CITY OF MENIFEE
SUBJECT: Improvement Area 1 of Community Facilities District 2023-2, Cimarron Ridge, Issuance of Special Tax Bonds
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 authorizing the issuance of special tax bonds and the execution and delivery of bond documents in connection with Improvement Area 1 of Community Facilities District 2023-2, Cimarron Ridge, located on the north and south side of Thornton Avenue between Valley Boulevard and Goetz Road.
DISCUSSION
On April 19, 2023, the City Council established Community Facilities District No. 2023-2 of the City of Menifee (Cimarron Ridge) (District) and designated Improvement Area 1 therein 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.
In connection with the formation proceedings for the District and Improvement Area 1, an election was held within the Improvement Area 1 on the propositions of incurring bonded indebtedness for Improvement Area 1 in an amount not to exceed $10,000,000 and levying a Special Tax within Improvement Area 1.
In May 2025, the District issued its first series of bonds for Improvement Area 1 in the principal amount of $4,625,000 (2025A Bonds) to finance certain public facilities. The proposed Special Tax Bonds, Series 2026A (2026A Bonds) will be issued to finance the costs of additional public improvements benefiting the District. The 2026A Bonds will be payable from the Special Taxes levied within Improvement Area 1 on a parity with the 2025A Bonds.
The District consists of Improvement Area 1 and Improvement Area 2. Improvement Area 1 contains approximately 142 gross acres and is located on the north and south side of Thornton Avenue between Valley Boulevard and Goetz Road. The property in the District is being developed by Pulte Home Company, LLC (Pulte) in a project being marketed as “Cimarron
City of Menifee Staff Report
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Ridge.” In total, Cimarron Ridge is planned for a total of 756 single-family homes, including both market-rate and age-qualified products.
The portion of the District that is within Improvement Area 1 is planned for 424 single-family market-rate homes. Of the 424 homes within the Improvement Area, Pulte has completed and conveyed 127 homes to IH6 PROPERTY WEST, L.P., a related entity of Invitation Homes, Inc. (Invitation Homes). Invitation Homes is a Real Estate Investment Trust that owns, leases, and operates single-family residential properties. As of May 15, 2026, 126 of the 127 homes owned by Invitation Homes were rented to individuals.
As of May 1, 2026, in addition to the 127 completed homes purchased by Invitation Homes, there were 283 homes within Improvement Area No. 1 owned by individual homeowners, and as of such date, Pulte owned five model homes, eight homes under construction, and one finished lot.
Pulte currently expects to complete and convey all homes planned within Improvement Area 1 to individual homeowners by the third quarter of 2026.
Annual debt service on the 2026A Bonds will be sized based on the expected Special Tax revenues to be received in each Fiscal Year from the 424 taxable parcels within Improvement Area 1.
The resolution before the City Council authorizes the issuance of the 2026A Bonds and the execution and delivery of certain documents in connection therewith as further described below.
Based on current market conditions, the 2026A Bonds are estimated to have a par amount of approximately $1.93 million with a final maturity of September 1, 2056 (30-year financing term).
Proceeds from the 2026A Bonds will primarily finance public improvements benefitting the development within the District. The final par amount and interest rate structure will be determined when the 2026A Bonds are priced and sold, which is currently expected to occur during the week of July 20, 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 $247 to $1,423 per parcel in Fiscal Year 2026/27, depending on the size of the home. Such Special Taxes will increase at 2.0% annually.
Approval of the attached Resolution authorizes the sale of the proposed 2026A Bonds and the execution of the following documents attached to this staff report:
•Preliminary Official Statement
•First Supplement to the 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 City. If the resolution presented is approved, City staff will continue to work with the financing team to finalize all the aforementioned documents. The pricing date is targeted for City of Menifee Staff Report
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the week of July 20, 2026, with bond closing anticipated approximately two weeks later in August 2026.
STRATEGIC PLAN OBJECTIVE
Regular City Business
FISCAL IMPACT
The 2026A Bonds will be paid from Special Taxes levied in Improvement Area 1. There is no fiscal impact to the City’s General Fund. The City will, however, be required to provide administration for the District, which will be funded as part of the annual Special Tax levy.
ATTACHMENTS
1. Project Map
2. Good Faith Estimates
3. Resolution
4. Preliminary Official Statement
5. First Supplement to the Bond Indenture
6. Continuing Disclosure Certificate
7. Bond Purchase Agreement
8. Appraisal Report