28202 CABOT RD | SUITE 620 | LAGUNA NIGUEL, CA 92677
PHONE: (949) 542-7070 | FAX: (949) 542-7076
www.zimmermangroup.com
December 16, 2025
Ms. Lauri Lockwood
City of Menifee
29844 Haun Road
Menifee, CA 92586
T. (951) 723-1766
E. [email protected]
RE: Request for Amendment of CFD No. 2025-4 (Heritage Village)
Dear Ms. Lockwood,
On behalf of Lennar Homes (“Developer”), we are requesting the City of Menifee (“City”) to amend CFD No. 2025-4 (Heritage Village) (“CFD”) to authorize the financing th e of Romoland School District (“School District”) facilities th rough a JCFA . At the time of CFD formation, the Developer expected Eastern Municipal Water District (“EMWD”) fees to be substantially more . However, due to changes in metering plans the total EMWD fees for the project are now significantly less. As a result, there is additional capacity for funding School District fees.
The attached Exhibit A shows the existing CFD special tax rates under the existing RMA, with the addition of funding school fees under the proposed School District JCFA . There are no other proposed changes to the current CFD special taxes or tax classes , nor the funding amounts allocated to the City because of this proposed amendment. The attached Exhibit B details the total estimated funding for each agency with the addition of the School District JCFA.
We appreciate your consideration of this request and look forward to working with the City team to amend the CFD to authorize school facilities. If you have any questions, please contact me at (949) 542- 7072.
Sincerely,
John Zimmerman
Principal
CC: Shane Spicer, Spicer Consulting Group
Sepideh Bastani, Lennar Homes – Project Manager
Exhibit A
Lennar Homes - Heritage Village (TR No. 38346)
Proposed City of Menifee CFD No. 2025-4 (Heritage Village) Effective Tax Rate and Bond Sizing Analysis
December 16, 2025
City CFD Assumptions: EMWD CFD
Bond Interest Rate...........................................................................................................................................................................5.00% #### Bond Term (Years)...........................................................................................................................................................................30 30 Annual Admin Expense...........................................................................................................................................................................30,000$ #### Capitalized Interest (Months)...........................................................................................................................................................................- #### Underwriter Discount...........................................................................................................................................................................2.00% #### Costs of Issuance...........................................................................................................................................................................225,000$ #### Debt Service Coverage...........................................................................................................................................................................110% #### Total Special Tax Revenues...........................................................................................................................................................................515,581$ #### Sources & Uses of Proceeds Allocation of Bond Proceeds * Sources 8,895,000$ Agency - Description Per Unit Total Uses City of Menifee DIF 10,967$ 1,776,674$
Reserve Fund 770,194$ City Improvements * 19,374 3,138,560 Capitalized Interest - EMWD Fees 8,049 1,303,934 Underwriter Discount 177,900 Romoland School District 7,083 1,147,403 Costs of Issuance 225,000 Contingency - - City Fee Premium 355,335 Total CFD Proceeds 45,473$ 7,366,571$ Improvement Fund 7,366,571$
Total Uses 8,895,000$ * See Exhibit B for list of eligible City improvements.
Land Use and Property Tax Assumptions
Product Assumptions Plan 1 Plan 2 Plan 3 Total / Avg
Home Square Footage (Estimate) (a) 918 1,206 1,336 1,190 Unit Mix (Estimate) (a) 37 63 62 162 Net Sales Revenue (a) 434,900$ 470,900$ 480,900$ 466,505$ Property Tax Information
Ad Valorem Property Taxes (1.05666%) (b) 4,595.41$ 4,975.81$ 5,081.48$ 4,929.37$ Flood Control Stormwater/Cleanwater (b) 3.75 3.75 3.75 3.75 MWD Standby East (b) 6.94 6.94 6.94 6.94 EMWD Standby - Combined Charge (b) 26.00 26.00 26.00 26.00 Valley-wide Regional Facilities LMD 88-1 (b) 5.54 5.54 5.54 5.54 City of Menifee CFD No. 2017-1 (Maintenance) (Tax A) (c) 283.59 283.59 283.59 283.59 City of Menifee CFD No. 2025-4 (Heritage Village) (d) 2,949.00 3,220.00 3,284.00 3,182.60 Total Estimated Tax Per Unit 7,870.23$ 8,521.63$ 8,691.30$ 8,437.79$ Total Tax Rate % 1.81% 1.81% 1.81% 1.81%
CFD Tax Revenues
City of Menifee CFD No. 2025-4 2,949$ 3,220$ 3,284$ 3,183$ Total City of Menifee CFD No. 2025-4 Revenues 109,113$ 202,860$ 203,608$ 515,581$ Footnotes:
(a) Product and pricing provided by Developer 9/3/24 (excludes incentives, premiums, and options). (b) Based on 2025-2026 property tax bills for subject property and existing units adjacent to project. (d) Represents the estimated City of Menifee CFD special tax, escalating 2.00% annually. (c) Per discussion with the City's tax consultant, represents an illustration of an estimated services tax based on the characteristics of the project, including maintenance for parkway landscape, street lights, streetsweeping, sidewalks, signals, and project share of City- wide parks. The actual amount to be determined based on approved plans and will be subject to the greater of CPI or 2% annual increases.
DRAFT
Exhibit B
Lennar Homes - Heritage Village (TR No. 38346)
Proposed City of Menifee CFD No. 2025-4 (Heritage Village) Preliminary List of CFD Eligible Facilities
December 16, 2025
Per Unit Total
Total Residential Units 162
Wtd. Avg. Sq. Ft. 1,190
City of Menifee (a)
Law Enforcement 810$ $131,220
Fire Facilities 566 $91,692
Circulation 4,012 $649,944
General Government 1,030 $166,860
Parks & Recreation 1,509 $244,458
Quimby Fees (c) ESTIMATE - Land Value of $250K 3,040 $492,500 Total City DIF fees 10,967$ 1,776,674$
City Improvements
Menifee/Rouse Road Trafiic Signal (Estimate) 580$ 93,985$ Menifee & Rouse Street, Street Light, & Median Van Engineering 8,724 1,413,251 Menifee & Rouse - Overhead Utility Undergrounding (Rule 20) 10,703 1,733,912 Total City Improvements 20,007$ 3,241,149$
Total City CFD Funding 30,974$ 5,017,823$
EMWD Fees (b)
Water Financial Participation Charge (21.34 EMS) 988$ $160,007 Sewer Financial Participation Charge (101.47 EDUs) 2,201 $356,566 Sewer Treatment Plant Capacity Charge (101.47 EDUs) 4,173 $675,993 2" Meter Drop in Fee (Qty 2) 17 $2,822
1/5" Irrigation Meter Capacity Fee (2 Meters) $416 $67,320 1/5" Irrigation Meter Installation Fee (2 Meters) $8 $1,322 Water Frontage Fees (Northside of Rouse Rd) (b) $246 $39,904 Subtotal EMWD Fees 8,049$ 1,303,934$
Romoland School District Fees (d)
School Mitigation Fees JCFA Required 7,083$ 1,147,403$ Total Eligible Facilities 46,106$ 7,469,159$
Footnotes
(a) Represents the City of Menifee DIF Fees effective as of July 1, 2025. (b) Represents the EMWD connections fees per EMWD Addenda dated 8/14/25. (d)Eligibility pending City CFD Change Proceeding to authorize and approve a JCFA with Romoland School District. (c) City Quimby Fee based on agreement approved by the City of Menifee 11/5/25.
DRAFT