28202 CABOT RD | SUITE 620 | LAGUNA NIGUEL, CA 92677
PHONE: (949) 542-7070 | FAX: (949) 542-7076
www.zimmermangroup.com
May 12, 2026
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. 2025-2 (Quartz Trail)
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 bonds (“Bonds”) for CFD No. 2025-2 (Quartz Trail) (“CFD”). As you may be aware, t he CFD includes 80 lots within Tract Map No. 36803 (the “Project”). A summary of the development status of the Project is shown on the table below.
Development Status Units
% of
Total
Closings 45 56%
Completed Models 0 0%
Completed Homes* 7 9%
Under Construction** 23 29%
Finished Lots 5 6%
Total Units 80 100%
Total Permitted Lots 75 94%
*7 Completed Homes are sold.
**23 Homes Under Construction are sold.
The attached Exhibit A shows the estimated debt service schedule for the Bonds, which results in approximately $4.6M in construction proceeds. This $4.6 million would contribute towards the funding of the CFD eligible facilities for the Project.
We appreciate your consideration of this request and look forward to working with the City team to issue the Bonds for the Project. If you have any questions, please contact me at (949) 542-7072.
Sincerely,
John Zimmerman
Principal
CC: Shane Spicer, Spicer Consulting Group
Mitchell Lenhart, Lennar Homes – Project Manager
EXHIBIT A
Lennar Homes - Menifee 80 (TR No. 36803)
Proposed City of Menifee CFD No. 2025-1 (Quartz Trail)
Bond Sizing and Debt Service Schedule
May 12, 2026
ISSUANCE ASSUMPTIONS ESTIMATED SOURCES AND USES ALLOCATION OF IMPROVEMENT FUND Closing Date 8/1/2026 Sources Per Unit Total
Special Tax Escalation 2.00% Par Bond Amount 5,680,000$ City Facilities 38,638$ 3,091,051$ Annual Admin Expense 30,000$ EMWD Facilities 18,794 1,503,524 Admin Expense Escalation 2.00% Uses Contingency - - Debt Service Coverage 110.000% Reserve Fund 493,044$ Total 57,432$ 4,594,576$ Underwriter Discount 2.00% Capitalized Interest -
Issuance Costs Estimate 225,000$ Underwriter Discount 113,600 Capitalized Interest (Months) - Costs Of Issuance 225,000 Special Tax Revenue (2025-26) 346,851$ City Fee Premium 253,780 Improvement Fund 4,594,576
Total Uses 5,680,000$
BOND DEBT SERVICE
Period Special Tax Capitalized Net Debt Debt Service
Ending Revenue Admin Principal Yield Interest Interest Service Coverage 9/1/2026 346,851$ 30,000$ 10,000$ 0.000% 22,970$ -$ 32,970$ NA 9/1/2027 353,788 30,600 15,000 2.671% 275,639 - 290,639 111.20% 9/1/2028 360,864 31,212 20,000 2.871% 275,238 - 295,238 111.66% 9/1/2029 368,081 31,836 30,000 3.141% 274,664 - 304,664 110.37% 9/1/2030 375,443 32,473 35,000 3.281% 273,722 - 308,722 111.09% 9/1/2031 382,952 33,122 45,000 3.281% 272,573 - 317,573 110.16% 9/1/2032 390,611 33,785 50,000 3.481% 271,097 - 321,097 111.13% 9/1/2033 398,423 34,461 60,000 3.611% 269,356 - 329,356 110.51% 9/1/2034 406,391 35,150 70,000 3.731% 267,190 - 337,190 110.10% 9/1/2035 414,519 35,853 75,000 3.872% 264,578 - 339,578 111.51% 9/1/2036 422,809 36,570 85,000 4.113% 261,674 - 346,674 111.41% 9/1/2037 431,266 37,301 95,000 4.314% 258,178 - 353,178 111.55% 9/1/2038 439,891 38,047 110,000 4.452% 254,080 - 364,080 110.37% 9/1/2039 448,689 38,808 120,000 4.559% 249,182 - 369,182 111.02% 9/1/2040 457,663 39,584 135,000 4.647% 243,712 - 378,712 110.39% 9/1/2041 466,816 40,376 145,000 4.729% 237,438 - 382,438 111.51% 9/1/2042 476,152 41,184 160,000 4.591% 230,581 - 390,581 111.36% 9/1/2043 485,675 42,007 180,000 4.651% 223,236 - 403,236 110.03% 9/1/2044 495,389 42,847 195,000 4.711% 214,864 - 409,864 110.41% 9/1/2045 505,296 43,704 210,000 4.761% 205,677 - 415,677 111.05% 9/1/2046 515,402 44,578 230,000 4.811% 195,679 - 425,679 110.61% 9/1/2047 525,710 45,470 250,000 4.921% 184,614 - 434,614 110.50% 9/1/2048 536,225 46,379 270,000 4.921% 172,311 - 442,311 110.75% 9/1/2049 546,949 47,307 290,000 4.921% 159,025 - 449,025 111.27% 9/1/2050 557,888 48,253 315,000 4.921% 144,754 - 459,754 110.85% 9/1/2051 569,046 49,218 340,000 4.921% 129,253 - 469,253 110.78% 9/1/2052 580,427 50,203 365,000 5.258% 112,521 - 477,521 111.04% 9/1/2053 592,035 51,207 395,000 5.258% 93,330 - 488,330 110.75% 9/1/2054 603,876 52,231 425,000 5.258% 72,560 - 497,560 110.87% 9/1/2055 615,954 53,275 460,000 5.258% 50,214 - 510,214 110.28% 9/1/2056 628,273 54,341 495,000 5.258% 26,027 - 521,027 110.15% Total 14,699,351 1,271,383 5,680,000 5.00% 6,185,934 - 11,865,934 110.03% DRAFT