CITY OF MENIFEE
SUBJECT: Community Facilities District 2024-1, Banner Park II, Issuance of Special Tax Bonds
MEETING DATE: April 15, 2026
TO: Mayor and City Council
PREPARED BY: Lauri Lockwood, Financial Analyst
REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Adopt a resolution authorizing the issuance of special tax bonds and the execution and delivery of bond documents in connection with Community Facilities District 2024-1, Banner Park II, located at the southwest corner of Domenigoni Parkway and Briggs Road; and
2. Authorize the Finance Department to establish the necessary revenue and expenditure budgets and corresponding appropriations for the bond issuance.
DISCUSSION
The City Council has previously completed the necessary proceedings to establish Community Facilities District 2024-1 of the City of Menifee, Banner Park II, (the “District”). As part of those proceedings, the City Council declared the necessity to issue bonds on behalf of the District pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”).
On August 7, 2024, the City Council adopted the Resolution of Formation, which established the District, authorized the levy of a special tax (the “Special Tax”), determined the necessity to incur bonded indebtedness in an amount not to exceed $15 million, and called an election on the proposition of incurring bonded indebtedness, levying the Special Tax and setting an appropriations limit. On the same date, an election was held within the District in which the property owner approved the proposition authorizing the issuance of bonds in an amount not to exceed $15 million.
The District contains approximately 81 gross acres and is located on the southwest corner of Domenigoni Parkway and Briggs Road along the eastern border of the City. The developer of the
City of Menifee Staff Report
CFD 2024-1, Banner Park II, Issuance of Special Tax Bonds April 15, 2026
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property within the District is Pulte Home Company, LLC (“Pulte”). The property is located across from Pulte’s original community known as Banner Park, which is on the north side of Domenigoni Parkway, and is an extension of the existing community. The development is planned for 182 single-family detached homes.
As of February 16, 2026, the date of value of the appraisal, Pulte had completed and conveyed 84 homes within the District to individual homeowners, and as of such date, Pulte owned six model homes, 19 production homes over 95% complete, 28 homes under construction, and 45 finished lots. Pulte Homes currently expects to complete and convey all homes planned within the District to individual homeowners by the end of 2027.
Annual debt service on the proposed Special Tax Bonds, Series 2026A (the “2026 Bonds”) will be sized based on 105 parcels classified as Developed Property beginning in Fiscal Year 2026-
27. The bond documents allow for the issuance of additional bonds payable from Special Tax revenues on parity with the 2026 Bonds. It is currently anticipated that parity bonds will be issued in Fiscal Year 2026-27.
The resolution before the City Council authorizes the issuance of the 2026 Bonds and the execution and delivery of certain documents in connection therewith as further described below.
Based on current market conditions, the 2026 Bonds are estimated to have a par amount of approximately $5.75 million with a final maturity no later than September 1, 2056, representing a 30-year financing term. Proceeds from the 2026 Bonds will primarily finance public improvements benefiting the development within the District. The final par amount and interest rate structure will be determined when the 2026 Bonds are priced and sold, which is currently expected to occur in April 2026.
As required under Section 5852.1 of the California Government Code, good faith estimates as provided by the municipal advisor and underwriter are provided as an attachment to this staff report.
The property owners are expected to pay Special Taxes of approximately $3,071 to $3,848 per parcel in Fiscal Year 2026-27, depending on the size of the home. Such Special Taxes will increase at 2.0% annually.
Documents to be Approved
Approval of the attached resolution authorizes the sale of the proposed 2026 Bonds and the execution of the following documents attached to this staff report:
• Preliminary Official Statement
• Bond Indenture
• Continuing Disclosure Certificate
• Bond Purchase Agreement
Bond Counsel and the City Attorney have reviewed the attached legal and financing documents on behalf of the District and the City. If the resolution is approved, City staff will continue to work City of Menifee Staff Report
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with the financing team to finalize the aforementioned documents. The pricing date is targeted for late April, with bond closing anticipated approximately two weeks later.
This item was presented to the Finance Committee at the January 13, 2026, meeting. A motion was made and approved to bring the item forward for City Council consideration and approval.
STRATEGIC PLAN OBJECTIVE
Regular City Business
FISCAL IMPACT
The 2026 Bonds are paid from Special Taxes levied in the District. There is no fiscal impact to the City’s General Fund. The City will, however, be required to provide administrative oversight for the District, which will be funded as part of the annual Special Tax levy.
The property owners are expected to pay Special Taxes of approximately $3,071 to $3,848 per parcel in Fiscal Year 2026-27, depending on the size of the home. Such Special Taxes will increase at 2% per year.
ATTACHMENTS
1. CFD 2024-1 Project Map
2. CFD 2024-1 Good Faith Estimates
3. CFD 2024-1 Resolution of Issuance
4. CFD 2024-1 Preliminary Official Statement
5. CFD 2024-1 Bond Indenture
6. CFD 2024-1 Continuing Disclosure Certificate
7. CFD 2024-1 Bond Purchase Agreement
8. CFD 2024-1 Appraisal Report