28202 CABOT RD | SUITE 620 | LAGUNA NIGUEL, CA 92677
PHONE: (949) 542-7070 | FAX: (949) 542-7076
www.zimmermangroup.com
March 3, 2026
Lauri Lockwood
Finance Department
City of Menifee
29844 Haun Road
Menifee, CA 92586
T. (951) 746-6828
E. [email protected]
RE: Series 2 Bond Issuance Request, CFD No. 2023-2 (Cimarron Ridge)
Dear Ms. Lockwood,
On behalf of Pulte Homes (“Developer”), we are requesting the City of Menifee (“City”) move forward with the issuance of the second series of bonds (“Bonds”) for Improvement Area No. 1 of CFD No. 2023-2 (Cimarron Ridge) (“CFD”). Improvement Area No. 1 includes 424 lots within Tract Map Nos. 36658-1, -2, -3 and a portion of -4 (the “IA No. 1 ”). We would like to issue the final series of bonds secured by all 424 lots within IA No. 1 (“Series 2 Bonds”). A summary of the development status in IA No. 1 for the proposed Series 2 Bonds is included in the table below.
CFD No. 2023-2 (Cimarron Ridge) – IA No. 1
Development Status Units % of Total
Closed Homes 403 95.0%
Completed Homes (3 Models) 3 0.7%
Under Construction (4 Sold) 17 4.0%
Finished Lots ( Permitted) 1 0.3%
Series 1 Bonds - Total Units 424 100%
The attached Exhibit A shows the estimated bond sizing and debt service schedule for the Series 2 Bonds, which results in approximately $1.6M in construction proceeds. The construction proceeds would fund City impact fees, MUSD fees and/or EMWD Fees. As part of this request, we are asking the City to enter into a JCFA with Menifee Union School District (“MUSD JCFA”), which would be similar to the JCFA entered into with Romoland School District for Improvement Area No. 2 of CFD No. 2023-2. The MUSD JCFA is needed because the bond proceeds from MUSD CFD No. 2020-1 were insufficient to fund all the project school fees.
We appreciate your consideration of this request and look forward to working with the City team to issue the Series 2 Bonds for the Project. If you have any questions, please contact me at (949) 542-7072.
Sincerely,
John Zimmerman
Principal
CC: Shane Spicer, Spicer Consulting Group
Patric Lynam, Pulte Homes – Director of Planning
Darren Warren, Pulte Homes – Vice President of Land
EXHIBIT A
Pulte Homes - Cimarron Ridge (Tract No. 36658)
City of Menifee CFD No. 2023-2 (Cimarron Ridge) - Improvement Area No. 1 Series 2 - Bond Sizing and Debt Service Schedule
March 3, 2026
ISSUANCE ASSUMPTIONS ESTIMATED SOURCES AND USES ALLOCATION OF IMPROVEMENT FUND Closing Date 8/1/2026 Sources Per Unit Total
Special Tax Escalation 2.000% Par Bond Amount 2,070,000$ City Fees & Facilities 2,726$ 1,155,840$ Annual Admin Expense 31,212$ MUSD Fees 1,061 450,000 Admin Expense Escalation 2.000% Uses EMWD Fees - - Debt Service Coverage 110.000% Reserve Fund 189,160$ Total 3,787$ 1,605,840$ Underwriter Discount 1.750% Capitalized Interest -
Issuance Costs Estimate 225,000$ Underwriter Discount 50,000 Capitalized Interest (Months) - Costs Of Issuance 225,000 * Allocation is preliminary and subject to change.
Special Tax Revenue 2025-26 (Buildout) 405,773$ Improvement Fund 1,605,840 Total Uses 2,070,000$
BOND DEBT SERVICE
Period Special Tax Series 1 Capitalized Net Debt Combined Debt Service Ending Revenue Admin Debt Service Principal Yield Interest Interest Service Debt Service Coverage 9/1/2026 405,773$ 31,212$ 236,250$ -$ 0.000% 8,451$ -$ 8,451$ 244,701$ NA 9/1/2027 413,888 31,836 241,000 - 2.590% 101,412 - 101,412 342,412 111.58% 9/1/2028 422,166 32,473 250,500 - 2.790% 101,412 - 101,412 351,912 110.74% 9/1/2029 430,609 33,122 254,500 5,000 3.060% 101,412 - 106,412 360,912 110.13% 9/1/2030 439,221 33,785 258,250 5,000 3.200% 101,259 - 106,259 364,509 111.23% 9/1/2031 448,006 34,461 261,750 10,000 3.200% 101,099 - 111,099 372,849 110.91% 9/1/2032 456,966 35,150 270,000 10,000 3.400% 100,779 - 110,779 380,779 110.78% 9/1/2033 466,105 35,853 272,750 15,000 3.530% 100,439 - 115,439 388,189 110.84% 9/1/2034 475,427 36,570 280,250 15,000 3.650% 99,910 - 114,910 395,160 111.06% 9/1/2035 484,936 37,301 287,250 20,000 3.791% 99,362 - 119,362 406,612 110.09% 9/1/2036 494,635 38,047 293,750 20,000 4.032% 98,604 - 118,604 412,354 110.73% 9/1/2037 504,527 38,808 294,750 30,000 4.233% 97,798 - 127,798 422,548 110.22% 9/1/2038 514,618 39,584 300,500 30,000 4.371% 96,528 - 126,528 427,028 111.24% 9/1/2039 524,910 40,376 310,750 30,000 4.478% 95,217 - 125,217 435,967 111.14% 9/1/2040 535,408 41,184 315,250 40,000 4.566% 93,873 - 133,873 449,123 110.04% 9/1/2041 546,117 42,007 324,250 40,000 4.648% 92,047 - 132,047 456,297 110.48% 9/1/2042 557,039 42,847 327,500 45,000 4.510% 90,188 - 135,188 462,688 111.13% 9/1/2043 568,180 43,704 335,250 50,000 4.570% 88,158 - 138,158 473,408 110.79% 9/1/2044 579,543 44,578 342,250 55,000 4.630% 85,873 - 140,873 483,123 110.73% 9/1/2045 591,134 45,470 348,500 60,000 4.680% 83,327 - 143,327 491,827 110.95% 9/1/2046 602,957 46,379 354,000 70,000 4.730% 80,519 - 150,519 504,519 110.32% 9/1/2047 615,016 47,307 363,750 70,000 4.840% 77,208 - 147,208 510,958 111.11% 9/1/2048 627,316 48,253 367,500 85,000 4.840% 73,820 - 158,820 526,320 110.02% 9/1/2049 639,863 49,218 375,500 90,000 4.840% 69,706 - 159,706 535,206 110.36% 9/1/2050 652,660 50,203 382,500 95,000 4.840% 65,350 - 160,350 542,850 110.98% 9/1/2051 665,713 51,207 393,500 100,000 4.840% 60,752 - 160,752 554,252 110.87% 9/1/2052 679,027 52,231 403,250 110,000 5.177% 55,912 - 165,912 569,162 110.13% 9/1/2053 692,608 53,275 406,750 120,000 5.177% 50,217 - 170,217 576,967 110.81% 9/1/2054 706,460 54,341 419,250 125,000 5.177% 44,005 - 169,005 588,255 110.86% 9/1/2055 720,589 55,428 425,250 140,000 5.177% 37,533 - 177,533 602,783 110.35% 9/1/2056 735,001 56,536 - 585,000 5.177% 30,285 - 615,285 615,285 110.27% Total 17,196,418 1,322,747 9,696,500 2,070,000 5.00% 2,482,454 - 4,552,454 110.02% Footnotes:
Agency (Facilites) *
(a) Includes net school fees and school site purchase price. See CFD Eligible Costs exhibit.
DRAFT