
Aa1/AA+
AA+
1.79 1.69
91282CKR1 UNITED STATES TREASURY 4.5
05/15/2027 1,250,000.00 04/24/2025
3.83%
1,266,357.42
1,264,896.16
101.32
3.76%
1,266,455.08
7,184.10
0.94%
1,558.92
Aa1/AA+
AA+
1.87 1.77
91282CKV2 UNITED STATES TREASURY 4.625
06/15/2027 1,500,000.00 06/17/2024
4.49%
1,505,683.59
1,503,716.19
101.66
3.74%
1,524,844.50
3,032.79
1.14%
21,128.31
Aa1/AA+
AA+
1.96 1.86
91282CEW7 UNITED STATES TREASURY 3.25
06/30/2027 815,000.00 --
4.43%
786,333.79
797,332.10
99.11 3.72%
807,709.57
71.98 0.60%
10,377.48
Aa1/AA+
AA+
2.00 1.91
91282CFB2 UNITED STATES TREASURY 2.75
07/31/2027 815,000.00 --
4.76%
765,901.95
783,802.98
98.05 3.73%
799,113.87
9,348.86
0.60%
15,310.88
Aa1/AA+
AA+
2.08 1.98
91282CFH9 UNITED STATES TREASURY 3.125
08/31/2027 1,630,000.00 --
4.55%
1,560,182.82
1,583,922.04
98.77 3.72%
1,609,943.36
17,025.31
1.20%
26,021.31
Aa1/AA+
AA+
2.17 2.05
91282CFM8 UNITED STATES TREASURY 4.125
09/30/2027 800,000.00 --
4.54%
790,265.63
793,219.32
100.91
3.70%
807,281.25
8,295.08
0.60%
14,061.93
Aa1/AA+
AA+
2.25 2.11
91282CFU0 UNITED STATES TREASURY 4.125
10/31/2027 1,650,000.00 --
4.51%
1,630,343.75
1,636,312.97
100.91
3.71%
1,665,082.02
11,467.05
1.24%
28,769.06
Aa1/AA+
AA+
2.34 2.19
91282CGC9 UNITED STATES TREASURY 3.875
12/31/2027 850,000.00 04/17/2024
4.75%
824,931.64
833,071.44
100.42
3.70%
853,585.94
89.50 0.64%
20,514.50
Aa1/AA+
AA+
2.50 2.36
91282CMN8 UNITED STATES TREASURY 4.25
02/15/2028 1,500,000.00 02/25/2025
4.08%
1,506,855.47
1,506,064.94
101.35
3.70%
1,520,273.43
23,950.28
1.13%
14,208.49
Aa1/AA+
AA+
2.63 2.43
91282CHA2 UNITED STATES TREASURY 3.5
04/30/2028 815,000.00 --
4.50%
784,646.88
794,168.24
99.46 3.70%
810,574.80
4,805.84
0.60%
16,406.56
Aa1/AA+
AA+
2.84 2.66
91282CHE4 UNITED STATES TREASURY 3.625
05/31/2028 815,000.00 --
4.52%
787,623.25
795,902.57
99.79 3.70%
813,280.86
2,502.34
0.61%
17,378.29
Aa1/AA+
AA+
2.92 2.73
91282CHK0 UNITED STATES TREASURY 4.0
06/30/2028 1,500,000.00 02/10/2025
4.28%
1,486,933.59
1,488,414.80
100.86
3.69%
1,512,890.63
163.04
1.13%
24,475.82
Aa1/AA+
AA+
3.00 2.80
91282CHQ7 UNITED STATES TREASURY 4.125
07/31/2028 790,000.00 --
4.65%
773,639.07
778,425.16
101.21
3.71%
799,535.54
13,593.13
0.60%
21,110.39
Aa1/AA+
AA+
3.08 2.83
36 Item: 6.5
Item Page Number: 40
Menifee Finance Committee September 9, 2025 Page 112 of 125
HOLDINGS REPORT
City of Menifee | Account #10112 | As of June 30, 2025
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CHX2 UNITED STATES TREASURY 4.375
08/31/2028 1,450,000.00 --
4.41%
1,446,986.34
1,448,827.94
101.97
3.71%
1,478,603.51
21,203.29
1.10%
29,775.57
Aa1/AA+
AA+
3.17 2.90
9128285M8 UNITED STATES TREASURY 3.125
11/15/2028 150,000.00 01/17/2024
4.05%
143,970.70
145,783.25
98.13 3.72%
147,199.22
598.68
0.11%
1,415.97
Aa1/AA+
AA+
3.38 3.15
91282CJN2 UNITED STATES TREASURY 4.375
11/30/2028 850,000.00 04/17/2024
4.68%
839,308.59
842,090.76
102.08
3.72%
867,697.26
3,149.76
0.65%
25,606.50
Aa1/AA+
AA+
3.42 3.14
91282CJR3 UNITED STATES TREASURY 3.75
12/31/2028 890,000.00 --
4.59%
858,566.41
866,666.11
100.09
3.72%
890,799.61
90.69 0.66%
24,133.51
Aa1/AA+
AA+
3.50 3.25
91282CJW2 UNITED STATES TREASURY 4.0
01/31/2029 825,000.00 --
4.65%
802,336.91
808,007.21
100.90
3.73%
832,444.34
13,765.19
0.62%
24,437.13
Aa1/AA+
AA+
3.59 3.26
912810FG8 UNITED STATES TREASURY 5.25
02/15/2029 1,550,000.00 --
4.42%
1,603,873.05
1,591,439.47
105.43
3.64%
1,634,160.16
30,571.82
1.22%
42,720.69
Aa1/AA+
AA+
3.63 3.24
91282CKD2 UNITED STATES TREASURY 4.25
02/28/2029 850,000.00 --
4.57%
838,150.40
841,081.80
101.76
3.73%
864,974.61
12,074.39
0.64%
23,892.81
Aa1/AA+
AA+
3.67 3.33
91282CKG5 UNITED STATES TREASURY 4.125
03/31/2029 1,600,000.00 --
4.49%
1,574,437.50
1,580,476.10
101.35
3.73%
1,621,624.99
16,590.16
1.21%
41,148.90
Aa1/AA+
AA+
3.75 3.42
91282CKP5 UNITED STATES TREASURY 4.625
04/30/2029 1,600,000.00 --
4.49%
1,609,593.75
1,607,626.11
103.13
3.74%
1,650,000.00
12,467.39
1.23%
42,373.89
Aa1/AA+
AA+
3.83 3.47
91282CKT7 UNITED STATES TREASURY 4.5
05/31/2029 1,600,000.00 06/20/2024
4.29%
1,614,812.50
1,611,735.11
102.73
3.74%
1,643,624.99
6,098.36
1.22%
31,889.88
Aa1/AA+
AA+
3.92 3.56
91282CEV9 UNITED STATES TREASURY 3.25
06/30/2029 1,500,000.00 07/29/2024
4.10%
1,443,515.64
1,454,082.87
98.17 3.75%
1,472,578.13
132.47
1.10%
18,495.26
Aa1/AA+
AA+
4.00 3.71
91282CKX8 UNITED STATES TREASURY 4.25
06/30/2029 1,600,000.00 09/10/2024
3.45%
1,656,250.00
1,646,848.26
101.86
3.74%
1,629,750.00
184.78
1.21%
(17,098.26)
Aa1/AA+
AA+
4.00 3.65
91282CLC3 UNITED STATES TREASURY 4.0
07/31/2029 1,300,000.00 08/22/2024
3.72%
1,316,402.34
1,313,564.00
100.93
3.75%
1,312,136.72
21,690.61
0.98%
(1,427.28)
Aa1/AA+
AA+
4.08 3.68
91282CFJ5 UNITED STATES TREASURY 3.125
08/31/2029 2,100,000.00 --
3.48%
2,066,046.88
2,071,489.82
97.59 3.76%
2,049,304.70
21,934.44
1.53%
(22,185.12)
Aa1/AA+
AA+
4.17 3.82
91282CLN9 UNITED STATES TREASURY 3.5
09/30/2029 1,350,000.00 12/18/2024
4.26%
1,306,177.73
1,311,046.87
98.99 3.76%
1,336,394.54
11,877.05
1.00%
25,347.67
Aa1/AA+
AA+
4.25 3.88
91282CLR0 UNITED STATES TREASURY 4.125
10/31/2029 2,000,000.00 11/19/2024
4.24%
1,990,234.38
1,991,440.21
101.43
3.76%
2,028,593.76
13,899.46
1.51%
37,153.55
Aa1/AA+
AA+
4.34 3.91
91282CMA6 UNITED STATES TREASURY 4.125
11/30/2029 1,750,000.00 12/09/2024
4.07%
1,754,375.00
1,753,885.94
101.47
3.76%
1,775,704.00
6,114.24
1.32%
21,818.06
Aa1/AA+
AA+
4.42 4.00
37 Item: 6.5
Item Page Number: 41
Menifee Finance Committee September 9, 2025 Page 113 of 125
HOLDINGS REPORT
City of Menifee | Account #10112 | As of June 30, 2025
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CMD0 UNITED STATES TREASURY 4.375
12/31/2029 1,500,000.00 01/28/2025
4.37%
1,500,527.34
1,500,482.44
102.48
3.77%
1,537,207.04
178.33
1.15%
36,724.59
Aa1/AA+
AA+
4.50 4.06
91282CGJ4 UNITED STATES TREASURY 3.5
01/31/2030 1,500,000.00 02/27/2025
4.14%
1,457,812.50
1,460,698.52
98.84 3.78%
1,482,539.07
21,899.17
1.10%
21,840.55
Aa1/AA+
AA+
4.59 4.13
91282CGQ8 UNITED STATES TREASURY 4.0
02/28/2030 1,750,000.00 06/23/2025
3.90%
1,757,587.89
1,757,556.83
100.97
3.77%
1,767,021.48
23,396.74
1.32%
9,464.65
Aa1/AA+
AA+
4.67 4.17
91282CMU2 UNITED STATES TREASURY 4.0
03/31/2030 1,500,000.00 04/15/2025
3.98%
1,501,464.84
1,501,403.33
100.93
3.78%
1,513,945.32
15,081.97
1.13%
12,541.99
Aa1/AA+
AA+
4.75 4.25
91282CMZ1 UNITED STATES TREASURY 3.875
04/30/2030 1,750,000.00 05/28/2025
4.07%
1,734,619.14
1,734,901.59
100.39
3.78%
1,756,835.94
11,424.93
1.31%
21,934.34
Aa1/AA+
AA+
4.83 4.34
91282CNG2 UNITED STATES TREASURY 4.0
05/31/2030 1,500,000.00 06/10/2025
4.08%
1,494,609.38
1,494,668.78
100.97
3.78%
1,514,532.00
5,081.97
1.13%
19,863.22
Aa1/AA+
AA+
4.92 4.42
Total US Treasury 63,685,000.00 4.14%
62,969,825.26
63,250,137.00
100.45
3.81%
63,955,262.05
506,358.99
47.64%
705,125.05
2.94 2.69
Total Portfolio 134,179,293.47 4.05%
132,505,245.41
133,101,102.50
99.62 4.01%
134,247,518.23
1,113,159.18
100.00%
1,146,415.73
2.89 2.49
Total Market Value +
Accrued 135,360,677.42
38 Item: 6.5
Item Page Number: 42
Menifee Finance Committee September 9, 2025 Page 114 of 125
TRANSACTIONS
39 Item: 6.5
Item Page Number: 43
Menifee Finance Committee September 9, 2025 Page 115 of 125
TRANSACTION LEDGER
City of Menifee | Account #10112|07/01/2024 Through 06/30/2025| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/
Sold Total Amount Gain/Loss
ACQUISITIONS
Purchase 07/30/2024 74456QBR6 850,000.00
PUBLIC SERVICE
ELECTRIC AND GAS CO
2.25 09/15/2026
94.956 4.77% (807,126.00) (7,171.88) (814,297.88) 0.00
Purchase 07/30/2024 4581X0EN4 1,250,000.00
INTER-AMERICAN
DEVELOPMENT BANK
4.125 02/15/2029
99.810 4.17% (1,247,625.00) (25,781.25) (1,273,406.25) 0.00 Purchase 07/30/2024 91282CEV9 1,500,000.00
UNITED STATES
TREASURY 3.25
06/30/2029
96.234 4.10% (1,443,515.64) (3,974.18) (1,447,489.82) 0.00 Purchase 08/21/2024 43813YAC6 800,000.00 HAROT 2024-3 A3 4.57 03/21/2029 99.984 4.66% (799,874.32) 0.00 (799,874.32) 0.00 Purchase 08/23/2024 91282CLC3 1,300,000.00
UNITED STATES
TREASURY 4.0
07/31/2029
101.262 3.72% (1,316,402.34) (3,250.00) (1,319,652.34) 0.00 Purchase 09/11/2024 91282CFJ5 1,600,000.00
UNITED STATES
TREASURY 3.125
08/31/2029
98.449 3.47% (1,575,187.50) (1,519.34) (1,576,706.84) 0.00 Purchase 09/11/2024 91282CKX8 1,600,000.00
UNITED STATES
TREASURY 4.25
06/30/2029
103.516 3.45% (1,656,250.00) (13,489.13) (1,669,739.13) 0.00 Purchase 09/20/2024 06051GHT9 300,000.00
BANK OF AMERICA
CORP 3.559
04/23/2027
98.875 4.30% (296,625.00) (4,359.77) (300,984.77) 0.00
Purchase 09/20/2024 91282CFJ5 500,000.00
UNITED STATES
TREASURY 3.125
08/31/2029
98.172 3.53% (490,859.38) (863.26) (491,722.64) 0.00
Purchase 09/24/2024 3137FMCR1 1,000,000.00 FHMS K-093 A2 2.982 05/25/2029 96.477 3.82% (964,765.62) (1,905.17) (966,670.79) 0.00 Purchase 09/27/2024 459058KL6 1,350,000.00
INTERNATIONAL BANK
FOR RECONSTRUCTION
AND DEVELOPM 3.625
09/21/2029
100.063 3.61% (1,350,850.50) (815.63) (1,351,666.13) 0.00 Purchase 10/16/2024 459058LN1 2,345,000.00
INTERNATIONAL BANK
FOR RECONSTRUCTION
AND DEVELOPM 3.875
10/16/2029
99.739 3.93% (2,338,879.55) 0.00 (2,338,879.55) 0.00
40 Item: 6.5
Item Page Number: 44
Menifee Finance Committee September 9, 2025 Page 116 of 125
TRANSACTION LEDGER
City of Menifee | Account #10112|07/01/2024 Through 06/30/2025| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/
Sold Total Amount Gain/Loss
Purchase 10/17/2024 89239TAD4 405,000.00 TAOT 2024-D A3 4.4 06/15/2029 99.994 4.51% (404,977.40) 0.00 (404,977.40) 0.00 Purchase 11/20/2024 91282CLR0 2,000,000.00
UNITED STATES
TREASURY 4.125
10/31/2029
99.512 4.24% (1,990,234.38) (4,558.01) (1,994,792.39) 0.00 Purchase 11/22/2024 34535VAD6 775,000.00 FORDO 2024-D 4.61 08/15/2029 99.997 4.66% (774,975.12) 0.00 (774,975.12) 0.00 Purchase 12/10/2024 91282CMA6 1,750,000.00
UNITED STATES
TREASURY 4.125
11/30/2029
100.250 4.07% (1,754,375.00) (1,983.17) (1,756,358.17) 0.00 Purchase 12/19/2024 91282CLN9 1,350,000.00
UNITED STATES
TREASURY 3.5
09/30/2029
96.754 4.26% (1,306,177.73) (10,384.62) (1,316,562.35) 0.00 Purchase 01/29/2025 91282CMD0 1,500,000.00
UNITED STATES
TREASURY 4.375
12/31/2029
100.035 4.37% (1,500,527.34) (5,257.25) (1,505,784.59) 0.00 Purchase 02/11/2025 857449AE2 1,500,000.00
STATE STREET BANK
AND TRUST CO 4.782
11/23/2029
100.188 4.74% (1,502,820.00) (15,143.00) (1,517,963.00) 0.00 Purchase 02/11/2025 91282CHK0 1,500,000.00
UNITED STATES
TREASURY 4.0
06/30/2028
99.129 4.28% (1,486,933.59) (6,961.33) (1,493,894.92) 0.00 Purchase 02/26/2025 91282CHX2 650,000.00
UNITED STATES
TREASURY 4.375
08/31/2028
100.848 4.11% (655,509.77) (14,061.64) (669,571.41) 0.00 Purchase 02/26/2025 91282CMN8 1,500,000.00
UNITED STATES
TREASURY 4.25
02/15/2028
100.457 4.08% (1,506,855.47) (1,937.15) (1,508,792.62) 0.00 Purchase 02/28/2025 91282CGJ4 1,500,000.00
UNITED STATES
TREASURY 3.5
01/31/2030
97.188 4.14% (1,457,812.50) (4,060.77) (1,461,873.27) 0.00 Purchase 03/11/2025 47800DAD6 635,000.00 JDOT 2025 A3 4.23 09/17/2029 99.994 5.09% (634,960.06) 0.00 (634,960.06) 0.00 Purchase 03/12/2025 44935CAD3 805,000.00 HART 2025-A A3 4.32 10/15/2029 99.985 4.84% (804,881.26) 0.00 (804,881.26) 0.00 Purchase 03/31/2025 3137HA4B9 589,000.00 FHMS K-751 A2 4.412 03/25/2030 99.902 4.40% (588,424.80) (2,165.56) (590,590.36) 0.00 41 Item: 6.5
Item Page Number: 45
Menifee Finance Committee September 9, 2025 Page 117 of 125
TRANSACTION LEDGER
City of Menifee | Account #10112|07/01/2024 Through 06/30/2025| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/
Sold Total Amount Gain/Loss
Purchase 04/16/2025 91282CMU2 1,500,000.00
UNITED STATES
TREASURY 4.0
03/31/2030
100.098 3.98% (1,501,464.84) (2,622.95) (1,504,087.79) 0.00 Purchase 04/25/2025 571748CA8 1,500,000.00
MARSH & MCLENNAN
COMPANIES INC 4.65
03/15/2030
100.138 4.62% (1,502,070.00) (7,750.00) (1,509,820.00) 0.00 Purchase 04/25/2025 91282CKR1 1,250,000.00
UNITED STATES
TREASURY 4.5
05/15/2027
101.309 3.83% (1,266,357.42) (25,017.27) (1,291,374.69) 0.00 Purchase 05/21/2025 58768YAD7 670,000.00 MBALT 2025-A A3 4.61 04/16/2029 99.988 4.66% (669,918.33) 0.00 (669,918.33) 0.00 Purchase 05/29/2025 95000U3J0 1,500,000.00 WELLS FARGO & CO
5.198 01/23/2030 101.392 4.78% (1,520,880.00) (27,289.50) (1,548,169.50) 0.00 Purchase 05/29/2025 91282CMZ1 1,750,000.00
UNITED STATES
TREASURY 3.875
04/30/2030
99.121 4.07% (1,734,619.14) (5,343.92) (1,739,963.06) 0.00 Purchase 06/11/2025 00287YDZ9 1,500,000.00 ABBVIE INC 4.875 03/15/2030 101.340 4.55% (1,520,099.99) (21,328.13) (1,541,428.12) 0.00 Purchase 06/11/2025 91282CNG2 1,500,000.00
UNITED STATES
TREASURY 4.0
05/31/2030
99.641 4.08% (1,494,609.38) (1,803.28) (1,496,412.66) 0.00 Purchase 06/24/2025 91282CGQ8 1,750,000.00
UNITED STATES
TREASURY 4.0
02/28/2030
100.434 3.90% (1,757,587.89) (22,065.22) (1,779,653.11) 0.00 Total Purchase 43,774,000.00 (43,625,032.26) (242,862.38) (43,867,894.64) 0.00 TOTAL
ACQUISITIONS 43,774,000.00 (43,625,032.26) (242,862.38) (43,867,894.64) 0.00
DISPOSITIONS
Call Redemption 04/22/2025 46647PBK1 (12,000.00) JPMORGAN CHASE & CO 2.083 04/22/2026 100.000 1.11% 12,000.00 0.00 12,000.00 0.00 Call Redemption 04/28/2025 6174468Q5 (35,000.00) MORGAN STANLEY
2.188 04/28/2026 100.000 5.10% 35,000.00 0.00 35,000.00 0.00 Call Redemption 06/20/2025 06051GJD2 (40,000.00) BANK OF AMERICA CORP 5.43 06/19/2026 100.000 1.25% 40,000.00 0.00 40,000.00 0.00 42 Item: 6.5
Item Page Number: 46
Menifee Finance Committee September 9, 2025 Page 118 of 125
TRANSACTION LEDGER
City of Menifee | Account #10112|07/01/2024 Through 06/30/2025| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/
Sold Total Amount Gain/Loss
Total Call
Redemption (87,000.00) 87,000.00 0.00 87,000.00 0.00
Maturity 07/15/2024 79466LAG9 (40,000.00) SALESFORCE INC 0.625 07/15/2024 100.000 0.98% 40,000.00 0.00 40,000.00 0.00
Maturity 07/16/2024 78013XZU5 (40,000.00)
ROYAL BANK OF
CANADA 2.55
07/16/2024
100.000 2.23% 40,000.00 0.00 40,000.00 0.00
Maturity 10/15/2024 3135G0W66 (70,000.00)
FEDERAL NATIONAL
MORTGAGE
ASSOCIATION 1.625
10/15/2024
100.000 1.66% 70,000.00 0.00 70,000.00 0.00
Maturity 11/08/2024 14913Q3B3 (45,000.00)
CATERPILLAR
FINANCIAL SERVICES
CORP 2.15 11/08/2024
100.000 1.92% 45,000.00 0.00 45,000.00 0.00
Maturity 03/03/2025 57636QAN4 (35,000.00) MASTERCARD INC 2.0 03/03/2025 100.000 1.05% 35,000.00 0.00 35,000.00 0.00
Maturity 04/30/2025 713448CT3 (130,000.00) PEPSICO INC 2.75 04/30/2025 100.000 4.48% 130,000.00 0.00 130,000.00 0.00 Maturity 06/15/2025 63743HFE7 (10,000.00)
NATIONAL
RURAL UTILITIES
COOPERATIVE
FINANCE CORP 3.45
06/15/2025
100.000 3.46% 10,000.00 0.00 10,000.00 0.00
Total Maturity (370,000.00) 370,000.00 0.00 370,000.00 0.00 Sale 07/30/2024 3133EMF98 (4,000,000.00)
FEDERAL FARM CREDIT
BANKS FUNDING CORP
0.65 06/09/2025
96.390 0.65% 3,855,600.00 3,683.33 3,859,283.33 (144,400.00) Sale 09/11/2024 912828YM6 (3,000,000.00)
UNITED STATES
TREASURY 1.5
10/31/2024
99.504 0.40% 2,985,117.19 16,385.87 3,001,503.06 (19,356.05) Sale 09/20/2024 912828Z52 (3,000,000.00)
UNITED STATES
TREASURY 1.375
01/31/2025
98.859 0.52% 2,965,781.25 5,716.71 2,971,497.96 (43,454.86) Sale 10/16/2024 3137EAEP0 (80,000.00)
FEDERAL HOME LOAN
MORTGAGE CORP 1.5
02/12/2025
99.007 1.52% 79,205.60 213.33 79,418.93 (790.38)
43 Item: 6.5
Item Page Number: 47
Menifee Finance Committee September 9, 2025 Page 119 of 125
TRANSACTION LEDGER
City of Menifee | Account #10112|07/01/2024 Through 06/30/2025| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/
Sold Total Amount Gain/Loss
Sale 10/16/2024 3133ENPG9 (220,000.00)
FEDERAL FARM CREDIT
BANKS FUNDING CORP
1.75 02/14/2025
99.059 4.27% 217,929.80 663.06 218,592.86 (335.11)
Sale 10/16/2024 3130ATUR6 (210,000.00)
FEDERAL HOME
LOAN BANKS 4.625
12/13/2024
99.968 4.40% 209,932.80 3,318.44 213,251.24 (135.36)
Sale 10/16/2024 912828ZF0 (2,000,000.00)
UNITED STATES
TREASURY 0.5
03/31/2025
98.227 0.58% 1,964,531.25 439.56 1,964,970.81 (34,718.03) Sale 11/20/2024 912828ZF0 (3,000,000.00)
UNITED STATES
TREASURY 0.5
03/31/2025
98.613 0.58% 2,958,398.44 2,101.65 2,960,500.09 (40,712.90) Sale 12/10/2024 3135G03U5 (65,000.00)
FEDERAL NATIONAL
MORTGAGE
ASSOCIATION 0.625
04/22/2025
98.586 0.67% 64,080.90 54.17 64,135.07 (909.34)
Sale 12/10/2024 3130A4CH3 (35,000.00)
FEDERAL HOME
LOAN BANKS 2.375
03/14/2025
99.405 1.21% 34,791.75 198.58 34,990.33 (311.87)
Sale 12/10/2024 3135G04Z3 (70,000.00)
FEDERAL NATIONAL
MORTGAGE
ASSOCIATION 0.5
06/17/2025
98.012 0.51% 68,608.40 168.19 68,776.59 (1,387.37)
Sale 12/10/2024 3135G0X24 (65,000.00)
FEDERAL NATIONAL
MORTGAGE
ASSOCIATION 1.625
01/07/2025
99.754 1.20% 64,840.10 448.91 65,289.01 (180.84)
Sale 12/10/2024 89236TJT3 (30,000.00)
TOYOTA MOTOR
CREDIT CORP 1.45
01/13/2025
99.674 1.50% 29,902.20 177.63 30,079.83 (96.55)
Sale 12/10/2024 69371RR73 (35,000.00) PACCAR FINANCIAL
CORP 2.85 04/07/2025 99.361 2.86% 34,776.35 174.56 34,950.91 (222.96) Sale 12/10/2024 00440EAS6 (50,000.00) CHUBB INA HOLDINGS LLC 3.15 03/15/2025 99.505 2.16% 49,752.50 371.88 50,124.38 (372.21) Sale 12/10/2024 9128284R8 (800,000.00)
UNITED STATES
TREASURY 2.875
05/31/2025
99.320 5.25% 794,562.50 631.87 795,194.37 3,154.36
44 Item: 6.5
Item Page Number: 48
Menifee Finance Committee September 9, 2025 Page 120 of 125
TRANSACTION LEDGER
City of Menifee | Account #10112|07/01/2024 Through 06/30/2025| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/
Sold Total Amount Gain/Loss
Sale 12/19/2024 3137EAEX3 (75,000.00)
FEDERAL HOME LOAN
MORTGAGE CORP
0.375 09/23/2025
97.031 0.44% 72,773.25 67.19 72,840.44 (2,192.26)
Sale 12/19/2024 3135G05X7 (75,000.00)
FEDERAL NATIONAL
MORTGAGE
ASSOCIATION 0.375
08/25/2025
97.332 0.43% 72,999.00 89.06 73,088.06 (1,972.97)
Sale 12/19/2024 3135G06G3 (65,000.00)
FEDERAL NATIONAL
MORTGAGE
ASSOCIATION 0.5
11/07/2025
96.709 0.57% 62,860.85 37.92 62,898.77 (2,097.87)
Sale 12/19/2024 3137EAEU9 (80,000.00)
FEDERAL HOME LOAN
MORTGAGE CORP
0.375 07/21/2025
97.664 0.44% 78,131.20 123.33 78,254.53 (1,836.96)
Sale 12/19/2024 912828XZ8 (800,000.00)
UNITED STATES
TREASURY 2.75
06/30/2025
99.230 5.14% 793,843.75 10,282.61 804,126.36 3,552.25
Sale 01/29/2025 3130AMQ54 (4,000,000.00) FEDERAL HOME LOAN BANKS 0.7 09/16/2025 97.764 0.70% 3,910,560.00 10,344.44 3,920,904.44 (89,440.00) Sale 02/26/2025 3133EML67 (2,500,000.00)
FEDERAL FARM CREDIT
BANKS FUNDING CORP
0.8 06/22/2026
95.635 0.89% 2,390,875.00 3,555.56 2,394,430.56 (106,168.03) Sale 02/28/2025 756109AV6 (20,000.00) REALTY INCOME CORP
3.875 04/15/2025 99.891 4.46% 19,978.20 286.32 20,264.52 (7.85) Sale 02/28/2025 78016EZ59 (20,000.00)
ROYAL BANK OF
CANADA 3.375
04/14/2025
99.837 3.38% 19,967.40 251.25 20,218.65 (32.39)
Sale 02/28/2025 06368D3S1 (75,000.00) BANK OF MONTREAL
3.7 06/07/2025 99.724 4.78% 74,793.00 624.38 75,417.38 (1.62) Sale 02/28/2025 91282CHN4 (800,000.00)
UNITED STATES
TREASURY 4.75
07/31/2025
100.184 5.14% 801,468.75 2,939.23 804,407.98 2,734.07
Sale 03/11/2025 912828K74 (1,500,000.00)
UNITED STATES
TREASURY 2.0
08/15/2025
99.020 0.59% 1,485,292.97 1,988.95 1,487,281.92 (23,672.52) 45 Item: 6.5
Item Page Number: 49
Menifee Finance Committee September 9, 2025 Page 121 of 125
TRANSACTION LEDGER
City of Menifee | Account #10112|07/01/2024 Through 06/30/2025| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/
Sold Total Amount Gain/Loss
Sale 04/16/2025 912828K74 (1,500,000.00)
UNITED STATES
TREASURY 2.0
08/15/2025
99.230 0.59% 1,488,457.03 4,972.38 1,493,429.41 (18,452.68) Sale 04/25/2025 3133EN7J3 (210,000.00)
FEDERAL FARM CREDIT
BANKS FUNDING CORP
3.875 02/02/2026
99.740 4.01% 209,454.00 1,876.15 211,330.15 (339.95)
Sale 04/25/2025 3130AMM33 (1,500,000.00)
FEDERAL HOME
LOAN BANKS 0.875
06/16/2026
96.453 0.88% 1,446,795.00 4,703.13 1,451,498.13 (53,205.00) Sale 04/25/2025 91282CAM3 (70,000.00)
UNITED STATES
TREASURY 0.25
09/30/2025
98.301 0.74% 68,810.55 11.95 68,822.50 (1,043.16)
Sale 04/25/2025 91282CFP1 (850,000.00)
UNITED STATES
TREASURY 4.25
10/15/2025
100.035 5.10% 850,298.83 987.02 851,285.85 3,572.15
Sale 05/16/2025 91324PEU2 (850,000.00) UNITEDHEALTH GROUP INC 4.25 01/15/2029 98.071 5.04% 833,603.50 12,142.01 845,745.51 5,264.72 Sale 05/29/2025 06368FAC3 (40,000.00) BANK OF MONTREAL
1.25 09/15/2026 95.906 1.27% 38,362.40 102.78 38,465.18 (1,625.04) Sale 05/29/2025 89115A2C5 (40,000.00)
TORONTO-DOMINION
BANK 4.108
06/08/2027
99.084 4.18% 39,633.60 780.52 40,414.12 (309.51)
Sale 05/29/2025 89115A2K7 (80,000.00)
TORONTO-DOMINION
BANK 5.103
01/09/2026
100.219 5.15% 80,175.20 1,587.60 81,762.80 196.69
Sale 05/29/2025 78016FZW7 (80,000.00)
ROYAL BANK
OF CANADA 4.9
01/12/2028
101.185 4.91% 80,948.00 1,491.78 82,439.78 969.66
Sale 05/29/2025 89115A2U5 (1,400,000.00)
TORONTO-DOMINION
BANK 5.523
07/17/2028
102.712 5.40% 1,437,968.00 28,351.40 1,466,319.40 33,301.34 Sale 05/29/2025 78016HZV5 (1,550,000.00)
ROYAL BANK OF
CANADA 4.95
02/01/2029
101.420 5.26% 1,572,010.00 25,148.75 1,597,158.75 37,325.87 Sale 06/11/2025 912828M56 (2,000,000.00)
UNITED STATES
TREASURY 2.25
11/15/2025
99.145 0.64% 1,982,890.63 3,301.63 1,986,192.26 (30,679.21) 46 Item: 6.5
Item Page Number: 50
Menifee Finance Committee September 9, 2025 Page 122 of 125
TRANSACTION LEDGER
City of Menifee | Account #10112|07/01/2024 Through 06/30/2025| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/
Sold Total Amount Gain/Loss
Sale 06/24/2025 91282CJS1 (850,000.00)
UNITED STATES
TREASURY 4.25
12/31/2025
99.988 5.07% 849,900.39 17,463.74 867,364.13 3,364.95
Sale 06/24/2025 91282CAZ4 (70,000.00)
UNITED STATES
TREASURY 0.375
11/30/2025
98.328 0.76% 68,829.69 17.21 68,846.90 (1,053.40)
Sale 06/24/2025 91282CGA3 (820,000.00)
UNITED STATES
TREASURY 4.0
12/15/2025
99.906 4.75% 819,231.25 806.56 820,037.81 2,029.56
Sale 06/24/2025 91282CAT8 (75,000.00)
UNITED STATES
TREASURY 0.25
10/31/2025
98.609 0.54% 73,957.03 28.02 73,985.05 (966.55)
Total Sale (38,655,000.00) 38,102,679.50 169,110.61 38,271,790.11 (527,015.18) TOTAL
DISPOSITIONS (39,112,000.00) 38,559,679.50 169,110.61 38,728,790.11 (527,015.18) 47 Item: 6.5
Item Page Number: 51
Menifee Finance Committee September 9, 2025 Page 123 of 125
IMPORTANT DISCLOSURES
City of Menifee | Account #10112 | As of June 30, 2025
2025 Chandler Asset Management, Inc, An Independent Registered Investment Adviser.
Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.
Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio.
Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.
Source ICE Data Indices, LLC (“ICE”), used with permission. ICE permits use of the ICE indices and related data on an “as is” basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an “as is” basis and licensee’s use it at licensee’s own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services.
This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment.
Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates.
Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy.
Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest. 48 Item: 6.5
Item Page Number: 52
Menifee Finance Committee September 9, 2025 Page 124 of 125
BENCHMARK DISCLOSURES
City of Menifee | Account #10112 | As of June 30, 2025
Benchmark Disclosure
ICE BofA 1-5 Yr Unsubordinated US Treasury
& Agency Index
The ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies. 49 Item: 6.5
Item Page Number: 53
Menifee Finance Committee September 9, 2025 Page 125 of 125