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 Issuance of Bonds for CFD No. 2022-3 IA No. 1 (Legado)
Dear Ms. Lockwood,
On behalf of Lennar Homes of California, LLC (“Developer”), we are requesting the City of Menifee (“City”) move forward with the issuance of the first series of bonds (“Bonds”) for CFD No. 2022-3 Improvement Area No. 1 (Legado) (“CFD”). As you may be aware, the CFD includes 491 lots within Tract Map Nos. 37408- 1, 37408-2, 37408-3, 37408-4, 37409-1, 37490-2, and 37490-3 (the “Project”). However, we would like to issue the first series of bonds based on approximately 226 lots within the Project (“Series 1 Bonds”) . A summary of the development status of the Project is shown on the table below.
Development Status Units
% of
Total
Closings 99 44%
Completed Models 8 4%
Completed Homes* 5 2%
Under Construction** 89 39%
Finished Lots 25 11%
Total Units 226 100%
*4 Completed Homes are sold.
**18 Homes Under Construction are sold.
The attached Exhibit A shows the estimated debt service schedule for the Bonds, which results in approximately $11.6M in construction proceeds. This $11.6 million would contribute towards the funding of the CFD eligible facilities for the Project..
We appreciate your consideration of this request and look forward to working with the City team to issue the Bonds for the Project. If you have any questions, please contact me at (949) 542-7072.
Sincerely,
John Zimmerman
Principal
CC: Shane Spicer, Spicer Consulting Group
Sepideh Bastani, Lennar Homes – Project Manager
EXHIBIT A
BLC Fleming - Legado Specific Plan
City of Menifee CFD No. 2022-3
Improvement Area No. 1 - Series 1 Bond Sizing and Debt Service Schedule December 16, 2025
ISSUANCE ASSUMPTIONS ESTIMATED SOURCES AND USES
Closing Date 3/1/2026 Sources
Special Tax Revenue Escalation 2.000% Gross Bond Proceeds 13,330,000$ Annual Administration Expense 30,000$
Administration Expense Escalation 2.000% Uses
Debt Service Coverage Ratio 110% Reserve Fund 1,156,659$ Underwriter Discount Estimate 1.500% Capitalized Interest 164,163 Issuance Costs Estimate 225,000$ Underwriter Discount 199,950 Months of Capitalized Interest 3.00 Costs Of Issuance 225,000 IA No. Special Tax Revenues 1,668,009 Improvement Fund 11,584,229 Series 1 Revenues $773,559 Total Uses 13,330,000$
School Facilities Funding Per Unit
BOND DEBT SERVICE
Period Fiscal Sizing Priority Capitalized Net Debt Debt Service Ending Year Revenues Admin Principal Yield Interest Interest Service Coverage 9/1/2026 2025/2026 773,559$ 30,000$ -$ 3.180% 328,325$ 164,163$ 164,163$ NA 9/1/2027 2026/2027 789,030 30,600 30,000 3.300% 656,650 - 686,650 110.45% 9/1/2028 2027/2028 804,811 31,212 45,000 3.470% 655,660 - 700,660 110.41% 9/1/2029 2028/2029 820,907 31,836 60,000 3.630% 654,099 - 714,099 110.50% 9/1/2030 2029/2030 837,325 32,473 75,000 3.750% 651,921 - 726,921 110.72% 9/1/2031 2030/2031 854,072 33,122 95,000 3.870% 649,108 - 744,108 110.33% 9/1/2032 2031/2032 871,153 33,785 115,000 3.980% 645,432 - 760,432 110.12% 9/1/2033 2032/2033 888,576 34,461 135,000 4.010% 640,855 - 775,855 110.09% 9/1/2034 2033/2034 906,348 35,150 155,000 4.060% 635,441 - 790,441 110.22% 9/1/2035 2034/2035 924,475 35,853 175,000 4.019% 629,148 - 804,148 110.50% 9/1/2036 2035/2036 942,964 36,570 200,000 4.695% 622,115 - 822,115 110.25% 9/1/2037 2036/2037 961,823 37,301 225,000 4.695% 612,725 - 837,725 110.36% 9/1/2038 2037/2038 981,060 38,047 250,000 4.695% 602,161 - 852,161 110.66% 9/1/2039 2038/2039 1,000,681 38,808 280,000 4.695% 590,424 - 870,424 110.51% 9/1/2040 2039/2040 1,020,695 39,584 310,000 4.695% 577,278 - 887,278 110.58% 9/1/2041 2040/2041 1,041,109 40,376 345,000 4.910% 562,723 - 907,723 110.25% 9/1/2042 2041/2042 1,061,931 41,184 380,000 4.910% 545,784 - 925,784 110.26% 9/1/2043 2042/2043 1,083,169 42,007 415,000 4.910% 527,126 - 942,126 110.51% 9/1/2044 2043/2044 1,104,833 42,847 455,000 4.910% 506,749 - 961,749 110.42% 9/1/2045 2044/2045 1,126,929 43,704 500,000 4.910% 484,409 - 984,409 110.04% 9/1/2046 2045/2046 1,149,468 44,578 540,000 5.010% 459,859 - 999,859 110.50% 9/1/2047 2046/2047 1,172,457 45,470 590,000 5.010% 432,805 - 1,022,805 110.19% 9/1/2048 2047/2048 1,195,906 46,379 640,000 5.010% 403,246 - 1,043,246 110.19% 9/1/2049 2048/2049 1,219,825 47,307 690,000 5.010% 371,182 - 1,061,182 110.49% 9/1/2050 2049/2050 1,244,221 48,253 750,000 5.010% 336,613 - 1,086,613 110.06% 9/1/2051 2050/2051 1,269,106 49,218 805,000 5.090% 299,038 - 1,104,038 110.49% 9/1/2052 2051/2052 1,294,488 50,203 870,000 5.090% 258,063 - 1,128,063 110.30% 9/1/2053 2052/2053 1,320,377 51,207 940,000 5.090% 213,780 - 1,153,780 110.00% 9/1/2054 2053/2054 1,346,785 52,231 1,010,000 5.090% 165,934 - 1,175,934 110.09% 9/1/2055 2054/2055 1,373,721 53,275 1,085,000 5.090% 114,525 - 1,199,525 110.08% 9/1/2056 2055/2056 1,401,195 54,341 1,165,000 5.090% 59,299 - 1,224,299 110.01% Total 32,782,998 1,271,383 13,330,000 5.004% 14,892,469 164,163 28,058,306 110.00% DRAFT
EXHIBIT A
City of Menifee CFD No. 2022-3
Lennar Homes - Legado
Effective Tax Rate Analysis
December 18, 2025
Land Use Information & Total Property Tax Rates
CFD Ad Other City
Imp Tax Lot Home Square Ft. Base Valorem Fixed CFD 2022-3 Total Tax Total Tax Area Zone PA Size Product Size (a) Category Pricing (a) Taxes (b) Charges (c) Spcl Tax (d) Per Unit Rate % 1 1 1/8 5000 Sonrisa 1,539 ≤ 1,600 541,835$ 6,053 $ 1,781 $ 2,975 $ 10,809 $ 1.99% 1 1 1/8 5000 Sonrisa 1,696 1,601 - 1,800 535,585 5,982 1,816 2,984 10,782 2.01% 1 1 1/8 5000 Sonrisa 1,862 1,801 - 2,000 555,720 6,210 1,853 3,069 11,131 2.00% 1 1 1/8 5000 Sonrisa 2,069 ≥ 2,001 581,585 6,502 1,899 3,163 11,564 1.99% 1 2 3 5500 Armonia 1,936 1,901 - 2,100 586,470 6,558 1,869 3,201 11,628 1.98% 1 2 3 5500 Armonia 2,200 2,101 - 2,300 597,970 6,688 1,927 3,264 11,879 1.99% 1 2 3 5500 Armonia 2,468 2,301 - 2,500 643,694 7,205 1,987 3,397 12,589 1.96% 1 2 3 5500 Armonia 2,589 ≥ 2,501 637,450 7,135 2,014 3,457 12,605 1.98% 1 2 10 6000 Tesoro 1,539 ≤ 1,900 541,835 6,053 1,781 3,019 10,853 2.00% 1 2 10 6000 Tesoro 1,936 1,901 - 2,100 586,470 6,558 1,869 3,201 11,628 1.98% 1 2 10 6000 Tesoro 2,084 1,901 - 2,100 590,700 6,605 1,902 3,201 11,708 1.98% 1 2 10 6000 Tesoro 2,231 2,101 - 2,300 613,420 6,863 1,934 3,264 12,061 1.97% 1 3 2 6000 Tesoro 1,539 ≤ 1,900 541,835 6,053 1,781 3,019 10,853 2.00% 1 3 2 6000 Tesoro 1,936 1,901 - 2,100 586,470 6,558 1,869 3,201 11,628 1.98% 1 3 2 6000 Tesoro 2,084 1,901 - 2,100 590,700 6,605 1,902 3,201 11,708 1.98% 1 3 2 6000 Tesoro 2,231 2,101 - 2,300 613,420 6,863 1,934 3,345 12,142 1.98% 1 3 4/9 7000 Belleza 2,662 2,501 - 2,700 663,112 7,425 2,030 3,781 13,236 2.00% 1 3 4/9 7000 Belleza 2,760 2,701 - 2,900 675,065 7,560 2,051 3,907 13,519 2.00% 1 3 4/9 7000 Belleza 3,010 2,901 - 3,100 695,795 7,795 2,107 4,009 13,910 2.00% 1 3 4/9 7000 Belleza 4,184 ≥ 3,501 840,405 9,431 2,366 5,108 16,906 2.01% Subtotal - IA No. 1 2,243 611,094 $ 6,836 $ 1,937 $ 3,397 $ 12,171 $ 1.99% Footnotes:
(a) Product and pricing per Developer's marketing website as of 12/17/25. (b) Ad Valorem taxes total 1.13166% of the assessed value for FY 25-26 and includes $7,000 Homeowners Exemption. FY 25-26 (c) Estimated other fixed charges and assessments for FY 25-26: Amount Flood Control Stormwater/Cleanwater ………………………………………………………………………………………………………………… … 3.78$ MWD Standby East ……………………………………………………………………………………………………………………………………… … 6.94 EMWD Standby - Combined Charge …………………………………………………………………………………………………………………… … 11.00 PUHSD CFD No. 92-1 (2025-26) (Escalates 2.00% annually) ………………………………………………………………………………………… 342.98 City of Menifee CFD No. 2017-1 (Zone 12) (Escalates at the greater of 2.00% or CPI Annually) ………………………………………………… … $1,076.14 MUSD CFD No. 2022-1 (Average Special Tax per SF of $0.2256, which escalates 2.00% annually) …………………………………………… … 506.11 Total Fixed Charges 1,946.95$
(d) Represents the Special Tax for City of Menifee CFD No. 2022-3 IA 1 for tax year 2025-26, escalates 2.0% annually. (e)