CITY OF MENIFEE
SUBJECT: Agreement with Menifee Union School District for Community Facilities District 2023-2 Improvement Area 1, Cimarron Ridge
MEETING DATE: July 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 approving and authorizing execution of a Joint Community Facilities Agreement with the Menifee Union School District relating to Community Facilities District 2023-2 Improvement Area (IA) 1, Cimarron Ridge, located on the north and south side of Thornton Avenue between Valley Boulevard and Goetz Road.
DISCUSSION
At the April 19, 2023, City Council meeting, the City adopted resolutions authorizing the formation of Community Facilities District No. 2023-2, Cimarron Ridge, of the City of Menifee (CFD or CFD 2022-2). The CFD was formed at the request of Pulte Home Company, LLC (Developer) to finance public facilities within the City of Menifee and the Eastern Municipal Water District (EMWD).
Exhibit A to the formation resolution also listed as authorized facilities any interim and permanent school facilities of Menifee Union School District (MUSD), Romoland School District (RSD) and Perris Union High School District (PUHSD) that benefit the residents within the boundaries of the CFD.
The Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (The Act) allows the public agency that formed the CFD to enter into a Joint Community Facilities Agreement (JCFA) with another public agency to finance the cost of public facilities necessitated by development within its boundaries. Pursuant to Section 53316.2(b) of the Act, the JCFA may be approved by two or more public agencies prior to the adoption of a resolution authorizing the issuance of bonds.
JCFAs with EMWD, RSD and PUHSD were signed previously. A JCFA with Menifee Union School District was not requested when the first bonds for CFD 2023-2 IA1 were issued because the
City of Menifee Staff Report
Approval of JCFA with MUSD for CFD 2023-2 IA1, Cimarron Ridge July 15, 2026
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school district had formed an overlapping facilities CFD within the boundaries of CFD 2023-2 IA1 that was expected to cover the MUSD fees. However, the school district CFD bond proceeds were not sufficient to cover the full cost of school district fees for the project. As the financing plan was being developed for the parity bond issuance, it was determined the proceeds may be enough to also finance the previously uncovered school fees. The developer now is asking the City to approve a JCFA with MUSD to cover the remaining fees.
STRATEGIC PLAN OBJECTIVE
Regular City Business
FISCAL IMPACT
There is no fiscal impact associated with the approval of the JCFA. All payments for school facilities would come from bond proceeds after the CFD bonds are issued. The City is not responsible for payment of principal and interest on the bonds. Special taxes levied on properties within the district would be the source of funds used for those payments.
ATTACHMENTS
1. Resolution Approving JCFA, CFD 2023-2 IA1
2. Joint Community Facilities Agreement for CFD 2023-2, IA1