HomeMy Public PortalAboutOrdinance 915ORDINANCE NO. 915
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. 8D 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 May 1, 2007, the City Council adopted Resolution No. 2007-23
stating its intention to annex and establish new boundaries of Improvement Area No. 8D of the
CFD ("Improvement Area No. 8D" or the "Improvement Area") to fmance 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 May 1, 2007, the Council also adopted Resolution No. 2007-24
stating its intention and the necessity to incur bonded indebtedness in the amount of not to
exceed $10,000,000 for Improvement Area No. 8D to be issued for the purpose of fmancing 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 June 5 2007, continued to July 17, 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
BMT8D Ordinance No.915a.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.
3
BMT8D Ordinance No.915a.DOC
MOVED AND PASSED upon first reading this 17th day of July, 2007 by the
following roll call vote:
AYES: Mayor Fox, Council Members DeForge, Berg, Dressel, Killough
NOES: None
ABSTAIN: None
ABSENT: None
MOVED, PASSED AND ADOPTED this 21st day of August, 2007 by the
following roll call vote:
AYES: Mayor Fox, Council Members DeForge, Berg, Dressel, and Killough
NOES: None
ABSTAIN: None
ABSENT: None
ATTEST:
M. or of fi- City o : ea
4
BMT8D Ordinance No.915a.DOC
EXHIBIT A
RATE AND METHOD OF APPORTIONMENT FOR
IMPROVEMENT AREA NO. 8D (SUNDANCE) 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.
8D ("IA No. 8D") of Community Facilities District No. 93-1 of the City of Beaumont ("CFI) 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," "Final Map Property," and
"Undeveloped Property," as described below. All of the real property in IA No. 8D of CFD No. 93-1,
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 incurred by the City to carry out
the administration of IA No. 8D of CFD No. 93-1 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. 8D, and costs otherwise incurred in order to carry out the
authorized purposes of IA No. 8D.
"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 CFD No. 93-1.
"Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by
Assessor's Parcel Number.
"Assessor's Parcel Number" means that number assigned to an Assessor's Parcel by the County for
purposes of identification.
"Assigned Special Tax for Facilities" 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
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.
City of Beaumont
Community Facilities District No. 93-1 (Improvement Area No. 8D)
March 30, 2007
Page A-1
"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 of 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 of CFD No. 93-1, or
its designee.
"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 that: (i) were issued Building Permits on or before
June P` preceding the Fiscal Year in which the Special Tax is being levied, and (ii) were created on or
before the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and that each
such Assessor's Parcel is associated with a Lot, as reasonably determined by the City.
"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 fmal 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.
"Final Map Property" means all Assessor's Parcels: (i) that are included in a Final Map that was
recorded prior to the January 1P` preceding the Fiscal Year in which the Special Tax is being levied, and
(ii) for which a Building Permit was not issued prior to the June Pt preceding the Fiscal Year in which the
Special Tax is being levied.
"Fiscal Year" means the period commencing on July 1 of any year and ending the following June 30.
"Improvement Area No. 8D" or "IA No. 8D" means Improvement Area No. 8D as depicted on the
boundary map of CFD No. 93-1.
City of Beaumont
Community Facilities District No. 93-1 (Improvement Area No. 8D)
March 30, 2007
Page A-2
"Lot" means an individual legal lot created by a Final Map, identified by an Assessor's Parcel Number
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, determined in accordance
with Section C that can be levied by CFD No. 93-1 in any Fiscal Year on any Assessor's Parcel.
"Maximum Special Tax for Services" means the maximum Special Tax, determined in accordance with
Section C that can be levied by CFD No. 93-1 in any Fiscal Year on any Assessor's Parcel. .
"Non -Residential Property" means all Assessor's 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. 8D of CFD No. 93-1 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 Special Tax for Facilities obligation in
full for an Assessor's Parcel, as described in Section G.
"Proportionately" means that (i) the ratio of the actual Special Tax for Facilities levy to the applicable
Assigned Special Tax for Facilities is equal for all applicable Assessor's Parcels and (ii) the ratio of the
actual Special Tax for Services levy to the applicable Maximum Special Tax for Services is equal for all
applicable Assessor's Parcels. In case of Developed Property subject to the apportionment of the Special
Tax for Facilities under step four of Section F, "Proportionately" in step four means that the quotient of
(a) the actual Special Tax for Facilities levy less the Assigned Special Tax for Facilities divided by (b) the
Backup Special Tax for Facilities less the Assigned Special Tax for Facilities, is equal for all applicable
Assessor's Parcels.
"Residential Property" means all Assessor's 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 landscape parkways, neighborhood park, easements and green belts within the
boundaries of IA No. 8D and the City of Beaumont, and IA No. 8D's fair share of storm drain and flood
control facilities.
"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.
"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.
City of Beaumont
Community Facilities District No. 93-1 (Improvement Area No. 8D)
March 30, 2007
Page A-3
"Special Tax Requirement" means Special Tax Requirement for Facilities and Special Tax Requirement
for Services.
"Special Tax Requirement for Facilities" means the amount required in any Fiscal Year for IA No. 8D
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, (iv) any amount required to establish or replenish any reserve funds
established in association with the Bonds, and (v) the collection or accumulation of funds for the
acquisition or construction of facilities authorized by IA No. 8D provided that the inclusion of such
amount does not cause an increase in the levy of Special Tax for Facilities on Final Map Property or
Undeveloped Property, (vi) an allowance for delinquencies as determined by the Special Tax
Administrator, 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.
8D equal to (i) the budgeted costs of the maintenance, 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. 8D for the previous Fiscal Year, less (iv) the Operating
Fund Balance.
"Taxable Property" means all Assessor's Parcels within CFD No. 93-1 which are not Exempt Property.
"Undeveloped Property" means all Assessor's Parcels of Taxable Property which are not Developed
Property or Final Map Property.
SECTION B
CLASSIFICATION OF ASSESSOR'S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2006-2007, each Assessor's Parcel within IA No. 8D 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, Final Map 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 Special Tax for Facilities in
Table 1 of Section D.
b. Prior to the issuance of Bonds, the Assigned Special Tax for Facilities on Developed Property
set forth in Table 1 and the Assigned Special Tax for Facilities on Final Map Property and
Undeveloped Property set forth in Section D.2 may be reduced in accordance with, and
subject to the conditions set forth in this paragraph. If it is reasonably determined by the CFD
City of Beaumont
Community Facilities District No. 93-1 (Improvement Area No. 8D)
March 30, 2007
Page A-4
Administrator that the overlapping debt burden (as defined in the Statement of Goals and
Policies for the Use of the Mello -Roos Community Facilities Act of 1982 adopted by the City
Council, the "Goals and Policies") calculated pursuant to the Goals and Policies exceeds the
City's maximum level objective set forth in such document, the Maximum Special Tax for
Facilities on Developed Property may be reduced (by modifying Table 1) to the amount
necessary to satisfy the City's objective with respect to the maximum overlapping debt
burden level with the written consent of the CFD Administrator. In order to reduce the
Maximum Special Tax for Facilities on Developed Property it may be necessary to reduce the
Maximum Special Tax for Facilities for Final Map Property and Undeveloped Property. The
reductions permitted pursuant to this paragraph shall be reflected in an amended Notice of
Special Tax Lien which the City shall cause to be recorded by executing a certificate in
substantially the form attached hereto as Attachment No. 1.
c. The Maximum Special Tax for Services for each Assessor's Parcel of Residential Property
that is classified as Developed Property for Fiscal Year 2006-2007 shall be $265.90 per
dwelling unit. The Maximum Special Tax for Services for each Assessor's Parcel of Non -
Residential Property that is classified as Developed Property for Fiscal Year 2006-2007 shall
be $1,649 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.
2. Final Mau Property
a. The Maximum Special Tax for Facilities for each Assessor's Parcel classified as Final Map
Property shall be the Assigned Special Tax for Facilities in Section D.
b. The Maximum Special Tax for Services for each Assessor's Parcel classified as Final Map
Property in Fiscal Year 2006-2007 shall be $1,649 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.
3. 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 Section D.
SECTION D
ASSIGNED SPECIAL TAX FOR FACILITIES
1. Developed Property
Each Fiscal Year, each Assessor's Parcel of Developed Property shall be subject to an Assigned
Special Tax for Facilities. The Assigned Special Tax for Facilities applicable to an Assessor's
Parcel of Developed Property for any Fiscal Year shall be determined pursuant to Table 1 below.
City of Beaumont
Community Facilities District No. 93-1 (Improvement Area No. 8D)
March 30, 2007
Page A-5
TABLE 1
ASSIGNED SPECIAL TAX RATES FOR FACILITIES FOR DEVELOPED PROPERTY
Land Use Type
Building Square Footage
Assigned Special Tax for
Facilities for Fiscal Year
2006-2007
Residential Property
Less than 1,400
$1,214 per dwelling unit
Residential Property
1,400 —1,700
$1,246 per dwelling unit
Residential Property
Greater than 1,700
$1,404 per dwelling unit
Non -Residential
N/A
$59,667 per acre
2. Final Map Property and Undeveloped Property
Each Fiscal Year, each Assessor's Parcel of Final Map Property and Undeveloped Property shall
be subject to an Assigned Special Tax for Facilities. The Assigned Special Tax for Facilities for
an Assessor's Parcel classified as Final Map Property or Undeveloped Property for Fiscal Year
2006-2007 shall be $59,667 per acre.
3. Increase in the Assigned Special Tax for Facilities
On each July 1, commencing on July 1, 2007, the Assigned Special Tax for Facilities for each
Assessor's Parcel of Developed Property, Final Map Property, and Undeveloped Property 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.
Each July 1, commencing on July 1, 2007, the Backup Special Tax for each Assessor's Parcel shall be
increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
City of Beaumont
Community Facilities District No. 93-1 (Improvement Area No. 8D)
March 30, 2007
Page A-6
Notwithstanding the foregoing, if all or any portion of the Final Map(s) described in the preceding
paragraph is subsequently changed or modified, then the Backup Special Tax for Facilities for each
Assessor's Parcel of Developed Property classified or to be classified as Residential Property in such
Final Map area that is changed or modified shall be a rate per square foot of Acreage calculated as
follows:
1. Determine the total Backup Special Tax for Facilities anticipated to apply to the changed
or modified Final Map area prior to the change or modification.
2. The result of paragraph 1 above shall be divided by the Acreage of Developed Property
classified or to be classified as Residential Property which is ultimately expected to exist
in such changed or modified Final Map area, as reasonably determined by the City.
3. The result of paragraph 2 above shall be divided by 43,560. The result is the Backup
Special Tax for Facilities per square foot of Acreage which shall be applicable to
Assessor's Parcels of Developed Property classified as Residential Property in such
changed or modified Final Map area for all remaining Fiscal Years in which the Special
Tax for Facilities may be levied.
SECTION F
METHOD OF APPORTIONMENT OF THE 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. 8D 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 Final Map Property, 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, 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 Four: If additional moneys are needed to satisfy the Special Tax Requirement for Facilities
after the first three steps have been completed, then for each Assessor's Parcel of
Developed Property whose Maximum Special Tax for Facilities is the Backup
Special Tax for Facilities shall be increased Proportionately from the Assigned
City of Beaumont
Community Facilities District No. 93-1 (Improvement Area No. 8D)
March 30, 2007
Page A-7
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 Five: If additional moneys are needed to satisfy the Special Tax Requirement for Facilities
after the first four steps have been completed, the Special Tax for Facilities shall be
levied Proportionately on each Assessor's Parcel of Undeveloped Property classified
as 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.
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. 8D until the amount of
Special Tax for Services equals the Special Tax Requirement for Services in accordance with the
following steps:
Step One: 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.
Step Two: 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.
Under no circumstances will the Special Tax for Facilities or the Special Tax for Services levied
against any Assessor's Parcel used as a private residence be increased as a consequence of delinquency or
default by the owner of any other Assessor's Parcel or Parcels within CFD No. 93-1 by more than ten
(10) percent of the Special Tax that would be levied in that Fiscal Year, if there were no delinquencies,
pursuant to California Government Code Section 53321(d), as in effect on the date of formation of CFD
No. 93-1.
SECTION G
PREPAYMENT OF SPECIAL TAX FOR FACILITIES
The following defmitions apply to this Section G:
"CFD Public Facilities" means $5,000,000 expressed in 2007 dollars, which shall increase by the
Construction Inflation Index on January 1, 2008, 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 functionally
equivalent to hold funds which are currently available for expenditure to acquire or construct public
facilities eligible under CFD No. 93-1.
City of Beaumont
Community Facilities District No. 93-1 (Improvement Area No. 8D)
March 30, 2007
Page A-8
"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 Maximum Special Tax for Facilities.
The Special Tax for Facilities obligation of an Assessor's Parcel of Developed Property, an Assessor's
Parcel of Final Map 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.
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 of Final Map Property or 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
City of Beaumont
Community Facilities District No. 93-1 (Improvement Area No. 8D)
March 30, 2007
Page A-9
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, Final Map Property,
Undeveloped Property, or Undeveloped Property pursuant to Section J 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 buildout, 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 buildout, 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 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.
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
City of Beaumont
Community Facilities District No. 93-1 (Improvement Area No. 8D)
March 30, 2007
Page A-10
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 O.
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 CFD No. 93-1 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.
The Partial Prepayment Amount shall be calculated according to the following formula:
PP = ((PG — A) x F) + A
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.
A = the Administrative Fee calculated according to Section G.10.
With respect to any Assessor's Parcel that is partially prepaid, the City Council shall indicate in
the records of CFD No. 93-1 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
City of Beaumont
Community Facilities District No. 93-1 (Improvement Area No. 8D)
March 30, 2007
Page A-11
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.
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
Assessors' 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 2050-2051 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.
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 homeowner's 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
6.19 Acres. 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 6.19
Acres. Assessor's Parcels which cannot be classified as Exempt Property because such classification
would reduce the Acreage of all Taxable Property to less than 6.19 Acres 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) of CFD No. 93-1 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).
The City Council may interpret this IA No. 8D and the levy of Special Taxes for purposes of
clarifying any ambiguity and make determinations relative to the annual administration of the Special Tax
and any landowner or resident appeals. Any decision of the City Council shall be binding as to all
persons.
City of Beaumont
Community Facilities District No. 93-1 (Improvement Area No. 8D)
March 30, 2007
Page A-12
SECTION L
MANNER OF COLLECTION
The 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 financial obligations.
City of Beaumont
Community Facilities District No. 93-1 (Improvement Area No. 8D)
March 30, 2007
Page A-13
ATTACHMENT NO. 1
CITY OF BEAUMONT AND CFD NO. 93-1 IMPROVEMENT AREA NO. 8D
CERTIFICATE
1. Pursuant to Section of the Rate and Method of Apportionment of Special Tax (the
"RMA"), the City of Beaumont (the "City") and Community Facilities District No. 93-1
Improvement Area No. 8D of the City of Beaumont ("CFD No. 93-1 IA No. 8D") hereby
agree to a reduction in the Maximum Special Tax for Facilities for Developed Property and
Undeveloped Property:
(a) The information in Table 1 relating to the Maximum Special Tax for Facilities for
Developed Property and/or Undeveloped Property within CFD No. 93-1 IA No. 8D shall
be modified as follows:
[insert Table 1 showing effective change to special tax rates and/or insert change to
special tax rates for Undeveloped Property]
2. Table 1 may only be modified prior to the issuance of Bonds.
3. Upon execution of the Certificate by the City and CFD No. 93-1 IA No. 8D the City shall
cause an amended Notice of Special Tax Lien to be recorded reflecting the modifications set
forth herein.
By execution hereof, the undersigned acknowledges, on behalf of the City of Beaumont and CFD
No. 93-1 IA No. 8D, receipt of this Certificate and modification of the RMA as set forth in this
Certificate.
CITY OF BEAUMONT
By: Date:
CFD Administrator
COMMUNITY FACILITIES DISTRICT
NO. 93-1 IMPROVEMENT AREA NO. 7C
OF THE CITY OF BEAUMONT
By: Date:
City of Beaumont
Community Facilities District No. 93-1 (Improvement Area No. 8D)
March 30, 2007
Page A-14