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2021-12-15 City Council Item No. 13.4 - 2020-1 McCall Mesa_Presentation Regular MEETING - Additional Meeting MaterialsCity of Menifee Community Facilities District No. 2020-1 (McCall Mesa) Special Tax Bonds, Series 2022AItem 13.4 December 15, 2021 2 Table of Contents Financing Overview Authorizing Resolution Financing Details and Tentative Schedule Financing Overview 4 Aerial Map 5 CFD 2020-1 Formed on August 5, 2020 Located on the Southwest corner of Menifee and Rouse Roads Consists of a new residential community known as Remington Place being developed by Lennar Homes Planned for 258 single-family detached homes Development Status as of December 1, 2021: 119 Homes Completed and Conveyed to Individual Homeowners 5 Model Homes and 1 Completed Home Owned by Developer 56 Under Construction 77 Finished Lots Lennar Homes holds more than 20% of the properties subject to maximum Fiscal Year 2022-23 special tax levy Required to provide letter of credit for approximately $428,000 Lennar currently expects to complete/convey all homes by July 1, 2023 Project and Development Summary 6 Financing Overview Not to Exceed Par Amount of $18,000,000 Approved at Formation Proposed 2022A Special Tax Bonds are Expected to be Issued in a Par Amount of $11,050,000 (Subject to Prevailing Market Conditions) 2022A Bonds secured by special taxes levied in the CFD Proceeds to finance public improvements benefitting the development within the CFD Estimated Special Tax for Homeowners: Approximately $2,502 to $3,794 starting in FY2022-23 Annual Assigned Special Tax will increase at approximately 2% per year Authorizing Resolution 8 Items Subject to City Council Approval Resolution of the City Council of the City of Menifee Authorizing the Issuance of the 2022A Special Tax Bonds in an Amount Not to Exceed $13,000,000 Approving Certain Documents and Taking Certain Other Actions Preliminary Official Statement Bond Indenture Continuing Disclosure Certificate Bond Purchase Agreement Acknowledgment of Good Faith Estimates Financing Details and Tentative Schedule 10 Current Estimated Par Amount: $11,050,000 Final Maturity of 2051 (30-year term) Sources & Uses and Proposed Debt Service Sources of Funds Par Amount $11,050,000 Premium 1,308,930 Total Sources $12,358,930 Uses of Funds Project Fund $11,161,124 Reserve Fund 850,581 Cost of Issuance 189,000 Underwriter Discount 158,225 Total Uses $12,358,930 All numbers are preliminary, subject to change 11 Estimated Costs of Issuance All numbers are preliminary, subject to change Estimated Costs of Issuance for CFD 2020-1 Bonds Role Party Total Underwriter Stifel $158,225 Staff Time City 25,000 Disclosure Counsel Stradling 35,000 Bond Counsel Stradling 40,000 Municipal Advisor Urban Futures 37,500 Special Tax Consultant Spicer Consulting 25,000 Appraiser Kitty Siino & Associates 16,500 Trustee Wilmington 5,000 Printer To be Determined 3,000 Miscellaneous --2,000 TOTAL Estimated Costs of Issuance $347,225 12 Tentative Schedule Date Description December 15th City Council Meeting to Approve Financing December 28th Post Preliminary Official Statement (Make Available to Prospective Investors) January 12th Pricing of Bonds January 26th Settlement of Bonds (Date of Issuance) All numbers are preliminary, subject to change Assuming Council Approval this Evening, the Bonds are Expected to be sold in January 2022