CITY OF MENIFEE
SUBJECT: Tax-Exempt Revenue Bonds by the Public Finance Authority for Mountain View Community Church of Murrieta/Temecula dba The View Church
MEETING DATE: June 3, 2026
TO: Mayor and City Council
PREPARED BY: Edna Aguilar, Assistant City Clerk
REVIEWED BY: Stephanie Roseen, City Clerk
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Conduct a Tax Equity and Financial Responsibility Act (TEFRA) hearing in consideration of the issuance of tax-exempt bond financing by the Public Finance Authority on behalf of Mountain View Community Church of Murrieta/Temecula dba The View Church to finance the acquisition and improvement, refinancing, and reserves of The View Church located at 26701 McCall Boulevard and certain other matters relating thereto; and
2. Adopt a resolution repealing and replacing Resolution No. 25-1551 and approving the issuance of revenue bonds by the PFA in an amount not-to-exceed $8,000,000 for the purpose of financing the Project.
DISCUSSION
Disclosure
The purpose of this staff report is to meet a requirement of the Internal Revenue Code of 1986, which requires the “highest elected official” of the project location approve the issuance of tax- exempt bonds following a public hearing. To allow the bonds to qualify as tax-exempt, the City of Menifee must hold a public hearing (TEFRA Hearing) to provide the public an opportunity to comment on the proposed financing of the project.
The City of Menifee is not a party to the proposed financing and holds no financial, legal, or moral obligation for the repayment of the bonds. Approval of this item is procedural in nature and does not constitute financial commitment by the City. Approval of the recommended resolution does not approve or disapprove any development.
City of Menifee Staff Report
TEFRA Hearing – The View Church
June 3, 2026
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Background
In accordance with TEFRA, on March 5, 2025, the City Council conducted a duly noticed public hearing and adopted Resolution No. 25-1551, approving the issuance of qualified 501(c)(3) bonds by the by the Public Finance Authority (PFA/Issuer) in an amount not-to-exceed $8,000,000. The bond proceeds were intended to finance and refinance the acquisition, improvement, and reserve funding for The Mountain View Community Church of Murrieta/Temecula dba The View Church (Borrower), located at 26701 McCall Boulevard, Menifee, California 92586.
Since that time, the Borrower worked with various vendors, governmental entities, and service providers to move the transaction toward closing. Throughout the process, several items required additional analysis, updated feasibility discussions, and adjustments to permit requests. As a result, the transaction experienced delays and the original resolution, which was valid for one year, expired.
In March 2026, the City received an official request to hold another public hearing to consider adoption of a separate resolution approving the issuance of bonds by the PFA in an amount not- to-exceed $8,000,000. There have been no changes since the original March 2025 approval.
Project Description
The Project involves financing and refinancing the costs associated with the construction, expansion, extension, repair, renovation, and other improvements of the Borrower’s facilities. On December 11, 2024, the City’s Planning Commission approved Major Modification No. PLN24- 0001 and Minor Conditional Use Permit No. PLN24-0002 for the Project.
Major Modification No. PLN24-0001 approved additions to the existing church facilities, including 6,949 square feet to the sanctuary building and 5,689 square feet to the fellowship hall. The site includes two parcels, with the church located on one parcel and the associated parking lot on the adjacent parcel. Conditional Use Permit No. PLN24-0002 approved the operation of the church within the Public/Quasi Facilities (PF) Zone.
The Project includes refinancing all or portions of the Borrower’s outstanding First Mortgage Bonds, 2019 Series, originally issued in the principal amount of $3,945,000, which were used to finance and refinance the facilities mentioned above.
The Project will cover the costs of issuing the bonds and establishing necessary reserves for both the bonds and the Project. No actual development is being considered at this time. The City shall have no liability for the repayment of any bond or any responsibility for the Borrower’s facilities.
The bonds to be issued by the PFA for the Project would be the sole responsibility of the Borrower.
All financing documents with respect to the issuance of the Bonds would contain clear disclaimers that the Bonds are not obligations of the City or the State of California but are to be paid for solely from funds provided by the Borrower.
Environmental
This approval is not subject to the California Environmental Quality Act (Pub. Resources Code, Sec. 21000 et seq.) (“CEQA”) pursuant to Sections 15060(c)(2) (the activities will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) City of Menifee Staff Report
TEFRA Hearing – The View Church
June 3, 2026
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(the activities are not a project as defined in section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3. Under CEQA Guidelines Section 15378(b)(5), continued administrative activities and organizational activities that will not result in a direct or indirect physical change in the environment are not CEQA “projects.” Moreover, under CEQA Guidelines Section 15378(b)(4), government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment are not CEQA “projects.”
STRATEGIC PLAN OBJECTIVE
Regular City Business
FISCAL IMPACT
The City has no financial responsibility with respect to the bonds or the repayment of the bonds for the financing of the Project. The City has no liability for the repayment of any bond. The bonds to be issued would be the sole responsibility of the Borrower.
ATTACHMENTS
1. Resolution