28202 CABOT RD | SUITE 620 | LAGUNA NIGUEL, CA 92677
PHONE: (949) 542-7070 | FAX: (949) 542-7076
www.zimmermangroup.com
December 12, 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. 2024-1 (Banner Park II)
Dear Ms. Lockwood,
On behalf of Pulte Home Company (“Developer”), we are requesting the City of Menifee (“City”) move forward with the issuance of the first series of bonds (“Bonds”) for CFD No. 2024-1 (Banner Park II) (“CFD”).
As you may be aware, t he CFD includes 182 lots within Tract Map No s. 37671, 37671-1 and 37671-2 (the “Project”). However, we would like to issue the first series of bonds based on approximately 106 lots within the Project (“Series 1 Bonds”), which will ensure that Developer owns less than 20% of the lots included in the bond sizing. A summary of the development status of the Project is shown in the table below.
Development Status Units
% of
Total
Closings* 90 49%
Completed Models 6 3%
Under Construction** 27 15%
Finished Lots 59 33%
Total Units 182 100%
*Projected closings as of Jan 31, 2026.
The attached Exhibit A shows the estimated debt service schedule for the Bonds, which results in approximately $4.9M in construction proceeds. This $4.9M would contribute towards the funding of the CFD eligible facilities for the Project..
We appreciate your consideration of this request and look forward to working with the City team to issue the Bonds for the Project. If you have any questions, please contact me at (949) 542-7072.
Sincerely,
John Zimmerman
Principal
CC: Shane Spicer, Spicer Consulting Group
Brian Leung, PulteGroup – Project Manager
Daren Warren, PulteGroup – Vice President
EXHIBIT A
Proposed City of Menifee CFD No. 2024-1
Estimated Debt Service & Bond Sizing Schedule
December 12, 2025
ISSUANCE ASSUMPTIONS ESTIMATED SOURCES AND USES
Closing Date 3/1/2026 Sources
Special Tax Revenue Escalation 2.000% Par Bond Amount 5,700,000$ Annual Administration Expense 30,000$
Administration Expense Escalation 2.000% Uses
Debt Service Coverage Ratio 110% Reserve Fund 510,617$
Underwriter Discount Estimate 1.500% Capitalized Interest - Issuance Costs Estimate 225,000$ Underwriter Discount 85,500 Months of Capitalized Interest - Costs Of Issuance 225,000 Gross Special Tax Revenues 356,651$ Construction Fund 4,878,883 Total Uses 5,700,000$
Estimated Funding Per Unit 26,807$
BOND DEBT SERVICE
Period Gross Priority Capitalized Net Debt Debt Service Ending Revenues Admin Principal Yield Interest Interest Service Coverage 9/1/2026 243,895$ 30,600$ -$ 1.930% 138,926$ -$ 138,926$ 153.53% 9/1/2027 356,651 31,212 15,000 1.930% 277,852 - 292,852 111.13% 9/1/2028 363,784 31,836 20,000 2.180% 277,562 - 297,562 111.56% 9/1/2029 371,060 32,473 30,000 2.530% 277,126 - 307,126 110.24% 9/1/2030 378,481 33,122 35,000 2.930% 276,367 - 311,367 110.92% 9/1/2031 386,051 33,785 40,000 3.230% 275,342 - 315,342 111.71% 9/1/2032 393,772 34,461 50,000 3.430% 274,050 - 324,050 110.88% 9/1/2033 401,647 35,150 60,000 3.680% 272,335 - 332,335 110.28% 9/1/2034 409,680 35,853 65,000 3.930% 270,127 - 335,127 111.55% 9/1/2035 417,874 36,570 75,000 4.130% 267,572 - 342,572 111.31% 9/1/2036 426,231 37,301 85,000 4.280% 264,475 - 349,475 111.29% 9/1/2037 434,756 38,047 95,000 4.380% 260,837 - 355,837 111.49% 9/1/2038 443,451 38,808 110,000 4.430% 256,676 - 366,676 110.35% 9/1/2039 452,320 39,584 120,000 4.510% 251,803 - 371,803 111.01% 9/1/2040 461,366 40,376 135,000 4.580% 246,391 - 381,391 110.38% 9/1/2041 470,594 41,184 150,000 4.650% 240,208 - 390,208 110.05% 9/1/2042 480,006 42,007 160,000 4.710% 233,233 - 393,233 111.38% 9/1/2043 489,606 42,847 180,000 4.780% 225,697 - 405,697 110.12% 9/1/2044 499,398 43,704 195,000 4.830% 217,093 - 412,093 110.58% 9/1/2045 509,386 44,578 210,000 4.880% 207,674 - 417,674 111.28% 9/1/2046 519,573 45,470 230,000 4.930% 197,426 - 427,426 110.92% 9/1/2047 529,965 46,379 250,000 4.980% 186,087 - 436,087 110.89% 9/1/2048 540,564 47,307 270,000 5.030% 173,637 - 443,637 111.18% 9/1/2049 551,376 48,253 295,000 5.130% 160,056 - 455,056 110.56% 9/1/2050 562,403 49,218 320,000 5.130% 144,923 - 464,923 110.38% 9/1/2051 573,651 50,203 345,000 5.130% 128,507 - 473,507 110.55% 9/1/2052 585,124 51,207 370,000 5.130% 110,808 - 480,808 111.05% 9/1/2053 596,827 52,231 400,000 5.130% 91,827 - 491,827 110.73% 9/1/2054 608,763 53,275 430,000 5.130% 71,307 - 501,307 110.81% 9/1/2055 620,938 54,341 465,000 5.130% 49,248 - 514,248 110.18% 9/1/2056 633,357 55,428 495,000 5.130% 25,394 - 520,394 111.06% Total 14,712,549 1,296,811 5,700,000 5.00% 6,350,557 - 12,050,557 110.05%