Beaumont City Council
November 4, 2025

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(ii) neither the Developer nor, to the Actual Knowledge of the Undersigned, any of its Relevant Entities, has filed for bankruptcy or been declared bankrupt in the last 10 years; and
(iii) to the Actual Knowledge of the Undersigned, neither the Developer nor any of its Relevant Entities has any proce edings pending (with service of process to the Developer having been accomplished) or overtly threatened in writing in which the Developer or any of its Relevant Entities may be adjudicated as bankrupt, become the debtor in a bankruptcy proceeding, be disc harged from any or all of its respective debts or obligations, be granted an extension of time to pay its respective debts or obligations, or be granted a reorganization or readjustment of its respective debts or obligations.
(8) As of the date hereof, to the Actual Knowledge of the Undersigned, the information in the sections of the Preliminary Official Statement entitled “INTRODUCTION – The Community Facilities District and the Improvement Areas – Improvement Area No. 2,” and “IMPROVEMENT AREA NO. 2 – Property Ownership and the Development ,” concerning the Developer and its Relevant Entities , the Property, the Developer’s development and financing plans for the Property, and the Developer’s contractual arrangements with respect to the Property (but excl uding any information cited as coming from a source other than the Developer) is true and correct in all material respects, and contains no untrue statement of a material fact and does not omit any material fact necessary in order to make the statements th erein, in the light of the circumstances under which they were made, not misleading.
(9) Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, the Developer has not submitted an application for, nor received actual notice of,
(i) the formation or authorization of any other assessment district or community facilities district that would include any portion of the Property, or (ii) the authorization or issuance of any debt secured by an assessment or another special tax to be levied on any portion of the Property, other than the Special Tax.
(10) Except as set forth in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, there are no claims, disputes, lawsuits, actions or contingen t liabilities of or against the Developer or its Relevant Entities, or among, by or between the Developer and any contractors working on the development of the Property in Improvement Area No. 2 of the Community Facilities District, which is reasonably lik ely to materially and adversely affect the ability of the Developer to:
(i) acquire, own, develop and sell the Property, as described in the Preliminary Official Statement,
(ii) pay Special Taxes on the Property (to the extent the responsibility of the Developer) prior to delinquency, or
(iii) carry on its business as described in the Preliminary Official Statement.

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(11) To the Actual Knowledge of the Undersigned, the written information submitted by, or on behalf of and authorized by the employees of the Developer involved in the issuance of the Bonds to the Appraiser and contained in the portions of the Appraisal Report highlighted in yellow or circled in Appendix B attached hereto, was, at the time of submission, true and correct in all material respects.
(12) The Developer covenants that, while the Bonds or any refunding obligations related thereto are outstanding, the Developer will not bring any action, suit, proceeding, inquiry or investigation at law or in equity, before any court, regulatory agency , public board or body, that in any way:
(i) seeks to challenge or overturn the formation of the Community Facilities District,
(ii) seeks to challenge the adoption of the ordinance levying Special Taxes within Improvement Area No. 2 of the Community Facilities District, (iii) seeks to invalidate the Community Facilities District or any of the Bonds or any refunding obligations relating thereto, or
(iv) seeks to invalidate the special tax liens of the Community Facilities District imposed under Section 3115.5 of the Streets and Highways Code based on recordation of the notices of special tax lien relating thereto.

The foregoing covenant shall not pr event the Developer in any way from bringing any other action, suit, proceeding, inquiry or investigation at law or in equity before any court, regulatory agency, public board or body relating to the following:
(a) a claim that the Special Tax has not bee n levied in accordance with the Rate and Method,
(b) the application or use of the Special Taxes levied and collected, or (c) the enforcement of the obligations of the Community Facilities District under the Indenture or any other agreements between or among the Developer, the City of Beaumont or the Community Facilities District or under which the Developer is a beneficiary.
(13) The Developer has received a copy of the Rate and Method containing the Special Tax prepayment formula. The Developer acknow ledges that any prepayment of the Special Taxes may only be made in accordance with the Rate and Method. (14) The Developer shall comply with the provision of the Mello -Roos Community Facilities Act of 1982, as amended, relating to the Notice of Special T ax described in California Government Code Section 53341.5 in connection with the sale of the Property.
(15) Based upon its current development plans, including, without limitation, its current budget and subject to economic conditions and risks generally inherent in the development of real property, including, but not limited to, the risks described in the Preliminary Official Statement under the section entitled “SPECIAL RISK FACTORS,” to the Actual Knowledge of the Undersigned, the Developer anticipates that it will have

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sufficient funds to (i) complete the acquisition, development and sale of the Property as described in the Preliminary Official Statement, and (ii) pay Special Taxes on the Property (to the extent the responsibility of the Developer) prior to delinquency.

However, no assurance can be given that sources of financing available to the Developer will be sufficient to complete the property development and home construction within the Property as currently anticipated and as described in the P reliminary Official Statement. While the Developer has made such internal financing available in the past, there can be no assurance whatsoever of its willingness or ability to do so in the future. Neither the Developer nor any of its Relevant Entities h as any legal obligation of any kind to make any such funds available or to obtain loans. Other than pointing out the willingness of the Developer to provide internal financing in the past, the Developer has not represented in any way that the Developer wi ll do so in the future. If and to the extent that internal financing and home sales revenues are inadequate to pay the costs to complete the Developer’s planned development in the Improvement Area and other financing by the Developer is not put into place, there could be a shortfall in the funds required to complete the proposed development by the Developer and portions of the Property may not be developed. (16) The Developer consents to the issuance of the Bonds and the City of Beaumont CFD No. 2023 -1 (Fairway Canyon) (Improvement Area No. 2) 2025 Special Tax Bonds.
(17) Solely as to the limited information described in the sections of the Preliminary Official Statement indicated in Paragraph 8 above, the Developer agrees to indemnify and hold harmless, to the extent permitted by law, the Authority, the Community Facilities District, and their officials and employees, and each Person, if any, who controls any of the foregoing within the meaning of Section 15 of the Securities Act of 1933, as amended, or of Section 20 of the Securities Exchange Act of 1934, as amended (each, an “Indemnified Party ” and, collectively, the “ Indemnified Parties ”), against any and all losses, claims, damages or liabilities, joint or several, to which such Indemnified Party may become subject under any statute or at law or in equity or otherwise and shall reimburse any such Indemnified Party for any reasonable legal or other expense incurred by it in connection with investigating any such claim against it and defending any such acti on, insofar and to the extent such losses, claims, damages, liabilities or actions arise out of or are based upon any untrue statement or alleged untrue statement of a material fact or the omission or alleged omission of a material fact in the above -referenced information in the Preliminary Official Statement, as of its date, necessary to make the statements therein, in light of the circumstances under which they were made not misleading. This indemnity provision shall not be construed as a limitation on an y other liability which the Developer may otherwise have to any indemnified party, provided that in no event shall the Developer be obligated for double indemnification, or for the negligence and willful misconduct of an Indemnified Party.
(18) If between the date hereof and the Closing Date any event relating to or affecting the Developer, its Relevant Entities, the proposed development of the Property, its ownership of the Property, the Developer’s development plan, the Developer’s financing plans and contractual arrangements of the Developer, or any Relevant Entities shall occur of which the Developer has actual knowledge which would cause the information under the sections of the Preliminary Official Statement indicated in Paragraph 8 hereof, to contain an untrue statement of a material fact or to omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, the Developer shall notify the Authority and the Underwriter and if in the

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opinion of counsel to the Authority or the Underwriter such event requires the preparation and publication of a supplement or amendment to the Preliminary Official Statement or the Official Statement, the Developer shall reasonably cooperate with the Authority and the Underwriter in the preparation of an amendment or supplement to the Preliminary Official Statement or the Official Statement, as applicable, in form and substance satisfactory to counsel to the Authority and to the Underwriter.
(19) As a condition to the issuance of the Bonds, the Developer agrees to deliver a bring-down certificate, dated the Closing Date, in substantially the form attached as Appendix A hereto, to affirm and restate the Developer’s certifications, representation s and covenants made in this Letter of Representations. If any event related to or affecting the Developer, its Relevant Entities, the Developer’s development or financing plan with respect to the Property, or the Developer’s contractual arrangements occu rs, as a result of which it is necessary to modify the bring -down certificate, the Developer agrees to deliver a new bring - down certificate revised to reflect such event.
(20) The Developer acknowledges and agrees that:
(i) in connection with the purchase and sale of the Bonds under the Purchase Agreement, and with the discussions, undertakings and procedures leading up to the consummation of the purchase and sale of the Bonds under the Purchase Agreement, the Underwriter is and has been acting solely as p rincipal and is not acting as the agent or fiduciary of the Developer,
(ii) the Underwriter has not assumed a fiduciary responsibility in favor of the Developer with respect to (a) the offering of the Bonds contemplated hereby or the process leading there to (whether or not the Underwriter, or any affiliate of the Underwriter, has advised or is currently advising the Developer on other matters), or (b) any other obligation to the Developer with respect to the offering contemplated by the Purchase Agreement, and (iii) the Developer has consulted its own legal, financial and other advisors to the extent it has deemed appropriate in connection with the offering contemplated by the Purchase Agreement.

On behalf of the Developer, the undersigned has reviewed the contents of this Letter of Representations and the Developer has consulted with counsel regarding the meaning of its contents.

The Developer acknowledges and understands that a variety of state and federal laws, including but not limited to the Securitie s Act of 1933, as amended, and Rule 10b -5 promulgated under the Securities Exchange Act of 1934, as amended, may apply to the Developer, and that under some circumstances certification as to the matters set forth in this Letter of Representations, without additional disclosures or other action, may not fully discharge all duties and obligations of the Developer under such laws.

[SIGNATURE PAGE FOLLOWS]

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The undersigned has executed this Letter of Representations solely in his or her capacity as an authorized officer of the Developer and he or she will have no personal liability arising from or relating to this Letter of Representations. Any liability ari sing from or relating to this Letter of Representations may only be asserted against the Developer.

MERITAGE HOMES OF CALIFORNIA, INC.,
a California corporation

By:

Name:

Title:

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APPENDIX N

BEAUMONT PUBLIC IMPROVEMENT AUTHORITY
LOCAL AGENCY REVENUE BONDS, SERIES 2025B

CLOSING CERTIFICATE OF DEVELOPER
(Appendix A to Letter of Representations – Meritage Homes of California, Inc.) [Closing Date]

Beaumont Public Improvement Authority
Beaumont, California

City of Beaumont Community Facilities District No. 2023-1 (Fairway Canyon) Beaumont, California
Stifel, Nicolaus & Company, Incorporated
Los Angeles, California

Ladies and Gentlemen:

The undersigned certifies and represents that he or she is duly authorized on behalf of Meritage Homes of California, Inc., a California corporation (the “ Developer”), to execute and deliver this Bring -Down Certificate of Developer (this “ Bring-Down Certificate ”) in connection with the issuance, sale and delivery by Beaumont Public Improvement Authority (the “Authority”) of the Bonds captioned above (the “Bonds”).

This Bring -Down Certificate is delivered pursuant to the Bond Purchase Agreement with respect to the Bonds dated [BPA Date] (the “ Purchase Agreement ”), among Stifel, Nicolaus & Company, Incorporated, as underwriter (the “ Underwriter”), the Authority and City of Beaumont Community Facilities District No. 2023-1 (Fairway Canyon) (the “Community Facilities District”).

In connect ion with the distribution of the Preliminary Official Statement relating to the Bonds, the Developer executed a Letter of Representations of Developer dated [POS Date] (the “Letter of Representations”).

Capitalized terms used but not defined in this Brin g-Down Certificate have the same meanings as set forth in the Purchase Agreement and the Letter of Representations.

The undersigned, on behalf of the Developer, further certifies as follows:
(1) The undersigned is familiar with the facts certified in the L etter of Representations and this Bring-Down Certificate, and is authorized and qualified to certify the same as an authorized officer of the Developer.
(2) The Developer has received the final Official Statement relating to the Bonds dated [BPA Date] . Ea ch statement made in the Letter of Representations is affirmed and restated as if made on the date hereof; provided that each statement made in the Letter of Representations referring to the Preliminary Official Statement is affirmed as it relates to the f inal Official Statement, dated [BPA Date], and relating to the Bonds (the “Final Official Statement”).

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(3) To the Actual Knowledge of the Undersigned (as defined in the Letter of Representations), no event has occurred since the date of the Preliminary Off icial Statement that has, in any material way, adversely affected
(i) the business, properties, operations, prospects or financial condition of the Developer,
(ii) the Developer’s ability to acquire, own, develop and sell the Property, or (iii) the Deve loper’s ability to pay Special Taxes on the Property (to the extent the responsibility of the Developer) prior to delinquency.
(4) For a period of 25 days after the “End of the Underwriting Period” as defined in the Purchase Agreement (provided the Developer may assume the End of the Underwriting Period is the Closing Date (as defined in the Purchase Agreement), unless the Developer receives written notice from the Underwriter that the End of the Underwriting Period is later than the Closing Date), if the Developer has actual knowledge of any event relating to or affecting the Developer, its Relevant Entities, or the ownership, development, or sale of the Property which could cause the information under the captions of the Final Official Statement indicated in Paragraph 8 of the Letter of Representations (and subject to the limitations and exclusions contained in Paragraph 8 of the Letter of Representations) to contain an untrue statement of a material fact or to omit to state a material fact necessary to ma ke the statements therein, in the light of the circumstances under which they were made, not misleading, the Developer shall notify the Authority and the Underwriter and if, in the opinion of counsel to the Authority or the Underwriter, such event requires the preparation and publication of a supplement or amendment to the Final Official Statement, the Developer shall reasonably cooperate with the Authority and the Underwriter in the preparation of an amendment or supplement to the Final Official Statement in form and substance satisfactory to counsel to the Authority and to the Underwriter.

MERITAGE HOMES OF CALIFORNIA, INC.,
a California corporation
By:

Name:

Title:

N-3

APPENDIX B

[APPRAISAL REPORT EXCERPTS ATTACHED]

Beaumont Public Improvement
Authority
Local Agency Revenue Bonds, Series 2025B
November 4, 2025

2 Table of Contents

1. Financing Overview

2. Items Subject to Council Approval

3. Financing Details and Tentative Schedule

1. Financing Overview

4  CFD 2023-1 Improvement Areas
1 & 2 formed on June 20, 2023
 Located in the western portion of
the City, west of the I-10 and
north of Oak Valley Parkway
 Improvement Area 1
 Consists of two non-contiguous
tax zones in the District
 Being developed by D.R. Horton
into 132 single-family homes
 Improvement Area 2
 Consists of one tax zone in the
center of the District
 Being developed by Meritage
Homes into 287 single-family
homes
Project and Development Summary
Ownership and Development Summary
(as of September 5, 2025)
IA-1 IA-2*
Individually Owned
Completed 131 271
Developer Owned
Completed 1 3
Under Construction - 13
Total 132 287
*As of October 8, 2025, Meritage had completed construction on all homes, and owned 8 homes in escrow, expected to close in November 2025
CFD 2023-1, IA Nos. 1 & 2

5 Financing Overview
 The proposed 2025B Bonds will be issued through the Beaumont Public Improvement Authority (Authority)
 Authority will acquire each improvement area’s bond issue (Local Obligations)  First use of the structure for a new money issuance
 Recommended financing structure will strengthen the credit, reduce issuance costs and increase investor interest
 Not to exceed par amounts of $3,500,000 for Improvement Area 1 and $11,000,000 for Improvement Area 2 approved at formation  Local Obligations are expected to be issued in par amounts of $2,050,000* for Improvement Area 1 and $7,015,000* for Improvement Area 2  Additional Parity Bonds for refunding purposes only
 2025B Bonds will be secured by debt service ‘revenues’ from the Local Obligations and the Local Obligations will be secured by ‘net taxes’ that will provide 110% coverage on annual debt payments and admin expenses  Special taxes do not escalate
 Authorized facilities financed with proceeds: road and park improvements *Preliminary and subject to change. Based on market conditions as of October 16, 2025

2. Items Subject to Council Approval

7 Items Subject to Approval
 City Council to hold a public hearing and be presented with a resolution making findings of significant public benefit in the PIA’s issuance of the 20025B Bonds
 Resolutions of the City Council of the City of Beaumont acting as Legislative Body of CFD 2023-1 and the Board of Directors of the Beaumont Public Improvement Authority
 Authorizing the Issuance of bonds by Improvement Area 1 and Improvement Area 2; and the Local Agency Revenue Bonds, Series 2025B in an amount not- to-exceed $10,000,000
 Approving certain documents and other actions
 Documents:
 Preliminary Official Statement
 Authority Indenture of Trust
 Bond Indentures (Local Obligations)
 Bond Purchase Agreement
 Continuing Disclosure Certificate

3. Financing Details and Schedule

9 Bond Structure and Select Financing Statistics
*Preliminary and subject to change. Based on market conditions as of October 16, 2025 Select Financing Statistics
Local Obligations 2025B BondsIA-1 Bonds IA-2 Bonds
Par Amount $2,050,000 $7,015,000 $9,065,000
Final Maturity 2055 2055 2055
True Interest Cost 5.05% 5.05% 5.05%
Average Annual Debt Payments 133,069 454,694 587,763
Total Debt Payments 3,958,056 13,524,614 17,482,669
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
Improvement Area 1
IA-1 Bonds Structured so that Net Taxes Provide 110%
Coverage on Annual Debt Service
IA-1 Bonds Debt Service Net Taxes
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
Improvement Area 2
IA-2 Bonds Structured so that Net Taxes Provide 110%
Coverage on Annual Debt Service
IA-2 Bonds Debt Service Net Taxes
 2025B Bonds will be secured by debt service ‘revenues’ from the Local Obligations; Local Obligations will be secured by ‘net taxes’ from each Improvement Area (110% debt service coverage)

10 Estimated Costs of Issuance
 One of the benefits to the structure of the 2025B Bonds is that it will achieve economies of scale, leading to lower issuance costs
 Based on contractual fees,
standalone issuance costs would
equal approximately $500,000
 Proposed issuance costs include
the following fee reductions:
 Stradling: $20K
 UFI: $20K
 Underwriter: $40K1
 Appraiser: $13K
 Total fee savings of approximately $93K

1. Estimated based on recent similarly-sized CFD bonds issued by the City. *Preliminary and subject to change.
2025B Bonds: Estimated Issuance Costs*
Role Party Total
Bond/Disclosure Counsel Stradling $150,000
Municipal Advisor Urban Futures, Inc. 60,000
Special Tax Consultant Spicer Consulting 50,000
Appraiser Integra 25,000
Trustee Zions Bank 8,900
Trustee's Counsel Dorsey 3,250
Printer AVIA 2,500
Underwriter Stifel 100,984
Contingency -- 2,850
Estimated Costs $403,484

11 Financing Schedule*
Date Description
Tuesday, November 4th City Council meeting
Wednesday, November 5th Post Preliminary Official Statement (make available to prospective investors)
Week of November 11th Pricing of 2025B Bonds
Week of December 1st Settlement of 2025B Bonds
 Assuming approval this evening, the 2025B Bonds are expected to price the week of November 11th and close two weeks later
*Preliminary and subject to change. Page 680 of 1000
Staff Report

TO: City Council
FROM: Elizabeth Gibbs, City Manager
DATE: November 4, 2025
SUBJECT: Formation of CFD No. 2025-1 (Fairway Canyon 4C)

Description: The proposed action initiates the process to form Community Facilities District No. 2025-1 (CFD No. 2025-1) at the request of Meritage Homes of California, Inc. to finance public improvements serving 366 residential lots located west of Tukwet Canyon Parkway and north of Oak Valley Parkway.

Background and Analysis:

The developer, Meritage Homes of California, Inc., a California corporation (the “Developer”), owns property containing 366 proposed residential lots within the City.

Such property is located in the northwestern part of the City, west of Tukwet Canyon Parkway, and north of Oak Valley Parkway. The Developer has requested that the City form a community facilities district (“CFD No. 2025-1”) to encompass such property in accordance with the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”), to finance the costs of certain public improvements through the levy of a special tax. Formation of the CFD will allow the City to issue bonds, in an amount not to exceed $4 million, secured by special taxes levied on property within the District. Adoption of the accompanying Resolutions declares the City’s intention to form the CFD, authorize the incurrence of bonded indebtedness, and schedule a public hearing on December 16, 2025, when the Council will consider final formation and hold the required landowner elections. The proposed Rate and Method of Apportionment (RMA) establishes three tax zones with annual special tax rates ranging from $576 to $682 per parcel, depending on lot type and location, and the special taxes will remain fixed without escalation.

In order to finance the CFD facilities and incidental expenses, the City intends to issue bonds secured by special taxes levied in the CFD. The maximum amount of bonded indebtedness proposed for CFD No. 2025-1 is $4 million.

The Developer has requested that the boundaries of CFD No. 2025-1 include the area described in Attachment A of the Resolution of Intention to Establish CFD No. 2025-1 presented at this meeting (the “Resolution of Intention”), and that special taxes be levied

within the boundaries of CFD No. 2025-1 in accordance with the Rate and Method of Apportionment (the “RMA”) described in Attachment C to the Resolution of Intention.

The Resolution of Intention is the first step in the process of forming CFD No. 2025-1.

The attached Resolutions declare the City’s intention to establish CFD No. 2025-1, its intention to incur bonded indebtedness by CFD No. 2025-1 and call for a public hearing.

A public hearing on the matter will take place on December 16, 2025, and at that time the Council will formally consider approval to form CFD No. 2025-1 and hold elections on the approval of the special taxes and the need to incur bonded indebtedness within CFD No. 2025-1.

CFD No. 2025-1 will have three different Tax Zones, with different Assigned Special Tax rates for each Tax Zone. The RMA provides that the Assigned Special Tax ranges from $576 per year to $617 per year for parcels of single family property in Tax Zone 1, from $664 per year to $674 per year for parcels of single family property in Tax Zone 2, and from $603 pear year to $682 per year for parcels of single family property in Tax Zone

3. The Assigned Special Tax within CFD No. 2025-1 will not increase. Property within the CFD is also located in a Beaumont Unified School District CFD.

Fiscal Impact:

The City Council previously approved a Reimbursement Agreement with the Developer, and the Developer has previously made a deposit of $50,000 to pay for the costs of the formation proceedings. The Developer’s deposit may be reimbursed to the Developer from the proceeds of bonds issued by CFD No. 2025-1 in the future. If established and subject to necessary Council and voter approvals, CFD No. 2025-1 will annually levy special taxes on all of the taxable property within CFD No. 2025-1 in accordance with the RMA (as attached to the Resolution of Intention). Any bonds issued by CFD No. 2025-1 are not obligations of the City and will be secured solely by the Special Taxes levied in CFD No. 2025-1.

The estimated cost to prepare this report is $625.

Recommended Action:

Adopt by title only, “Resolution of the City Council of the City of Beaumont, California, Declaring its Intention to Establish City of Beaumont Community Facilities District No. 2025-1 (Fairway Canyon 4C), to Authorize the Levy of a Special Tax to Pay the Cost of Acquiring or Constructing Certain Public Facilities and to Pay Debt Service on Bonded Indebtedness"; and
Adopt by title only, "Resolution of Intention of the City Council of the City of Beaumont, California, to Incur Bonded Indebtedness within Proposed City of Beaumont Community Facilities District No. 2025-1 (Fairway Canyon 4C).”

Attachments:

A. Resolution Declaring the Intention to Establish City of Beaumont CFD 2025-1 B. Resolution Declaring the Intention to Incur Bond Indebtedness within 2025-1 C. Landowner Petition to Form (Beaumont CFD No. 2025-1 (Fairway Canyon 4C) D. CFD Boundary Map
E. Project Map
F. Beaumont CFD 2025-11-04 City Council Presentation

4919-1377-3171v3/022599-0038
RESOLUTION NO. _____

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

BEAUMONT, CALIFORNIA, DECLARING ITS INTENTION TO

ESTABLISH CITY OF BEAUMONT COMMUNITY FACILITIES
DISTRICT NO. 2025-1 (FAIRWAY CANYON 4C), TO AUTHORIZE

THE LEVY OF A SPECIAL TAX TO PAY THE COST OF

ACQUIRING OR CONSTRUCTING CERTAIN PUBLIC FACILITIE S

AND PAYING FOR CERTAIN INCIDENTAL EXPENSES AND TO

PAY DEBT SERVICE ON BONDED INDEBTEDNESS
WHEREAS, the City of Beaumont (the “City”) has received petitions from at least 10% of the owners of the territory described in Exhibit A attached hereto (the “Property”), requesting to establish City of Beaumont Community Facilities District No. 2025-1 (Fairway Canyon 4C) (the “Community F acilities District”) therein to finance the purchase, construction, expansion, improvement or rehabilitation of the public facilities described in Exhibit B hereto (which exhibit is incorporated herein by this reference), including all furnishings, equipme nt and supplies related thereto (collectively, the “Facilities”), which Facilities have a useful life of five years or longer , and (2) the incidental expenses to be incurred in connection with financing the Facilities and forming the Community Facilities D istrict and administering the Community Facilities District (the “Incidental Expenses”); and
WHEREAS, the City Council of the City (the “City Council”) intends to approve an estimate of the costs of the Facilities and the Incidental Expenses for the Commun ity Facilities District; and
WHEREAS, it is the intention of the City Council to consider financing the Facilities and the Incidental Expenses through the formation of the Community Facilities District, and the sale of bonds in an amount not to exceed Four Million Dollars ($4,000,000) (the “Bonds”) and the levy of a special tax in the Community Facilities District to pay debt service on the Bonds, provided that the bond sale and special tax levy are approved at an election to be held for the Community Facil ities District;

NOW, THEREFORE , THE CITY COUNCIL OF THE CITY , DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS:

SECTION 1. The City Council declares its intention to conduct proceedings pursuant to said Article 3.5 of the Mello Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”) for the establishment of the Community Facilities District pursuant to Section 53350 of the Act and with boundaries cotermino us with the Property. It is further proposed that the boundaries of the Community Facilities District shall be the legal boundaries as described in Exhibit A hereto which boundaries shall, upon recordation of the boundary map for the Community Facilities District, include the entirety of any parcel subject to taxation by the Community Facilities District, except where indicated on the boundary map, and as depicted on the boundary map of the Community Facilities District which is on file with the City Clerk . The City Clerk is hereby directed to sign the original boundary map of the Community Facilities District and record it with all proper endorsements thereon with the County Recorder of the County of Riverside within 15 days after the

2 4919-1377-3171v3/022599-0038
adoption of this res olution, all as required by Section 3111 of the Streets and Highways Code of the State of California.

SECTION 2. The name of the proposed Community Facilities District is “City of Beaumont Community Facilities District No. 2025-1 (Fairway Canyon 4C)”.

SECTION 3. The Facilities proposed to be provided within the Community Facilities District are public facilities as defined in the Act. The City Council hereby finds and determines that the description of the Facilities and Incidental Expenses herein is sufficiently informative to allow taxpayers within the Community Facilities District to understand what the funds of the Community Facilities District may be used to finance. The Incidental Expenses expected to be incurred include the cost of planning and designing the Facilities a nd the costs of forming the Community Facilities District, issuing bonds, levying and collecting a special tax within the Community Facilities District and the annual administration costs of the Community Facilities District. The City Council hereby finds that the proposed Facilities are necessary to meet increased demands placed upon the City as a result of development occurring in the Community Facilities District. The Facilities may be acquired from one or more of the property owners as completed publi c facilities or may be constructed by or on behalf of the City and paid for with bond proceeds.

SECTION 4. Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with the procedures contained in the Act a sp ecial tax within the Community Facilities District , secured by a continuing lien against all non -exempt real property sufficient to pay for the Facilities and Incidental Expenses and the principal and interest and other periodic costs on bonds or other ind ebtedness issued to finance the Facilities and Incidental Expenses, including the establishment and replenishment of any reserve funds deemed necessary by the City, and any remarketing, credit enhancement and liquidity facility fees (including such fees fo r instruments which serve as the basis of a reserve fund in lieu of cash) attributable to the Community Facilities District.

The rate and method of apportionment and manner of collection of the special tax are described in detail in Exhibit “C” attached hereto, which Exhibit “C” is incorporated herein by this reference. Exhibit “C” allows each landowner within the proposed Community Facilities District to estimate the maximum amount of the special tax that may be levied against each parcel. In the first year in which such special tax is levied in the Community Facilities District, the levy shall include an amount sufficient to repay to the Community Facilities District all amounts, if any, transferred to th e Community Facilities District pursuant to Section 53314 of the Act and interest thereon.

If the special taxes are levied against any parcel used for private residential purposes, (i) the maximum special tax rate shall be specified as a dollar amount whic h shall be calculated and established not later than the date on which the parcel is first subject to the special tax because of its use for private residential purposes and shall not be increased over time, except to the extent permitted in the rate and m ethod of apportionment of the special tax as set forth in Exhibit “C” hereto, (ii) such special tax shall not be levied after fiscal year 2067-68, as described in Exhibit “C” hereto, and (iii) under no circumstances will the special tax levied in any fisca l year against any such parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the Community Facilities District by more than ten percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults.

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The special tax is based on the cost of making the Facilities available to each parcel of real property within the Community Facilities District. The City Council hereby determines the rate and method of apportionment of the special tax for the Community Facilities District set forth in Exhibit ”C” to be reasonable. The special tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act; and such special tax is not on or based upon the value or ownership of real property. In the event that a portion of the property within the Community Facilities District shall become for any reason exempt, wholly or partiall y, from the levy of the special tax specified on Exhibit “C”, the City Council shall, on behalf of the Community Facilities District, cause the levy to be increased, subject to the limitation of the maximum special tax for a parcel as set forth in Exhibit “C” to the extent necessary upon the remaining property within the Community Facilities District which is not exempt in order to yield the special tax revenues required for the purposes described in this Section. The obligation to pay the special tax may be prepaid only as set forth in the rate and method of apportionment set forth in Exhibit “C” hereto.

SECTION 5. A combined public hearing (the “Hearing”) on the establishment of the Community Facilities District, the proposed rate and method of apportionment of the special tax for Community Facilities District and the proposed issuance of bonds for the Community Facilities District to finance the Facilities and the Incidental Expenses shall be held at 6:00 p.m., or as soon thereafter as practicable, on December 16, 2025, at the City Council’s Chambers, 550 East 6th Street, Beaumont, California . If the City Council determines to form the Community Facilities District, special elections will be held within the Community Facilities District to authorize the issuance of bonds for the Community Facilities District and the levy of a special tax in accordance with the procedures contained in Government Code Section 53326. If such elections are held, the proposed voting procedure at the elections will be a landowner vote wi th each landowner who is the owner of record of land within the Community Facilities District at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within such proposed Community Facil ities District . Ballots for the special elections may be distributed by mail or by personal service.

SECTION 6. At the time and place set forth above for the Hearing, the City Council will receive testimony as to whether the Community Facilities District therein sha ll be established and whether special taxes shall be levied in accordance with the proposed rate and method of apportionment of the special tax, and whether Obligations for the Community Facilities District shall be authorized to be issued to finance Facil ities and Incidental Expenses of the Community Facilities District.

At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within the Community Facilities District, may appear and be heard.

SECTION 7. The City Clerk is hereby authorized and directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the Community Facilities District. The City C lerk is further authorized and directed to mail a copy of the Notice to each of the landowners or any registered voters within the boundaries of the Community Facilities District at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the Community Facilities

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District and a description of the proposed voting procedure for the elections required by the Act.

Such publication shall be completed at least seven (7) days prior to the date of the Hearing.

SECTION 8. Each City officer who is or will be responsible for providing the Facilities, if it is established, is hereby directed to study the Community Facilities District and, at or before the time of the Hearing, file a report with the City Council containing a brief description of the public facilities by type which will in his or her opinion be required to meet adequately the needs of the Community Facilities District and an estimate of the cost of providing those public facilities.

SECTION 9. The City may accept advances of funds or work -in-kind from any source, including, but not li mited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred by the City in creating the Community Facilities District. The City may enter into an agreement with the person or entity ad vancing the funds or work-in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work -in-kind, as determined by the City Council, with or without interest.

SECTION 10. The reason ably expected maximum principal amount of the bonded indebtedness to be incurred by the Community Facilities District for the Facilities and Incidental Expenses is Four Million Dollars ($4,000,000).

SECTION 11. Urban Futures, Inc. is hereby appointed to act as municipal advisor to the City and the Community Facilities District with respect to the formation of the Community Facilities District. Spicer Consulting Group, LLC, is hereby appointed to act as special tax consultant with respect to the formation of the Commun ity Facilities District. Stradling Yocca Carlson & Rauth LLP, is hereby appointed to act as special counsel with respect to the formation of the Community Facilities District.

SECTION 12. Except to the extent limited in any bond resolution or trust indenture related to the issuance of bonds, the City Council hereby reserves to itself all rights and powers set forth in Section 53344.1 of the Act (relating to tenders in full or partial payment).

SECTION 13. This Resolution shall be effective upon its adoption.

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ADOPTED, SIGNED AND APPROVED this 4th day of November, 2025.

Mike Lara, Mayor of the City of Beaumont
(SEAL)
ATTEST:

Elaine Morgan, City Clerk
of the City of Beaumont

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STATE OF CALIFORNIA )
) ss.

COUNTY OF RIVERSIDE )
I, Elaine Morgan, City Clerk of the City of Be aumont, do hereby certify that the foregoing resolution was duly adopted by the City Council of said City, at a regular meeting of said Board held on the 4th day of November, 2025, and that it was so adopted by the following vote:

AYES:

NOES:

ABSENT:

Elaine Morgan, City Clerk
City of Beaumont

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EXHIBIT A

DESCRIPTION OF THE PROPOSED COMMUNITY FACILITIES DISTRICT

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EXHIBIT B

DESCRIPTION OF THE FACILITIES AND INCIDENTAL EXPENSES

TYPES OF FACILITIES
The proposed types of public facilities and expenses to be financed by the Community Facilities District include:

The construction, purchase, modification, expansion and/or improvement of roadway, bridge, sewer, domestic and reclaimed water, dry utilities, storm drain, curb and gutter, medians, traffic signals, parks, trails, police facilities, fire facilities, library facilities, public community facilities, and any other facilities permitted pursuant to the Act, and appurtenances and appurtenant work, and development impact fees that are used by the City to construct infrastructure including design, engineering and planning costs associated therewith.

TYPES OF INCIDENTAL EXPENSES
The Incidental Expenses to be paid from bond proceeds and/or special taxes include:
a. The cost of engineering, planning and designing the Facilities; b. All costs, including costs of the property owner petitioning to form the Community Facilities District, associated with the creation of the Community Facilities District , the issuance of the bonds, the determination of the amount of special taxes to be lev ied and costs otherwise incurred in order to carry out the authorized purposes of the Community Facilities District; and c. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.

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EXHIBIT C

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (FAIRWAY CANYON 4C)

A Special Tax (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to each Assessor’s Parcel of Taxable Property located within the boundaries Community Facilities District No. 2025-1 (Fairway Canyon 4C) of the City of Beaumont ("CFD No. 2025-1"). The amount of Special Tax to be levied in each Fiscal Year on an Assessor’s Parcel shall be determined by the City Council of the City of Beaumont, acting in its capacity as the legislative body of CFD No. 2025 -1, by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exempt Property as set forth below. All of the real property, unless exempted by law or by the provisions hereof in Section F, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS

The terms hereinafter set forth have the following meanings:

“Accessory Dwelling Unit” means a residential unit of limited size including a sma ller second unit that shares an Assessor’s Parcel with Single Family Residential Property that has a stand -alone Residential Unit.

"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 Final Map, parcel map, Condominium Plan, or other recorded County parcel map or instrument. The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560.

"Act" means the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.

"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2025 -1: the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs o f collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the C ity, CFD No. 2025 -1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2025 -1 or any designee thereof of complying with disclosure requirements of the City, CFD No. 2025 -1 and any major property owner as sociated with applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2025-1 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2025 -1 for any other administrative purposes of CFD No. 2025 -1, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.

"Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being

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levied, (ii) that have an assigned Assessor ’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) that have not been issued a Building Permit on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied.

"Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.

"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" means the Special Tax of that name described in Section D below.

"Backup Special Tax" means the Special Tax of that name described in Section D below.

"Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD.

"Building Permit" means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent Building Permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator as necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such determination the Maximum Special Tax that may be levied in each Fiscal Year on all Assessor’s Parcels of Taxable Property will be at least 1.1 times annual debt service on all outstanding CFD No. 2025 -1 Bonds plus the estimated annual Administrative Expenses for such Fiscal Year.

"Building Square Footage" means the square footage of assessable internal livi ng space, exclusive of garages or other structures not used as living space, as determined by the CFD Administrator by reference to the Building Permit for such Assessor’s Parcel or other reliable information.

"Calendar Year" means the period commencing J anuary 1 of any year and ending the following December 31.

“CFD” or "CFD No. 2025-1" means Community Facilities District No. 2025-1 (Fairway Canyon 4C) of the City of Beaumont established by the City under the Act.

“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. 2025 -1 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 Tax of CFD No. 2025-1 have been pledged.

“City” means the City of Beaumont, State of California.

"City Council" means the City Council of the City of Beaumont, acting as the Legislative Body of CFD No. 2025-1.

“Condominium Plan" means a Condominium Plan as set forth in California Civil Code, Section 4285.

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"County" means the County of Riverside, State of California.

"Developed Property" means all Assessor’s Parcels: (i) that are included in a Final Map that was recorded prior to the January 1 st preceding the Fiscal Year in which the Special Tax is being levied, (ii) that have an Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) for which a Building Permit for new construc tion was issued on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied.

"Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F.

"Final Map" means a subdivision of property by 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 recordation of a Condominium Plan pursuant to California Civil Code Section 4285 that creates individual lots for which Building Permits may be issued without further subdivision.

"Fiscal Year" means the period commencing on July 1st of any year and ending the following June 30th.

“Indenture” means the indenture, fiscal agent a greement, resolution or other instrument pursuant to which CFD No. 2025-1 Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same.

“Land Use Category” means any of the categories listed in Table 1, Table 2, and Table 3 of Section D.

"Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2025 -1 in any Fiscal Year on such Assessor’s Parcel.

“Multifamily Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator.

"Non-Residential Property" means all Assessor's Parcels of Developed Property for which a Building Permit(s) was issued or will be issued for a non-residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property.

"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2.

"Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1.

“Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all As sessor’s Parcels of Approved Property, and (iii) Undeveloped Property, or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Assessor’s Parcels of Undeveloped Pro perty, or Provisional Undeveloped Property, as applicable.

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"Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be classified as Exempt Property because to do so would be reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section F.

"Rate and Method of Apportionment" means this Rate and Method of Apportionment of Special Tax for CFD No. 2025-1.

"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 Units.

“Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the CFD Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this Rate and Method of Apportionment.

“Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than Multifamily Property.

"Special Tax" or “Special Taxes” means any of the special taxes authorized to b e levied within CFD No. 2025-1 pursuant to the Act to fund the Special Tax Requirement.

"Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding CFD No. 2025-1 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 replenish any reserve funds established in association with the CFD No. 2025 -1 Bonds, (v) an amount equal to any anticipated shortfall due to Special Tax delinquencies, (vi) for debt service on CFD No. 2025 -1 Bonds anticipated to be issued, and (vii) for the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2025-1, provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Steps Two or Three of Section E., less (vii) any amounts available to pay debt service or other periodic costs on the CFD No. 2025 -1 Bonds pursuant to the Indenture.

“Tax Zone(s)” means the geographical area(s) within CFD No. 2025 -1 identified as Tax Zone 1, Tax Zone 2, or Tax Zone 3 as shown on the Boundary Map.

“Tax Zone 1” means all property located within CFD No. 2025-1 identified on the Boundary Map as Tax Zone 1.

“Tax Zone 2” means all property located within CFD No. 2025-1 identified on the Boundary Map as Tax Zone 2.

“Tax Zone 3” means all property located within CFD No. 2025-1 identified on the Boundary Map as Tax Zone 3.

"Taxable Property" means all Assessor’s Parcels within CFD No. 2025 -1 which are not Exempt Property.

“Taxable Unit” means either a Residential Unit or an Acre.

“Trustee” means the trustee, fiscal agent, or paying agent under the Indenture.

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"Undeveloped Property" means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property, or Provisional Undeveloped Property.

B. SPECIAL TAX

Commencing Fiscal Year 2026 -2027 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property, up to the applicable Maximum Special Tax, to fund the Special Tax Requirement.

C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX

Each Fiscal Year, beginning with Fiscal Year 2026-2027, each Assessor’s Parcel within CFD No. 2025 -1 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further class ified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property. In addition, each Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property shall be further classified as being within Tax Zone 1, Tax Zone 2, or Tax Zone 3.

Assessor’s Parcels of Developed Property shall further be classified as Residential Property or Non - Residential Property. Each Assessor’s Parcel of Residential Property shall further be classified as Single Family Residential Property or Multifamily Property. Each Assessor’s Parcel of Single Family Residential Property shall be further categorized into Land Use Categories based on its Building Square Footage and assigned to its appropriate Assigned Special Tax rate.

In the event that an Assessor’s Parcel for which one or more Building Permits have been issued and the County has not yet assigned final Assessor’s Parcel Number(s) to the Residential Unit(s) (in accordance with the Final Map or Condominium Plan) on such Assessor’s Parcel, the amount of the Special Tax levy on such Assessor’s Parcel for each Fiscal Year shall be determined as follows: (1) the CFD Administrator shall first determine an amount of the Maximum Special Tax levy fo r such Assessor’s Parcel, based on the classification of such Assessor’s Parcel as Undeveloped Property; (2) the amount of the Special Tax levy for the Residential Units on such Assessor’s Parcel for which Building Permits have been issued shall be determined based on the Assigned Special Tax rates for Developed Property and shall be taxed as Developed Property in accordance with Step 1 of Section E below; and (3) the amount of the Special Tax levy on the Acreage of Taxable Property in such Assessor’s Parce l not subject to the Special Tax levy in clause (2) shall be equal to: (A) the percentage of the Maximum Special Tax rate levied on all other Undeveloped Property multiplied by the total of the amount determined in clause (1), less the amount determined in clause (2).

D. MAXIMUM SPECIAL TAX

1. Developed Property

The Maximum Special Tax for each Assessor’s Parcel of Single Family Residential Property in any Fiscal Year shall be the greater of (i) the Assigned Special Tax or (ii) the Backup Special Tax.

The Maximum Special Tax for each Assessor’s Parcel of Non -Residential or Multifamily Property shall be the applicable Assigned Special Tax described in Table 1, Table 2 or Table 3 of Section D.

a. Assigned Special Tax

Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multifamily Property or Non-Residential shall be subject to an Assigned Special Tax. The Assigned Special Tax applicable

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to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1, Table 2, or Table 3 below.

TABLE 1

ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
WITHIN TAX ZONE 1
(FISCAL YEAR 2026-2027)

Land Use Category
Taxable
Unit Building Square Footage
Assigned
Special Tax Per
Taxable Unit

1. Single Family Residential Property RU Less than 2,100 sq. ft $576.00

2. Single Family Residential Property RU 2,100 sq. ft to 2,300 sq. ft $592.00

3. Single Family Residential Property RU Greater than 2,300 sq. ft $617.00

4. Multifamily Property Acre N/A $5,049.00

5. Non-Residential Property Acre N/A $5,049.00

TABLE 2

ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
WITHIN TAX ZONE 2
(FISCAL YEAR 2026-2027)

Land Use Category
Taxable
Unit Building Square Footage
Assigned
Special Tax Per
Taxable Unit

1. Single Family Residential Property RU Less than 2,000 sq. ft $664.00

2. Single Family Residential Property RU Greater than 2,000 sq. ft $674.00

3. Multifamily Property Acre N/A $5,275.00

4. Non-Residential Property Acre N/A $5,275.00

TABLE 3

ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
WITHIN TAX ZONE 3
(FISCAL YEAR 2026-2027)

Land Use Category
Taxable
Unit Building Square Footage
Assigned
Special Tax Per
Taxable Unit

1. Single Family Residential Property RU Less than 2,600 sq. ft $603.00

2. Single Family Residential Property RU 2,600 sq. ft to 3,000 sq. ft $656.00

3. Single Family Residential Property RU Greater than 3,000 sq. ft $682.00

4. Multifamily Property Acre N/A $3,827.00

5. Non-Residential Property Acre N/A $3,827.00

b. Multiple Land Use Categories

In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax for all Land Use Categories lo cated on the Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final.

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c. Backup Special Tax

When a Final Map is recorded, the CFD Administrator shall determine which Tax Zone the Final Map area lies within and the Backup Special Tax for an Assessor’s Parcel within the Final Map classified or to be classified as Single Family Property shall be calculated according to the following formula.

B = (U x A) / L

The terms above have the following meanings:

B = Backup Special Tax per per Assessor’s Parcel within the Final Map

U = Maximum Special Tax per Acre of Undeveloped Property per Section D.3 below

A = Acreage of Single Family Residential Property expected to exist in such Final Map at the time of calculation, as determined by the CFD Administrator

L = Number of Residential Units expected to exist in such Final Map at the time of calculation, as determined by the CFD Administrator.

In the event any portion of the Final Map is changed or modified, the Backup Special Tax for all Assessor’s Parcels within such changed or modified area shall be determined by Table 4 below:

TABLE 4

MAXIMUM SPECIAL TAX PER ACRE
(FISCAL YEAR 2026-2027)

Tax Zone
Maximum Special
Tax per Acre
1 $5,049
2 $5,275
3 $3,827

In the event any superseding Final Map is recorded as a Final Map within the boundaries of the CFD, the Backup Special Tax for all Assessor’s Parcels within such Final Map shall be on the rate per Acre shown in the table above. The Backup Special Tax shall not apply to Multifamily Residential Property or Non-Residential Property.

2. Approved Property

The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as Single Family Property shall be the Backup Special Tax computed pursuant to Section D.1.c above.

The Maximum Special Tax for each Assessor’s Parcel of App roved Property expected to be classified as Multifamily Property or Non-Residential Property shall be $5,049 per Acre for Tax Zone 1, $5,275 per Acre for Tax Zone 2, and $3,827 per Acre for Tax Zone 3.

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3. Undeveloped Property and Provisional Undeveloped Pr operty that is not Exempt Property pursuant to the provisions of Section F

The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property and Provisional Undeveloped Property that is not Exempt Property shall be equal to the product of $5,049 per Acre for Tax Zone 1, $5,275 per Acre for Tax Zone 2, and $3,827 per Acre for Tax Zone 3, in each case multiplied by the Acreage of such Assessor’s Parcel.

E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX

Commencing Fiscal Year 2026-2027 and for each su bsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property in accordance with the following steps:

Step One: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax rate to satisfy the Special Tax Requirement.

Step Two: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Approved Property at up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Specia l Tax Requirement.

Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax levy on each Assessor's Parcel of Developed Property for which the Maximum Special Tax is the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to 100% of the Backup Special Tax as needed to satisfy the Special Tax Requirement.

Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Provisional Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Assessor’s Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Assessor’s Parcel be increased by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.

F. EXEMPTIONS

The City shall classify as Exempt Property, in the following order of priority, (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii ) Assessor’s Parcels which

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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 which are owned by, irrevocably offered for dedication, encumbered by or res tricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are privately owned and are encum bered by or restricted solely for public uses, or (vi) Assessor’s Parcels restricted to other types of public uses determined by the City Council, provided that no such classification would reduce the total Acreage of all Taxable Property to less than the amounts shown in Table 5 below.

TABLE 5

MINIMUM TAXABLE ACRES

Tax Zone Acres
1 8.33
2 15.86
3 28.55

Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt Property if such classification would reduce the total Acreage of all Taxable Property to less than the Acres shown in Table 5 per Tax Zone. 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 Acres show n in Table 5 per Tax Zone will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E.

G. PREPAYMENT OF SPECIAL TAX

The following additional definitions apply to this Section G:
“CFD Public Facilities” means $3,000,000 expressed in 2025 dollars, which shall increase by the Construction Inflation Index on July 1, 2026, and on each July 1 thereafter, or such lower amount (i) determined by the City Council as sufficient to provide th e public facilities under the authorized bonding program for CFD No. 2025-1, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more CFD No. 2025-1 Bonds to be supported by Special Tax 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 to be financed by CFD No. 2025-1.

“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 t his 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 (i) public facility costs previously funded from the Construction Fund, (ii) public facility costs available to be funded through existing construction or escrow accounts funded by the Outstanding Bonds, and minus (iii) p ublic facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment, provided such amount shall not be less than zero.

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“Outstanding Bonds” means all previously issued CFD No. 2025 -1 Bonds issued and se cured by the levy of Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding CFD No. 2025 -1 Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax.

1. Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Approved Property or Undeveloped Property for which a Building Per mit has been issued, (iii) Approved Property or Undeveloped Property for which a Building Permit has not been issued and (iv) Assessor’s Parcels of Provisional Undeveloped Property that are not Exempt Property pursuant to Section F. The Maximum Special Tax obligation applicable to an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Sp ecial Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Maximum Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of int ent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non -refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as d efined below) for the Assessor’s Parcel. Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60 days prior to th e redemption date for any Outstanding Bonds to be redeemed with the proceeds of such prepaid Special Taxes.

The Prepayment Amount (defined below) shall be calculated as follows (capitalized terms are defined below):

Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount

The Prepayment Amount shall be determined as of the proposed prepayment date as follows:

1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.

2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for the Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Assessor’s Parcel. For an Assessor’s Parcel of Appro ved Property or Undeveloped Property for which a Building Permit has not been issued or Provisional Undeveloped Property to be prepaid compute the Maximum Special Tax for the Assessor’s Parcel.

3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of

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Special Taxes that could be levied at the Maximum Special Tax at build out of all Assessor’s Parcels of Taxable Property based on the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property not including any Ass essor’s Parcels for which the Special Tax obligation has been previously prepaid.

4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”).

5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).

6. Determine the Future Facilities Costs.

7. Multiply the quotie nt derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s Parcel (the “Future Facilities Amount”).

8. Determine the amount needed to pay interest on the Bond Redem ption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Outstanding Bonds can be redeemed from Special Tax prepayments.

9. Determine the Sp ecial Taxes levied on the Assessor’s Parcel in the current Fiscal Year which have not yet been paid.

10. Determine the amount the CFD Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount.

11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).

12. Verify the administrative fees and expenses of the CFD, including the cost of computation of the Prepayment Amount, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the pre payment of the Maximum Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).

13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), 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 requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.

14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit.

15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and

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Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Amount shall be deposited into the Construction Fund. The Administrative F ees and Expenses shall be retained by CFD No. 2025-1.

The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Outstanding Bonds. In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments.

As a result of the payment of the current Fiscal Year’s Special Tax levy as determ ined pursuant to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is prepaid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special Tax obligation and the release of the Special Tax lien for the Assessor’s Parcel, and the obligation to pay the Spe cial Tax for such Assessor’s Parcel shall cease.

Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Tax that may be levied each Fiscal Year on all Assessor’s Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times annual debt service for such Fiscal Year on the Outstanding Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses.

Tenders of Outstanding Bonds in prepayment of the Maximum Special Tax obligation may be accepted upon the terms and conditions established by the City Council pursuant to the Act. However, the use of Outstanding Bond tenders shall only be allowed on a case -by-case basis as specifically approved b y the City Council.

2. Prepayment in Part
The Maximum Special Tax obligation for an Assessor’s Parcel of Developed Property, Approved Property or Undeveloped Property may be partially prepaid. For purposes of determining the partial prepayment amount, the provisions of Section G.1 shall be modified as provided by the following formula:

PP = ((PE – A) x F) + A
These terms have the following meaning:

PP = Partial Prepayment Amount
PE = the Prepayment Amount calculated according to Section G.1 F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Maximum Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section G.1 The owner of an Assessor’s Parcel who desires to partially prepay the Maxim um Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any.

Within 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of the non -refundable deposit determined to cover the cost to b e incurred by the CFD in

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calculating the amount of a partial prepayment. Within 15 business days of receipt of such non - refundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial Prepayment Amount for the Assessor’s Parcel. A Partial Prepayment Amount must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment Amount.

With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 15 of Section G.1, and (ii) indicate in the records of the CFD that there has been a Partial Prepayment for the Assessor’s Parcel and that a portion of the Maximum Special Tax obligation equal to the remaining percentage (1.00 - F) of the Maximum Special Tax obligation will continue to be levied on the Assessor’s Parcel pursuant to Section E.

H. TERMINATION OF SPECIAL TAX

For each Fiscal Year that any CFD No. 2025 -1 Bonds are outstanding the Special Tax shall be levied on all Assessor’s Parcels subject to the Special Tax. The Special Tax shall cease not later than the 2067 - 2068 Fiscal Year, however, Special Tax will cea se to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all the required interest and principal payments on the CFD No. 2025-1 Bonds have been paid; (ii) all authorized facilities of CFD No. 2025 -1 have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Special Taxes remain uncollected and (iv) all other obligations of CFD No. 2025-1 have been satisfied.

I. 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. 2025 -1 may collect Special Taxes at a different time or in a different manner if necessary to meet its financi al obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.

J. APPEALS OF SPECIAL TAXES

Any taxpayer may file a written appeal of the Special Taxes on his/her Assessor’s Parcel(s) wi th the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The ap peal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant’s Assessor’s Parcel(s). No refunds of previously paid Special Taxes shall be made.

The CFD Administrator shall interpret this Rate and Method of Apportionment and make determinations relative to the annual levy and administration of the Special Taxes and any taxpayer who appeals, as herein specified.

4928-0716-0179v3/022599-0038
RESOLUTION NO. __

RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF

BEAUMONT, CALIFORNIA, TO INCUR BONDED INDEBTEDNESS WITHIN PROPOSED CITY OF BEAUMONT COMMUNITY FACILITIES DISTRICT NO. 2025-1 (FAIRWAY CANYON 4C)
WHEREAS, the City Council of the City of Beaumont (the “City Council”) upon receipt of a petition from Meritage Homes of California, Inc., a California corporation, as provided in Sections 53318 and 53319 of the Gove rnment Code of the State of California instituted proceedings to form City of Beaumont Community Facilities District No. 202 5-1 (Fairway Canyon 4C) (the “Community Facilities District”) pursuant to the Mello -Roos Community Facilities Act of 1982 (the “Act” ), as amended, pursuant to Resolution No. ___ adopted by the City Council on November 4, 2025; and WHEREAS, the purpose of the proposed Community Facilities District is to finance (1) the purchase, construction, modification, expansion, improvement and/or rehabilitation of public facilities identified in Exhibit “A” hereto and incorporated herein by this reference, including all furnishings, equipment and supplies related thereto (collectively, the “Facilities”) and (2) the incidental expenses to be incurred in financing the Facilities and forming and administering the District (the “Incidental Expenses”); and
WHEREAS, the City Council estimates that the amount required to finance the Facilities and Incidental Expenses is approximately $4,000,000; and,
WHEREAS, in order to finance the Facilities and Incidental Expenses, the City Council intends to authorize the issuance of bonds in the maximum aggregate principal amount of $ 4,000,000, the repayment of which is to be secured by special taxes levied in accordan ce with Section 53328 of the Act on all property in the proposed Community Facilities District, other than those properties exempted from taxation in the rate and method of apportionment set forth in Exhibit “C” to Resolution No. ____;

NOW, THEREFORE , THE CITY COUNCIL OF THE CITY, DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS:

SECTION 1. The above recitals are true and correct.

SECTION 2. It is necessary to incur bonded indebtedness within the boundaries of the proposed Community Facilities District in an amount not to exceed $4,000,000 to finance the costs of the Facilities and Incidental Expenses, as permitted by the Act.

SECTION 3. The indebtedness will be incurred for the purpose of financing the costs of the Facilities and the Incidental Expenses, including, but not limited to, the funding of reserve funds for the bonds, the financing of costs associated with the issuance of the bonds and all other costs and expenses necessary to finance the Facilities which are permitted to be financed pursuant to the Act.

SECTION 4. It is the intent of the City Council to authorize the sale of bonds in one or more series, in the maximum aggregate principal amount of $ 4,000,000 and at a maximum interest rate not in excess of 12 percent per annum, or a high er rate not in excess of the maximum rate permitted by law at the time that the bonds are issued. The term of the bonds of each series shall be determined pursuant to a resolution of this City Council acting in its capacity as the legislative body of the District authorizing the

2 4928-0716-0179v3/022599-0038
issuance of the bonds of such series, but such term shall in no event exceed 35 years from the date of issuance of the bonds of such series, or such longer term as is then permitted by law.

SECTION 5. A public hearing (the “Hearing ”) on the proposed issuance of bonded indebtedness shall be held at 6:00 p.m. or as soon thereafter as practicable, on December 16, 2025, at the City Council Chambers, 550 E. 6th Street, Beaumont, California.

SECTION 6. At the time and place set forth in this Resolution for the Hearing, any interested persons, including all persons owning land or registered to vote within the proposed Community Facilities District, may appear and be heard.

SECTION 7. The City Clerk is hereby directed to publish a notice (t he “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the proposed Community Facilities District. Such publication shall be completed at least seven days prior to the dat e of the Hearing. The City Clerk is further directed to mail a copy of the Notice to each of the landowners within the boundaries of the proposed Community Facilities District at least 15 days prior to the Hearing.

SECTION 8. This Resolution shall be effective upon its adoption.

ADOPTED, SIGNED AND APPROVED this 4th day of November, 2025.

Mike Lara, Mayor of the City of Beaumont
(SEAL)
ATTEST:

Elaine Morgan, City Clerk
of the City of Beaumont

3 4928-0716-0179v3/022599-0038

STATE OF CALIFORNIA )
) ss.

COUNTY OF RIVERSIDE )
I, Elaine Morgan, City Clerk of the City of Beaumont, do hereby certify that the foregoing resolution was duly adopted by the City Council of said City, at a regular meeting of said Board held on the 4th day of November, 2025, and that it was so adopted by the following vote:

AYES:

NOES:

ABSENT:

Elaine Morgan, City Clerk
City of Beaumont

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4928-0716-0179v3/022599-0038

EXHIBIT A

DESCRIPTION OF THE FACILITIES AND INCIDENTAL EXPENSES

TYPES OF FACILITIES

The proposed types of public f acilities and expenses to be financed by the Community Facilities District include:

The construction, purchase, modification, expansion and/or improvement of roadway, bridge, sewer, domestic and reclaimed water, dry utilities, storm drain, curb and gutter, medians, traffic signals, parks, trails, police facilities, fire facilities, library facilities, public community facilities, and any other facilities permitted pursuant to the Act, and appurtenances and appurtenant work, and development impact fees that are used by the City to construct infrastructure including design, engineering and planning costs associated therewith.

TYPES OF INCIDENTAL EXPENSES
The Incidental Expenses to be paid from bond proceeds and/or special taxes include:
a. The cost of engineering, planning and designing the Facilities; b. All costs, including costs of the property owner petitioning to form the Community Facilities District, associated with the creation of the Community Facilities District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the Community Facilities District; and c. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.

1 4922-1006-1427v2/022599-0038

PETITION TO THE CITY COUNCIL OF THE CITY OF

BEAUMONT REQUESTING INSTITUTION OF

PROCEEDINGS FOR ESTABLISHMENT OF A COMMUNITY

FACILITIES DISTRICT (CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(FAIRWAY CANYON 4C))

1. The undersigned (the “Owner”) is the owner of more than 10% of the land depicted in Exhibit A hereto (the “Property”), which land is expected to be all of the land included within the boundaries of a community facilities district hereby proposed to be established. The Property is located within the City of Beaumont (the “City”) in the County of Riverside.

2. The Owner requests that the City Council of the City (the “City Council”) institute proceedings to establish a community facilities district to be known as “City of Beaumont Community Facilities District No. 2025 -1 (Fairway Canyon 4C)” (referred to herein as the “District”) pursuant to Chapter 2.5 (commencing with Section 53311), Part 1, Division 2, Title 5, of the Government Code of the State of California, commonly known as the “ Mello Roos Community Facilities Act of 1982” (the “Act”), to include all of the Property.

3. The boundaries of the territory which is proposed for inclusion in the District is that depicted in Exhibit A hereto.

4. The Owner requests that the proposed Distr ict be used to finance the construction, purchase, modification, expansion and/or improvement of roadway, bridge, sewer, domestic and reclaimed water, dry utilities, storm drain, curb and gutter, medians, traffic signals, parks, trails, police facilities, fire facilities, library facilities, public community facilities, and any other facilities permitted pursuant to the Act, and appurtenances and appurtenant work, and development impact fees that are used by the City to construct infrastructure including de sign, engineering and planning costs associated therewith (the “Facilities”) and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, co nstruction staking, construction management and supervision for such Facilities, and to finance the incidental expenses to be incurred, including:
a. The cost of engineering, planning and designing the Facilities; b. All costs, including costs of the prope rty owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and
c. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.

5. The Owner further requests that the City Council authorize the levy of special taxes in the District to pay the costs of the Facilities and the incidental costs described in paragraph 4 above (the “Special Tax”) and to pay principal of, interest and premium, if any, on the bonds in order to contribute to the financing of the Facilities and costs described in paragraph 4 above.

2 4922-1006-1427v2/022599-0038

6. The Owner further requests that, upon the sale of bonds, the City Council, as legislative body of the District, annually levy Special Taxes on the property within the District for the construction, acquisition and rehabilitation of the Facilities, for the payment of the aggregate amount of principal of and interest owing on the bonds in each fiscal year, including the maintenance of reserves therefor, and for the payment of administrative expenses of the District.

7. The O wner has advanced to the City the amounts necessary to pay for the costs related to the formation of the District, which amounts will be reimbursed, without interest, from the proceeds of the first sale of the bonds, if any. The reimbursement of such amou nts is to be governed by the terms of that certain Reimbursement Agreement entered into by and between the City and the Owner relating to the District. If bonds are not sold, the City will have no obligation to reimburse amounts expended for costs incurre d, but will reimburse any unexpended amounts advanced by the Owner as set forth in the Reimbursement Agreement.

Dated: October __, 2025
MERITAGE HOMES OF CALIFORNIA, a
California corporation

By:

Name:

Its:

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4922-1006-1427v2/022599-0038

EXHIBIT A

BOUNDARY MAP

413-790-075
413-790-077
413-790-078
413-790-076
413-790-079
OA
K VA
LLEY
PK
WY
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(FAIRWAY CANYON 4C)

CITY OF BEAUMONT,

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
SHEET 1 OF 1 SHEET

I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED
BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2025-1
(FAIRWAY CANYON 4C), CITY OF BEAUMONT, COUNTY OF

RIVERSIDE, STATE OF CALIFORNIA, WAS APPROVED BY THE CITY

COUNCIL OF THE CITY OF BEAUMONT AT A REGULAR MEETING
THEREOF, HELD ON______ DAY OF ______, 20____, BY
R E S O L U T I O N N O . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ___________________________________

CITY CLERK

CITY OF BEAUMONT

FILED IN THE OFFICE OF THE CITY CLERK, CITY OF BEAUMONT , T H I S _ __ _ D A Y OF _ __ _ _ __ _ , 2 0 __ _ _. ______________________________

CITY CLERK

C IT Y OF BE A UMONT

BEAUMONT
·|}þ243
·|}þ60
·|}þ79
§¨¦10
05 0 0 1 , 0 0 0250 Feet

PROPOSED BOUNDARY MAP
^
CFD 2025-1
-

THIS BOUNDARY MAP CORRECTLY SHOWS THE LOT OR PARCEL OF LAND INCLUDED WITHIN THE BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT.

FOR DETAILS CONCERNING THE LINES AND DIMENSIONS OF LOTS OR PARCEL REFER TO THE COUNTY ASSESSOR MAPS FOR FISCAL YEAR 2025-26.

XXX-XXX-XXX ASSESSOR PARCEL NUMBER
LEGEND

CITY BOUNDARY

CFD BOUNDARY

TAX ZONE BOUNDARY

PARCEL LINE
TAX ZONE1
SOREN
ST
AM

DR
AARON
A
VE
BREW
ER
DR
RECORDED THIS ____ DAY OF _______________, 20____ AT
THE HOUR OF ____ O'CLOCK __M IN BOOK _____
PAGE _____ OF MAPS OF ASSESSMENT AND COMMUNITY

FACILITIES DISTRICTS IN THE OFFICE OF THE COUNTY

RECORDER, IN THE COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA.

FEE: _____________ NO.: ______________________

PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDER
BY: _______________________________

D E P U T Y

2 1
3

PALMER AVE

CASTELLO LN

BAY HILL
DR

OLIVEWOOD WAY
SMITH

AVE CHERRY
VALLEY
BLVD

BROOKSIDE AVE

STRAIGHTAWAY DR
OAK DR

CRENSHAW ST

CHAMPIONS DR
SAN

TIMOTEO

CANYON R D
§¨¦10
·|}þ60

DESERT LAWN DR

PAL M ER AV E

CHERRY VALLEY BLVD

CAST ELLO LN

SNOWBERRYRDBROOKSI DE AVE

MICKELSON DR

BAY HILL
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COMMUNITY FACILITIES DISTRICT NO. 2025-1
(FAIRWAY CANYON 4C)

PROJECT MAP
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City of Beaumont
Community Facilities Districts Formation
CFD 2025-1 (Fairway Canyon 4C)
CFD 2025-S (Public Services)
CFD 2025-M (Maintenance Services)
November 4, 2025

Presented by:

Jennifer Ustation – Finance Director
Brian Forbath– Stradling Yocca Carlson & Rauth LLP
Shane Spicer – Spicer Consulting Group LLC

Fairway Canyon 4C (Meritage Homes) – CFD Formation Request • Project Sponsor: Meritage Homes of California, Inc.
• The Fairway Canyon 4C Formation Request includes creation of new CFDs to fund infrastructure, public safety, and maintenance services for 366 new single-family homes. • This request follows the CFD program framework introduced at the September 2 CFD-101 Workshop, which established the City’s policy direction for financing growth-related improvements and services.
• Three coordinated CFDs are proposed for this project:
• CFD 2025-1 (Facilities) – Funds public infrastructure. • CFD 2025-S (Public Services) – Funds police, fire, and paramedic services. • CFD 2025-M (Maintenance Services) – Funds long-term maintenance of public areas. • Each CFD aligns with Beaumont’s adopted goal that growth pays for growth and safeguards the City’s General Fund.

Meritage Homes – Fairway Canyon 4C Project Overview
• Location: Northwest Beaumont – west of Tukwet Canyon Parkway, north of Oak Valley Parkway. • Land Use: 366 single-family residential lots (Tracts 31462-17, -19, -27, -28 & -29).Purpose of Formation: Provide financing and ongoing funding mechanisms consistent with the City’s CFD Program presented September 2.
• Facilities to Finance: Roadway, sewer, and park improvements benefiting both the project and surrounding area.
• Ongoing Services: Public safety and maintenance provided through separate CFDs. • Outcome: All infrastructure and service costs funded through CFD special tax revenues – no City General Fund impact.

Project
Location

CFD 2025-1 (Fairway Canyon 4C – Facilities District)
Purpose: Finance the construction of public improvements and reimburse eligible developer costs. • Created under the Mello-Roos Community Facilities Act of 1982. • Estimated bond capacity: ≈ $4 million secured solely by special taxes. • Facilities to be financed: City road and sewer projects (~$2.6 M). • Special Tax Structure: Three tax zones with assigned rates from ≈ $576 to $682 per lot. • Fiscal Safeguards: 2% Effective Tax Rate (ETR) cap consistent with City policy. • The 2% ETR takes into account the BUSD CFD 2022-1 Special Tax rate (ranges: $1,838 - $2,647 per unit) Action Requested: Adopt Resolutions of Intention to form CFD 2025-1 and authorize bond indebtedness.

CFD 2025-S (Public Services)
Purpose: Provide funding for essential public safety services. • Establishes an initial district for Fairway Canyon 4C and a Potential Annexation Area for future developments Citywide.
• Services Funded: Police protection, fire suppression, paramedic and emergency response services. • Tax Rates: $639 per Single-Family Residential Unit; $526 per Multi-Family Unit. • Escalation: Greater of CPI or 5% annually beginning FY 2026-27. • Consistent with the September CFD-101 program structure for a citywide public safety funding framework.

Action Requested: Adopt Resolution of Intention to form CFD 2025-S and authorize levy of special tax for Public Services.

CFD 2025-M (Maintenance Services)
Purpose: Fund long-term maintenance of public improvements and infrastructure built with CFD 2025-1 proceeds.
• Establishes initial district for Fairway Canyon 4C and a Potential Annexation Area for future projects. • Services Funded: Parks, trails, landscaping, street lighting, pavement management, storm drain and BMP facilities, graffiti abatement.
• Tax Rates:
• $438 per Residential Unit (Special Tax A – City Services) • $292 per Residential Unit (Special Tax B – Contingent POA Backup) • Escalation: CPI or 2% (whichever is greater).
• Consistent with the City’s annexable Maintenance CFD model adopted under the updated Goals & Policies.

Action Requested: Adopt Resolution of Intention to form CFD 2025-M and authorize levy of special tax for Maintenance Services.

Next Steps and City Council Action
Formation Schedule Highlights:
• November 4, 2025: Adopt Resolutions of Intention for CFDs 2025-1, 2025-S, and 2025-M. • December 16, 2025: Hold Public Hearing and Election for each district. • January 2026: Second Reading of Ordinances levying special taxes.

Council Action Requested T onight:
• Approve the Resolutions of Intention for each CFD.
• Authorize special tax levies for facilities, public safety, and maintenance consistent with the City’s CFD Program and Goals & Policies.
• Direct staff and consultants to proceed to the Public Hearing and voter election on December 16, 2025.

BEAUMONTCA.GOV
#A C I T Y E L E V A T E D

CITY OF BEAUMONT
550 East 6th Street, Beaumont, CA 92223
(951) 769-8520

QUESTIONS

Staff Report

TO: City Council
FROM: Elizabeth Gibbs, City Manager
DATE: November 4, 2025
SUBJECT: Formation of CFD No. 2025-M (Maintenance Services)

Description: The proposed action initiates the formation of Community Facilities District No. 2025-M (Maintenance Services) to finance the ongoing maintenance of public improvements associated with new residential development by Meritage Homes of California, Inc. The District will levy an annual special tax on properties within its boundaries to fund the cost of maintenance services, with provisions allowing future developments to annex into the District. Adoption of the Resolution of Intention declares the City’s intent to form CFD No. 2025-M and schedules a public hearing for December 16, 2025, to consider final formation of the District and related proceedings.

Background and Analysis:

The developer, Meritage Homes of California, Inc., a California corporation (the “Developer”), owns property containing 366 proposed residential lots within the City.

Such property is located in the northwestern part of the City, west of Tukwet Canyon Parkway, and north of Oak Valley Parkway. The Developer has requested that the City form a community facilities district (“CFD No. 2025-1”) to encompass such property in accordance with the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”), to finance the costs of certain public improvements through the levy of a special tax. In connection with the formation of CFD No. 2025-1, the Developer is also required to either annex into or request the formation of a community facilities district for the purpose of financing certain maintenance services. Therefore, the Developer has also requested that the City form a community facilities district (“CFD No. 2025-M”) in accordance with the Act.

The Developer has requested that the boundaries of CFD No. 2025-M initially include the area described in Attachment A of the Resolution of Intention to Establish CFD No. 2025-M presented at this meeting (the “Resolution of Intention”), and that special taxes be levied within the boundaries of CFD No. 2025-M in accordance with the Rate and Method of Apportionment (the “RMA”) described in Attachment C to the Resolution of Intention. The Developer has also requested that the City designate a “Potential Annexation Area” for CFD No. 2025-M in order for additional property to annex into CFD

No. 2025-M. The Potential Annexation Area, which consists of all of the property within the City other than the initial CFD No. 2025-M, is also designated in Attachment A to the Resolution of Intention. The special taxes will not be levied on property within the Potential Annexation Area unless and until such property is annexed into CFD No. 2025-M. It is anticipated that future development in the City will annex into CFD No. 2025-M.

The Resolution of Intention is the first step in the process of forming CFD No. 2025-M.

The attached Resolution declares the City’s intention to establish CFD No. 2025-M and calls for a public hearing on the matter to take place on December 16, 2025. At that time the Council will formally consider approval to form CFD No. 2025-M and the Potential Annexation Area and hold an election on the approval of the special taxes within CFD No. 2025-M.

The RMA provides that the Maximum Special Tax Rates within CFD No. 2025-M are $438 per year per Residential Unit of Single-Family Property and Multi-Family Property and $2,736 per year per acre of Non-Residential Property. The Special Taxes within CFD No. 2025-M may be levied each Fiscal Year, commencing July 1, 2025. On each July 1, commencing on July 1, 2026 the special taxes shall increase by (i) the year- over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or (ii) by two percent (2.0%), whichever is greater.

Fiscal Impact:

The City Council previously approved a Reimbursement Agreement with the Developer in connection with the formation of CFD No. 2025-1, and the Developer has previously made a deposit of $50,000 to pay for the costs of the formation proceedings. If established and subject to necessary Council and voter approvals, CFD No. 2025-M will annually levy special taxes on all of the taxable property within CFD No. 2025-M in accordance with the RMA (as attached to the Resolution of Intention).

The estimated cost to prepare this report is $625.

Recommended Action:

Adopt by title only, “Resolution of the City Council of the City of Beaumont, California, Declaring its Intention to Establish City of Beaumont Community Facilities District No.

2025-M (Maintenance Services), to Authorize the Levy of a Special Tax on Property Within the District to Pay the Costs of Providing Public Maintenance Services.” Attachments:

A. Resolution Declaring the Intention to Establish City of Beaumont CFD 2025-M B. Landowner Petition to Form (Beaumont CFD No. 2025-M (Maintenance Services)
C. CFD Boundary Map
D. CFD Project Map
E. CFD 2025-M Potential Annex Area Map
F. Beaumont CFD City Council Presentation

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RESOLUTION NO. _____

A RESOLUTION OF CITY COUNCIL OF THE CITY OF

BEAUMONT DECLARING ITS INTENTION TO ESTABLISH

CITY OF BEAUMONT COMMUNITY FACILITIES
DISTRICT NO. 2025 -M (MAINTENANCE SERVICES), TO

AUTHORIZE THE LEVY OF A SPECIAL TAX ON

PROPERTY WITHIN THE DISTRICT TO PAY THE COSTS

OF PROVIDING PUBLIC MAINTENANCE SERVICES
WHEREAS, the City of Beaumont (the “City”) has received a petition (the “Petition”) signed by the owner of more than ten percent of the land within the boundaries of which is proposed for inclusion in a proposed community facilities district which meets the requirements of Sections 53318 and 53319 of the Government Code of the State of California (the “Government Code”); and WHEREAS, the City Council of the City (the “City Council”) desires to adopt this resolution of intention as provided in Section 53321 of the Government Code to establish a community facilities district consisting of the territory described in Attachm ent “A” hereto and incorporated herein by this reference, which the City Council hereby determines shall be known as “City of Beaumont Community Facilities District No. 2025 -M (Maintenance Services) ” (“Community Facilities District No. 2025-M” or the “Dist rict”) pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code (the “Act”) to (1) finance the services described in Attachment “B” hereto and incorporated herein by this reference (the “ Services”), and (2) finance the incidental expenses to be incurred in connection with forming and administering the District and financing the Services (the “Services Incidental Expenses”); and
WHEREAS, the City Council proposes to designate the property d escribed in Attachment “B” hereto and incorporated herein by this references as territory proposed for annexation to Community Facilities District No. 2025-M in the future (the “Potential Annexation Area”), with the condition that a parcel or parcels withi n such territory shall be annexed and subjected to the special tax of Community Facilities District No. 2025-M pursuant to the procedures set forth in Section 53339 et seq. of the Act or in compliance with other procedures established by the Act; and WHEREAS, the City Council further intends to approve an estimate of the costs of the Services and the Services Incidental Expenses for Community Facilities District No. 2025-M; and WHEREAS, it is the intention of the City Council to consider financing the Serv ices and the Services Incidental Expenses through the formation of Community Facilities District No. 2025-M and the levy of a special tax to pay for such Services and Services Incidental Expenses;

NOW, THEREFORE , THE CITY COUNCIL OF THE CITY , DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS:

Section 1. The above recitals are true and correct.

Section 2. A community facilities district is proposed to be established under the terms of the Act. It is further proposed that the legal boundaries of Communit y Facilities District No. 2025-M shall be those described in Attachment “A” hereto, which boundaries shall, upon recordation of the

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boundary map for proposed Community Facilities District No. 2025-M, include the entirety of any parcel subject to taxation b y the District. The City Council further proposes to designate the Potential Annexation Area described in Attachment “A” hereto as property proposed for annexation into the District in the future, as approved by the City Council acting as the legislative body of the District.

The proposed boundaries of the District and the Potential Annexation Area are depicted on the map of the proposed Community Facilities District No. 2025-M, which is included in Attachment “A” hereto. The City Clerk is hereby directed to sign the original map of the proposed boundaries and record it with all proper endorsements thereon with the County Recorder of the County of Riverside within 15 days after the adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California.

Section 3. The name of the proposed community facilities district shall be “ City of Beaumont Community Facilities District No. 2025-M (Maintenance Services).” Section 4. The Services proposed to be provided for the benefit of Community Facilities District No. 2025-M are public services as defined in the Act, and this City Council finds and determines that the Services to be financed are in addition to those provided in the territory of the District, including the Potential Annexation Area, at the present time and do not supplant services already available within the territory of the District at the present time. The City Council hereby finds and determines that the description of the Services herein is suffi ciently informative to allow taxpayers within the proposed District, including the Potential Annexation Area, to understand what the funds of the District may be used to finance. The Services Incidental Expenses expected to be incurred include the costs o f planning the Services, the costs of forming the District, the cost of levying and collecting a special tax within the proposed District and the cost of administration.

Section 5. Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with the procedures contained in the Act a separate special tax, secured by recordation of a continuing lien against all nonexempt real property in the District, sufficient to pay for the Services and the Services In cidental Expenses. Notwithstanding the foregoing, the District shall not record a special tax lien on property within the Potential Annexation Area until the owner or owners of the parcel or parcels thereof have given their unanimous approval of the parce l’s or parcels’ annexation to the District. The rate and method of apportionment and manner of collection of the special taxes are described in detail in Attachment “C” attached hereto, which Attachment “C” is incorporated herein by this reference. Attac hment “C” allows each landowner within the District to estimate the maximum amount that may be levied against each parcel.

On each July 1, commencing on July 1, 2026 the special tax shall increase by (i) the year - over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside -San Bernardino -Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index f or the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or (ii) by two percent (2.0%), whichever is greater , to the extent permitted in the Rate and Method. The special tax for Services may be levied for such period as the Services are needed, as further described in Attachment “C” hereto.

The special taxes are based on the expected demand that each parcel of real property within proposed Community Facilities District No. 2025-M will place on the Services. The City Council

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hereby determines that the proposed Services are necessary to meet the increased demand placed upon the City and the existing services in the City as a result of the development of the land proposed for inclusion in the District. The City Co uncil hereby determines the rate and method of apportionment of the special taxes set forth in Attachment “C” to be reasonable. The special tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and such special taxes are not on or based upon the value or ownership of real property.

Section 6. A public hearing (the “Hearing”) on the establishment of the proposed Community Facilities District No. 2025-M, the proposed rate and method of apportionment of the special taxes to finance the Services and the Services Incidental Expenses shall be held 6:00 p.m., or as soon thereafter as practicable, on December 16, 2025 , at the City Council’s Chambers, 550 East 6th Street, Beaumont, California . Should the City Council determ ine to form the District, a special election will be held to authorize the levy of the special taxes in accordance with the procedures contained in Government Code Section 53326. If held, the proposed voting procedure at the election will be a landowner v ote with each landowner who is the owner of record of land within the District (excluding the Potential Annexation Area) at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within th e proposed District. Ballots for the special election may be distributed by mail or by personal service.

Section 7. The City Council does not intend to make any adjustment in property taxation pursuant to Sections 53313.6 and 53313.7 of the Act.

Section 8. At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within proposed Community Facilities District No. 2025-M and in the Potential Annexation Area, may appear and be heard.

Section 9. Each City officer who is or will be responsible for administering the proposed Community Facilities District No. 2025-M, if it is established, is hereby directed to study the proposed District and, at or before the time of the above -mentioned Hearing, file a report with the City Council containing a brief description of services by type which will in his or her opinion be required to meet adequately the needs of Community Facilities District No. 2025-M and an estimate of the cost of providing th ose services, and an estimate of the fair and reasonable cost of Services Incidental Expenses to be incurred.

Section 10. The District may accept advances of funds or work -in-kind from any source, including, but not limited to, private persons or private e ntities, for any authorized purpose, including, but not limited to, paying any cost incurred in creating Community Facilities District No. 2025-M. The District may enter into an agreement with the person or entity advancing the funds or work-in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work -in-kind, as determined by the City Council, with or without interest.

Section 11. The City Clerk is hereby directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of proposed Community Facilities District No. 2025-M. The City Clerk is further directed to mail a c opy of the Notice to each landowner within the boundaries of the District at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all in terested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners

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in the proposed district and a description of the proposed voting procedure for the election required by the Act. Such publication sha ll be completed at least seven (7) days prior to the date of the Hearing.

Section 12. This Resolution shall be effective upon its adoption.

ADOPTED, SIGNED AND APPROVED this 4th day of November, 2025.

Mike Lara, Mayor of the City of Beaumont
(SEAL)
ATTEST:

Elaine Morgan, City Clerk
of the City of Beaumont

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STATE OF CALIFORNIA )
) ss.

COUNTY OF RIVERSIDE )
I, Elaine Morgan, City Clerk of the City of Beaumont, do hereby certify that the foregoing resolution was duly adopted by the City Council of said City, at a regular meeting of said Board held on the 4th day of November, 2025, and that it was so adopted by the following vote:

AYES:

NOES:

ABSENT:

Elaine Morgan, City Clerk
City of Beaumont

A-1
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ATTACHMENT A
Proposed Boundaries
City of Beaumont
Community Facilities District No. 2025-M (Maintenance Services) Riverside County, California

A-2
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B-1
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ATTACHMENT B
Types of Services
to be Financed by
City of Beaumont Community Facilities District No. 2025-M (Maintenance Services) The services which may be funded with proceeds of the special tax of CFD No. 2025 -M, as provided by Section 53313 of the Act, will include all c osts attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right-of-way, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and

(b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fos sil fuel filters within the public right -of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance and servicing of the water quality basin improvements within flood control channel improvements; and

(c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2025-M; as well as local road s within residential subdivisions located within CFD No. 2025 -M; and any portions adjacent to the properties within CFD No. 2025-M; and

In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.

The above services may be financed by proceeds of the special tax of CFD No. 2025 -M only to the extent that they are in addition to those provided in the territory of CFD No. 2025-M before CFD No. 2025-M was created or those provided in the territory annexed to CFD No. 2025 -M before the territory was annexed, as applicable.

C-1
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ATTACHMENT C

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2025-M (MAINTENANCE SERVICES)

A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2025-M (Maintenance Services) (the “CFD No. 2025-M” or “CFD”; defined below), in each Fiscal Year on an Asses sor’s Parcel shall be determined by the City Council of the City of Beaumont, acting in its capacity as the legislative body of CFD No. 2025 -M, by applying the rate and method of apportionment set forth below. All of the real property in CFD No. 2025 -M, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.

A. DEFINITIONS

“Accessory Dwelling Unit” means a residential unit of limited size including smaller secondary unit(s) that shares an Assessor’s Parcel with Single Family Residential Property that has a stand - alone Residential Unit.

“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator.

“Administrative Expenses” means the actual or reasonably estimated costs directl y related to the formation, annexation, and administration of CFD No. 2025 -M including, but not limited to:
the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2025- M, or any designee thereof associated with fulfilling the CFD No. 2025 -M disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 202 5-M or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees, collection expenses, including payment of a proportional share of City overhead and salaries and benefits of any City employees whose duties are related to the administration of CFD No. 2025 -M and third party expenses related to CFD No. 2025 -M. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2025 -M for any other administrative purposes of CFD No. 20 25-M, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.

“Administrator” means the City Manager of the City of Beaumont, or his or her designee.

“Approved Property” means all Assessor’s Parcels of Taxable Property that are included in a Final Map that was recorded prior to the January 1 preceding the Fiscal Year in which the Special Tax is being levied, and that have not been issued a Building Permit on or prior to the Ma y 1 preceding the Fiscal year in which the Special Tax is being levied.

“Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside.

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“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 identification number assigned to a parcel by the County Assessor of the County.

"Building Permit" means the first legal document issued by the City giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include expired or cancelled Building Permits, or any subsequent Building Permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the Administrator.

“Building Square Footage” or “BSF” means the floor area square footage reflected on the original construction Bu ilding Permit issued for construction of a building of Non -Residential Property and any Building Square Footage subsequently added to a building of such Non - Residential Property after issuance of a Building Permit for expansion or renovation of such building.

“Calendar Year” means the period commencing January 1 of any year and ending the following December 31.

“CFD” or “CFD No. 2025 -M” means the Community Facilities District No. 2025 -M (Maintenance Services) of the City of Beaumont.

“CFD Boundary Map” means a recorded map of the CFD that indicates by a boundary line the extent of the territory identified to be subject to the levy of Special Taxes.

“City” means the City of Beaumont, State of California.

“Contingent Services” means services permitted u nder the Mello -Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2025-M as set forth in the documents adopted by the City Council at the time the CFD was formed to be provided by the City in the event the Administrator makes a determination pursuant to Section C(2) that a Property Owners’ Association fails to adequately provide such services.

“County” means the County of Riverside, State of California.

“Developed Property” means all Asse ssor’s Parcels of Taxable Property for which a Building Permit for new construction has been issued on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.

“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section G.

“Final Map” means a subdivision of property by 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 recordation of a condominium plan pursuant to California Civil Code 6624 that creates individual lots for which Building Permits may be issued without further subdivision.

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“Fiscal Year” means the period from and including July 1 st of any year to a nd including the following June 30th.

“Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed for the Asses sor’s Parcel as of May 1 preceding the Fiscal Year in which the Special Tax is being levied.

"Maintenance Services" means the services permitted under the Act including, without limitation, street sweeping, traffic signal maintenance, the maintenance of l andscaping and lighting of publicly owned parks, parkways, streets, roads and open spaces, graffiti abatement, flood and storm protection services, and the operation of storm drainage systems contained within the boundaries of CFD No. 2025-M and the City as set forth in Appendix B.

"Maintenance Services (Contingent)" means the Maintenance Services described above and permitted under the Act, contained within CFD No. 2025 -M and the City, which are proposed to be maintained and paid for through the Property Owner Association, and all to which the City has been granted an easement allowing such maintenance in any Fiscal Year following a Failure to Perform as defined in Section C.2. hereof.

“Maximum Special Tax” means either Maximum Special Tax A and/or Maxim um Special Tax B (Contingent), as applicable.

“Maximum Special Tax A” means for each Assessor’s Parcel and each Fiscal Year, the maximum Special Tax A, as determined in accordance with Section C below that can be levied on such Assessor’s Parcel in such Fiscal Year.

“Maximum Special Tax B (Contingent)” means for each Asses sor’s Parcel and each Fiscal Year, the maximum Special Tax B (Contingent), as determined in accordance with Section C below that can be levied on such Assessor’s Parcel in such Fiscal Year.

“Multi-Family Residential Property” or “MFR” means any Assessor’s Parcel of Residential Property upon which a building or buildings comprised of attached Residential Units sharing at least one common wall with another unit are constructed or are intended to be constructed that share a single Assessor’s Parcel Number, as determined by the Administrator.

“Non-Residential Property” or “NR” means all Assessor's Parcels of Taxable Property for which a Building Permit(s) was issued for a non -residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property.

“Property Owner’s Association” or “POA” means the property owner’s association or homeowner’s association established to maintain certain Services within a Tax Zone.

“Proportionately” means for Taxable Property that is: ( i) Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property, and (iii) Undeveloped Property that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property.

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“Rate and Method of Apportionment” or “RMA" means this Rate and Method of Apportionment of Special Taxes.

“Residential Property” means all Assessor’s Parcels of Taxable Property upon which Residential Units have been constructed or are intended to be constructed or for which Building Permits have been or may be issued for purposes of constructing one or more Residential Units.

“Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. An Ac cessory Dwelling Unit that shares an Assessor’s Parcel with an Assessor’s Parcel classified as Single Family Residential Property shall not be considered a Residential Unit for purposes of levying the Special Tax pursuant to Section D.

“Service(s)” means services permitted under the Mello -Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2025 -M as set forth in the documents adopted by the City Council at the time the CFD was formed.

“Single Family Residential Property” or “SFR” means any Residential Property other than Multi-Family Residential Property on an Assessor’s Parcel as determined by the Administrator.

“Special Tax(es)” means the Special Tax A or Special Tax B (Contingent) to b e levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.

“Special Tax A” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax A Requirement.

"Special Tax A Requirement" means for each Tax Zone that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of such Tax Zone within CFD No. 2025-M in both the current Fiscal Year and the next Fiscal Year. The c osts to be covered shall be the (i) direct costs for Maintenance Services, (ii) fund an operating reserve for the costs of Maintenance Services as determined by the Administrator, and (iii) Administrative Expenses.

Under no circumstances shall the Special Tax A Requirement include funds for bonds or other forms of indebtedness.
“Special Tax B (Contingent)” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax B (Contingent) Requir ement, if required.

“Special Tax B (Contingent) Requirement” means that amount required in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2025-M for Maintenance Services (Contingent) in both the current Fiscal Year and t he next Fiscal Year. The costs to be covered shall be the (i) direct costs for Maintenance Services (Contingent), (ii) amount necessary to fund an operating reserve for the costs of Maintenance Services (Contingent) as determined by the Administrator, and (iii) Administrative Expenses applicable to the Special Tax B (Contingent).

Under no circumstances shall the Special Tax B (Contingent) Requirement include funds for bonds or other forms of indebtedness. The Special Tax B (Contingent) Requirement, if initi ated, will be applied to all Assessor’s Parcels in addition to, and not in lieu of, the Special Tax A Requirement.

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"Taxable Property" means all Assessor’s Parcels within CFD No. 2025 -M, which are not Exempt Property.

“Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre. "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may be levied following annexation of additional property to the CFD and pursuant to an amended Rate and Method of Appo rtionment of Special Tax. Appendix C identifies the Tax Zone Original included in CFD No. 2025 -M at formation; additional Tax Zones may be created when property is annexed into the CFD.

"Tax Zone Original" means the specific geographic area identified on the CFD Boundary Map as Tax Zone Original included in Appendix C.

"Tract(s)" means an area of land: i) within a subdivision identified by a particular tract number on a Final Map, ii) identified within a Parcel Map; or iii) identified within lot line adj ustment approved for subdivision.

“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property.

B. ASSIGNMENT TO LAND USE CATEGORIES
For each Fiscal Year, all Assessor’s Parcels of Taxabl e Property within CFD No. 2025 -M shall be classified as Developed Property, Approved Property, or Undeveloped Property, and shall be subject to the levy of Special Taxes as determined pursuant to Sections C and D below.

Assessor’s Parcels of Developed Prop erty and Approved Property shall be classified as either Residential Property or Non-Residential Property. Residential Property shall be further classified as Single Family Residential Property or Multi -Family Residential Property and the number of Residential Units shall be determined by the Administrator.

C. MAXIMUM SPECIAL TAX RATES
For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Residential Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or shown on the Building Permit(s) issued or Final Map as determined by the Administrator. Once a single family attac hed or multi -family building or buildings have been built on an Assessor's Parcel, the Administrator shall determine the actual number of Residential Units contained within the building or buildings, and the Special Tax A and Special Tax B (Contingent) lev ied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax per Residential Unit for the Tax Zone below or as included in Appendix A as future annexations occur.

To determine the Maximum Special Tax for Non -Residential Developed and Approved Properties, the Administrator assigns each Assessor's Parcel a Building Square Footage or Acreage based on the Final Map. The Special Tax A and Special Tax B (Contingent) for the next Fiscal Year is calculated by multiplying this figure by the Maximum Special Tax per Taxable Unit for the applicable Tax Zone, as identified below or in Appendix A for future annexations.

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1. Special Tax A
a. Developed Property
(i) Maximum Special Tax A
The Maximum Special Tax A for each Assessor’s Parcel of Developed Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2025-M, the rate and method adopted for the annexed property shall re flect the Maximum Special Tax A for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax A for Developed Property for Fiscal Year 2025 -26 within Tax Zone Original is identified in Table 1 below:

TABLE 1

MAXIMUM SPECIAL TAX A RATES

DEVELOPED PROPERTY

Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
Original TR 31462-17, -
19, -27, -28 & -29 Single Family Residential Property RU $438

(ii) Increase in the Maximum Special Tax A
On each July 1, commencing on July 1, 2026 the Maximum Special Tax A for Developed Property shall increase by i) the year -over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

(iii) Multiple Land Use Categories
In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax A that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax A that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land u se as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.

b. Approved Property
The Maximum Special Tax A for each Assessor’s Parcel of Approved Property sh all be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2025 -M, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone(s) annexed and included in Appendix A. The Maximum Special Tax A for Approved Property for Fiscal Year 2025 -26 within Tax Zone Original is identified in Table 2 below:

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TABLE 2

MAXIMUM SPECIAL TAX A RATES

APPROVED PROPERTY

Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
Original TR 31462-17, -
19, -27, -28 & -29
Single Family Residential Property RU $438
Multi-Family Residential Property RU $438
Non-Residential Property Acre $2,736

On each July 1, commencing on July 1, 2026 the Maximum Special Tax A for Approved Property shall increase by i) the year -over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside -San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a com parable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

c. Undeveloped Property
The Maximum Special Tax A for each Assessor’s Parce l of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2025 -M, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone(s) annexed and included in Appendix A. The Maximum Special Tax A for Undeveloped Property for Fiscal Year 2025 -26 within Tax Zone Original is identified in Table 3 below:

TABLE 3

MAXIMUM SPECIAL TAX A RATES

UNDEVELOPED PROPERTY

Tax Zone Tracts Taxable Unit Maximum Special Tax A
Original TR 31462-17, -19,
-27, -28 & -29 Acre $2,736

On each July 1, commencing on July 1, 2026 the Maximum Special Tax A for Undeveloped Property shall increase by i) the year-over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside -San Bernardino- Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

2. Special Tax B (Contingent)

The City Council may levy the Special Tax B (Contingent), applicable to all Zones, commencing in the first Fiscal Year following the occurrence of any of the following events (each such event, a “Failure to Perform”):

a. the Property Owner Association files a voluntary petition in bankruptcy or the approval by a court of competent jurisdiction of a petition applicable to the Property Owner

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Association of any proceedings instituted under the Federal Bankruptcy Code, as amended;

b. the Property Owner Association is dissolved;

c. the Property Owner Association fails to levy annual assessments sufficient to fund (i) the maintenance for the the n Property Owner Association owned and/or Property Owner Association maintained Maintenance Services (Contingent) or (ii) the replacement of such facilities related to the Maintenance Services (Contingent) in accordance with (A) the requirements of the the n current reserve funding plan of the Property Owner Association performed pursuant to California Civil Code Section 5550 or (B) if California Civil Code 5550 is no longer applicable, the requirements of the then applicable law and/or regulations governing the Property Owner Association’s requirements to budget for and finance such replacement; or

d. the Property Owner Association fails to maintain the Maintenance Services (Contingent) at the same level as defined within the Property Owner Association main tenance specifications. In the event the Property Owner Association maintenance specifications do not meet the City maintenance requirements, the City Council will have sole discretion to determine the required level of maintenance required for purposes of this section.

In the event of the occurrence of a Failure to Perform described in “c.” or “d.” above, the City shall give the Property Owner Association written notice of such event. If such Failure to Perform is reasonably capable of being cured within sixty (60) days from the date of such notice, the Property Owner Association shall have such period of time to cure such Failure to Perform prior to the levy by the City Council of Special Tax B (Contingent). If such Failure to Perform is such that it is reasonably capable of being cured, but not within such sixty (60) day period and the Property Owner Association (i) initiates corrective action within such sixty (60) day period, and (ii) diligently, continually, and in good faith works to effect a cure of such Failure to Perform as soon as possible, then the Property Owner Association shall have such additional time, as is reasonably necessary, to cure such Failure to Perform prior to the levy by the City Council of Special Tax B (Contingent).

The City C ouncil may suspend the levy of Special Tax B (Contingent) if the Property Owner Association has cured the Failure to Perform to the satisfaction of the City Council and the Property Owner Association has agreed to such conditions as the City Council may fi nd necessary to minimize the occurrence of such Failure to Perform in the future. In the event the City Council initiates the Special Tax B (Contingent), it will apply to all Assessor’s Parcels of Taxable Property in addition to, and not in lieu of, the Special Tax A.

a. Developed Property

(i) Maximum Special Tax B (Contingent)
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 4 and shall be specific to each Tax Zone within the CFD.

When additional property is annexed into CFD No. 2025-M, the rate and method adopted for the a nnexed property shall reflect the Maximum Special Tax B (Contingent) for the

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Tax Zones annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2025 -26 within Tax Zone Original is identified in Table 4 below:

TABLE 4

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

DEVELOPED PROPERTY

Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum Special
Tax B (Contingent)
Original TR 31462-17, -19,
-27, -28 & -29
Single Family Residential Property RU $357
Multi-Family Residential Property RU $357
Non-Residential Property Acre $2,229

(ii) Increase in the Maximum Special Tax B (Contingent) On each July 1, commencing on July 1, 2026 the Maximum Special Tax B (Contingent) for Developed Property shall increase by i) the year-over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

(iii) Multiple Land Use Categories
In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax B (Contingent) that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax B (Contingent) that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.

b. Approved Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2025 -M, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone(s) annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2025-26 within Tax Zone Original is identified in Table 5 below:

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TABLE 5

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

APPROVED PROPERTY

Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum Special
Tax B (Contingent)
Original TR 31462-17, -19,
-27, -28 & -29
Single Family Residential Property RU $357
Multi-Family Residential Property RU $357
Non-Residential Property Acre $2,229

On each July 1, commencing on July 1, 2026 the Maximum Special Tax B (Contingent) for Approved Property shall increase by i) the year -over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside -San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

c. Undeveloped Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2025 -M, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Conti ngent) for the Tax Zone(s) annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2025 -26 within Tax Zone Original is identified in Table 6 below:

TABLE 6

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

UNDEVELOPED PROPERTY

Tax Zone
Tracts Taxable Unit
Maximum Special
Tax B (Contingent)
Original TR 31462-17, -19,
-27, -28 & -29 Acre $2,229

On each July 1, commencing on July 1, 2026 the Maximum Special Tax B (Contingent) for Undeveloped Property shall increase by i) the year-over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX

1. Special Tax A
Commencing with Fiscal Year 2025 -26 and for each following Fiscal Year, the City Council shall determine the Special Tax A Requirement for each Tax Zone and shall levy the Special Tax A on all Assessor’s Parcels of Taxable Property within such Tax Zone until the aggregate amount

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of Special Tax A equals the Special Tax A Requirement for such Tax Zone. The Special Tax A shall be levied for each Fiscal Year as follows:

First: The Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax A to satisfy the Special Tax A Requirement;

Second: If additional moneys are needed to satisfy the Special Tax A Requirement after the first step has been completed, the Special Tax A shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax A for Approved Property;

Third: If additional monies are needed to satisfy the Special Tax A Requirement after the first two steps has been completed, th e Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax A for Undeveloped Property.

2. Special Tax B (Contingent)
Commencing with the first Fiscal Year in which Special Tax B (Contingent) is authorized to be levied and for each following Fiscal Year, the City Council shall determine the Special Tax B (Contingent) Requirement for each Tax Zone, if any, and shall levy the Special Tax on all Assessor’s Parcels of Taxable Property within such Tax Zone until the aggregate amount of Special Tax B (Contingent) equals the Special Tax B (Contingent) Requirement for such Tax Zone. The Special Tax B (Contingent) shall be levied for each Fiscal Year as follows:

First: The Special Tax B ( Contingent) shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax B (Contingent) to satisfy the Special Tax B (Contingent) Requirement;

Second: If additional moneys are needed to s atisfy the Special Tax B (Contingent) Requirement after the first step has been completed, the Special Tax B (Contingent) shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax B (Contingent) for Approved Property;

Third: If additional monies are needed to satisfy the Special Tax B (Contingent) Requirement after the first two steps has been completed, the Special Tax B (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax B (Contingent) for Undeveloped Property.

E. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2025-M from time to time.

As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services to such properties. Based on this analysis, any properties to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned the appropriate Maximum Special Tax rates for the Tax Zone when annexed and included in Appendix A.

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F. DURATION OF SPECIAL TAX
For each Fiscal Year, the Special Tax A shall be levied as long as the Maintenance Services are being provided.

For each Fiscal Year, the Special Tax B (Contingent) s hall be levied as long as the Maintenance Services (Contingent) are being provided.

G. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2025 -M, all Assessor’s Parcels; (i) which are owned by, irrevocably offered for dedication, encumber ed by or restricted in use by any public entity; (ii) with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) which are privately owned but are encumbered by or restricted solely for public uses; or (iv) which are in use in the performance of a public function as determined by the Administrator; (v) any Assessor’s Parcel that qualifies for a welfare exemption under applicable state or local law; or (vi) any Assessor’s Parcel that is owned by a property owner association and used for common area purposes.

H. APPEALS
Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. The Administrator of CFD No. 2025 -M 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 Administrator’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, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).

I. 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. 2025-M may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.

J. INTERPRETATION
Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment.

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APPENDIX A

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2025-M (MAINTENANCE SERVICES)

COST ESTIMATE
Special Tax A - The estimate breaks down the costs of providing one year's maintenance services for Fiscal Year 2025 -26. These services are being funded by the levy of Special Tax A for CFD No. 2025-M.

TAX ZONE ORIGINAL – MAINTENANCE SERVICES
TRACT NOS. 31462-17, -19, -27, -28 & -29
Item Description Estimated Cost
1 Landscaping $0
2 Streetlights $13,088
3 Traffic Signals $0
4 Street & Pavement(1) $49,279
5 Drainage $7,882
6 Parks $70,643
7 Trails $0
8 Graffiti Abatement $1,302
9 Reserves $3,766
10 Administration $14,355
Total $160,315
(1) Street and Pavement maintenance services include basic services to preserve the integrity of the surface, such as repairing potholes and sinkholes and applying seals. Long-term replacement is not included in the estimated Costs.

Special Tax B (Contingent) – The estimate breaks down the costs of providing one year's maintenance services for Fiscal Year 2025 -26. These services are being funded by the levy of Special Tax B (Contingent) for CFD No. 2025-M.

TAX ZONE ORIGINAL – MAINTENANCE SERVICES (CONTINGENT)
TRACT NOS. 31462-17, -19, -27, -28 & -29
Item Description Estimated Cost
1 Streetlights $12,318
2 Street & Pavement $26,370
3 Drainage $74,579
4 Trails $181
5 Reserves $11,345
6 Administration $5,807
Total $130,601

MAXIMUM SPECIAL TAXES ASSIGNED TO EACH TAX ZONE
Tax
Zone
Fiscal
Year
Included Tract
No. of
Taxable
Units
Land Use
Category
Taxable
Unit
Maximum
Special Tax
A
Maximum
Special Tax B
(Contingent) Subdivider
Original 2025-26 31462-17, -19, -27,
-28 & -29 366 SFR RU $438 $357 Meritage
Homes

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ESCALATION OF MAXIMUM SPECIAL TAXES
On each July 1, commencing on July 1, 2026 the Maximum Special Taxes for Developed Property, Approved Property, and Undeveloped Property shall increase by i) the year -over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside -San Bernardino -Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

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APPENDIX B

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2025-M (MAINTENANCE SERVICES)

DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2025 -M, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right -of-way, public landscaping, public open spaces and other similar landscaped areas official ly dedicated for public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of pl ayground or recreation program equipment or facilities situated on any park; and

(b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catc h basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, f ossil fuel filters within the public right -of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other ite ms necessary for the maintenance and servicing of the water quality basin improvements within flood control channel improvements; and

(c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2025-M; as well as local r oads within residential subdivisions located within CFD No. 2025 -M; and any portions adjacent to the properties within CFD No. 2025-M; and

In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.

The above services may be financed by proceeds of the special tax of CFD No. 2025-M only to the extent that they are in addition to those provided in the territory of CFD No. 2025 -M before CFD No. 2025 -M was created or those provided in the territory annexed to CFD No. 2025 -M before the territo ry was annexed, as applicable.

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APPENDIX C

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2025-M (MAINTENANCE SERVICES)

PROPOSED BOUNDARIES AND POTENTIAL ANNEXATION AREA BOUNDARIES

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1 4910-6396-7347v3/022599-0038

PETITION TO THE CITY COUNCIL OF THE CITY OF

BEAUMONT REQUESTING INSTITUTION OF

PROCEEDINGS FOR ESTABLISHMENT OF A COMMUNITY

FACILITIES DISTRICT ( CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2025 -M
(MAINTENANCE SERVICES))

1. The undersigned (the “Owner”) is the owner of the land described in Exhibit A hereto (the “Property”), which land is expected to included within the boundaries of a community facilities district hereby proposed to be established. The Property is located within the boundaries of the City of Beaumont (the “City”), County of Riverside.

2. The Owner requests that the City Council of the City of Beaumont (the “City Council”) institute proceedings to establish a com munity facilities district to be known as “ City of Beaumont Community Facilities District No. 2025 -M (Maintenance Services)” (referred to herein as the “District”) pursuant to Chapter 2.5 (commencing with Section 53311), Part 1, Division 2, Title 5, of the Government Code of the State of California, commonly known as the “Mello -Roos Community Facilities Act of 1982” (the “Act”), to include all of the Property. The proposed rate and method of apportionment for the District is set forth in Exhibit C hereto.

3. The Owner requests that the proposed District fund the services described in Exhibit D hereto (collectively, the “Services”). In addition, the District may fund actual or reasonably estimated costs directly related to the formation, annexation, and adm inistration of the District including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, the District, or any des ignee thereof associated with fulfilling the District reporting requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, the District or any designee thereof related to an appeal of the Spec ial Tax; and the City's annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or the District for any other administrative purposes of the District, including attorney's f ees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.

4. The Owner further requests that, the City Council, as legislative body of the District, annually levy special taxes on the property within the District to provide for the Services, and for the payment of administrative expenses of the District and for such services as the City Council deems appropriate.

2 4910-6396-7347v3/022599-0038
Dated: October __, 2025
MERITAGE HOMES OF CALIFORNIA, a
California corporation

By:

Name:

Its:

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EXHIBIT A

BOUNDARY MAP

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EXHIBIT B

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2025-M (MAINTENANCE SERVICES)

A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2025-M (Maintenance Services) (the “CFD No. 2025-M” or “CFD”; defined below), in each Fiscal Year on an Assessor’s Parcel shall be determined by the City Council of the City of Beaumont, acting in its capacity as the legislative body of CFD No. 2025 -M, by applying the rate and method of apportionment set f orth below. All of the real property in CFD No. 2025 -M, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.

A. DEFINITIONS

“Accessory Dwelling Unit” means a residential unit of limited size in cluding smaller secondary unit(s) that shares an Assessor’s Parcel with Single Family Residential Property that has a stand - alone Residential Unit.

“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator.

“Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2025 -M including, but not limited to:
the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2025- M, or any designee thereof associated with fulfilling the CFD No. 2025 -M disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2025 -M or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees, collection expenses, including payment of a proportional share of City overhead and salaries an d benefits of any City employees whose duties are related to the administration of CFD No. 2025 -M and third party expenses related to CFD No. 2025 -M. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2025 -M fo r any other administrative purposes of CFD No. 2025 -M, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.

“Administrator” means the City Manager of the City of Beaumont, or his or her designee.

“Approved Property” means all Assessor’s Parcels of Taxable Property that are included in a Final Map that was recorded prior to the January 1 preceding the Fiscal Year in which the Special Tax is being levied, and that have not be en issued a Building Permit on or prior to the May 1 preceding the Fiscal year in which the Special Tax is being levied.

“Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside.

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“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 identification number assigned to a parcel by the County Assessor of the County.

"Building Permit" means the first legal document issued by the City giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include expired or cancelled Building Permits, or any subsequent Building Permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the Administrator.

“Building Square Footage” or “BSF” means the floor area square footage reflected on the original construction Building Permit issued for construction of a building of Non -Residential Property and any Building Square Footage subsequently added to a building of such Non - Residential Property after issuance of a Building Permit for expansion or renovation of such building.

“Calendar Year” means the period commencing January 1 of any year and ending the following December 31.

“CFD” or “CFD No. 2025 -M” means the Community Facilities District No. 2025 -M (Maintenance Services) of the City of Beaumont.

“CFD Boundary Map” means a recorded map of the CFD that indicates by a boundary line the extent of the territory identified to be subject to the levy of Special Taxes.

“City” means the City of Beaumont, State of California.

“Contingent Services” means services permitted under the Mello -Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2025-M as set forth in the documents adopted by the City Council at the t ime the CFD was formed to be provided by the City in the event the Administrator makes a determination pursuant to Section C(2) that a Property Owners’ Association fails to adequately provide such services.

“County” means the County of Riverside, State of California.

“Developed Property” means all Assessor’s Parcels of Taxable Property for which a Building Permit for new construction has been issued on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.

“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section G.

“Final Map” means a subdivision of property by 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 recordation of a condominium plan pursuant to California Civil Code 6624 that creates individual lots for which Building Permits may be issued without further subdivision.

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“Fiscal Year” means the pe riod from and including July 1 st of any year to and including the following June 30th.

“Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor’s Parcel as of May 1 preceding the Fiscal Year in which the Special Tax is being levied.

"Maintenance Services" means the services permitted under the Act including, without limitation, street sweeping, traffic signal maintenance, the maintenance of landscaping and lighting of publicly owned parks, parkways, streets, roads and open spaces, graffiti abatement, flood and storm protection services, and the operation of storm drainage systems contained within the boundaries of CFD No. 2025-M and the City as set forth in Appendix B.

"Maintenance Services (Contingent)" means the Maintenance Services described above and permitted under the Act, contained within CFD No. 2025 -M and the City, which are proposed to be maintained and paid for through the Property Owner Association, and all to which the City has been granted an easement allowing such maintenance in any Fiscal Y ear following a Failure to Perform as defined in Section C.2. hereof.

“Maximum Special Tax” means either Maximum Special Tax A and/or Maximum Special Tax B (Contingent), as applicable.

“Maximum Special Tax A” means for each Assessor’s Parcel and each Fis cal Year, the maximum Special Tax A, as determined in accordance with Section C below that can be levied on such Assessor’s Parcel in such Fiscal Year.

“Maximum Special Tax B (Contingent)” means for each Assessor’s Parcel and each Fiscal Year, the maximum Special Tax B (Contingent), as determined in accordance with Section C below that can be levied on such Assessor’s Parcel in such Fiscal Year.

“Multi-Family Residential Property” or “MFR” means any Assessor’s Parcel of Residential Property upon which a b uilding or buildings comprised of attached Residential Units sharing at least one common wall with another unit are constructed or are intended to be constructed that share a single Assessor’s Parcel Number, as determined by the Administrator.

“Non-Residential Property” or “NR” means all Assessor's Parcels of Taxable Property for which a Building Permit(s) was issued for a non -residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property.

“Property Ow ner’s Association” or “POA” means the property owner’s association or homeowner’s association established to maintain certain Services within a Tax Zone.

“Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property, and (iii) Undeveloped Property that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property.

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“Rate and Method of Apportionment” or “RMA" means this Rate and Method of Apportionment of Special Taxes.

“Residential Property” means all Assessor’s Parcels of Taxable Property upon which Residential Units have been constructed or are intended to be constructed or for which Building Permits have been or may be issued for purposes of constructing one or more Residential Units.

“Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. An Accessory Dwelling Unit that shares an Assessor’s Pa rcel with an Assessor’s Parcel classified as Single Family Residential Property shall not be considered a Residential Unit for purposes of levying the Special Tax pursuant to Section D.

“Service(s)” means services permitted under the Mello -Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2025 -M as set forth in the documents adopted by the City Council at the time the CFD was formed.

“Single Family Residential Property” or “SFR” means any Residential Property other than Multi-Family Residential Property on an Assessor’s Parcel as determined by the Administrator.

“Special Tax(es)” means the Special Tax A or Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.

“Special Tax A” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax A Requirement.

"Special Tax A Requirement" means for each Tax Zone th at amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of such Tax Zone within CFD No. 2025-M in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the (i) direct costs for M aintenance Services, (ii) fund an operating reserve for the costs of Maintenance Services as determined by the Administrator, and (iii) Administrative Expenses.

Under no circumstances shall the Special Tax A Requirement include funds for bonds or other forms of indebtedness.
“Special Tax B (Contingent)” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax B (Contingent) Requirement, if required.

“Special Tax B (Contingent) Requi rement” means that amount required in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2025-M for Maintenance Services (Contingent) in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the (i) direct costs for Maintenance Services (Contingent), (ii) amount necessary to fund an operating reserve for the costs of Maintenance Services (Contingent) as determined by the Administrator, and (iii) Administrative Expenses applicable to the Specia l Tax B (Contingent).

Under no circumstances shall the Special Tax B (Contingent) Requirement include funds for bonds or other forms of indebtedness. The Special Tax B (Contingent) Requirement, if initiated, will be applied to all Assessor’s Parcels in add ition to, and not in lieu of, the Special Tax A Requirement.

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"Taxable Property" means all Assessor’s Parcels within CFD No. 2025 -M, which are not Exempt Property.

“Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre. "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may be levied following annexation of additional property to the CFD and pursuant to an amended Rate and Method of Apportionment of Special Tax. Appendix C identifies the T ax Zone Original included in CFD No. 2025 -M at formation; additional Tax Zones may be created when property is annexed into the CFD.

"Tax Zone Original" means the specific geographic area identified on the CFD Boundary Map as Tax Zone Original included in Appendix C.

"Tract(s)" means an area of land: i) within a subdivision identified by a particular tract number on a Final Map, ii) identified within a Parcel Map; or iii) identified within lot line adjustment approved for subdivision.

“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property.

B. ASSIGNMENT TO LAND USE CATEGORIES
For each Fiscal Year, all Assessor’s Parcels of Taxable Property within CFD No. 2025 -M shall be classified as Developed Property, Approved Property, or Undeveloped Property, and shall be subject to the levy of Special Taxes as determined pursuant to Sections C and D below.

Assessor’s Parcels of Developed Property and Approved Property shall be classified as either Residential Property or Non-Residential Property. Residential Property shall be further classified as Single Family Residential Property or Multi -Family Residential Property and the number of Residential Units shall be determined by the Administrator.

C. MAXIMUM SPECIAL TAX RATES
For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Residential Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or shown on the Building Permit(s) issued or Final Map as determined by the Administrator. Once a single family attached or multi -family building or buildings have been built on an Assessor's Parcel, the Administrator shall determine the actual number of Residential Units contained within the building or buildings, and the Special Tax A and Special Tax B (Contingent) levied against the Assessor’s Parcel i n the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax per Residential Unit for the Tax Zone below or as included in Appendix A as future annexations occur.

To determine the Maximum Speci al Tax for Non -Residential Developed and Approved Properties, the Administrator assigns each Assessor's Parcel a Building Square Footage or Acreage based on the Final Map. The Special Tax A and Special Tax B (Contingent) for the next Fiscal Year is calcula ted by multiplying this figure by the Maximum Special Tax per Taxable Unit for the applicable Tax Zone, as identified below or in Appendix A for future annexations.

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1. Special Tax A
a. Developed Property
(i) Maximum Special Tax A
The Maximum Special Tax A for each Assessor’s Parcel of Developed Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2025-M, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax A for Developed Property for Fiscal Year 2025 -26 within Tax Zone Original is identified in Table 1 below:

TABLE 1

MAXIMUM SPECIAL TAX A RATES

DEVELOPED PROPERTY

Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
Original TR 31462-17, -
19, -27, -28 & -29 Single Family Residential Property RU $438

(ii) Increase in the Maximum Special Tax A
On each July 1, commencing on July 1, 2026 the Maximum Special Tax A for Developed Property shall increase by i) the year -over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

(iii) Multiple Land Use Categories
In some instances, an Asse ssor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax A that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax A that can be levied for each Land Use Category located on th at Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference t o the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.

b. Approved Property
The Maximum Special Tax A for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zon e within the CFD. When additional property is annexed into CFD No. 2025 -M, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone(s) annexed and included in Appendix A. The Maximum Special Tax A for Approved Property for Fiscal Year 2025 -26 within Tax Zone Original is identified in Table 2 below:

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TABLE 2

MAXIMUM SPECIAL TAX A RATES

APPROVED PROPERTY

Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
Original TR 31462-17, -
19, -27, -28 & -29
Single Family Residential Property RU $438
Multi-Family Residential Property RU $438
Non-Residential Property Acre $2,736

On each July 1, commencing on July 1, 2026 the Maximum Special Tax A for Approved Property shall increase by i) the year-over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside -San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

c. Undeveloped Property
The Maximum Special Tax A for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2025 -M, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone(s) annexed and included in Appendix A. The Maximum Special Tax A for Undeveloped Property for Fiscal Year 2025 -26 within Tax Zone Original is identified in Table 3 below:

TABLE 3

MAXIMUM SPECIAL TAX A RATES

UNDEVELOPED PROPERTY

Tax Zone Tracts Taxable Unit Maximum Special Tax A
Original TR 31462-17, -19,
-27, -28 & -29 Acre $2,736

On each July 1, commencing on July 1, 2026 the Maximum Special Tax A for Undeveloped Property shall increase by i) the year-over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside -San Bernardino- Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year , or ii) by two percent (2.0%), whichever is greater.

2. Special Tax B (Contingent)

The City Council may levy the Special Tax B (Contingent), applicable to all Zones, commencing in the first Fiscal Year following the occurrence of any of the following ev ents (each such event, a “Failure to Perform”):

a. the Property Owner Association files a voluntary petition in bankruptcy or the approval by a court of competent jurisdiction of a petition applicable to the Property Owner

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Association of any proceedings instituted under the Federal Bankruptcy Code, as amended;

b. the Property Owner Association is dissolved;

c. the Property Owner Association fails to levy annual assessments sufficient to fund (i) the maintenance for the then Property Owner Association ow ned and/or Property Owner Association maintained Maintenance Services (Contingent) or (ii) the replacement of such facilities related to the Maintenance Services (Contingent) in accordance with (A) the requirements of the then current reserve funding plan of the Property Owner Association performed pursuant to California Civil Code Section 5550 or (B) if California Civil Code 5550 is no longer applicable, the requirements of the then applicable law and/or regulations governing the Property Owner Association ’s requirements to budget for and finance such replacement; or

d. the Property Owner Association fails to maintain the Maintenance Services (Contingent) at the same level as defined within the Property Owner Association maintenance specifications. In the event the Property Owner Association maintenance specifications do not meet the City maintenance requirements, the City Council will have sole discretion to determine the required level of maintenance required for purposes of this section.

In the event of the occurrence of a Failure to Perform described in “c.” or “d.” above, the City shall give the Property Owner Association written notice of such event. If such Failure to Perform is reasonably capable of being cured within sixty (60) days from the date o f such notice, the Property Owner Association shall have such period of time to cure such Failure to Perform prior to the levy by the City Council of Special Tax B (Contingent). If such Failure to Perform is such that it is reasonably capable of being cur ed, but not within such sixty (60) day period and the Property Owner Association (i) initiates corrective action within such sixty (60) day period, and (ii) diligently, continually, and in good faith works to effect a cure of such Failure to Perform as soo n as possible, then the Property Owner Association shall have such additional time, as is reasonably necessary, to cure such Failure to Perform prior to the levy by the City Council of Special Tax B (Contingent).

The City Council may suspend the levy of Special Tax B (Contingent) if the Property Owner Association has cured the Failure to Perform to the satisfaction of the City Council and the Property Owner Association has agreed to such conditions as the City Council may find necessary to minimize the oc currence of such Failure to Perform in the future. In the event the City Council initiates the Special Tax B (Contingent), it will apply to all Assessor’s Parcels of Taxable Property in addition to, and not in lieu of, the Special Tax A.

a. Developed Property

(i) Maximum Special Tax B (Contingent)
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 4 and shall be specific to each Tax Zone within the CFD.

When additional property is annexed into CFD No. 2025-M, the rate and method adopted for the a nnexed property shall reflect the Maximum Special Tax B (Contingent) for the

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Tax Zones annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2025 -26 within Tax Zone Original is identified in Table 4 below:

TABLE 4

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

DEVELOPED PROPERTY

Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum Special
Tax B (Contingent)
Original TR 31462-17, -19,
-27, -28 & -29
Single Family Residential Property RU $357
Multi-Family Residential Property RU $357
Non-Residential Property Acre $2,229

(ii) Increase in the Maximum Special Tax B (Contingent) On each July 1, commencing on July 1, 2026 the Maximum Special Tax B (Contingent) for Developed Property shall increase by i) the year-over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

(iii) Multiple Land Use Categories
In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax B (Contingent) that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax B (Contingent) that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.

b. Approved Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2025 -M, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone(s) annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2025-26 within Tax Zone Original is identified in Table 5 below:

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TABLE 5

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

APPROVED PROPERTY

Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum Special
Tax B (Contingent)
Original TR 31462-17, -19,
-27, -28 & -29
Single Family Residential Property RU $357
Multi-Family Residential Property RU $357
Non-Residential Property Acre $2,229

On each July 1, commencing on July 1, 2026 the Maximum Special Tax B (Contingent) for Approved Property shall increase by i) the year -over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside -San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

c. Undeveloped Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2025 -M, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Conti ngent) for the Tax Zone(s) annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2025 -26 within Tax Zone Original is identified in Table 6 below:

TABLE 6

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

UNDEVELOPED PROPERTY

Tax Zone
Tracts Taxable Unit
Maximum Special
Tax B (Contingent)
Original TR 31462-17, -19,
-27, -28 & -29 Acre $2,229

On each July 1, commencing on July 1, 2026 the Maximum Special Tax B (Contingent) for Undeveloped Property shall increase by i) the year-over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX

1. Special Tax A
Commencing with Fiscal Year 2025 -26 and for each following Fiscal Year, the City Council shall determine the Special Tax A Requirement for each Tax Zone and shall levy the Special Tax A on all Assessor’s Parcels of Taxable Property within such Tax Zone until the aggregate amount

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of Special Tax A equals the Special Tax A Requirement for such Tax Zone. The Special Tax A shall be levied for each Fiscal Year as follows:

First: The Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax A to satisfy the Special Tax A Requirement;

Second: If additional moneys are needed to satisfy the Special Tax A Requirement after the first step has been completed, the Special Tax A shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax A for Approved Property;

Third: If additional monies are needed to satisfy the Special Tax A Requirement after the first two steps has been completed, th e Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax A for Undeveloped Property.

2. Special Tax B (Contingent)
Commencing with the first Fiscal Year in which Special Tax B (Contingent) is authorized to be levied and for each following Fiscal Year, the City Council shall determine the Special Tax B (Contingent) Requirement for each Tax Zone, if any, and shall levy the Special Tax on all Assessor’s Parcels of Taxable Property within such Tax Zone until the aggregate amount of Special Tax B (Contingent) equals the Special Tax B (Contingent) Requirement for such Tax Zone. The Special Tax B (Contingent) shall be levied for each Fiscal Year as follows:

First: The Special Tax B ( Contingent) shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax B (Contingent) to satisfy the Special Tax B (Contingent) Requirement;

Second: If additional moneys are needed to s atisfy the Special Tax B (Contingent) Requirement after the first step has been completed, the Special Tax B (Contingent) shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax B (Contingent) for Approved Property;

Third: If additional monies are needed to satisfy the Special Tax B (Contingent) Requirement after the first two steps has been completed, the Special Tax B (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax B (Contingent) for Undeveloped Property.

E. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2025-M from time to time.

As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services to such properties. Based on this analysis, any properties to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned the appropriate Maximum Special Tax rates for the Tax Zone when annexed and included in Appendix A.

F. DURATION OF SPECIAL TAX

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For each Fiscal Year, the Special Tax A shall be levied as long as the Maintenance Services are being provided.

For each Fiscal Year, the Special Tax B (Contingent) sha ll be levied as long as the Maintenance Services (Contingent) are being provided.

G. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2025 -M, all Assessor’s Parcels; (i) which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) with public or utility easements making impr actical their utilization for other than the purposes set forth in the easement; (iii) which are privately owned but are encumbered by or restricted solely for public uses; or (iv) which are in use in the performance of a public function as determined by t he Administrator; (v) any Assessor’s Parcel that qualifies for a welfare exemption under applicable state or local law; or (vi) any Assessor’s Parcel that is owned by a property owner association and used for common area purposes.

H. APPEALS
Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. The Administrator of CFD No. 2025 -M 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 Administrator’s decision requires that the Spec ial Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).

I. 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. 2025-M may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.

J. INTERPRETATION
Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment.

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APPENDIX A

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2025-M (MAINTENANCE SERVICES)

COST ESTIMATE
Special Tax A - The estimate breaks down the costs of providing one year's maintenance services for Fiscal Year 2025 -26. These services are being funded by the levy of Special Tax A for CFD No. 2025-M.

TAX ZONE ORIGINAL – MAINTENANCE SERVICES
TRACT NOS. 31462-17, -19, -27, -28 & -29
Item Description Estimated Cost
1 Landscaping $0
2 Streetlights $13,088
3 Traffic Signals $0
4 Street & Pavement(1) $49,279
5 Drainage $7,882
6 Parks $70,643
7 Trails $0
8 Graffiti Abatement $1,302
9 Reserves $3,766
10 Administration $14,355
Total $160,315
(1) Street and Pavement maintenance services include basic services to preserve the integrity of the surface, such as repairing potholes and sinkholes and applying seals. Long-term replacement is not included in the estimated Costs.

Special Tax B (Contingent) – The estimate breaks down the costs of providing one year's maintenance services for Fiscal Year 2025 -26. These services are being funded by the levy of Special Tax B (Contingent) for CFD No. 2025-M.

TAX ZONE ORIGINAL – MAINTENANCE SERVICES (CONTINGENT)
TRACT NOS. 31462-17, -19, -27, -28 & -29
Item Description Estimated Cost
1 Streetlights $12,318
2 Street & Pavement $26,370
3 Drainage $74,579
4 Trails $181
5 Reserves $11,345
6 Administration $5,807
Total $130,601

MAXIMUM SPECIAL TAXES ASSIGNED TO EACH TAX ZONE
Tax
Zone
Fiscal
Year
Included Tract
No. of
Taxable
Units
Land Use
Category
Taxable
Unit
Maximum
Special Tax
A
Maximum
Special Tax B
(Contingent) Subdivider
Original 2025-26 31462-17, -19, -27,
-28 & -29 366 SFR RU $438 $357 Meritage
Homes

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ESCALATION OF MAXIMUM SPECIAL TAXES
On each July 1, commencing on July 1, 2026 the Maximum Special Taxes for Developed Property, Approved Property, and Undeveloped Property shall increase by i) the year -over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside -San Bernardino -Ontario Cal ifornia Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

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APPENDIX B

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2025-M (MAINTENANCE SERVICES)

DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2025 -M, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right -of-way, public landscaping, public open spaces and other similar landscaped areas officially dedica ted for public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and ope n space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and

(b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin i nserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fue l filters within the public right -of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necess ary for the maintenance and servicing of the water quality basin improvements within flood control channel improvements; and

(c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2025-M; as well as local roads with in residential subdivisions located within CFD No. 2025 -M; and any portions adjacent to the properties within CFD No. 2025-M; and

In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.

The above services may be financed by proceeds of the special tax of CFD No. 2025-M only to the extent that they are in addition to those provided in the territory of CFD No. 2025 -M before CFD No. 2025 -M was created or those provided in the territory annexed to CFD No. 2025 -M before the territo ry was annexed, as applicable.

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APPENDIX C

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2025-M (MAINTENANCE SERVICES)

PROPOSED BOUNDARIES AND POTENTIAL ANNEXATION AREA BOUNDARIES

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OAK VA

LLEY PK
WY
LYLE
LN
SMITH
AVE
413-790-075
413-790-077
413-790-078
413-790-076
413-790-079
COMMUNITY FACILITIES DISTRICT NO. 2025-M
(MAINTENANCE SERVICES)

CITY OF BEAUMONT,

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
SHEET 1 OF 1 SHEET

I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED
BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2025-M
(MAINTENANCE SERVICES), CITY OF BEAUMONT, COUNTY OF

RIVERSIDE, STATE OF CALIFORNIA, WAS APPROVED BY THE CITY

COUNCIL OF THE CITY OF BEAUMONT AT A REGULAR MEETING
THEREOF, HELD ON______ DAY OF ______, 20____, BY
R E S O L U T I O N N O . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ___________________________________

CITY CLERK

CITY OF BEAUMONT

FILED IN THE OFFICE OF THE CITY CLERK, CITY OF BEAUMONT , T H I S _ __ _ D A Y OF _ __ _ _ __ _ , 2 0 __ _ _. ______________________________

CITY CLERK

C IT Y OF BE A UMONT

BEAUMONT
·|}þ243
·|}þ60
·|}þ79
§¨¦10
05 0 0 1 , 0 0 0250 Feet

PROPOSED BOUNDARY MAP
^
CFD 2025-M
-

THIS BOUNDARY MAP CORRECTLY SHOWS THE LOT OR PARCEL OF LAND INCLUDED WITHIN THE BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT.

FOR DETAILS CONCERNING THE LINES AND DIMENSIONS OF LOTS OR PARCEL REFER TO THE COUNTY ASSESSOR MAPS FOR FISCAL YEAR 2025-26.

SOREN
ST
AM

DR
AARON
A
VE
BREW
ER
DR
RECORDED THIS ____ DAY OF _______________, 20____ AT
THE HOUR OF ____ O'CLOCK __M IN BOOK _____
PAGE _____ OF MAPS OF ASSESSMENT AND COMMUNITY

FACILITIES DISTRICTS IN THE OFFICE OF THE COUNTY

RECORDER, IN THE COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA.

FEE: _____________ NO.: ______________________

PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDER
BY: _______________________________

D E P U T Y

O

XXX-XXX-XXX ASSESSOR PARCEL NUMBER
LEGEND

CITY BOUNDARY

CFD BOUNDARY

PARCEL LINE

O TAX ZONE - ORIGINAL

PALMER AVE

CASTELLO LN

BAY HILL
DR

OLIVEWOOD WAY
SMITH

AVE CHERRY
VALLEY
BLVD

BROOKSIDE AVE

STRAIGHTAWAY DR
OAK DR

CRENSHAW ST

CHAMPIONS DR
SAN

TIMOTEO

CANYON R D
§¨¦10
·|}þ60

DESERT LAWN DR

PAL M ER AV E

CHERRY VALLEY BLVD

CAST ELLO LN

SNOWBERRYRDBROOKSI DE AVE

MICKELSON DR

BAY HILL
DR
O

LI VEWOOD WAY

BRUTUS WAY

SMITH AVE
SAN

TIMOTEO
CANYON
R D

CH AM PI ONS DR

FRONTAGE RD
§¨¦10
·|}þ60
COMMUNITY FACILITIES DISTRICT NO. 2025-M
(MAINTENANCE SERVICES)

PROJECT MAP
^_

§¨¦10
·|}þ60
·|}þ79
SHEET 1 OF 1 SHEET

CITY OF

BEAUMONT
§¨¦215
§¨¦15
§¨¦10
·|}þ111
·|}þ91
·|}þ371
·|}þ60
·|}þ243
·|}þ79
·|}þ74
0 9,200 18,4004,600 Feet
-
LEGEND

ANNEXATION BOUNDARY
COMMUNITY FACILITIES DISTRICT NO. 2025-M
(MAINTENANCE SERVICES)

CITY OF BEAUMONT,

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA

BOUNDARIES - POTENTIAL ANNEXATION AREA
RECORDED THIS ____ DAY OF _______________, 20____ AT
THE HOUR OF ____ O'CLOCK __M IN BOOK _____
PAGE _____ OF MAPS OF ASSESSMENT AND COMMUNITY

FACILITIES DISTRICTS IN THE OFFICE OF THE COUNTY

RECORDER, IN THE COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA.

FEE: _____________ NO.: ______________________

PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDER
BY: _______________________________
DEPUTY

I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED

BOUNDARIES OF THE POTENTIAL ANNEXATION AREA OF
COMMUNITY FACILITIES DISTRICT NO. 2025-S (MAINTENANCE

SERVICES), CITY OF BEAUMONT, COUNTY OF RIVERSIDE,

STATE OF CALIFORNIA, WAS APPROVED BY THE CITY OF

BEAUMONT AT A REGULAR MEETING THEREOF, HELD
ON __________ DAY OF ______, 20____, BY RESOLUTION
NO. _____________
___________________________________

CITY CLERK

CITY OF BEAUMONT

FILED IN THE OFFICE OF THE CITY CLERK,
CITY OF BEAUMONT, THIS ____ DAY OF ________, 20____.
______________________________

CITY CLERK

CITY OF BEAUMONT

City of Beaumont
Community Facilities Districts Formation
CFD 2025-1 (Fairway Canyon 4C)
CFD 2025-S (Public Services)
CFD 2025-M (Maintenance Services)
November 4, 2025

Presented by:

Jennifer Ustation – Finance Director
Brian Forbath– Stradling Yocca Carlson & Rauth LLP
Shane Spicer – Spicer Consulting Group LLC

Fairway Canyon 4C (Meritage Homes) – CFD Formation Request • Project Sponsor: Meritage Homes of California, Inc.
• The Fairway Canyon 4C Formation Request includes creation of new CFDs to fund infrastructure, public safety, and maintenance services for 366 new single-family homes. • This request follows the CFD program framework introduced at the September 2 CFD-101 Workshop, which established the City’s policy direction for financing growth-related improvements and services.
• Three coordinated CFDs are proposed for this project:
• CFD 2025-1 (Facilities) – Funds public infrastructure. • CFD 2025-S (Public Services) – Funds police, fire, and paramedic services. • CFD 2025-M (Maintenance Services) – Funds long-term maintenance of public areas. • Each CFD aligns with Beaumont’s adopted goal that growth pays for growth and safeguards the City’s General Fund.

Meritage Homes – Fairway Canyon 4C Project Overview
• Location: Northwest Beaumont – west of Tukwet Canyon Parkway, north of Oak Valley Parkway. • Land Use: 366 single-family residential lots (Tracts 31462-17, -19, -27, -28 & -29).Purpose of Formation: Provide financing and ongoing funding mechanisms consistent with the City’s CFD Program presented September 2.
• Facilities to Finance: Roadway, sewer, and park improvements benefiting both the project and surrounding area.
• Ongoing Services: Public safety and maintenance provided through separate CFDs. • Outcome: All infrastructure and service costs funded through CFD special tax revenues – no City General Fund impact.

Project
Location

CFD 2025-1 (Fairway Canyon 4C – Facilities District)
Purpose: Finance the construction of public improvements and reimburse eligible developer costs. • Created under the Mello-Roos Community Facilities Act of 1982. • Estimated bond capacity: ≈ $4 million secured solely by special taxes. • Facilities to be financed: City road and sewer projects (~$2.6 M). • Special Tax Structure: Three tax zones with assigned rates from ≈ $576 to $682 per lot. • Fiscal Safeguards: 2% Effective Tax Rate (ETR) cap consistent with City policy. • The 2% ETR takes into account the BUSD CFD 2022-1 Special Tax rate (ranges: $1,838 - $2,647 per unit) Action Requested: Adopt Resolutions of Intention to form CFD 2025-1 and authorize bond indebtedness.

CFD 2025-S (Public Services)
Purpose: Provide funding for essential public safety services. • Establishes an initial district for Fairway Canyon 4C and a Potential Annexation Area for future developments Citywide.
• Services Funded: Police protection, fire suppression, paramedic and emergency response services. • Tax Rates: $639 per Single-Family Residential Unit; $526 per Multi-Family Unit. • Escalation: Greater of CPI or 5% annually beginning FY 2026-27. • Consistent with the September CFD-101 program structure for a citywide public safety funding framework.

Action Requested: Adopt Resolution of Intention to form CFD 2025-S and authorize levy of special tax for Public Services.

CFD 2025-M (Maintenance Services)
Purpose: Fund long-term maintenance of public improvements and infrastructure built with CFD 2025-1 proceeds.
• Establishes initial district for Fairway Canyon 4C and a Potential Annexation Area for future projects. • Services Funded: Parks, trails, landscaping, street lighting, pavement management, storm drain and BMP facilities, graffiti abatement.
• Tax Rates:
• $438 per Residential Unit (Special Tax A – City Services) • $292 per Residential Unit (Special Tax B – Contingent POA Backup) • Escalation: CPI or 2% (whichever is greater).
• Consistent with the City’s annexable Maintenance CFD model adopted under the updated Goals & Policies.

Action Requested: Adopt Resolution of Intention to form CFD 2025-M and authorize levy of special tax for Maintenance Services.

Next Steps and City Council Action
Formation Schedule Highlights:
• November 4, 2025: Adopt Resolutions of Intention for CFDs 2025-1, 2025-S, and 2025-M. • December 16, 2025: Hold Public Hearing and Election for each district. • January 2026: Second Reading of Ordinances levying special taxes.

Council Action Requested T onight:
• Approve the Resolutions of Intention for each CFD.
• Authorize special tax levies for facilities, public safety, and maintenance consistent with the City’s CFD Program and Goals & Policies.
• Direct staff and consultants to proceed to the Public Hearing and voter election on December 16, 2025.

BEAUMONTCA.GOV
#A C I T Y E L E V A T E D

CITY OF BEAUMONT
550 East 6th Street, Beaumont, CA 92223
(951) 769-8520

QUESTIONS

Staff Report

TO: City Council
FROM: Elizabeth Gibbs, City Manager
DATE: November 4, 2025
SUBJECT: Formation of CFD No. 2025-S (Public Services)

Description: The proposed action initiates the formation of Community Facilities District No. 2025-S (Public Safety Services) to fund ongoing police protection, fire protection and suppression, and paramedic services associated with new residential development by Meritage Homes of California, Inc.

Background and Analysis:

The developer, Meritage Homes of California, Inc., a California corporation (the “Developer”), owns property containing 366 proposed residential lots within the City.

Such property is located in the northwestern part of the City, west of Tukwet Canyon Parkway, and north of Oak Valley Parkway. The Developer has requested that the City form a community facilities district (“CFD No. 2025-1”) to encompass such property in accordance with the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”), to finance the costs of certain public improvements through the levy of a special tax. In connection with the formation of CFD No. 2025-1, the Developer is also required to either annex into or request the formation of a community facilities district for the purpose of financing police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services.

Therefore, the Developer has also requested that the City form a community facilities district (“CFD No. 2025-S”) in accordance with the Act.

Formation of the CFD will allow the City to levy annual special taxes on developed properties within the District, with the ability for future developments to annex into the District as additional areas build out. Adoption of the Resolution of Intention declares the City’s intent to establish CFD No. 2025-S and schedules a public hearing on December 16, 2025, to consider final formation and approval of the special tax levy.

The Developer has requested that the boundaries of CFD No. 2025-S initially include the area described in Attachment A of the Resolution of Intention to Establish CFD No. 2025-S presented at this meeting (the “Resolution of Intention”), and that special taxes

be levied within the boundaries of CFD No. 2025-S in accordance with the Rate and Method of Apportionment (the “RMA”) described in Attachment C to the Resolution of Intention. The Developer has also requested that the City designate a “Potential Annexation Area” for CFD No. 2025-S in order for additional property to annex into CFD No. 2025-S. The Potential Annexation Area, which consists of all of the property within the City other than the initial CFD No. 2025-S and property already in an existing CFD paying a services tax, is also designated in Attachment A to the Resolution of Intention.

The special taxes will not be levied on property within the Potential Annexation Area unless and until such property is annexed into CFD No. 2025-S. It is anticipated that future development within the City will be required to annex into CFD 2025-S.

The Resolution of Intention is the first step in the process of forming CFD No. 2025-S.

The attached Resolution declares the City’s intention to establish CFD No. 2025-S and calls for a public hearing on the matter to take place on December 16, 2025. At that time the Council will formally consider approval to form CFD No. 2025-S and the Potential Annexation Area and hold an election on the approval of the special taxes within CFD No. 2025-S.

The RMA provides that the Special Tax within CFD No. 2025-S may only be levied on parcels of Developed Property, which are parcels of property for which a building permit for new construction has been issued prior to May 1 preceding the fiscal year in which the special taxes are being levied. The RMA further provides that the Maximum Special Tax Rates within CFD No. 2025-S are $639 per year per Residential Unit of Single- Family Property and $526 per year per Residential Unit of Multi-Family Property. The Special Taxes within CFD No. 2025-S may be levied each Fiscal Year, commencing July 1, 2025. On each July 1, commencing on July 1, 2026, the Maximum Special Tax for Developed Property of Single-Family Property and Multi-Family Property shall increase by the greater of CPI or five percent (5.0%).

Fiscal Impact:

The City Council previously approved a Reimbursement Agreement with the Developer in connection with the formation of CFD No. 2025-1, and the Developer has previously made a deposit of $50,000 to pay for the costs of the formation proceedings. If established and subject to necessary Council and voter approvals, CFD No. 2025-S will annually levy special taxes on all of the taxable property within CFD No. 2025-S in accordance with the RMA (as attached to the Resolution of Intention).

The estimated cost to prepare this report is $625.

Recommended Action:

Adopt by title only, “Resolution of the City Council of the City of Beaumont, California, Declaring its Intention to Establish City of Beaumont Community Facilities District No. 2025-s (Public Services), to Authorize the Levy of a Special Tax on Property Within the District to Pay the Costs of Providing Public Services.” Attachments:

A. Resolution Declaring the Intention to Establish City of Beaumont CFD 2025-S B. Landowner Petition to Form (Beaumont CFD No. 2025-S (Safety Services)) C. CFD 2025-S Boundary Map
D. CFD 2025-S Project Map
E. CFD 2025-S Potential Annex Area Map

4898-9899-8899v3/022599-0038
RESOLUTION NO. _____

A RESOLUTION OF CITY COUNCIL OF THE CITY OF

BEAUMONT DECLARING ITS INTENTION TO ESTABLISH

CITY OF BEAUMONT COMMUNITY FACILITIES
DISTRICT NO. 2025 -S (PUBLIC SERVICES), TO

AUTHORIZE THE LEVY OF A SPECIAL TAX ON

PROPERTY WITHIN THE DISTRICT TO PAY THE COSTS

OF PROVIDING PUBLIC SERVICES
WHEREAS, the City of Beaumont (the “City”) has received a petition signed by the owner of more than ten percent of the land within the boundaries of which is proposed for inclusion in a proposed community facilities district which meets the requirements of Sections 53318 and 53319 of the Government Code of the State of California (the “Government Code”); and WHEREAS, the City Council of the C ity (the “ City Council ”) desires to adopt this resolution of intention as provided in Section 53321 of the Government Code to establish a community facilities district consisting of the territory describ ed in Attachment “A” hereto and incorporated herein by this reference, which the City Council hereby determines shall be known as “City of Beaumont Community Facilities District No. 2025 -S (Public Services) ” (“Community Facilities District No. 2025-S” or the “District”) pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code (the “Act”) to (1) finance police protection services (including but not limited to criminal justice services), fi re protection and suppression services, and paramedic services described in Attachment “B” hereto and incorporated herein by this reference (the “Services”), and ( 2) finance the incidental expenses to be incurred in connection with forming and administerin g the District and financing the Services (the “Services Incidental Expenses”); and
WHEREAS, pursuant to Sections 53329.6 and 53339 et seq. of the Act, the City Council proposes to designate the property described in Attachment “B” hereto and incorporated herein by this references as territory proposed for annexation to Community Facilities District No. 2025-S in the future (the “Potential Annexation Area”), with the condition that a parcel o r parcels within such territory may be annexed and subjected to the special tax of Community Facilities District No. 2025- S only with the unanimous consent and approval of the owner or owners of the parcel or parcels (the “Unanimous Consent and Approval”) at the time of annexation or in compliance with other procedures established by the Act; and
WHEREAS, the City Council further intends to approve an estimate of the costs of the Services and the Services Incidental Expenses for Community Facilities District No. 2025-S; and WHEREAS, it is the intention of the City Council to consider financing the Services and the Services Incidental Expenses through the formation of Community Facilities District No. 2025-S and the levy of a special tax to pay for such Services and Services Incidental Expenses; and WHEREAS, it is the intention of the City Council to consider financing the Services and the Services Incidental Expenses through the annexation of additional prop erty within the Potential Annexation Area to the District and the levy of a special tax within the property so annexed to pay for the Services and the Services Incidental Expenses, provided that the special tax levies are approved by the Unanimous Consent and Approval of the owner or owners of the parcel or parcels in

2 4898-9899-8899v3/022599-0038
accordance with Sections 53329.6 and 53339 et seq. of the Act, and approval of the City Council acting as the legislative body of the District at the time of annexation;

NOW, THEREFORE , THE CITY COUNCIL OF THE CITY, DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS:

Section 1. The above recitals are true and correct.

Section 2. A community facilities district is proposed to be established under the terms of the Act. It is further proposed that the legal boundaries of Community Facilities District No. 2025-S shall be those described in Attachment “A” hereto, which boundaries shall, upon recordation of the boundary map for proposed Community Facilities District No. 2025-S, include the entire ty of any parcel subject to taxation by the District. The City Council further proposes to designate the Potential Annexation Area described in Attachment “A” hereto as property proposed for annexation into the District in the future, by submittal of Unan imous Consent and Approval of the owner or owners of such parcel or parcels, as approved by the City Council acting as the legislative body of the District at the time that such parcel or parcels are annexed to the District.

The proposed boundaries of the District and the Potential Annexation Area are depicted on the map of proposed Community Facilities District No. 2025-S which is included in Attachment “A” hereto. The City Clerk is hereby directed to sign the original map of the proposed boundaries and record it with all proper endorsements thereon with the County Recorder of the County of Riverside within 15 days after the adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California.

Section 3. The name of the proposed community facilities district shall be “ City of Beaumont Community Facilities District No. 2025-S (Public Services).” Section 4. The Services proposed to be provided for the benefit of Community Facilities District No. 2025-S are public safety services as defined in the Act , and this City Council finds and determines that the Services to be financed are in addition to those provided in the territory of the District, including the Potential Annexation Area, at the present time and do not supplant services already available within the territory of the District at the present time. The City Council hereby finds and determines that the description of the Services herein is sufficiently informative to allow taxpayers within the proposed District , including the Potential Annexation Area, to understand what the funds of the District may be used to finance. The Services Incidental Expenses expected to be incurred include the costs of planning the Services, the cos ts of forming the District, the cost of levying and collecting a special tax within the proposed District and the cost of administration.

Section 5. Except where funds are otherwise available, it is the intention of the City Council to levy annually in acc ordance with the procedures contained in the Act a separate special tax, secured by recordation of a continuing lien against all nonexempt real property in the District, sufficient to pay for the Services and the Services Incidental Expenses . Notwithstanding the foregoing, the District shall not record a special tax lien on property within the Potential Annexation Area until the owner or owners of the parcel or parcels thereof have given their unanimous approval of the parcel’s or parcels’ a nnexation to the District . The rate and method of apportionment and manner of collection of the special tax es are described in detail in Attachment “C” attached hereto, which Attachment “C” is incorporated herein by this reference. Attachment “C” allows each

3 4898-9899-8899v3/022599-0038
landowner within the District to estimate the maximum amount that may be levied against each parcel.

The maximum special tax for Services shall increase by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the twelve-month period ending in January of the prior Fiscal Year or (ii) five percent (5%), to the extent permitted in the Rate and Method . The special tax for Services may be levied for such period as the Services are needed, as further described in Attachment “C” hereto.

The special taxes are based on the expected demand that each parcel of real property within proposed Community Facilities District No. 2025-S will place on the Services. The City Council hereby determines that the proposed Services are necessary to meet the increased demand placed upon the City and the existing police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services in the City as a result of the development of the land proposed for inclusion in the District. The City Council hereby determines the rate and method of apportionment of the special tax es set forth in Attachment “C” to be reasonable. The special tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and such special taxes are not on or based upon the value or ownership of real property.

Section 6. A public hearing (the “Hearing”) on the establishment of the proposed Community Facilities District No. 2025-S, the proposed rate and method of apportionment of the special taxes to finance the Services and the Services Expenses shall be held at 6:00 p.m., or as soon thereafter as practicable, on December 16, 2025, at the City Council’s Chambers, 550 East 6th Street, Beaumont, California. Should the City Council determine to form the District, a special election will be held to authorize the levy of the special tax es in accordance with the procedures contained in Government Code Section 53326. If held, the proposed voting procedure at the election will be a landowner vote with each landowner who is the owner of record of land within the District (excluding the Potential Annexation Area ) at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within the proposed District. Ballots for the special election may be distributed by mail or by personal service.

Section 7. The City Council does not intend to make any adjustment in property taxation pursuant to Sections 53313.6 and 53313.7 of the Act.

Section 8. At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within proposed Community Facilities District No. 2025-S and the Potential Annexation Area, may appear and be heard.

Section 9. Each City officer who is or will be responsible for administering the proposed Community Facilities District No. 2025-S, if it is established, is hereby directed to study the proposed District and, at or before the time of the above -mentioned Hearing, file a report with the City Council containing a brief description of services by type which will in his or her opinion be required to meet adequately the needs of Community Facilities District No. 2025-S and an estimate of the cost of providing those services, and an estimate of the fair and reasonable cost of Services Incidental Expenses to be incurred.

Section 10. The District may accept advances of funds or work -in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose,

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including, but not limited to, paying any cos t incurred in creating Community Facilities District No. 2025-S. The District may enter into an agreement with the person or entity advancing the funds or work-in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work -in-kind, as determined by the City Council, with or without interest.

Section 11. The City Clerk is hereby directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of proposed Community Facilities District No. 2025-S. The City Clerk is further directed to mail a copy of the Notice to each landowner within the boundaries of the Di strict at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the p rotest rights of the registered voters and landowners in the proposed district and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing.

Section 12. This Resolution shall be effective upon its adoption.

ADOPTED, SIGNED AND APPROVED this 4th day of November, 2025.

Mike Lara, Mayor of the City of Beaumont
(SEAL)
ATTEST:

Elaine Morgan, City Clerk
of the City of Beaumont

5 4898-9899-8899v3/022599-0038

STATE OF CALIFORNIA )
) ss.

COUNTY OF RIVERSIDE )
I, Elaine Morgan, City Clerk of the City of Beaumont, do hereby certify that the foregoing resolution was duly adopted by the City Council of said City, at a regular meeting of said Board held on the 4th day of November, 2025, and that it was so adopted by the following vote:

AYES:

NOES:

ABSENT:

Elaine Morgan, City Clerk
City of Beaumont

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ATTACHMENT A
Proposed Boundaries
City of Beaumont
Community Facilities District No. 2025-S (Public Services) Riverside County, California

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ATTACHMENT B
Types of Services
to be Financed by
City of Beaumont
Community Facilities District No. 2025-S (Public Services) The services which may be funded with proceeds of the special tax of CFD No. 2025 -S, as provided by Section 53313 of the Act, will include some or all of the costs attributable to public safety.

Capitalized terms used and not defined herein shall have the meanings set forth in the Rate and Method of Apportionment of Special Tax for CFD No. 2025-S.

These services include police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services.

In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses” as said term is defined in the Rate and Method of Apportionment and to establish an operating reserve for the costs of services as determined by the Administrator.

The above services shall be limited to those provided within the boundaries of CFD No. 2025 -S and the Potential Annexation Area for the benefit o f the properties within the boundaries of CFD No. 2025-S and the Potential Annexation Area of CFD No. 2025 -S, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2025-S only to the extent that they are in addition to those provided in the territory of CFD No. 2025-S before CFD No. 2025-S was created.

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ATTACHMENT C

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2025-S (PUBLIC SERVICES)

A Special Tax (the “Special T ax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2025 -S (Public Services) (the “CFD No. 2025 - S” or “CFD”; defined below), in each Fiscal Year, (defined below), in each Fiscal Year on an Assessor’s Parcel shall be determined by the City Council of the City of Beaumont, acting in its capacity as the legislative body of CFD No. 2025 -M, by applying the rate and method of apportionment set forth below. All of the real property in CFD No. 202 5-S, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.

A. DEFINITIONS

“Accessory Dwelling Unit” means a residential unit of limited size including smaller secondary unit(s) that shares an Assessor’s Parcel with Single Family Property that has a stand -alone Residential Unit.

“Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation and administration of CFD No. 2025 -S including, but not limit ed to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2025 -S, or any designee thereof associated with fulfilling the CFD N o. 2025 -S reporting requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2025-S or any designee thereof related to an appeal of the Special Tax; and the City’s annual administrat ion fees, collection expenses, and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2025 -S for any other administrative purposes of CFD No. 2025 -S, including attorney’s fees and other co sts related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.

“Administrator” means the City Manager of the City of Beaumont, or his or her designee.

“Assessor’s Parcel” means a lot or parcel of land that is identifiab le by an Assessor’s Parcel Number by the County Assessor of the County of Riverside.

“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 the identif ication number assigned to a parcel by the County Assessor of the County of Riverside.

"Building Permit" means the first legal document issued by the City giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include expired or cancelled Building Permits, or any subsequent Building Permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the Administrator.

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“CFD” or “CFD No. 2025 -S” means the City of Beaumont Community Facilities District No. 2025-S (Public Services).

“CFD Boundary Map” means a recorded map of the CFD that indicates by a boundary line the extent of the territory identified to be subject to the levy of Special Taxes.

“City” means the City of Beaumont, State of California.

“County” means the County of Riverside, State of California.

“Developed Property” means all Assessor’s Parcels of Taxable Property for which a Building Permit for new construction has been issued on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.

“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section D.

“Fiscal Year” means the period from and including July 1 st of any year to and including the following June 30th.

“Maximum Special Tax” means the Maximum Special Tax, as applicable, levied within the CFD for any Fiscal Year.

“Multi-Family Property” means all Assessor's Parcels of Developed Property for which a Building Permit or use permit for the construction of a residential structure with two or more Residential Units that share a single Assessor's Parcel Number, as determined by the Administrator, has been issued prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.

“Proportionately” means for Taxable Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels.

“Rate and Method of Apportionment” or “RMA" means this Rate and Method of Apportionment of Special Taxes.

“Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for wh ich Building Permits have been or may be issued for purposes of constructing one or more Residential Units.

“Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Property shall not be considered a Residential Unit for purposes of this Rate and Method of Apportionment.

“Safety Services” means public safety services perm itted under the Mello -Roos Community Facilities Act of 1982 including, without limitation, police and fire protection, ambulance and paramedic services authorized to be funded by CFD No. 2025-S as set forth in Appendix B.

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“Single Family Property” means any residential property other than a Multi-Family Property on an Assessor’s Parcel for which a Building Permit for new construction has been issued by the City on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.

“Special Tax” means the Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.

"Special Tax Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the public safety need s of CFD No. 2025 -S in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the (i) direct costs for Safety Services, (ii) amount necessary to fund an operating reserve for the costs of Safety Services as determined by th e CFD Administrator, and (iii) Administrative Expenses applicable to the Special Tax. Under no circumstances shall the Special Tax Requirement include funds for bonds or other forms of indebtedness.
"Taxable Property" means all Assessor’s Parcels within C FD No. 2025 -S, which are not Exempt Property.

“Taxable Unit” means a Residential Unit.

“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property.

B. RATE AND METHOD OF APPORTIONMENT OF MAXIMUM SPECIAL TAX RATES

As of July 1 of each Fiscal Year, commencing July 1, 2025, the Council shall determine the Special Tax Requirement and shall levy the Special Tax upon each of the Assessor’s Parcels within the CFD which constitute a Developed Property of Residentia l Property, including Single Family Property or Multi -Family Property, until the aggregate amount of Special Tax equals the Special Tax Requirement. The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement.

No Special Tax shall be levied upon Undeveloped Property for which a Building Permit has not been issued on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.

The Maximum Special Tax for Fiscal Year 2025 -2026 for a Single Family Property and Multi - Family Property are shown below in Table 1.

TABLE 1

MAXIMUM SPECIAL TAX RATES
FISCAL YEAR 2025-2026

Description
Taxable
Unit
Maximum
Special Tax
Single Family Property RU $639
Multi-Family Property RU $526

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Increase in the Maximum Special Tax

On each July 1, commencing July 1, 2026, the Maximum Special Tax for Developed Property of Single Family Property and Multi -Family Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the twelve-month period ending in January of the prior Fiscal Year or (ii) five percent (5%).

C. TERM OF SPECIAL TAX

For each Fiscal Year, the Maximum Special Taxes shall be levied as long as the Safety Services are being provided within the boundaries of CFD No. 2025-S.

D. EXEMPTIONS

The City shall classify as Exempt Property within CFD No. 2025-S, any Assessor’s Parcel in any of the following categories; (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) Assessor’s Parcels with public or utility easements making impractical their utiliza tion for other than the purposes set forth in the easement; (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public uses; (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined by the Administrator; or (v) any Assessor’s Parcel which is not a Single Family Property or Multi -Family Property; (vi) any Assessor’s Parcel that qualifies for a welfare exemption under applicable state or local law; or (vii) any Assessor’s Pa rcel that is owned by a property owner association and used for common area purposes.

E. APPEALS

Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later t han twelve months after having paid the first installment of the Special Tax that is disputed. The Administrator shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of t he Special Tax, and rule on the appeal. If the Administrator’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, but an adjustment shall be made to the S pecial Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).

F. MANNER OF COLLECTION

The Maximum Special Taxes levied in each Fiscal Year shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes. However, the District may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.

The Maximum Special Taxes when levied shall be secured by the lien impo sed pursuant to Section 3115.5 of the Streets and Highways Code. This lien shall be a continuing lien and shall secure each levy of Maximum Special Taxes. The lien of Maximum Special Taxes shall

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continue in force and effect until the Special Tax ceases t o be levied in the manner provided by Section 53330.5 of the Government Code.

G. INTERPRETATION
Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment.

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APPENDIX A

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2025-S (PUBLIC SERVICES)

SUMMARY
Safety Services - It is estimated that the cost of providing police, fire protection and suppression services, and paramedic services being funded by the Special Tax for the Community Facilities District No. 2025-S (Public Services) will be as follows for the Fiscal Year 2025-2026:
 $639 per residential unit for Single Family Property
 $526 per residential unit for Multi-Family Property

Annual Escalation - On each July 1, commencing July 1, 2026, the Maximum Special Tax for Developed Property of Single Family Property and Multi -Family Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the twelve-month period ending in January of the prior Fiscal Year or (ii) five percent (5%).

Annex #
Fiscal
Year
Tract/
APN
Development
Name
No. of
Taxable
Units
Land Use
Category
Maximum
Special Tax Subdivider
Original 2025-
26 TR 31462-17, -
19,
-27, -28 & -29
Fairway
Canyon 4C 366
Single
Family
Property
$639 Meritage
Homes

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APPENDIX B

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2025-S (PUBLIC SERVICES)

DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2025 -S, as provided by Section 53313 of the Act, will include some or all of the costs attributable to public safety.

These services include police protection services (includin g but not limited to criminal justice services), fire protection and suppression services, and paramedic services.

In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses” as said term is defined in the Rate and Method of Apportionment and to establish an operating reserve for the costs of services as determined by the Administrator.

The above services shall be limited to those provided within the boundaries of CFD No. 2025 -S for the benefit of the properties within the boundaries of CFD No. 2025 -S and said services may be financed by proceeds of the special tax of CFD No. 2025-S only to the extent that they are in addition to those provided in the territory of CFD No. 2025-S before CFD No. 2025-S was created.

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PETITION TO THE CITY COUNCIL OF THE CITY OF

BEAUMONT REQUESTING INSTITUTION OF

PROCEEDINGS FOR ESTABLISHMENT OF A COMMUNITY

FACILITIES DISTRICT ( CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2025 -S (PUBLIC

SERVICES))

1. The undersigned (the “Owner”) is the owner of more than 10% of the land described in Exhibit A hereto (the “Property”), which land is expected to included within the boundaries of a community facilities district he reby proposed to be established. The Property is located within the boundaries of the City of Beaumont (the “City”), County of Riverside.

2. The Owner requests that the City Council of the City of Beaumont (the “ City Council”) institute proceedings to establish a community facilities district to be known as “ City of Beaumont Community Facilities District No. 2025 -S (Public Services) ” (referred to herein as the “District”) pursuant to Chapter 2.5 (commencing with Section 53311), Part 1, Division 2, Title 5, of the Government Code of the State of California, commonly known as the “Mello -Roos Community Facilities Act of 1982” (the “Act”), to include all of the Property. The proposed rate and method of apportionment for the District is set forth in Exhibit B hereto.

3. The Owner requests that the proposed District fund police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services (collectively, the “Services”) . In addition, the District may fund actual or reasonably estimated costs directly related to the formation, annexation, and administration of the District including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, the District, or any designee thereof associated with fulfilling the District reporting requirements; the costs associated with responding to public in quiries regarding the Special Taxes; the costs of the City, the District or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees and third party expenses. Administrative Expenses shall also include amount s estimated or advanced by the City or the District for any other administrative purposes of the District , including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.

4. The Owner further requests that, the City Council, as legislative body of the District, annually levy special taxes on the property within the District to provide for the Services, and for the payment of administrative expenses of the District and for such services as the City Council deems appropriate.

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Dated: October __, 2025
MERITAGE HOMES OF CALIFORNIA, a
California corporation

By:

Name:

Its:

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EXHIBIT A

BOUNDARY MAP

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EXHIBIT B

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2025-S (PUBLIC SERVICES)

A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2025 -S (Public Services) (the “CFD No. 2025 - S” or “CFD”; defined below), in each Fiscal Year, (defined below), in each Fiscal Year on an Assessor’s Parcel shall be determined by the City Council of the City of Beaumont, acting in its capacity as the legislative body of CFD No. 2025 -M, by applying the rate and method of apportionment set forth below. All of the real property in CFD No. 2025 -S, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.

A. DEFINITIONS

“Accessory Dwelling Unit” means a residential unit of limited size including smaller secondary unit(s) that shares an Assessor ’s Parcel with Single Family Property that has a stand -alone Residential Unit.

“Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation and administration of CFD No. 2025 -S including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2025 -S, or any designee thereof associated with fulfilling the CFD No. 2025 -S reporting requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2025-S or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fee s, collection expenses, and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2025 -S for any other administrative purposes of CFD No. 2025 -S, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.

“Administrator” means the City Manager of the City of Beaumont, or his or her designee.

“Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside.

“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 the identification number assigned to a parcel by the County Assessor of the County of Riverside.

"Building Permit" means the first legal document issued by the City giving official permission for new construction. Fo r purposes of this definition, “Building Permit” may or may not include expired or cancelled Building Permits, or any subsequent Building Permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the Administrator.

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“CFD” or “CFD No. 2025 -S” means the City of Beaumont Community Facilities District No. 2025-S (Public Services).

“CFD Boundary Map” means a recorded map of the CFD that indicates by a bounda ry line the extent of the territory identified to be subject to the levy of Special Taxes.

“City” means the City of Beaumont, State of California.

“County” means the County of Riverside, State of California.

“Developed Property” means all Assessor’s Pa rcels of Taxable Property for which a Building Permit for new construction has been issued on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.

“Exempt Property” means all Assessors’ Parcels designated as being exempt f rom the Special Tax as provided for in Section D.

“Fiscal Year” means the period from and including July 1 st of any year to and including the following June 30th.

“Maximum Special Tax” means the Maximum Special Tax, as applicable, levied within the CFD for any Fiscal Year.

“Multi-Family Property” means all Assessor's Parcels of Developed Property for which a Building Permit or use permit for the construction of a residential structure with two or more Residential Units that share a single Assessor's Pa rcel Number, as determined by the Administrator, has been issued prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.

“Proportionately” means for Taxable Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels.

“Rate and Method of Apportionment” or “RMA" means this Rate and Method of Apportionment of Special Taxes.

“Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which Building Permits have been or may be issued for purposes of constructing one or more Residential Units.

“Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Property shall no t be considered a Residential Unit for purposes of this Rate and Method of Apportionment.

“Safety Services” means public safety services permitted under the Mello -Roos Community Facilities Act of 1982 including, without limitation, police and fire protect ion, ambulance and paramedic services authorized to be funded by CFD No. 2025-S as set forth in Appendix B.

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“Single Family Property” means any residential property other than a Multi-Family Property on an Assessor’s Parcel for which a Building Permit for new construction has been issued by the City on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.

“Special Tax” means the Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.

"Special Tax Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the public safety needs of CFD No. 2025 -S in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the (i) direct costs for Safety Services, (ii) amount necessary to fund an operating reserve for the costs of Safety Services as determined by the CFD Administrator, and (iii) Administrative Expenses applicable to the Special Tax. Under no circumstances shal l the Special Tax Requirement include funds for bonds or other forms of indebtedness.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2025 -S, which are not Exempt Property.

“Taxable Unit” means a Residential Unit.

“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property.

B. RATE AND METHOD OF APPORTIONMENT OF MAXIMUM SPECIAL TAX RATES

As of July 1 of each Fiscal Year, commencing July 1, 2025, the Council shall determine the Special Tax Requirement and shall levy the Special Tax upon each of the Assessor’s Parcels within the CFD which constitute a Developed Property of Residential Property, including Single Family Property or Multi -Family Property, until the aggregate amount of Special Ta x equals the Special Tax Requirement. The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement.

No Special Tax shall be levied u pon Undeveloped Property for which a Building Permit has not been issued on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.

The Maximum Special Tax for Fiscal Year 2025 -2026 for a Single Family Property and Multi - Family Property are shown below in Table 1.

TABLE 1

MAXIMUM SPECIAL TAX RATES
FISCAL YEAR 2025-2026

Description
Taxable
Unit
Maximum
Special Tax
Single Family Property RU $639
Multi-Family Property RU $526

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Increase in the Maximum Special Tax

On each July 1, commencing July 1, 2026, the Maximum Special Tax for Developed Property of Single Family Property and Multi -Family Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consu mer Price Index for the twelve-month period ending in January of the prior Fiscal Year or (ii) five percent (5%).

C. TERM OF SPECIAL TAX

For each Fiscal Year, the Maximum Special Taxes shall be levied as long as the Safety Services are being provided within the boundaries of CFD No. 2025-S.

D. EXEMPTIONS

The City shall classify as Exempt Property within CFD No. 2025-S, any Assessor’s Parcel in any of the following categories; (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public uses; (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined by the Administrator; or (v) any Assessor’s Parcel which is not a Single Family Property or Multi -Family Property; (vi) any Assessor’s Parcel that qualifies for a welfare exemption under applicable state or local law; or (vii) any Assessor’s Parcel that is owned by a property owner association and used for common area purposes.

E. APPEALS

Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. The Administrator 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 Administrator’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, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).

F. MANNER OF COLLECTION

The Maximum Special Taxes levied in each Fiscal Year shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes. However, the District may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.

The Maximum Special Taxes when levied shall be secured by the lien impo sed pursuant to Section 3115.5 of the Streets and Highways Code. This lien shall be a continuing lien and shall secure each levy of Maximum Special Taxes. The lien of Maximum Special Taxes shall

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4897-9794-2387v3/022599-0038
continue in force and effect until the Special Tax ceases t o be levied in the manner provided by Section 53330.5 of the Government Code.

G. INTERPRETATION
Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment.

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APPENDIX A

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2025-S (PUBLIC SERVICES)

SUMMARY
Safety Services - It is estimated that the cost of providing police, fire protection and suppression services, and paramedic services being funded by the Special Tax for the Community Facilities District No. 2025-S (Public Services) will be as follows for the Fiscal Year 2025-2026:
 $639 per residential unit for Single Family Property
 $526 per residential unit for Multi-Family Property

Annual Escalation - On each July 1, commencing July 1, 2026, the Maximum Special Tax for Developed Property of Single Family Property and Multi-Family Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the twelve-month period ending in January of the prior Fiscal Year or (ii) five percent (5%).

Annex #
Fiscal
Year
Tract/
APN
Development
Name
No. of
Taxable
Units
Land Use
Category
Maximum
Special Tax Subdivider
Original 2025-
26 TR 31462-17, -
19,
-27, -28 & -29
Fairway
Canyon 4C 366
Single
Family
Property
$639 Meritage
Homes

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APPENDIX B

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2025-S (PUBLIC SERVICES)

DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2025 -S, as provided by Section 53313 of the Act, will include some or all of the costs attributable to public safety.

These services include police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services.

In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses” as said term is defined in the Rate and Method of Apportionment and to establish an operating reserve for the costs o f services as determined by the Administrator.

The above services shall be limited to those provided within the boundaries of CFD No. 2025 -S for the benefit of the properties within the boundaries of CFD No. 2025 -S and said services may be financed by proceeds of the special tax of CFD No. 2025-S only to the extent that they are in addition to those provided in the territory of CFD No. 2025-S before CFD No. 2025-S was created.

OAK VA

LLEY PK
WY
LYLE
LN
SMITH
AVE
413-790-075
413-790-077
413-790-078
413-790-076
413-790-079
COMMUNITY FACILITIES DISTRICT NO. 2025-S
(PUBLIC SERVICES)

CITY OF BEAUMONT,

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
SHEET 1 OF 1 SHEET

I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED
BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2025-S
(PUBLIC SERVICES), CITY OF BEAUMONT, COUNTY OF

RIVERSIDE, STATE OF CALIFORNIA, WAS APPROVED BY THE CITY

COUNCIL OF THE CITY OF BEAUMONT AT A REGULAR MEETING
THEREOF, HELD ON______ DAY OF ______, 20____, BY
R E S O L U T I O N N O . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ___________________________________

CITY CLERK

CITY OF BEAUMONT

FILED IN THE OFFICE OF THE CITY CLERK, CITY OF BEAUMONT , T H I S _ __ _ D A Y OF _ __ _ _ __ _ , 2 0 __ _ _. ______________________________

CITY CLERK

C IT Y OF BE A UMONT

BEAUMONT
·|}þ243
·|}þ60
·|}þ79
§¨¦10
05 0 0 1 , 0 0 0250 Feet

PROPOSED BOUNDARY MAP
^
CFD 2025-S
-

THIS BOUNDARY MAP CORRECTLY SHOWS THE LOT OR PARCEL OF LAND INCLUDED WITHIN THE BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT.

FOR DETAILS CONCERNING THE LINES AND DIMENSIONS OF LOTS OR PARCEL REFER TO THE COUNTY ASSESSOR MAPS FOR FISCAL YEAR 2025-26.

XXX-XXX-XXX ASSESSOR PARCEL NUMBER
LEGEND

CITY BOUNDARY

CFD BOUNDARY

PARCEL LINE
SOREN
ST
AM

DR
AARON
A
VE
BREW
ER
DR
RECORDED THIS ____ DAY OF _______________, 20____ AT
THE HOUR OF ____ O'CLOCK __M IN BOOK _____
PAGE _____ OF MAPS OF ASSESSMENT AND COMMUNITY

FACILITIES DISTRICTS IN THE OFFICE OF THE COUNTY

RECORDER, IN THE COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA.

FEE: _____________ NO.: ______________________

PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDER
BY: _______________________________

D E P U T Y

PALMER AVE

CASTELLO LN

BAY HILL
DR

OLIVEWOOD WAY
SMITH

AVE CHERRY
VALLEY
BLVD

BROOKSIDE AVE

STRAIGHTAWAY DR
OAK DR

CRENSHAW ST

CHAMPIONS DR
SAN

TIMOTEO

CANYON R D
§¨¦10
·|}þ60

DESERT LAWN DR

PAL M ER AV E

CHERRY VALLEY BLVD

CAST ELLO LN

SNOWBERRYRDBROOKSI DE AVE

MICKELSON DR

BAY HILL
DR
O

LI VEWOOD WAY

BRUTUS WAY

SMITH AVE
SAN

TIMOTEO
CANYON
R D

CH AM PI ONS DR

FRONTAGE RD
§¨¦10
·|}þ60
COMMUNITY FACILITIES DISTRICT NO. 2025-S
(PUBLIC SERVICES)

PROJECT MAP
^_

§¨¦
10 ·|}þ60
·|}þ79
SHEET 1 OF 1 SHEET

CITY OF

BEAUMONT
§¨¦215
§¨¦15
§¨¦10
·|}þ111
·|}þ91
·|}þ371
·|}þ60
·|}þ243
·|}þ79
·|}þ74
0 -
LEGEND

ANNEXATION BOUNDARY

NOT-A-PART
COMMUNITY FACILITIES DISTRICT NO. 2025-S
(PUBLIC SERVICES)

CITY OF BEAUMONT,

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA

BOUNDARIES - POTENTIAL ANNEXATION AREA
RECORDED THIS ____ DAY OF _______________, 20____ AT
THE HOUR OF ____ O'CLOCK __M IN BOOK _____
PAGE _____ OF MAPS OF ASSESSMENT AND COMMUNITY

FACILITIES DISTRICTS IN THE OFFICE OF THE COUNTY

RECORDER, IN THE COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA.

FEE: _____________ NO.: ______________________

PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDER
BY: _______________________________
DEPUTY

I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED

BOUNDARIES OF THE POTENTIAL ANNEXATION AREA OF
COMMUNITY FACILITIES DISTRICT NO. 2025-S (PUBLIC SERVICES),

CITY OF BEAUMONT, COUNTY OF RIVERSIDE, STATE OF

CALIFORNIA, WAS APPROVED BY THE CITY OF BEAUMONT
AT A REGULAR MEETING THEREOF, HELD ON __________
DAY OF ______, 20____, BY RESOLUTION NO. _____________ ___________________________________

CITY CLERK

CITY OF BEAUMONT

FILED IN THE OFFICE OF THE CITY CLERK,
CITY OF BEAUMONT, THIS ____ DAY OF ________, 20____.
______________________________

CITY CLERK

C I T Y O F B E A U M O N T

Staff Report

TO: City Council
FROM: Christopher Ramos, Chief of Police
DATE: November 4, 2025
SUBJECT: Facility Use Agreement with Vohne Liche Kennels to Utilize City-owned Facilities for K9 Training

Description: Request to approve a Facility Use Agreement with Vohne Liche Kennels to waive fees for the use of City-owned facilities in exchange for waived K9 training costs. The buildings would include the Nutrition Center (Bldg F), Transit Building (Bldg D), and 500 Grace Avenue.

Background and Analysis:

Vohne Liche Kennels (VLK) is the Police Department's selected long-term for-profit organization that provides advanced training techniques and certifications for law enforcement K9s. VLK has approached the City with a proposal to utilize the City's facilities for conducting K9 training sessions. Their request includes a waiver of any associated facility use fees by the City in exchange for waiving their ongoing training costs for one of the Beaumont Police Department’s K9s.

Vohne Liche Kennels has proposed utilizing the police facility Nutrition Center (Bldg F), Transit Building (Bldg D), and 500 Grace Avenue 2–4 times a month for K9 training sessions. These sessions would be conducted by their experienced trainers and would cover a range of essential skills and techniques for police dogs, including obedience, scent detection, and apprehension training. The kennels have expressed a commitment to coordinating their training schedule with our department to ensure minimal disruption to ongoing operations.

Benefits to the City:

1. Enhanced Training for K9 Officers: By allowing Vohne Liche Kennels to utilize the facility, Beaumont K9 officers will have access to advanced training techniques and expertise that may not be readily available within our department. This will contribute to the professional development and effectiveness of Beaumont’s K9 unit.

2. Networking Opportunities: Collaborating with Vohne Liche Kennels will provide Beaumont K9 officers with valuable networking opportunities.

They will have the chance to interact with trainers and handlers from other police departments, facilitating the exchange of knowledge and best practices in K9 training and operations.

3. While providing training at City of Beaumont facilities, Vohne Liche Kennels waives training fees to their Police K-9 training course for Beaumont police officers, a savings of $400 per course.

The Police Department recommends approving Vohne Liche Kennels' agreement to utilize City-owned facilities for K9 training sessions and waiving any associated fees under the Facility Use Agreement in exchange for free K9 training. This partnership aligns with our department's commitment to providing Beaumont K9 officers with the highest quality training resources and fosters collaboration within the law enforcement community.

Fiscal Impact:

There is no negative impact to the City’s general fund. Currently, there are no established facility use fees for City buildings utilized for K-9 training.

For comparison, the rental fee for the City gymnasium is $150 per hour. K-9 training classes are typically four hours, which means that waiving the fees for each class represents a potential cost of $600, or approximately $1,200 per month.

The cost to prepare this staff report was $500.

Recommended Action:

Approve the Facility Use Agreement between the City and Vohne Liche Kennels to waive the City’s Facility Usage when using facilities to conduct police K9 training in exchange for free K9 training for the Beaumont Police Department; and Authorize the Mayor to execute the Facility Use Agreement.

Attachments:

A. Facility Use Agreement with Vohne Liche Kennels
B. Vohne Liche Kennels Liability Insurance

1 FACILITIES USE AGREEMENT

THIS FACILITIES USE AGREEMENT (“Agreement”) is made and effective as of the 1st of December, 2025 by and between the CITY OF BEAUMONT, a California municipal corporation (“City”) whose address is 550 E. 6th Street, Beaumont, California 92223, and V ohne Liche Kennels, Inc., a California corporation whose address is 43455 Hilltop Drive, Banning, California 92220 (“Applicant”). City and Applicant are sometimes hereinafter individually referred to as “party” and hereinafter collectively referred to as the “parties.”

RECITALS

This Agreement is entered into on the basis of the following facts, understandings and intentions of the parties to this Agreement:

A. City is the owner of certain facilities located at the Nutrition Center (Building F), Transit Building (Building D), and 500 Grace Avenue, Beaumont, California 92223 (collectively, the “Facilities”); and

B. Applicant has submitted a Faci lity Use/Rental Application (“Application”) to the City, a true and correct copy of which is attached hereto as Exhibit "A" and incorporated herein by this reference as though fully set forth herein; and

C. Applicant desires, and City is willing to permit Applicant, to use the Facilities for the purpose of conducting K9 training sessions to law enforcement personnel; and

D. City is willing to permit Applicant to use the Facilities for such purpose subject t o the terms and conditions set forth in this Agreement; and

E. City has determined that it is in the public interest for Applicant to use the Facilities in exchange for ongoing training at no cost or expense to City’s police department; and

F. Applicant understands and agrees that the Applicant shall be solely responsible for the activities conducted by Applicant or subject to Applicant’s control.

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing Recitals and mutual covenants contained herein, City and Applicant agree as follows:

1. Term of Agreement. This Agreement is effective as of the date first above written and shall continue until terminated as provided for herein. Notwithstanding anything in this Agreement to the contrary, this Agreement shall automatically terminate after three (3) year(s) unless extended by the parties with the approval of the City Council of the City.

2. Grant of Use.

2.01 Permitted Use. City hereby grants to Applicant a non -exclusive right to use the Facilities for the sole purpose of conducting K9 training sessions for on duty law enforcement personnel (“Permitted Use”).

Applicant shall not use the Facilities for any other purpose without the prior written consent of City.

2 2.02 Applicant is responsible for leaving Facilities in the same conditions as received including, but not limited, to cleanliness, securing the Facilities and turning off all utilities.

2.03 It is understood and agreed that the applicant shall be solely responsible for the services and/or activities conducted by Applicant or subject to Applicants control while using the Facilities . In addition to Applicant’s indemnity obligation in Section 7, Applicant agrees to and does here by defend, indemnify, and hold the City, its officers, and employees harmless from any and all liability or allege d liability arising out of, or in any way related to, directly or indirectly, the services and/or activities conducted by Applicant or subject to Applicants control.

In the event suit is brought arising out of any such activities , services, or use of the Facilities, Applicant will defend, indemnify, and hold the City, its officers, and employees harmless and pay any and all attorney fees and Court costs incurred in such suit.

2.04 Night and weekend use of the Facilities will be by special arrangement only, with additional charge required for the cost of a City employee to be present in the building for the entire time of Applicant’s use. All reservations for use of the Facilities must be made at least thirty (30) days in advance.

3. Consideration. Applicant shall have the non -exclusive right to use the Facilities on times and days approved by the City in its sole and unfettered discretion . In exchange for such use, Applicant a grees to provide training to City’s police free of all charges, expenses, and costs. City has determined and finds that it is in the public interest to permit Applicant to use the Facilities in exchange for the ongoing training at no costs, charge, or expense for City police department. This exchange of consideration shall remain in effect for the duration of this Agreement, unless otherwise terminated pursuant to the termination provisions contained herein. For clarity, "ongoing training costs, charges, or expenses" shall include, but not be limited to, standard K9 handler training, K9 maintenance training, specialized tactical training, and other routine K9 and non-K9-related training services that would typically be billable to the City. This waiver does not include extraordinary expenses such as specialized equipment.

4. Obligations of Applicant.

4.01 Applicant agrees to use the Facilities strictly in accordance with the terms and conditions of this Agreement and the Application. The terms of this Agreement shall govern and said additional or conflicting terms shall be of no force or effect.

4.02 Except as otherwise agreed by the parties, Applicant shall supply all personnel, materials, and equipment necessary for Applicant’s us e of the Facilities. Applicant is responsible for supervising all persons attending or participating in Applicant’s activities and ensuring safe and proper conduct. Applicant is solely responsible for the activities conducted by them or subject to their control.

4.03 Applicant shall promptly notify the City of any damage to the Facilities, accidents, injuries, or other incidents occurring during Applicant’s use of the Facilities. A written incident reports shall be provided upon request.

4.04 Applicant represents that it possesses all required licenses necessary or applicable under this Agreement and shall obtain and keep in full force and effect all permits and approvals required.

4.05 Applicant shall comply with all applicable local, state and federal laws, rules, regulations, entitlements and/or permits applicable to, or governing the Applicant’s services and use of the Facilities authorized hereunder including but not limited to California Department of Industrial Relations (Cal/OSHA) regulations; and the

3 U.S. Department of Transportation Omnibus Transportation Employee Testing Act, related to their scope of work and operations. In case of conflict, the most stringent shall apply.

4.06 Applicant shall keep itself informed concerning a nd shall use the Facilities in accordance with all ordinances, resolutions, statutes, rules, and regulations of the City and any federal, state or local governmental entity having jurisdiction in effect at the time service is rendered.

5. Insurance. Applicant hereby agrees to be solely responsible for the health and safety of its employees, agents and invitees in Applicants use of the Facilities and activities and/or services provided under this Agreement and shall comply with all laws applicable to w orker safety including but not limited to Cal -OSHA.

Therefore, throughout the duration of this Agreement, Applicant hereby covenants and agrees to maintain insurance in conformance with the requirements set forth below. Attached hereto as Exhibit “B” are copies of Certificates of Insurance and endorsements as required by Section 6.02. If existing coverage does not meet the requirements set forth herein, Applicant agrees to amend, supplement or endorse the existing coverage to do so. Applicant shall provide the following types and amounts of insurance:

5.01 Commercial general liability insurance in an amount of not less than $ 1,000,000 per occurrence and $2,000,000 in the aggregate; Applicant agrees to have its insurer endorse the general liability coverage required herein to include as additional insured’s City, its officials, employees and agents. Applicant also agrees to require all contractors and subcontractors to provide the same coverage required under this Section 5.

5.02 Business Auto Coverage in an amount no less than $1 million per accident. If Applicant or Applicant’s employees will use personal autos in performance of the services or activities in relation to the use of the Facility, Applicant shall provide evidence of personal auto liability coverage for each such person.

5.03 Workers’ Compensation insurance for any of Applicant’s employees that will be providing any services or activities in relation to the use of the Facilities . Applicant will have a state -approved policy form providing statutory benefits as required by California law. The provisions of any Workers’ Compensation insurance will not limit the obligations of Applicant under this Agreement. Applicant expressly agrees not to u se any statutory immunity defenses under such laws with respect to City, its employees, officials and agents. Sole proprietors with no employees, LLCs, or partnerships using the services of members or partners who do not carry Workers’ Compensation insurance acknowledge that they are not subject to the Workers’ Compensation Act of the State of California and agree to complete a signed workers compensation exemption form.

6. General Conditions pertaining to Insurance Coverage.

6.01 No liability insurance coverage provided shall prohibit Applicant from waiving the right of subrogation prior to a loss. Applicant waives all rights of subrogation against City regardless of the applicability of insurance proceeds and shall require all contractors and subcontractors to do the same.

6.02 Prior to beginning the services, activities, or use of the Facilities under this Agreement, Applicant shall furnish City with certificates of insurance, endorsements, and upon request, complete copies of all policies, including complete copies of all endorsements. All copies of policies and endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf.

6.03 All required policies shall be issued by a highly rated insurer with a minimum A.M. Best rating of “A:VII”. The insurer(s) shall be admitted and licensed to do business in Californi a. The certificates of