HomeMy Public PortalAboutOrdinance 908ORDINANCE NO. 908
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BEAUMONT
AUTHORIZING THE LEVY OF A SERVICES SPECIAL TAX AND A
SPECIAL TAX WITHIN IMPROVEMENT AREA NO. 24 OF
COMMUNITY FACILITIES DISTRICT NO. 93-1
WHEREAS, the City Council of the City of Beaumont (respectively, the "City
Council" and the "City") duly adopted Resolutions establishing "City of Beaumont Community
Facilities District No. 93-1" (the "CFD"), including separate improvement areas, and authorizing
the levy of special taxes to pay for services and for certain public facilities for the Community
Facilities District under and pursuant to the terms and provisions of the Mello -Roos Community
Facilities Act of 1982, as amended (the "Act"), being Chapter 2.5, Part 1, Division 2, Title 5 of
the Government Code of the State of California (the "Code"); and
WHEREAS, on December 5, 2006, the City Council adopted Resolution No.
2006-70 stating its intention to annex and establish new boundaries of Improvement Area No. 24
of the CFD ("Improvement Area No. 24" or the "Improvement Area") to finance a portion of the
cost of providing street maintenance and sweeping, parkway and median landscaping
maintenance, street lighting and traffic signal operations and maintenance, storm water facility
operation and maintenance, open space and multipurpose trails maintenance within easements,
public rights-of-way, green belts and open space, storm drain, water quality and flood control
facilities that are in addition to those provided in the territory prior to the formation of the
Improvement Area (the "Services"), and to finance the purchase, construction, expansion or
rehabilitation of certain real and other tangible property with an estimated useful life of five
years or longer, including public infrastructure facilities and other governmental facilities, which
the City is authorized by law to construct, own or operate (the "Facilities"); and
WHEREAS, on December 5, 2006, the Council also adopted Resolution No.
2006-71 stating its intention and the necessity to incur bonded indebtedness in the amount of not
to exceed $10,000,000 for Improvement Area No. 24 to be issued for the purpose of financing
the purchase, construction, expansion or rehabilitation of the Facilities; and
WHEREAS, notice was published as required by law relative to the intention of
the Council to establish the Improvement Area, to levy the Special Tax and to incur bonded
indebtedness in the amount not to exceed $10,000,000 for the Improvement Area; and
WHEREAS, on January 16, 2007 the City Council held a noticed public hearing
as required by law relative to the determination to proceed with the establishment of the
Improvement Area, the rate and method of apportionment and manner of collection of the special
tax to be levied within the Improvement Area to pay for the Services and for the Facilities,
including the special tax to be levied within the Improvement Area to pay the principal and
interest on the proposed bonded indebtedness of the Improvement Area, and relative to the
necessity for authorizing the bonds, the purpose for which the bonds are to be issued, the amount
of the proposed debt, the maximum term of the bonds and the maximum annual rate of interest to
be paid; and
BMT24 Ordinance No.908a.DOC
WHEREAS, at said hearing all persons desiring to be heard on all matters
pertaining to the establishment of the Improvement Area, the levy of the Special Tax and the
incurring of bonded indebtedness by the Improvement Area were heard and a full and fair
hearing was held; and
WHEREAS, the Council subsequent to said hearing adopted Resolution No.
2007-04 which determined the validity of prior proceedings and called an election within the
Improvement Area for January 16, 2007 on the proposition of levying a special tax and
establishing the Improvement Area; and
WHEREAS, the Council subsequent to said hearing adopted Resolution No.
2007-05 which called an election within the Improvement Area for January 16, 2007 on the
proposition of incurring bonded indebtedness and setting an appropriations limit; and
WHEREAS, on January 16, 2007, an election was held within the Improvement
Area in which the qualified electors approved by more than two-thirds vote the proposition of
incurring bonded indebtedness, levying a special tax, and setting an appropriations limit;
THE CITY COUNCIL OF THE CITY OF BEAUMONT DOES ORDAIN
AS FOLLOWS:
SECTION 1. A special tax (the "Services Special Tax") is levied within the
boundaries of the Improvement Area pursuant to the Amended and Restated Rate and Method of
Apportionment for Improvement Area No. 24 (the "Rate and Method") set forth in Exhibit "A"
attached hereto and incorporated by reference, in an amount necessary to pay all of the costs of
providing the Services, periodic costs, and costs of the tax levy and collection, and all other costs
related thereto.
SECTION 2. A special tax (the "Special Tax") is levied within the boundaries of
the Improvement Area pursuant to the formulas set forth in the Rate and Method in an amount
necessary to pay all of the costs of providing the Facilities, periodic costs, and costs of the tax
levy and collection, and all other costs including amounts payable with respect to the bonded
indebtedness.
SECTION 3. This legislative body is hereby further authorized each year, by
resolution adopted as provided in section 53340 of the Act, to determine the specific special tax
rate and amount to be levied for the then current or future tax years, except that the special tax
rate to be levied shall not exceed the maximum rate set forth in the Rate and Method.
SECTION 4. All of the collections of the Services Special Tax and Special Tax
shall be used as provided for in the Act and Resolution No. 2007-04 of the City Council
(Resolution of Formation).
SECTION 5. The above authorized Services Special Tax and the Special Tax
shall be collected in the same manner as ordinary ad valorem taxes are collected and shall be
subject to the same penalties and the same procedure and sale in cases of delinquency provided
for ad valorem taxes; provided, however, that the CFD may collect the Services Special Tax and
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BMT24 Ordinance No.908a.DOC
the Special Tax at a different time or in a different manner if necessary to meet its financial
obligations.
SECTION 6. The Mayor shall sign this ordinance and the City Clerk shall attest
to such signature. The City Clerk is directed to cause the title and summary or text of this
ordinance, together with the vote thereon, to be published within fifteen (15) days after its
passage at least once in a newspaper of general circulation published and circulated within the
territorial jurisdiction of the City, and to post at the main office of the City a certified copy of the
full text of the adopted ordinance along with the names of the City Council Members voting for
and against the ordinance.
SECTION 7. This ordinance relating to the levy of the Services Special Tax and
the Special Tax takes effect and shall be in force from and after 30 days from the date of final
passage. A copy of this ordinance shall be transmitted to the Clerk of the Board of Supervisors
of Riverside County, the Assessor and the Treasurer -Tax Collector of Riverside County.
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BMT24 Ordinance No.908a.DOC
MOVED AND PASSED upon first reading this 16th day of January, 2007 by the
following roll call vote:
AYES: Mayor Fox, Mayor Pro Tem DeForge, Council Members Berg, Dressel and
Killough
NOES: None
ABSTAIN: None
ABSENT: None
MOVED, PASSED AND ADOPTED this 6th day of February, 2007 by the
following roll call vote:
AYES: Mayor Fox, Mayor Pro Tem DeForge, Council Members Berg, Dressel, and
Killough
NOES: None
ABSTAIN: None
ABSENT: None
4
Agify
ayor of the 4 ity o Be umont
BMT24 Ordinance No.908aDOC
EXHIBIT A
AMENDED AND RESTATED
RATE AND METHOD OF APPORTIONMENT FOR
IMPROVEMENT AREA NO. 24 OF
COMMUNITY FACILITIES DISTRICT NO. 93-1
OF THE CITY OF BEAUMONT
A Special tax as hereinafter defined shall be levied on and collected in Improvement Area No. 24
("IA No. 24") of Community Facilities District No. 93-1 of the City of Beaumont ("CFD No. 93-1") each
Fiscal Year, in an amount determined by the City Council of the City of Beaumont through the
application of the appropriate Special Tax for "Developed Property, "Undeveloped Property," "Taxable
Owner Association Property," "Taxable Religious Property," and "Taxable Public Property," as described
below. All of the real property in IA No. 24 , unless exempted by law or by the provisions hereof, shall be
taxed for the purposes, to the extent, and in the manner herein provided.
SECTION A -DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map,
or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable fmal
map, parcel map, condominium plan, or other recorded County parcel map. The square footage of an
Assessor's Parcel is equal to the Acreage multiplied by 43,560.
"Act" means the Mello -Roos Communities Facilities Act of 1982 as amended, being Chapter 2.5,
Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means any ordinary and necessary expense of the City to carry out the
administration of IA No. 24 related to the determination of the amount of the levy of Special Taxes, the
collection of Special Taxes including the expenses of collecting delinquencies, the administration of
Bonds, the payment of salaries and benefits of any City employee whose duties are directly related to the
administration of IA No. 24, and costs otherwise incurred in order to carry out the authorized purposes of
IA No. 24.
"Apartment" means a single dwelling unit within a building or buildings comprised of attached
residential units, all of which are made available for rental by the general public, exclusive of
Condominiums.
"Assessor's Parcel" means a lot or parcel of land designated on an Assessor's Parcel Map with an
assigned Assessor's Parcel Number within the boundaries of IA No. 24.
"Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by
Assessor's Parcel Number.
"Assigned Special Tax" means the Special Tax of that name described in Section D below.
"Backup Special Tax for Facilities" means the Special Tax of that name described in Section E below.
"Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds,
notes, certificates of participation, long-term leases, loans from government agencies, or loans from
City of Beaumont December 1, 2006
Community Facilities District No. 93-1 (Improvement Area No. 24) amended Page A-1
banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any
refunding thereof, to which Special Taxes for Facilities have been pledged.
"Builder" means a developer, merchant builder, or builder that converts a Parcel to Developed Parcel for
sale to the initial buyer following the City issued Certificate of Occupancy.
"Building Permit" means a permit for new construction for a residential dwelling or non-residential
structure. For purposes of this definition, `Building Permit" shall not include permits for construction or
installation, retaining walls, utility improvements, or other such improvements not intended for human
habitation.
"Building Square Footage" or "BSF" means the square footage of assessable internal living space,
exclusive of garages or other structures not used as living space, as determined by reference to the
building permit application for such Assessor's Parcel.
"Calendar Year" means the period commencing January 1 of any year and ending the following
December 31.
"CFD Administrator" means an official of the City, or designee thereof, responsible for determining the
Special Tax Requirement and providing for the levy and collection of the Special Taxes.
"CFD No. 93-1" means Community Facilities District No. 93-1 established by the City under the Act.
"City" means the City of Beaumont.
"City Council" means the City Council of the City, acting as the Legislative Body , or its designee.
"Condominium Unit" means a unit meeting the statutory definition of a condominium contained in
California Civil Code, Section 1351.
"Consumer Price Index" means the index published monthly by the U.S. Department of Labor, Bureau
of Labor Statistics for all urban consumers in the Los Angeles -Riverside -Orange County area.
"County" means the County of Riverside.
"Developed Property" means all Assessor's Parcels for which Building Permits were issued on or before
June 30 of the prior Fiscal Year, provided that such Assessor's Parcels were created on or before June 30
of the prior Fiscal Year, as determined reasonably by the City.
"Dwelling Unit" means each separate residential dwelling unit that comprises an independent facility
capable of conveyance or rental separate from adjacent residential dwelling units.
"Exempt Property" means all Assessor's Parcels designated as being exempt from Special Tax as
determined in Section J
"Final Map" means a subdivision of property evidenced by the recordation of a final map, parcel map, or
lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et
seq.) or the recordation of a condominium plan pursuant to California Civil Code 1352 that creates
individual lots for which Building Permits may be issued without further subdivision.
"Fiscal Year" means the period commencing on July 1 of any year and ending the following June 30.
City of Beaumont December 1, 2006
Community Facilities District No. 93-1 (Improvement Area No. 24) amended Page A-2
"Improvement Area No. 24" or "IA No. 24" means Improvement Area No. 24 as depicted on the
boundary map .
"Lot" means an individual legal lot created by a Final Map for which a Building Permit could be issued.
"Maximum Special Tax" means the Maximum Special Tax for Facilities and Maximum Special Tax for
Services.
"Maximum Special Tax for Facilities" means the maximum Special Tax for Facilities, determined in
accordance with Section C, which can be levied by IA No. 24 in any Fiscal Year on any Assessor's
Parcel.
"Maximum Special Tax for Services" means the maximum Special Tax for Services, determined in
accordance with Section C, which can be levied by IA No. 24 in any Fiscal Year on any Assessor's
Parcel.
"Minimum Acreage" means the smallest allowable amount of taxable acreage. For IA No. 24 shall not
be less than 13.47 acres.
"Non Residential Property" means all Assessors' Parcels of Developed Property for which a building
permit was issued for any type of non-residential use.
"Operating Fund" means a fund that shall be maintained for IA No. 24 for any Fiscal Year to pay for
the actual costs of maintenance, repair, and replacement of the Service Area, and the Administrative
Expenses.
"Operating Fund Balance" means the amount of funds in the Operating Fund at the end of the
preceding Fiscal Year.
"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax for
Facilities obligation for an Assessor's Parcel, as described in Section H.
"Prepayment Amount" means the amount required to prepay the Annual Special Tax obligation in full
for an Assessor's Parcel, as described in Section G.
"Proportionately" means the ratio of the actual Annual Special Tax levy to the Assigned Special Tax is
equal for all applicable Assessor's Parcels.
"Residential Property" means all Assessors' Parcels of Developed Property for which a building permit
has been issued for purposes of constructing one or more residential dwelling units.
"Service Area" means the streets, landscape parkways and medians, neighborhood, community and
regional parks, street and landscape lighting and utilities, easements, public rights -of way, green belts and
open space, storm drain, water quality and flood control facilities within the boundaries of IA No. 24 and
the City.
"Special Tax" means Special Tax for Facilities and Special Tax for Services.
"Special Tax for Facilities" means any of the special taxes authorized to be levied by CFD No. 93-1
pursuant to the Act to fund the Special Tax Requirement for Facilities.
City of Beaumont December 1, 2006
Community Facilities District No. 93-1 (Improvement Area No. 24) amended Page A-3
"Special Tax for Services" means any of the special taxes authorized to be levied by CFD No. 93-1
pursuant to the Act to fund the Special Tax Requirement for Services.
"Special Tax Requirement for Facilities" means the amount required in any Fiscal Year for IA No. 24
to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that
commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of
funds from an escrow account, and (iv) any amount required to establish or replenish any reserve funds
established in association with the Bonds, (v) the collection or accumulation of funds for the acquisition
or construction of facilities authorized by IA No. 24 provided that the inclusion of such amount does not
cause an increase in the levy of Special Tax for Facilities or Undeveloped Property, less (vi) any amount
available to pay debt service or other periodic costs on the Bonds pursuant to any applicable bond
indenture, fiscal agent agreement, or trust agreement.
"Special Tax Requirement for Services" means the amount determined in any Fiscal Year for IA No.
24 equal to (i) the budgeted costs of the maintenance, utilities, repair and replacement of the Service Area
which have been accepted and maintained or are reasonably expected to be accepted and maintained
during the current Fiscal Year, (ii) Administrative Expenses, and (iii) anticipated delinquent Special
Taxes for Services based on the delinquency rate in IA No. 24 for the previous Fiscal Year, less (iv) the
Operating Fund Balance.
"Taxable Property" means all Assessor Parcels within IA No. 24 which are not Exempt Property.
"Undeveloped Property" means all Assessors' Parcels of Taxable Property which are not Developed
Property.
SECTION B - CLASSIFICATION OF ASSESSOR'S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2006-2007, each Assessor's Parcel within IA No. 24 shall
be classified as Taxable Property or Exempt Property. In addition, each Assessor's Parcel of Taxable
Property shall be further classified as Developed Property or Undeveloped Property. Lastly, each
Assessor's Parcel of Developed Property shall further be classified as Residential Property or Non
Residential Property.
SECTION C- MAXIMUM SPECIAL TAXES
1. Developed Property
a. The Maximum Special Tax for Facilities for each Assessor's Parcel of Residential Property
that is classified as Developed Property in any Fiscal Year shall be the amount determined
by the greater of (i) the application of the Assigned Special Tax for Facilities in Table 1 or
(ii) the application of the Backup Special Tax for Facilities. The Maximum Special Tax for
Facilities for each Assessor's Parcel of Non -Residential Property that is classified as
Developed Property in any Fiscal Year shall be the Assigned Annual Special Tax for
Facilities in Table 1.
b. The Maximum Special Tax for Services for each Assessor's Parcel of Residential Property
that is classified as Developed Property in any Fiscal Year shall be $250 per unit. The
Maximum Special Tax for Services for each Assessor's Parcel of Non -Residential Property
that is classified as Developed Property in any Fiscal Year shall be $1,600 per Acre. On each
July 1, commencing July 1, 2007, the Maximum Special Tax for Services for the prior Fiscal
Year shall be adjusted by an amount equal to the percentage change in the Consumer Price
Index for the Calendar Year ending in December of the prior Fiscal Year.
City of Beaumont December 1, 2006
Community Facilities District No. 93-1 (Improvement Area No. 24) amended Page A-4
2. Undeveloped Property
The Maximum Special Tax for Facilities for each Assessor's Parcel classified as Undeveloped
Property shall be the Assigned Special Tax for Facilities in Table 1.
SECTION D - ASSIGNED SPECIAL TAX FOR FACILITIES
Assigned Special Tax Rates
Each Fiscal Year, each Assessor's Parcel shall be subject to an Assigned Special Tax. The Assigned
Special Tax applicable to an Assessor's Parcel for any Fiscal Year shall be determined pursuant to Table 1
below.
TABLE 1
Assigned Special Tax Rates for Facilities for 2006-2007
Category
Assigned Special
Tax Rate
Residential
$1,800 per Dwelling Unit
Non Residential Property
$30,000 per Acre
Undeveloped Property
$30,000 per Acre
On each July 1, commencing on July 1, 2007, the Assigned Special Tax for Facilities for each Assessor's
Parcel shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
SECTION E -BACKUP SPECIAL TAXES FOR FACILITIES
Each Fiscal Year, each Assessor's Parcel of Developed Property classified as Residential Property shall
be subject to a Backup Special Tax for Facilities. In each Fiscal Year, the Backup Special Tax for
Facilities rate for Developed Property classified as Residential Property within a Final Map shall be the
rate per Lot calculated according to the following formula:
B=
RxA
L
The terms above have the following meanings:
B = Backup Special Tax for Facilities per Lot in each Fiscal Year
R = Maximum Special Tax for Facilities rate per Acre for Undeveloped Property for
the applicable Fiscal Year
A = Acreage of Developed Property classified or to be classified as
Residential Property in such Final Map.
L = Lots in the Final Map which are classified or to be classified as
Residential Property.
City of Beaumont December 1, 2006
Community Facilities District No. 93-1 (Improvement Area No. 24) amended Page A-5
SECTION F - METHOD OF APPORTIONMENT OF TILE
SPECIAL TAX FOR FACILITIES AND THE SPECIAL TAX FOR
SERVICES
1. Commencing Fiscal Year 2006-2007 and for each subsequent Fiscal Year, the City Council shall
levy a Special Tax for Facilities on all Taxable Property within IA No. 24 until the amount of
Special Tax for Facilities equals the Special Tax Requirement for Facilities in accordance with the
following steps:
Step One:
The Special Tax for Facilities shall be levied Proportionately on each Assessor's
Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax
for Facilities rates in Table 1 as needed to satisfy the Special Tax Requirement for
Facilities.
Step Two: If additional moneys are needed to satisfy the Special Tax Requirement for Facilities
after the first step has been completed, the Special Tax for Facilities shall be levied
Proportionately on each Assessor's Parcel of Undeveloped Property, excluding any
Undeveloped Property pursuant to Section J, at up to 100% of the Assigned Special
Tax for Facilities applicable to each such Assessor's Parcel as needed to satisfy the
Special Tax Requirement for Facilities.
Step Three: If additional moneys are needed to satisfy the Special Tax Requirement for Facilities
after the first two steps have been completed, then for each Assessor's Parcel of
Developed Property whose Assigned Special Tax for Facilities is the Backup Special
Tax for Facilities shall be increased Proportionately from the Assigned Special Tax
for Facilities up to 100% of the Backup Special Tax for Facilities as needed to satisfy
the Special Tax Requirement for Facilities.
Step Four: If additional moneys are needed to satisfy the Special Tax Requirement for Facilities
after the first three steps have been completed, the Special Tax for Facilities shall be
levied Proportionately on each Assessor's Parcel of Undeveloped Property classified
pursuant to Section J at up to 100% of the Assigned Special Tax for Facilities
applicable to each such Assessor's Parcel as needed to satisfy the Special Tax
Requirement for Facilities.
2. Commencing Fiscal Year 2006-2007 and for each subsequent Fiscal Year, the City Council shall
levy a Special Tax for Services on all Taxable Property within IA No. 24 until the amount of Special
Tax for Services equals the Special Tax Requirement for Services in accordance with the following
steps:
Step One:
Step Two:
The Maximum Special Tax for Services shall be levied Proportionately on each
Assessor's Parcel of Developed Property at up to 100% of the applicable Maximum
Special Tax for Services as needed to satisfy the Special Tax Requirement for
Services.
If additional moneys are needed to satisfy the Special Tax Requirement for Services
after the first step has been completed, the Maximum Special Tax for Services shall
be levied Proportionately on each Assessor's Parcel of Final Map Property, at up to
100% of the Maximum Special Tax for Services applicable to each such Assessor's
Parcel as needed to satisfy the Special Tax Requirement for Services.
City of Beaumont December 1, 2006
Community Facilities District No. 93-1 (Improvement Area No. 24) amended Page A-6
SECTION G - PREPAYMENT OF SPECIAL TAX FOR FACILITIES
The following definitions apply to this Section G:
"CFD Public Facilities" means $5,200,000 expressed in 2006 dollars, which shall increase by the
Construction Inflation Index on January 1, 2007, and on each January 1 thereafter, or such lower number
as (i) shall be determined by the City as sufficient to provide the public facilities under the authorized
bonding program for CFD No. 93-1, or (ii) shall be determined by the City Council concurrently with a
covenant that it will not issue any more Bonds to be supported by Special Taxes levied under this Rate
and Method of Apportionment.
"Construction Fund" means an account specifically identified in the Indenture or functional equivalent
to hold funds which are currently available for expenditure to acquire or construct public facilities eligible
under CFD No. 93-1.
"Construction Inflation Index" means the annual percentage change in the Engineering News -Record
Building Cost Index for the City of Los Angeles, measured as of the Calendar Year which ends in the
previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall
be another index as determined by the City that is reasonably comparable to the Engineering News -
Record Building Cost Index for the City of Los Angeles.
"Future Facilities Costs" means the CFD Public Facilities minus public facility costs available to be
funded through existing construction or escrow accounts or funded by the Outstanding Bonds, and minus
public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date
of prepayment.
"Outstanding Bonds" means all previously issued bonds issued and secured by the levy of Special Tax
for Facilities which will remain outstanding after the first interest and/or principal payment date following
the current Fiscal Year, excluding bonds to be redeemed at a later date with the proceeds of prior
prepayments of the Special Tax for Facilities.
The Special Tax for Facilities obligation of an Assessor's Parcel of Developed Property or Undeveloped
Property for which a Building Permit has been issued or an Assessor's Parcel of Undeveloped Property
that is classified as Undeveloped Property pursuant to Section J may be prepaid in full, provided that there
are no delinquent Special Taxes, penalties, or interest charges outstanding with respect to such Assessor's
Parcel at the time the Special Tax for Facilities obligation would be prepaid. The Prepayment Amount for
an Assessor's Parcel eligible for prepayment shall be determined as described below.
An owner of an Assessor's Parcel intending to prepay the Special Tax for Facilities obligation shall
provide the City with written notice of intent to prepay, and within 5 days of receipt of such notice, the
City shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to
be incurred by CFD No. 93-1 in calculating the proper amount of a prepayment. Within 15 days of receipt
of such non-refundable deposit, the City shall notify such owner of the prepayment amount of such
Assessor's Parcel.
City of Beaumont December 1, 2006
Community Facilities District No. 93-1 (Improvement Area No. 24) amended Page A-7
The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to
the following formula (capitalized terms defined below):
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance
plus Administrative Fee
less Reserve Fund Credit
equals Prepayment Amount
As of the date of prepayment, the Prepayment Amount shall be calculated as follows:
1. For Assessor's Parcels of Developed Property, compute the Assigned Special Taxes for Facilities
and the Backup Special Taxes for Facilities applicable to the Assessor's Parcel. For Assessor's
Parcels Undeveloped Property, excluding any Undeveloped Property pursuant to Section J,
compute the Assigned Special Tax for Facilities and the Backup Special Tax for Facilities
applicable to the Assessor's Parcel as though it was already designated as Developed Property
based upon the Building Permit issued or to be issued for that Assessor's Parcel. For Assessor's
Parcels classified as Undeveloped Property pursuant to Section J, compute the Assigned Special
Tax for Facilities.
2. For each Assessor's Parcel of Developed Property or Undeveloped Property to be prepaid, (a)
divide the Assigned Special Tax for Facilities computed pursuant to paragraph 1 for such Assessor's
Parcel by the sum of the estimated Assigned Special Tax for Facilities applicable to all Assessor's
Parcels of Taxable Property at build out, as reasonably determined by the City, and (b) divide the
Backup Special Tax for Facilities computed pursuant to paragraph 1 for such Assessor's Parcel by
the sum of the estimated Backup Special Tax for Facilities applicable to all Assessor's Parcels of
Taxable Property at build out, as reasonably determined by the City.
3. Multiply the larger quotient computed pursuant to paragraph 2(a) or 2(b) by Outstanding Bonds.
The product shall be the "Bond Redemption Amount".
4. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the
Outstanding Bonds to be redeemed with the proceeds of the Bond Redemption Amount. This
product is the "Redemption Premium."
5. Compute the Future Facilities Cost.
6. Multiply the larger quotient computed pursuant to paragraph 2 (a) or 2 (b) by the amount
determined pursuant to paragraph 5. to determine the Future Facilities Cost to be prepaid (the
"Future Facilities Amount").
7. Compute the amount needed to pay interest on the Bond Redemption Amount, the Redemption
Premium, and the Reserve Fund Credit (see step 11) to be redeemed with the proceeds of the
Prepayment Amount until the earliest call date for the Outstanding Bonds.
8. Estimate the amount of interest earnings to be derived from the reinvestment of the Bond
Redemption Amount plus the Redemption Premium until the earliest call date for the Outstanding
Bonds.
City of Beaumont December 1, 2006
Community Facilities District No. 93-1 (Improvement Area No. 24) amended Page A-8
9. Subtract the amount computed pursuant to paragraph 8 from the amount computed pursuant to
paragraph 7. This difference is the "Defeasance."
10. Estimate the administrative fees and expenses associated with the prepayment, including the costs
of computation of the Prepayment Amount, the costs of redeeming Bonds, and the costs of
recording any notices to evidence the prepayment and the redemption. This amount is the
"Administrative Fee."
11. Calculate the "Reserve Fund Credit" as the lesser of: (a) the expected reduction in the applicable
reserve requirements, if any, associated with the redemption of Outstanding Bonds as a result of the
prepayment, or (b) the amount derived by subtracting the new reserve requirements in effect after
the redemption of Outstanding Bonds as a result of the prepayment from the balance in the
applicable reserve funds on the prepayment date. Notwithstanding the foregoing, if the reserve fund
requirement is satisfied by a surety bond or other instrument at the time of the prepayment, then no
Reserve Fund Credit shall be given. Notwithstanding the foregoing, the Reserve Fund Credit shall
in no event be less than 0.
12. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption
Premium, the Future Facilities Amount, the Defeasance, and the Administrative Fee, less the
Reserve Fund Credit.
With respect to the Special Tax for Facilities obligation that is prepaid pursuant to this Section G,
the City Council shall indicate in the records of IA No. 24 that there has been a prepayment of the Special
Tax for Facilities obligation and shall cause a suitable notice to be recorded in compliance with the Act
within thirty (30) days of receipt of such prepayment to indicate the prepayment of the Special Tax for
Facilities obligation and the release of the Special Tax for Facilities lien on such Assessor's Parcel, and
the obligation of such Assessor's Parcel to pay such Special Taxes for Facilities shall cease.
Notwithstanding the foregoing, no prepayment will be allowed unless the amount of Special Tax for
Facilities that may be levied on Taxable Property, net of Administrative Expenses, shall be at least 1.1
times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds
in each future Fiscal Year.
SECTION H- PARTIAL PREPAYMENT OF SPECIAL TAX FOR FACILITIES
The Special Tax for Facilities obligation of an Assessor's Parcel of Developed Property or an
Assessor's Parcel of Undeveloped Property for which a building permit has been issued and will be
classified as Developed Property in the next Fiscal Year, as calculated in this Section H. below, may be
partially prepaid, provided that there are no delinquent Special Taxes, penalties, or interest charges
outstanding with respect to such Assessor's Parcel at the time the Special Tax for Facilities obligation
would be prepaid.
City of Beaumont December 1, 2006
Community Facilities District No. 93-1 (Improvement Area No. 24) amended Page A-9
The Partial Prepayment Amount shall be calculated according to the following formula:
PP = PG x F
The terms above have the following meanings:
PP = the Partial Prepayment Amount.
PG = the Prepayment Amount calculated according to Section G.
F = the percent by which the owner of the Assessor's Parcel is partially prepaying the
Special Tax for Facilities obligation.
With respect to any Assessor's Parcel that is partially prepaid, the City Council shall indicate in
the records of IA No. 24 that there has been a partial prepayment of the Special Tax for Facilities
obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30)
days of receipt of such partial prepayment of the Special Tax for Facilities obligation, to indicate the
partial prepayment of the Special Tax for Facilities obligation and the partial release of the Special Tax
for Facilities lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay such
prepaid portion of the Special Tax for Facilities for shall cease.
MANDATORY PARTIAL PREPAYMENT: Prior to the close of escrow for the first transfer
of title of any Developed Parcel after the date on which a Certificate of Occupancy for such Parcel was
issued by the City, the Maximum Special Tax shall be subject to mandatory partial prepayment in a
amount necessary to bring the Total Property Tax Burden for the then -current Fiscal Year to an amount
less than or equal to 2% of the sale price of the Parcel. The amount required shall be due and payable
upon transfer of title. No prepayment shall be required if the Total Property Tax Burden is not in excess
of the 2% limit. The Builder shall notify the City in writing of the mandatory partial repayment
requirement at least 30 days prior to close of escrow. The City shall calculate and determine the
prepayment amount using the methodology for a partial prepayment herein, such that the partial
prepayment shall be in the exact percentage required for a Total Property Tax Burden not in excess of the
2% limit.
Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount of
Special Tax for Facilities that may be levied on Taxable Property after such partial prepayment, net of
Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal
payments on all currently Outstanding Bonds in each future Fiscal Year.
SECTION I - TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax for Facilities shall be levied on all
Assessor's Parcels subject to the Special Tax for Facilities. If any delinquent Special Tax for Facilities
remain uncollected prior to or after all Bonds are retired, the Special Tax for Facilities may be levied to
the extent necessary to reimburse CFD No. 93-1 for uncollected Special Tax for Facilities associated with
the levy of such Special Taxes for Facilities, but not later than the 2049-50 Fiscal Year. The Special Tax
for Services shall be levied as long as it is needed to meet the Special Tax Requirement for Services, as
determined at the sole discretion of the City Council.
City of Beaumont December 1, 2006
Community Facilities District No. 93-1 (Improvement Area No. 24) amended Page A-10
SECTION J - EXEMPTIONS
The City shall classify as Exempt Property (i) Assessor's Parcels owned by the State of California, federal
or other local governments, (ii) Assessor's Parcels which are used as places of worship and are exempt
from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor's
Parcels used exclusively by a homeowners' association, or (iv) Assessor's Parcels with public or utility
easements making impractical their utilization for other than the purposes set forth in the easement,
provided that no such classification would reduce the sum of all Taxable Property to less than the
Minimum Acreage. Notwithstanding the above, the City Council shall not classify an Assessor's Parcel as
Exempt Property if such classification would reduce the sum of all Taxable Property to less than the
Minimum Acreage. Assessor's Parcels which cannot be classified as Exempt Property because such
classification would reduce the Acreage of all Taxable Property to less than the Minimum Acreage will
continue to be classified as Undeveloped Property, and will continue to be subject to Special Taxes
accordingly.
SECTION K - APPEALS
Any property owner claiming that the amount or application of the Special Tax is not correct may
file a written notice of appeal with the City Council not later than twelve months after having paid the
first installment of the Special Tax that is disputed. A representative(s) shall promptly review the appeal,
and if necessary, meet with the property owner, consider written and oral evidence regarding the amount
of the Special Tax, and rule on the appeal. If the representative's decision requires that the Special Tax for
an Assessor's Parcel be modified or changed in favor of the property owner, a cash refund shall not be
made (except for the last year of levy), but an adjustment shall be made to the Special Tax on that
Assessor's Parcel in the subsequent Fiscal Year(s).
SECTION L - MANNER OF COLLECTION
The Annual Special Tax shall be collected in the same manner and at the same time as ordinary ad
valorem property taxes, provided, however, that CFD No. 93-1 may collect the Special Tax at a different
time or in a different manner if necessary to meet its fmancial obligations.
City of Beaumont December 1, 2006
Community Facilities District No. 93-1 (Improvement Area No. 24) amended Page A-11