City of Beaumont -Finance Department Policies and Procedures Manual 2026 agencies other than the City shall be considered on a case -by case basis. The list of eligible public facilities includes but are not limited to the following and include facilities included as part of the City's or another public agencies development impact fee programs to the extent permitted by the Mello Roos Act or Improvement Acts:
Streets, highways and bridges
Street lighting
Traffic signals and safety lighting
Parks
Governmental facilities
Sanitary sewer facilities
land acquisition, dedication and revegetation
Storm drain facilities
Potable and reclaimed water facilities
Flood control facilities
Libraries
Public utilities
Police and fire protection facilities
Recreation facilities
Biological mitigation measures involving
Landscaping
In general, none of the foregoing types of facilities will have priority over the others; however, the City has the final determination as to any facility's eligibility for financing, as well as the prioritization of facilities to be included within a financing district. The use of bond proceeds for grading and right-of-way acquisition will be reviewed by the City and bond counsel on a case -by case basis.
It is acknowledged the Act permits the financing of fee obligations imposed by governmental agencies, the proceeds of which fees are to be used to fund public capital improvements. The City will consider applications to fmance fee obligations on a case -by -case basis. The City may condition the financing of facilities included as part of the City's or another public agency's development impact fee programs on the applicant's agreement to participate in the financing of City services for public safety and may require applicant's to pay a premium on any City fees financed with such premium to be used by the City to pay for other eligible facilities authorized by the Act.
It is secondarily the policy of the City to assist in the provision of other public facilities when to do so is necessary, in the sole discretion of the City Council acting as the legislative body of the affected CFD, to serve taxpayers residing within or owning property within the City boundaries.
Additionally, the City may finance any one or more of the types of services specified in Section 53313 of the Act.
Priority for CFD financing shall be given to services provided by or directly benefiting the City and, if multiple services are to be financed, with no service having priority over another service; provided, however, the City has the final determination as to any service's eligibility for financing. The City shall not finance services on behalf of other public agencies.
Credit Quality — Value -To -Lien Ratio
Credit quality will be determined in part by the District (or improvement area) property value -to -lien ratio which will be at a minimum 4:1, including the value of the financed public improvements to be installed, and considering all prior or pending special taxes or improvement liens and debt. Value -to -lien ratios of individual parcels will be reviewed to analyze credit quality. The value of the property utilized in the calculation of the value -to -lien ratio will be determined by using the assessed value of the property as reflected on the most recent tax roll or by an independent MAI-certified appraiser engaged by the City as discussed in more detail below. Acceptance by the City of the value -to -lien ratio will be determined by an appraisal with recommendations from bond counsel, any municipal advisor, and the underwriter with consideration of the project and diversification of land ownership.
The appraisal shall be coordinated by, under the direction of, and addressed to the City. The applicant shall pay all costs associated with the preparation of the appraisal report through an advance deposit of funds with the City. 96
City of Beaumont -Finance Department Policies and Procedures Manual 2026 The appraiser should be credentialed by the State of California Office of Real Estate Appraisers and be a Member of the Appraisal Institute (MAI). The appraiser should have demonstrated prior experience in appraising property subject to special assessments or taxes in conjunction with a bond offering.
The appraisal shall be conducted in accordance with criteria, standards and assumptions in accordance with the California Debt and Investment Advisory Commission Appraisal Standards for Land -Secured Financings, and based upon the recommendations from the City's financing team. In every case, the appraisal shall reflect nationally Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation and employ all, or a combination of: discounted cash flow, bulk sale comparable, raw land value as is, and project build -out values.
Upon receiving an appraisal, determining the value -to -lien ratio, and evaluating the project and current underwriting criteria, the City may require letters of credit or other security to secure payment of the special taxes to be levied annually on properties within the District. Letters of credit or other security may also be required for individual parcels of specific property ownership within a District. (See Section 3.3, Security).
For projects with a significant amount of development or the refunding of outstanding special assessment and community facilities district debt, the assessed value of property or other mass appraisal techniques may be options for the establishment of credit quality.
Depending on the circumstances of the development, a market absorption study may be required by the City. The City will retain the consultant to prepare a report to verify market absorption assumptions and projected base sales prices of the properties subject to the special taxes or assessments in the District. The market absorption and/or price point study shall be completed prior to completion of the appraisal, and the appraisal shall take into consideration the conclusions of the market absorption study. All City and consultant costs incurred for this study will be paid by the Applicant by advance deposit or out of special taxes or bond proceeds.
Security
Prior to the issuance of bonds in connection with a District program, each person who, together with any affiliate thereof, owns land within the Special District the maximum special tax or assessment applicable to which equals or exceeds 20% of the aggregate maximum special tax or assessments authorized to be levied in the District (such person and affiliates collectively, a "20% Owner") shall deliver to the City or as directed by the City either (i) a renewable, irrevocable instrument of credit from a fmancial institution rated "A" or better or otherwise acceptable to the City or (ii) cash in -lieu thereof (a "Security"). The Security shall be in an amount equal to 200% of the product of the maximum annual debt service on the bonds proposed to be issued (without taking into consideration any capitalized interest) times a fraction the numerator of which is the projected annual special taxes or assessments applicable to the land within the Special District owned by the 20% Owner and the denominator of which is the total maximum special taxes or assessments applicable to all land in the District (the "Stated Amount"). The Security shall be maintained in full force and effect by the 20% Owner until the property owned by the 20% Owner is responsible for less than 20% of the projected special taxes or assessments to be levied in the District (without taking into consideration any capitalized interest); provided that the Stated Amount may be reduced to an amount equal to 200% of the product of the projected annual debt service on the bonds proposed to times a fraction the numerator of which is the projected annual special taxes or assessments applicable to the land within the Special District owned by the 20% Owner (without taking into consideration any capitalized interest) and the denominator of which is the total projected special taxes or assessments applicable to all land in the Special District as of June 1 of the applicable year (subject to the City's receipt of a replacement security from any person to whom a 20% Owner conveys property and who becomes a 20% owner as a result of such conveyance). The Security shall name the City, or its designee, as a beneficiary and shall provide that the City, or its designee, may draw an amount equal to any delinquencies in payment of semiannual installments of the special taxes of assessments levied on property owned by the 20% Owner. The total amount to be drawn under the Security shall 97
City of Beaumont -Finance Department Policies and Procedures Manual 2026 not exceed an amount equal to the special taxes or assessments owed with respect to property within the Special District owned by the 20% Owner that is delinquent at the time the draw is made, or in the event the Security is to expire by its terms and has not been renewed as required by the City, the Stated Amount. The amount drawn of the Security shall be applied in the same manner and for the same purposes as the delinquent special taxes would have been applied; provided that the payment of a draw under the Security will not be deemed to cure the delinquency in payment of the special taxes. The form and substance of the Security, including the provisions thereof with respect to remedies upon nonrenewal thereof shall be set forth in the acquisition agreement for the District.
Equity Of Special Tax Formulas And Maximum Special Taxes Special tax formulas for Community Facilities Districts shall provide for minimum special tax levels which satisfy the following expenses of all Community Facilities Districts: (a) at least 110 percent of debt service on all Community Facilities District bonds due each year, and (b) the reasonable and necessary administrative expenses of the Community Facilities District. Additionally, the special tax formula may provide for the following: (a) any amounts required to establish or replenish any reserve fund established in association with the indebtedness of the Community Facilities District, (b) the accumulation of funds reasonably required for future debt service, (c) amounts equal to projected delinquencies of special tax payments, (d) the costs of remarketing, credit enhancement and liquidity facility fees, (e) the cost of acquisition, construction, furnishing or equipping of facilities, (f) lease payments for existing or future facilities, (g) costs associated with the release of funds from an escrow account, and (h) any other costs or payments permitted by law, including, but not limited to, financing public capital facilities or any one or more of the types of services specified in Section 53313 of the Mello Roos Act.
The special tax formula shall be reasonable and equitable in allocating public facilities' costs to parcels within the Community Facilities District. Unless the City determines that special circumstances warrant a change, the special tax formula originally accepted for the Community Facilities District shall remain the same in order to ensure equity as originally envisioned at the time of Community Facilities District formation. At the time of formation of the Community Facilities District, exemptions from the special tax may be given to parcels which are publicly owned, are held by a property owner's association, are used for a public purpose such as open space or wetlands, are affected by public utility easements making impractical their utilization for other than the purposes set forth in the easements, or have insufficient value to support bonded indebtedness.
It is the goal of the City that maximum special taxes or assessments on residential owner -occupied property, when taken together with ad valorem taxes, any other special taxes levied pursuant to the Act and assessments applicable to such property (the "Effective Tax Rate"), do not exceed in any year two percent (2%) of the greater of the assessed value or appraised value of such property. Nevertheless, special taxes on residential owner -occupied property, when taken together with ad valorem taxes, any other special taxes levied pursuant to the Act and assessments applicable to such property, may exceed in any year two percent (2%) of the greater of the assessed value or appraised value of such property if the City determines at the time of formation of a Community Facilities District that over the term of the bonds, the special taxes, ad valorem taxes and assessments are expected to average two percent (2%) or less per year of the greater of the assessed value or appraised value of such property. The City may permit the escalation of any facilities tax in any amount not to exceed 2% annually for those projects that also participate in a community facilities district for services. Special taxes for services may escalate in any manner determined by the City as necessary to cover annual estimated increases in the costs of providing such services or as otherwise permitted under the Act. If the City determines based on the advice of the special tax consultant that the Effective Tax Rate will exceed 2% of the actual or expected sales prices in the Community Facilities District the City may in its discretion require the developer to prepay a portion of such taxes prior to the issuance of bonds in order to reduce the Effective Tax Rate to 2% or less. 98
City of Beaumont -Finance Department Policies and Procedures Manual 2026 Special taxes will only be levied on an entire County Assessor's parcel, and any allocation of special tax liability of a County Assessor's parcel to leasehold or possessory interest in the fee ownership of such County Assessor's parcel shall be the responsibility of the fee owner of such parcel (except where the City is the fee owner of the parcel and has, subsequent to the date of adoption of these goals and policies, leased the parcel pursuant to a lease with a term of at least 5 years, in which case the lessee shall have the responsibility for the special tax liability) and the City shall have no responsibility therefor and has no interest therein. Failure to pay or cause to be paid any special taxes in full when due shall subject the entire parcel to foreclosure in accordance with the Act.
The City shall have a report prepared which: (a) recommends special tax rates and methods of allocation among parcels in the proposed Community Facilities District, and (b) evaluates the special tax proposed to determine it ability to adequately fund identified public facilities, City administrative costs, services (if applicable) and other related expenditures.
The City shall retain a special tax consultant to prepare a Rate and Method of Apportionment and the report described above which:
A. Recommends a special tax formula for the proposed community facilities district.
B. Evaluates the special tax proposed to determine its ability to adequately fund identified public facilities and proposed services, City administrative costs, services (if applicable) and other related expenditures. The Rate and Method of Apportionment of special taxes shall be designed to ensure sufficient revenues are produced in case of final development at lower densities than anticipated.
C. The special tax consultant shall also address the resulting aggregate tax burden of all proposed special taxes plus existing special taxes, ad valorem taxes levies and assessments on the properties within the community facilities district.
Terms And Conditions Of Bonds
The City shall establish all terms and conditions of the bonds. All bonds issued shall comply with the terms of the City's then current debt policy. The City will control, manage and invest all District issued bond proceeds. Each bond issue shall be structured to adequately protect bond owners and to not adversely impact the bonding capacity or credit rating of the City. Unless otherwise authorized by the City, the following shall serve as bond requirements:
A. A reserve fund equal to the lesser of (i) ten percent (10%) of the issue price of the bonds, (ii) maximum annual debt service, or (iii) one hundred twenty-five percent (125%) of average annual debt service, or as otherwise deemed appropriate by the City.
B. The term of the bonds will generally not exceed 30 years and shall not include capital appreciation bonds.
C. For Districts containing residential property, the timing of bond sales(s) and/or Rate and Method of Special Tax Apportionment shall be such that special taxes or special assessments are levied no later than the first fiscal year following the occupancy of residential units. For all Districts, interest shall not be funded (capitalized) beyond what is permitted in the Mello Roos Act or the Improvement Acts. 99
City of Beaumont -Finance Department Policies and Procedures Manual 2026 D. The repayment of the principal shall begin on the earliest principal payment date for which sufficient special tax revenues can be made available.
E. The maximum special tax shall be established to assure that the annual revenue produced by levy of the maximum special tax shall be equal to at least one hundred ten percent (110%) of annual debt service plus administration expenses.
F. In instances where multiple series of bonds are to be issued, the first series shall include public facilities of the highest priority acceptable to the City.
G. A11 statements and materials related to the sale of special assessment or community facilities district bonds shall emphasize and state that neither the good faith, nor the taxing power of the City is pledged to the security or repayment of the bonds. The sole sources of revenues to secure bond owners are special taxes, annual assessments or foreclosure proceeds.
Agreements
Agreements will be prepared incidentally to District formation proceedings in a form satisfactory to the City and consistent with these policies. These agreements may include, but not be limited to:
A. Deposit and Reimbursement Agreement.
B. Funding and Acquisition Agreement.
C. Joint Community Facilities Agreements with any other public agency entitled to receive any portion of the bond proceeds or entitled to own and operate any of the public facilities financed by bond proceeds.
Prior to the issuance of bonds by a District, all of the agreements specified shall be duly approved and executed by the relevant parties. Prior to the execution of any agreements, such agreements shall be reviewed and approved by bond counsel and the City Attorney and approved by the City Council.
Use Of Consultants
The City shall have the sole discretion as to the selection of consultants and determination of fees and expenses of all consultants necessary for the formation of the District and the issuance of bonds, including the underwriter(s), bond counsel, municipal financial advisor, disclosure counsel, assessment engineer, appraiser, trustee, paying agent, market absorption and/or price point consultant, and the special tax consultant. Prior consent of the applicant shall not be required in the determination by the City of the consulting and financing team The City shall also be responsible for determining the structure of the bonds to be issued, including the method of sale (negotiated, competitive or direct placement), the need for bond ratings, the need for escrow provisions, investment of bond proceeds, and all other terms and conditions incidental to structuring and closing a bond issuance.
Acquisition Provisions
The City shall have the final determination as to whether it will allow the financing of public facilities through acquisition or if the improvements will be constructed by the City. 100
City of Beaumont -Finance Department Policies and Procedures Manual 2026 In the event the acquisition provisions of the Municipal Improvement Act of 1913 or the Mello -Roos Act are utilized, the City, at its sole discretion, will determine the facilities to be acquired, the priority of acquisition of completed facilities and the method of determining reasonable acquisition costs. Applicable bidding and prevailing wage requirements are extensive and will be addressed during the preparation of the funding and acquisition agreement.
The City has determined (pursuant to Section 53329.5(c) of the Government Code) that the public interest will not be served by allowing property owners to elect to enter into agreements with the City to perform construction work after competitive construction bids have been received. The City Council will make such a determination in the resolution of intention regarding the formation of a community facilities district.
Disclosure To Purchasers
Developers who are selling lots or parcels that are within a Community Facilities District shall provide the disclosure notice to prospective purchasers that comply with all of the requirements set forth in Section 53341.5 of the Government Code. The disclosure notice must be provided to prospective purchasers of property at or prior to the time the contract or deposit receipt for the purchase of property is executed. Developers shall keep an executed copy of each disclosure document as evidence that disclosure has been provided to all purchasers of property within a Community Facilities District.
Owners of land securing 20% or more of the debt service on bonds will be required to provide financial information, as deemed appropriate by the City, for inclusion in the continuing disclosure document the City must provide annually and will also be required to provide written undertakings to provide financial and operating data as required by the SEC's Rule 15c2-12 and by the underwriter of the bonds.
Property Owner Support
In the instance of multiple property owners, the applicant shall be required to produce letters evidencing other property owners' support for the scope and establishment of the District as an attachment to the application. The applicant must have concurrence of at least [60%] of the other property owners to be included in the proposed District, unless there is an overriding need for the public facilities, or the applicant is willing to separately fund the facilities for non -participating property.
Land Use Approvals
Properties proposed for inclusion in a District must possess a land use determination such that proposed development land uses and specific facility requirements can be adequately assessed.
Exceptions To These Policies
The City may find in limited and exceptional instances that a waiver to any of the above -stated policies is reasonable given identified special City benefits to be derived from such waiver. Such waivers are granted only by action of the City Council based upon specific public purpose and/or health and safety findings. Any policy or goal stated herein shall be deemed amended or supplemented in the event, and as of the date, if ever, that such amendment or supplement is required to ensure compliance with the Act or any other laws of the State of California or federal laws of the United States of America.
A waiver of certain provisions of these policies may also be relevant for the refunding of outstanding special assessment and community facilities district debt.
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City of Beaumont -Finance Department Policies and Procedures Manual 2026 Application Process
Early communication with the City is encouraged to assist applicants in evaluating the feasibility of available financing programs and to discuss program procedures.
1. PREAPPLICATION CONFERENCE: Applicant meets with City to discuss the proposed project and application procedures.
2. APPLICATION SUBMISSION:: Applicant/developer shall submit an application to the City with a deposit and reimbursement agreement in the initial amount of $50,000 to $70,000 (as deemed necessary by staff, based on the size of the proposed District). The deposit will be handled as set forth in the Deposit and Reimbursement Agreement as established by the City and approved by the applicant/developer. This deposit is for the purpose of application processing, preliminary costs, retention of appropriate consultants, and the compensation of staff time devoted to the formation of the District. The City will conduct an initial evaluation of the application to determine if it is complete and whether additional information is required.
3. PROJECT REVIEW:: Applicant and City staff meet to discuss the initial application, including any issues raised and further information that might be required. If necessary, the applicant submits a revised application. City staff may deny any applicant that does not comply with these goals and policies or is determined not to be in the best interest of the City and its residents.
4. PROJECT INITIATION.: Staff submits consultant contracts, reimbursement agreements and other similar items for City Council consideration.
5. PROJECT IMPLEMENTATION:: Applicant, staff and consultants meet to determine preliminary project schedule and begin work necessary to initiate district formation. This document outlines district formation procedures.
Special Assessment District Formation Proceedings Format Assessment district proceedings under the Municipal Improvement Act of 1913 normally provide for the construction of improvements by the City and the financing of such improvements with improvement bonds, which are secured by a fixed lien assessment on the benefited property. In certain instances, if authorized by the City, the developer may construct the improvements (or portion thereof), which would be acquired by the City as provided in the proceedings.
The formation proceedings are subject to and contingent upon satisfaction of all environmental zoning and land use regulations. The following is a summary of the proceedings under the Municipal Improvement Act of 1913 for the formation of an Assessment District. All such proceedings are subject to the requirements of the Improvement Acts, as applicable.
1. Initiation of Proceedings. An applicant or landowner petition for City Council action initiates the District.
Upon initiation, the design engineer prepares plans, specifications and cost estimates of the proposed public improvements. The assessment engineer begins preparing the Engineer's Report, including the assessment diagram, assessment roll, description of improvements and preliminary cost spread. If required, the Environmental Impact Report "EIR" consultant begins processing the appropriate environmental documentation for the public improvements. 102
City of Beaumont -Finance Department Policies and Procedures Manual 2026
2. Presentation of Report. Upon completion of the preliminary engineering work, the City Council adopts a resolution of intention to form the assessment district, approves the Engineer's Report, calls for construction bids, authorizes the future sale of bonds, sets the date, time and place for the public hearing and directs assessment notices to be mailed.
3. Bid Process. Finance Department receives construction bids. Assessment engineer modifies the assessment roll and Engineer's Report and notifies property owners of revised assessments.
4. Public Hearing. City Council holds public hearing at which written protests are presented and public testimony is taken. If a majority protest has not been received, City Council approves district formation, awards bids, orders construction work, confirms the assessments, directs Finance Director/Treasurer to mail assessment notices and approves the bond sale.
5. Cash Collection Period. Treasurer may receive cash payments during the 30 days following confirmation if property owners elect to pay off the assessment or portion thereof prior to the issuance of bonds.
6. Authorize Issuance of Bonds. City Council determines the balance of unpaid assessments and provides for the issuance of bonds to be secured thereby.
7. Sale of Bonds. Bonds are issued in exchange for the cash proceeds of the sale, which are held by the City or its fiscal agent (or paying agent/registrar) and utilized for the construction of public improvements described in the Engineer's Report.
Mello -Roos Community Facilities District Formation Proceedings A Community Facilities District is a legally constituted governmental entity created for the purpose of financing public facilities and services.
The formation proceedings are subject to and contingent upon satisfaction of all environmental, zoning and land use regulations. The following is a summary of the proceedings for the formation of a Community Facilities District under the Mello Roos Act. All such proceedings are subject to the requirements of the Mello Roos Act.
1. Initiation of Proceedings. Proceedings must be instituted when a written request is made by a petition signed by 10% of the registered voters or 10% of the landowners by area. The petition shall be accompanied by payment of a fee determined by the City Council to be sufficient to pay for costs incurred in conducting the proceedings.
2. Resolution of Intention. Within 90 days of the receipt of a written request or petition, the City Council will adopt a resolution of intention to establish a community facilities district ("CFD"). The resolution will state the name of the proposed CFD, the types of facilities or services to be financed, and that, except where funds are otherwise available, a special tax to pay for such facilities and services will be annually levied. The resolution of intention shall also fix a time and place for a public hearing between 30 and 60 days after the adoption of the resolution of intention, describe the method of levy and apportionment of the special tax, and describe the proposed voting procedure. In addition, the resolution may specify conditions under which the obligation to pay the special tax may be prepaid and permanently satisfied.
The City Council directs its responsible officers to study the proposed district and to file a report at or before the public hearing describing the proposed public facilities and services and an estimate of costs.
3. Public Hearing. Protests against the establishment of the community facilities district, the extent of the community facilities district or the furnishing of specified types of public facilities or services may be 103
City of Beaumont -Finance Department Policies and Procedures Manual 2026 made orally or in writing by interested persons or taxpayers. If 50% or more of the registered voters, 6 registered voters, whichever is more, residing within the proposed community facilities district or the owners of 1/2 or more of the area of land in the proposed community facilities district file written protests against the establishment of the community facilities district, the proceedings are abandoned. If the protests are directed toward certain types of facilities or services, or against a specified special tax, those specific items may be eliminated from the resolution forming the community facilities district. The hearing may be continued for up to 30 days without special findings and up to 6 months if the City Council makes specified findings.
4. Resolution of Formation. If the City Council decides to establish the community facilities district, it will adopt a resolution of formation containing similar information as contained in the resolution of intention.
5. Election. If the City Council determines to form the community facilities district, it submits the question of whether special taxes should be levied to an election of the voters (or land owners if less than 12 registered voters preside within the boundaries of the propose Community Facilities District for each of the 90 days prior to the date of the public hearing) of the proposed community facilities district. Combined with the tax proposition, there may be a proposition on the question of incurring bonded indebtedness.
The tax, in order to be levied, must be approved by two-thirds of the votes cast and thereafter levied by adoption of an ordinance of the City Council. The Mello -Roos Act provides that the election shall be at the next general election or at a special election to be held between 90 and 180 days following the close of the protest hearing. The unanimous consent of the qualified electors within the proposed district and the concurrence of the election official conducting the election may shorten the election time limits.
6. Special Tax Bonds. A community facilities district may be created solely to provide the services permitted by statute. However, most community facilities districts have been created specifically for the purpose of levying special taxes to service bonded indebtedness incurred by the community facilities district in order to finance the construction of facilities. Public services and maintenance Districts may also be created.
The proceedings to authorize and incur bonded indebtedness usually parallel the proceedings for the formation of the community facilities district and the authorization to levy the special tax, although the bond proceedings could be conducted separately and at a later date. The proceedings to authorize bonded indebtedness involve a resolution of intention, public hearing and election; all conducted in a manner very similar to proceedings to form the community facilities district and levy the tax. Community facilities district bonds may be sold competitively or through negotiated sales and may bear fixed or variable interest rates.
In some cases, a community facilities district may provide specified facilities for only a portion of the land within the community facilities district. In that event, the Act provides for the formation of improvement areas for which separate elections are conducted and to which a specified special tax applies.
Roles And Responsibilities
• The Finance Director is responsible for administering this policy and procedure. • All employees are responsible for compliance with this policy and procedure. 104
City of Beaumont -Finance Department Policies and Procedures Manual 2026 Definitions
Unless the context otherwise requires, the terms employed in the following policies shall have the meanings specified below:
Bonds: means bonds authorized and issued under the Mello -Roos Community Facilities Act of 1982 or the Municipal Improvement Act of 1911 and the Improvement Bond Act of 1915.
City: means the City of Beaumont.
District: means a community facilities district formed under the Mello -Roos Community Facilities Act of 1982 or an assessment district formed under the Improvement Act of 1911 or the Municipal Improvement Act of 1913, as amended.
Improvement Acts: means the current enabling legislative Acts of 1911, 1913 and 1915.
Mello -Roos Act: means the Mello -Roos Community Facilities Act of 1982.
Public Facilities: means improvements authorized to be constructed or acquired under the Mello -Roos and Improvement Acts including, but not limited to, fees for capital facilities imposed by public agencies as a condition to approval of the development encompassed by the district or as a condition to service the district.
Value or Fair Market Value: means the value established by using the assessed value or the appraisal undertaken to establish value -to -lien ratios for a land -secured financing. 105
City of Beaumont -Finance Department Policies and Procedures Manual 2026 Application
SPECIAL FUNDING DISTRICT
APPLICATION FORM
Proposed Special District: CFD for Facilities
Proposed Name of Project:
SPICER CONSULTING GROUP USE ONLY
Date Received: Amount:
Proposed Special District Number:
DEPOSIT REQUIREMENTS
Total Deposit of S70,000 required at time application is submitted.
S65,000 will be eligible for reimbursement at time bond proceeds are mailable. S5,000 is non-refintdable.
An additional S70,000 will be required for each :one or improvemenl area.
1. IDENTIFICATION OF SUBJECT PROPERTY
Description of Property Include N, S. E &!or W. borders. acrea¢e & tract number} A. APN(s) and/or Master Parcel Number Include all Assessor Parcel Numbers to be included in the Special District Attach Backup (f needed}
in their entirety (XXX-XXX-XXX-X)
B. Tract/Tentative Tract Map Number
Enclose copy of map
C. Recorded Lot Line Adjustments
Enclose copy of document) s)
D. Mapping Status
E. Environmental Permits Required
F. Status of Permits
G. Conditions of Approval Required
By Whom
D Approved
❑ Yes
❑ Application in Process
D Yes
❑ Tentative
❑ No
❑ No
H. Status of Conditions
❑ In Process ❑ Completed
106
City of Beaumont -Finance Department Policies and Procedures Manual 2026 Spec al Dustnct Application
2. PROPERTY OWNER INFORMATION (Attach Grant Deed)
A. Landowner Name(s)
Attach Backup (d needed)
B. Contact Name
C. Title
D. Mailing Information
E. Phone
F. Fax
G. E -Mail
3. CONSULTANT/APPLICANT INFORMATION
A. Company Name
B. Contact Name
C. Title
D. Mailing Information
E. Phone
F. Fax
G. E -Mail
4. ENGINEERING INFORMATION
A. Company Name
B. Contact Name
C. Title
D. Mailing Information
E. Phone
F. Fax
G. E -Mail
5. PROJECT LAND USE (Per Improvement Arca or Zone, When Applicable) A. Number of Taxable Units
B. Proposed Product Mix
C. Base Sale Price Information
D. Number of Taxable Acres
Attach Backup
E. Number of Exempt Acres
Attach Backup
F. Desired Tax Rate Burden
G. Anticipated Absorption
See below
See below
107
per -vromh
City of Beaumont -Finance Department Policies and Procedures Manual 2026
2. COMPOSITION OF DEVELOPABLE ACREAGE
Attach Adait,onal Backup l f needed)
Residential
Commercial -Retail
Business Park
School Site
Plan Number
Apartment, Attached, or Detached
Number of Units
Average Lot Size
Prices
Square Footage of Living Area
Occupancies (See Table Below)
Acreage
Commence Occupancy
(Quarter & Year)
PROPOSED RESIDENTIAL PRODUCT MIX
1 2
3 4
sq. ft.
Quarter & Year
Plan 1
Plan 2
Plan 3
PIT- 4
3. FINANCING STRUCTURES OFFERED TO HOMEBUYERS
❑ FHA
❑ OTHER
❑ VA ❑ VARIABLE
4. FINANCING MECHANICS
A. Preparation of Boundary Map
Attach if possible
B. Preparation of RMA
:mach f possible
C. ProposedJCFAs
Agency Name
Funding Purpose (i.e. fees, facilities)
Name
Contact Name
Mailing Address
Phone
Fax
Email
108
City of Beaumont -Finance Department Policies and Procedures Manual 2026 Agency Name
Funding Purpose (i.e. fees,faolities)
Name
Contact Name
Mailing Address
Phone
Fax
Email
D. Additional Land Secured Financings Proposed
Agency Name & Backup
E. Overlapping Land Secured Financings L. all e,lsa,g specla taxes, as>e;sme-ts & dens as .se I as agency rimels F. ImprovementArea(s)/Zone(s)
G. Basis for Either
H. Initial Levy Fiscal Year
I. Final Levy Fiscal Yeari•;ncc pa�ec!
J. Proposed Capitalized Interest
C Yes C No
Months
K. Proposed Facilities Costs Breakout Between Improvement Areas)/Zone(s)& Type of Facility/Agency L. Summary of Proposed Methodology Proposed Land Use Categories & Method ofApportionment Questions? Contact our Special Tax Consultant, Spicer Consulting Group at 866-504-2067. Thank you.
Attach backup as needed
109
City of Beaumont -Finance Department Policies and Procedures Manual 2026 _Additional Project Information
I . City planning approvals (subdivision approval received to date including processing numbers, dates of approval, current processing status and development agreement reference, if any).
2. Previous names under which this project has been known or processed by the City (list names and dates).
3. Improvements or facilities proposed for accPssment district or community facilities district financing. (Provide a cost breakdown, map and construction timetable for each facilities or improvement proposed.)
4. All existing and proposed taxes, assessments, liens or other secured interests on all property within the proposed district. (Provide a copy of recent property tax bill and proof there are no delinquent property taxes outstanding.)
5. Estimated property value -to -lien ratio including the value of public improvements to be financed (to be documented by letter from MAI appraiser or other qualified party). 110
City of Beaumont -Finance Department Policies and Procedures Manual 2026
6. Prior experience developer/landowner has had with assessment and/or community facilities district financing.
7. Other land development ventures by landowner and/or developer in the City of Beaumont and in California within the last five years (include location. land use summary. period of constriction. etc.)
8. Future plans with sale/development of property (i.e. are you selling it to homebuilders, who? Developing it yourself. etc.)
Other District Formation/Financing Information
1. Project's need for assessment and/or community facilities district financing.
2. Public entities anticipated to own. operate or maintain facilities or improvements proposed.
3. Surrounding property owners which may be affected by or be included in the proposed district financing and percentage of total acreage owned by applicant. (Attach a map identifying their 111
City of Beaumont -Finance Department Policies and Procedures Manual 2026 property locations. affected facilities. and evidence indicating support for the proposed district financing.)
Miscellaneous
1. Indicate whether an application for assessment and/or community facilities district financing has ever been previously denied by the City Council for this property. If so. explain the circumstances and reasons.
2. Indicate whether the landowner/developer and/or joint venture participant have ever been party to an abandoned, defaulted and/or court challenged assessment or community facilities district financing. If so. state when. where. issue size. circumstances and reasons.
3. Do you foresee any unusual requirements, problems. unique opportunities, etc., that may exist in the requested financing of the project?
4. Provide recent financial statements of landowner. developer. joint venture. etc.. or provide lead bankeulender references or other information demonstrating past financial performance. 112
City of Beaumont -Finance Department Policies and Procedures Manual 2026 Submitted By:
Firma
Name
Title
Date
Signature
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City of Beaumont -Finance Department Policies and Procedures Manual 2026 Purchasing and Procurement Procedures
To follow the Purchasing Ordinance, the purchasing of goods or services must follow a standard system of entry, have a reasonable cost, complete documentation, obtain appropriate verification and approval. The Purchasing Module of Tyler Technologies Incode 10 will be utilized to comply with all aspects of the Ordinance. To establish the procedures to be followed for the purchasing and procurement of paper and paper products and recovered organic waste products in compliance with state laws, including SB1383, the Short-lived Climate Pollutant Act.
Ordinance Summary
For Purchases:
City of Beaumont Purchasing and
Contracting Approval
Purchase Type
Aggregated
Purchase Amount
Competitive
Solicitation
Requirement
Contract Type
Delegated
Purchasing &
Contract
Authority
Requirements
from Vendor
Materials, Supplies,
Goods & Equipment
Ord. 1160;
Chapter 3.01
$0.00-$7,499.99
1 Quote
Purchase Order
or Cal Card
Assistant City
Manager,
Deputy City
Manager,
Director, or
Departmental
Director
Quote
$7,500-$59,999.99
1 Quote
Purchase Order
City Manager
Quote
$60,000-$199,999.99
Informal Bid process
-3 Quotes
Purchase Order
City Manager
Quote
$200,000+
Formal IFB Or
Approved
Exception -Piggyback or
Consortium
Formal
Agreement or
Purchase order
(Dependent on
type of purchase)
Staff report and
City Council
approval
Quote/Proposal
*Any subsequent purchases for any given Vendor and in any given Fiscal year above the aggregated purchase amount of $200K+ must go to City Council.
*Requisition must be entered, and P.O. issued prior to order being placed. $0.00-$59,999.99
1 Quote/Proposal
Formal
Agreement &
Purchase Order
City Manager
Quote/Proposal
Certificate of
Insurance
Business License
Delegation of
Authority Signed
Agreement
114
City of Beaumont -Finance Department Policies and Procedures Manual 2026 General Services and
Maintenance Ord,
1097;
Chapter3.01
$60,000-$199,999.99
Informal Bid process
-3 Quotes/Proposals
Formal
Agreement &
Purchase Order
City Manager
approval unless
over $75K On -call
agreement then
City Council
Quote/Proposal
Certificate of
Insurance
Business License
Delegation of
Authority Signed
Agreement
$200,000+
Formal RFP or
approved
exception
(Piggyback or
Consortium)
Formal
Agreement &
Purchase Order
Staff report and
City Council
approval
Quote/Proposal
Certificate of
Insurance
Business License
Delegation of
Authority Signed
Agreement
*Any subsequent Services/PO Change Orders/Agreements for any given Vendor and in any given Fiscal year above the aggregated purchase amount of $200K+ must go to City Council.
*Requisition must be entered and P.O. issued prior to services being commenced. *Agreement may be for a maximum of 5 years: 3 -year w/ two 1 -year renewals
ON CALL AGREEMENTS
and TASK ORDERS
(PROFESSIONALGENERAL
OR PUBLIC WORKS)
$0-$74,999
ON -CALL
AGREEMENTS OR
TASK ORDER
Process based off of
type of agreement
(refer to other sections
for solicitation process)
Formal
Agreement &
Purchase Order
City Manager
Quote/Proposal
Certificate of
Insurance Business
License Delegation of
Authority Signed
Agreement
$75,000+
ON -CALL
AGREEMENT
Process based off of
type of agreement
(refer to other sections
for solicitation process)
Formal
Agreement &
Purchase Order
City Council approval
Quote/Proposal
Certificate of
Insurance Business
License Delegation of
Authority Signed
Agreement
$75,000+
TASK ORDERS
On -call agreements that
are already executed
are used as solicitation.
Previously signed
Formal On -call
Agreement
NEED TO RECEIVE
CITY COUNCIL
APPROVAL EVEN IF
AGREEMENT
PREVIOUSLY
APPROVED
Quote/Proposal
Certificate of
Insurance Business
License Delegation of
Authority Signed
Agreement
Purchase Type
Aggregated Purchase
Amount
Competitive
Solicitation
Requirement
Contract Type
Delegated
Purchasing
& Contract
Authority
Requirements
from Vendor
Professional Services
Ord. 1157,
$0.00-$74,999.99
1 Quote/Proposal
Formal
Agreement &
Purchase Order
City Manager
Quote/Proposal
Certificate of
Insurance Business
License Delegation
of Authority
Signed Agreement
115
City of Beaumont -Finance Department Policies and Procedures Manual 2026 Chapter3.02
$75,000+
Formal RFP or
approved exception
-Piggyback or Consortium
Formal
Agreement* &
Purchase Order
Staff report
and City
Council
approval
Quote/Proposal
Certificate of
Insurance Business
License Delegation
of Authority
Signed Agreement
*Any subsequent Services/PO change Orders/Agreements for any given Vendor and in any given Fiscal year above the aggregated purchase amount of $75K+ must go to City Council.
*Requisition must be entered and P.O. issued prior to services being commenced. *Agreement may be for a maximum of 5 years: 3 -years w/ two 1 -year renewals $0.00-$59,999.99
Proposal
Formal
Agreement &
City Manager
Proposal Certificate
of Insurance
Purchase Order
Business License
Delegation of
Authority Signed
Agreement
$60,000-$199,999.99
Informal Bid sent to
Formal
City Manager
Proposal Certificate
Pre-qual list or posted
Agreement &
approval
of Insurance
in trade journal
Purchase Order
unless over
Business License
Public Works
$75K On -call
agreement
then City
Delegation of
Authority Signed
Agreement
Ord. 1160;
Council
Chapter 3.01
$200,000+
Formal RFB
Formal
Agreement* &
Staff report
and City
Proposal Certificate
of Insurance
Purchase Order
Council
approval
Business License
Delegation of
Authority Signed
Agreement
FORCE ACCOUNT: The Force Account is capped at $75,000. Force account will be managed and monitored by the requesting department and payroll.
*Any subsequent Services/PO Change Orders/Agreements for any given Vendor and in any given Fiscal year above the aggregated purchase amount of $200K+ must go to City Council.
*Requisition must be entered and P.O. issued prior to services being commenced.
Insurance Requirements for Services
General liability (GL)- $1,000,000-$2,000,000
_Business Auto Liability (AL) -$1,000,000/$2,000,000
Workers Comp (WC) -$1,000,000
Professional Liability (PI/E&O)- $2,000,000
Additional Insured required for GL, AL & WC
Builder's risk/Installation Floater (PW only) Pollution Liability Approved Exceptions List (Chapter 3.01.100)
Legal Services No responses received.
Emergencies _ No competitive market
Bidding already completed (Goods only)
Piggyback or Consortium
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City of Beaumont -Finance Department Policies and Procedures Manual 2026 Notes and Exceptions
a. No services should be commenced, or Goods purchased until the Procurement process is completed and the P.O. is issued.
b. In the absence of the approver for a given request, authorization will be obtained by his/her appointee or the next highest authority in accordance with the Authorization Table. c. At no time can purchases be "split" or otherwise billed separately to circumvent the spending authority.
d. With the exception of City Council authorized procurements, increases to previously authorized procurements are permitted if the increased procurements remain within the approver's limit. e. Freight and sales tax are a cost of doing business and shall be included in the total cost of the procurement.
f. City Manager approved contracts will be provided quarterly to the City Council for review by the Purchasing Officer.
Public Projects
As provided in Section 22002(c) of the Public Contract Code, public projects include construction, reconstruction, renovation, improvement, demolition to, installation, and repair work involving any publicly owned, leased, or operated facility or painting/repainting of any publicly owned, leased or operated facility, street or sewer, and the construction or improvement of dams, reservoirs and wastewater treatment plants. A public project does NOT include maintenance work of any kind. Public Projects must follow more specific purchasing rules from what is presented here.
Informal Competitive Bidding (Chapter 3.01.09)
"General services" means all services performed by persons not in a professional occupation, including, but not limited to, contract services for park, electrical and computer repair, building, facility and vehicle maintenance, recreation programs and other similar services which are not professional services.
"Maintenance work" shall have that meaning provided in Section 22002(d) of the Public Contract Code, as that section may be amended from time to time. In addition and to the extent not inconsistent with Section 22002(d), maintenance work shall include, but shall not be limited to, the following:
A. Routine, recurring and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes;
B. Minor repainting;
C. Street and highway maintenance, including utility patching, skin patching, crack filling, filling of pot holes, slurry sealing, edge grading, street striping, resurfacing of streets and highways at less than one -inch, sign replacement, sidewalk repair and replacement, curb and gutter repair and replacement, 117
City of Beaumont -Finance Department Policies and Procedures Manual 2026 and street and traffic light repair and replacement. Maintenance work shall not include striping of a new street or highway;
D.Sewer maintenance, including foaming, videotaping, cleaning and manhole restoration; E.Traffic signal maintenance. Maintenance work shall not include installation of new traffic signals; F. Storm drain related maintenance;
G.Landscape maintenance, including mowing, watering, trimming, pruning, planting, tree and plant replacement, irrigation and sprinkler system servicing, retrofit and repair and landscape rehabilitation; H.Maintenance of facilities, including roof repairs or replacements, heating and air conditioning repairs and electric repairs;
I.Vehicle and equipment maintenance and repairs;
J. Work performed to keep, operate, and maintain publicly owned waste disposal systems, including, but not limited to dams, reservoirs and waste treatment systems. "Professional services" means all services performed by persons in a professional occupation, including, but not limited to, consulting and performance services for legal services, accounting, auditing, computer hardware and software support, engineering, architectural, planning, environmental, redevelopment, financial, economic, personnel, social services, animal control, management, solid waste, cable television, communication and other similar professional functions which may be necessary for the operation of the City. Professional Services are governed by chapter
3.02. "Public project" shall have that meaning provided in Section 22002(c) of the Public Contract Code, as that section may be amended from time to time. A public project shall not include maintenance work.
In addition and to the extent not inconsistent with Section 22002(c), public project shall include, but shall not be limited to, the following:
1.Construction, reconstruction, erection, alteration, renovation, improvement, demolition and repair work involving any publicly owned, leased or operated facility;
2.Street or sewer work except maintenance and repair;
3.Painting or repainting of any publicly owned, leased, or operated facility; and
4. In the case of a publicly owned utility system, public project shall include only the construction, erection, improvement, or repair of dams, reservoirs, and wastewater treatment plants. "Public project formal bidding procedure" means the procedure provided for in Section 3.01.060 which meets the requirements of state and local law, including Public Contract Code 118
City of Beaumont -Finance Department Policies and Procedures Manual 2026 Section 22037, this chapter and any policies and procedures approved by the City Manager consistent with this chapter.
"Public project informal bidding procedure" means a procedure provided for in Section 3.01.070 which meets the requirements of state and local law, including Public Contract Code Section 22034, this chapter and any policies and procedures approved by the City Manager consistent with this chapter.
"Non-public project formal bidding procedure" means the procedure provided for in Section 3.01.080 which meets the requirements of state and local law, including the Public Contract Code, this chapter and any policies and procedures approved by the City Manager consistent with this chapter.
"Non-public project informal bidding procedure" means the procedure provided for in Section 3.01.090 which meets the requirements of state and local law, including the Public Contract Code, this chapter and any policies and procedures approved by the City Manager consistent with this chapter.
Exemptions to Competitive Procurement Procedures for Professional Services (3.02.05)
Upon obtaining approval from the City Council, the Purchasing Officer may engage services of a Professional firm or individual without complying with the competitive procurement procedures in the Following circumstances:
• Legal services
• The services are available only from a single source;or • Public exigency or emergency will not permit delay; or • State or federal grant or loan requirements authorize noncompetitive procurement of such services; or After solicitation from a number of sources, competition is deemed inadequate.
Why Purchase Orders?
A completed purchase order will reserve budget for the applicable line item (termed Encumbrance). Purchase orders are used not only to control vendor terms and pricing, but also to manage the departmental budgets. (See page 10 for examples in Tyler). Purchase orders will be required for all purchases at $7,500 and above.
Purchase Order Exceptions
Certain types of invoices are not subject to purchase orders due to the nature of the cost:
• Utilities — City's monthly services for water, electric and gas usage. • Phone/Internet — City's monthly services for phone and internet usage • Insurance — Health, dental and vision insurance, general liability, and vehicle insurance • JPA costs
119
City of Beaumont -Finance Department Policies and Procedures Manual 2026 • Legal — Attorney, court, and settlement costs
• Regulatory costs — any governmental authority
Requisition Approval Timing
To take advantage of the software system for purchasing, the approval process is being standardized and scheduled as follows:
DAY
Every Wednesday
Every Wednesday
Every Thursday
Every Thursday
Every Friday
APPROVAL
Procurement Specialist
Budget Specialist
Assistant Finance Director
City Manager
Assistant City Clerk
STEP
Interim Step
Interim Step
Interim Step
Interim or Final Step
Final Step
Every Friday, the finance department will process any fully approved requisitions into purchase orders. If a purchase order is urgently needed, please contact the next approval level when the requisition is complete. All attempts will be made to expedite the process when needed.
NOTE: Enter requisitions that relate to City Council approval when the staff report is prepared. Also, during the budget process, when the budget is finalized and approved by City Council, enter requisitions for all known vendors.
City Departments
Using Tyler Technologies Incode 10, enter applicable information into Purchasing Module — Requisitions. (See documentation provided to input the required information). If the department does not have an individual with access to the purchasing system, there is a Request for Requisition form that can be completed. That requisition form and all applicable back-up documentation can be provided to the Finance Office for data entry. Required data entry is as follows:
• GENERAL TAB: Number, Description, Department, Issue Date, Requested By, Auto Approve Checkmark, Ship To, Vendor, and Detailed Description (specific detail of what and why) • ITEM ENTRY TAB: Commodity, Item Description, Ship To, Ordered Amount, Account, Part Number • BID/QUOTE TAB: Information can be attached here only if Bid/Quote is check marked on the General Tab • NOTES TAB: Add note regarding what is attached, Add note regarding how purchasing ordinance was followed (3 bids, informal RFP, formal RFP, sole source, emergency, etc.) • DOCUMENTS TAB: Attach contract, bids, forms, Staff Reports, or any other Approval Levels
DIRECTORS APPROVE UP TO $7,500:
The Director responsible for the Department must approve the requisition before it can advance to the next approval level or be processed into a Purchase Order.
The Budget Finance Specialist must approve that there is budget in the line item(s) of the requisition before it can 120
City of Beaumont -Finance Department Policies and Procedures Manual 2026 advance to the next approval level.
Finance Director or Assistant Finance Director must review and approve the requisition before it can advance to the next approval level or be processed into a Purchase Order.
ABOVE $7,500:
City Manager must review and approve the requisition before it can advance to the next approval level or be processed into a Purchase Order.
City Council Approval:
Deputy City Clerk, as representative of the City Council, must review and approve the requisition before it can be processed into a Purchase Order. Approval amounts based on the purchasing ordinance.
City Council Approval and Purchase Orders:
When City Council approval is obtained for an agreement, that approval shall also serve as authorization for the associated requisition and purchase order. This streamlines the procurement process and ensures timely encumbrance and payment for approved agreements. Departments must still ensure all backup documentation and funding availability are confirmed before proceeding with the requisition. Documentation includes but is not limited to contract/agreement, Certificate of Insurance, Business License, Proposal, RFP (If needed), and/or quotes.
Finance Department
When requisitions have been approved by the applicable levels, the Finance Department will complete the steps necessary to generate a purchase order. The Purchase Order will then be available to the department to print as necessary to complete their vendor order.
Invoices
After the Purchase Order has been approved through all levels, goods may be ordered. Once orders are received and verified, The Director responsible for the Department must approve the Invoice by signing and coding the Purchase Order number to the Invoice. All Invoices must be turned into Finance by 12:00 pm every Tuesday to be paid out in that week's A/P run.
Prepayments
Gov. Code §§ 11019-11019.3 states that prepayment for goods can be looked at as a gift of funds. To follow this code, the City will not allow any prepayments for the purchase of goods.Gov. Code Purchase Order Changes
Following the approval of a purchase order for goods or services, the purchase order may be amended by the issuance of a change order, provided the change is reasonably related to the scope of the original purchase. The Finance Director will maintain control relative to the scoping, estimating, and negotiation of the proposed change order and the availability of funds for the proposed change in the event that the change order increases the cost.
The dollar limits indicated in the Purchasing approval shall apply to the original contract and to any amendments or change orders. To this end, therefore, unless an exception provided applies, any contract amendment or change order which would increase the contract amount above any threshold stated herein shall comply with the requirements applicable to the increased contract amount. Any proposed changes to a purchase 121
City of Beaumont -Finance Department Policies and Procedures Manual 2026 that does not increase the purchase price may be approved by the city manager in accordance with any applicable terms and conditions of the original purchase related to change orders or amendments. Purchase order changes will be completed through the Purchase Order Change Request Form.
Vendor Limit
No employee shall be used for the procurement of goods or services. No International vendor shall be used unless they have a US office that accepts US dollars.
The public procurement process and the people involved are subject to complete public accountability regarding the proper expenditure of taxpayers' money. Public purchasing must guarantee fair and open competition with equal opportunities for every supplier. A unique characteristic of public purchasing is the underlying principle that prices are not as critical as fairness and impartiality in obtaining them.
It is a violation of State Law for any Employee or City Officer to be a part to, or have a financial interest in, any City contract made by them in their official capacity (CA Gov. Code 1090).
Recycled Content Paper and Recovered Organic Waste Product Procurement Requirements
Standard Management Procedure and Purpose
The Purchasing Officer is responsible for and will manage this. The purpose of this Standard Management Procedure is to establish the procedures to be followed for the purchasing and procurement of paper and paper products and recovered organic waste products in compliance with state laws, including SB 1383, the Short-lived Climate Pollutant Act. This policy will replace any existing EPPP Policy.
Section 1.0 - Statement of Policy
It is the policy of City of Beaumont to:
• Purchase products that minimize environmental impacts, toxins, pollution, and hazards to worker and community safety to the greatest extent practicable.
• Institute practices that reduce waste and minimize environmental impacts whenever practicable and cost effective.
• Comply with California State requirements for local agencies to maximize the use of recycled resources and purchase recycled products; (Title 14 CCR, Division 7, Chapter 12; California Public Contract Code 22150-22154).
• Comply with CCR 14 Section 18993.3 and 18993.4 regarding recycled content paper procurement requirements.
• Comply with CCR 14 Section 18993.1 and 18993.2 regarding recovered organic waste product procurement to the best of the city's ability.
• Adopt this policy in support of the City's other environmental and sustainability goals. 122
City of Beaumont -Finance Department Policies and Procedures Manual 2026 • Require vendors, contractors, and grantees to buy recycled content paper and paper products, and when buying mulch and compost, procure such products meeting state requirements for applicability to the City's organic waste product procurement target.
Section 2.0 - Purpose
This Policy is adopted in order to:
• Conserve natural resources.
• Comply with state law.
• Support strong recycling markets.
• Reduce materials that are landfilled.
• Comply with SB 1383 regulatory requirements regarding procurement of recycled content paper products and recovered organic waste products.
Section 3.0 - Specifications
3.1 Recycled Content Products
3.1.1 A significant element of reducing waste contributions to landfills is recycling. Recognizing the impact of government spending on stimulating the recycling industry, the State has imposed requirements on the procurement of recycled products by local agencies. The California Public Contract Code (PCC) Sections 22150-22154 outline these requirements. The City will give preference to buying the recycled content products as outlined in the PCC whenever recycled products are available at the same or lesser cost and fitness and quality are equal. Also, in accordance with the PCC, and SB 1383 regulations, the City will require the vendor to certify the recycled content and the recyclability of the products being provided.
3.1.2 City staff shall strive to incorporate the requirements the U.S. EPA has established for various materials, such as those for construction, landscaping, parks and recreation, transportation, vehicles, miscellaneous, and non -paper office products. The programs, known as the Comprehensive Procurement Guidelines (CPG) and Recovered Materials Advisory Notice (RMAN), are updated periodically to identify categories of material for which there are recycled content alternatives and the recommended recycled contents.
3.1.3 Printing paper and writing papers and paper products and janitorial paper products shall contain the highest postconsumer content practicable, but no less than 30 percent by fiber weight, postconsumer fiber, as outlined in Sections 22150-22154 of the Public Contract Code and as defined in Section 12209 of the Public Contract Code.
3.1.4 Vendors shall certify in writing, under penalty of perjury, as to the minimum percentage of postconsumer material in the Paper Products and Printing and Writing Paper, and janitorial paper offered or sold to the Jurisdiction.
A sample certification is contained at the end of this policy. This certification requirement may be waived if the percentage of postconsumer material in the Paper Products, Printing and Writing Paper, and/or Janitorial Paper can be verified by a product label, catalog, invoice, or a manufacturer or vendor internet website. These products shall also be certified to be eligible to be labeled with an unqualified recyclable label as defined in Title 16 Code of Federal Regulations Section 260.12 (2013).
3.1.5 Copiers and printers bought shall be compatible with the use of recycled content products. When necessary, suppliers shall train equipment maintenance personnel in the appropriate use of recycled products with their equipment.
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3.2 Recovered Organic Waste Products
3.2.1 City Workers and contractors providing landscaping services for City of Beaumont shall employ sustainable landscape management practices whenever possible, including:
• The use of Integrated Pest Management (IPM), including minimal pesticide use, is encouraged. • Meeting all MWELO requirements including use of compost and mulch; compost and mulch shall meet the definitions contained in this policy. Records shall be maintained and submitted to the City documenting such use.
• Recycling of plant debris by composting and/or maintaining a minimum 2 -inch layer of mulch under all trees, shrubs, and groundcovers and a minimum 3 -inch layer in all open areas is strongly encouraged.
Allowing leaf drop to become part of the mulch layer in tree, shrub and groundcover areas is preferred. • Compost purchased by or for the City, or at the City's behest, by its landscaping service providers or other contractors shall meet the definition of compost in this policy and shall be eligible to help the City meet its SB 1383 organic waste product procurement target.
• Mulch purchased by or for the City, or at the City's behest, by its landscaping service providers or other contractors or direct service providers shall meet the definition of mulch in this policy and shall be eligible to help the City meet its organic waste product procurement target. Such mulch shall meet or exceed the physical contamination, maximum metal concentration and pathogen density standards for land applications specified in 14 CCR Section 17852(a)(24.5) (A)(1) through (3). Mulch shall be made from recycled or post -consumer materials rather than inorganic materials or virgin forest products unless the recycled post -consumer organic products are not available.
Section 4.0 - Definitions
Buyer means anyone authorized to purchase on behalf of this jurisdiction or its subdivisions.
Contractor means any person, group of persons, business, consultant, designing architect, association, partnership, corporation, supplier, vendor, or other entity that has a contract with City of Beaumont or serves in a subcontracting capacity with an entity having a contract with City of Beaumont for the provision of goods or services.
Direct Service Provider means a person, company, agency, district, or other entity that provides a service or services to the City pursuant to a contract or other written agreement or as otherwise defined in 14 CCR Section 18982(a)(17).
Paper Products include but are not limited to paper janitorial supplies, cartons, wrapping, packaging, file folders, hanging files, corrugated boxes, tissue, and toweling; or as otherwise defined in 14 CCR Section 18982(a)(51).
Postconsumer-Material means a finished material which would normally be disposed of as a solid waste, having reached its intended end -use and completed its life cycle as a consumer item, and does not include manufacturing or converting wastes.
Preconsumer Material means material or by-products generated after manufacture of a product is completed but before the product reaches the end -use consumer. Preconsumer material does not include mill and manufacturing trim, scrap, or broke which is generated at a manufacturing site and commonly reused on -site in the same or another manufacturing process.
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City of Beaumont -Finance Department Policies and Procedures Manual 2026 Printing and Writing Paper includes, but is not limited to, copy, xerographic, watermark, cotton fiber, offset, forms, computer printout paper, white wove envelopes, manila envelopes, book paper, note pads, writing tablets, newsprint, and other uncoated writing papers, posters, index cards, calendars, brochures, reports, magazines, and publications; or as otherwise defined in 14 CCR Section 18982(a)(54).
Recycled -Content Paper Products and Recycled -Content Printing and Writing Paper and janitorial paper products" means such products that consist of at least thirty percent (30%), by fiber weight, postconsumer fiber, consistent with the requirements of Sections 22150 to 22154 and Sections 12200 and 12209 of the California Public Contract Code, and as amended.
Recovered organic waste products means products made from California, landfill -diverted organic waste processed at a permitted or otherwise authorized operation or facility. Such products include SB 1383 eligible mulch and SB 1383 eligible compost (see definitions below).
SB 1383 Eligible Compost means the product resulting from the controlled biological decomposition of organic solid wastes that are source separated from the municipal solid waste stream or which are separated at a centralized facility or as otherwise defined in 14 CCR Section 17896.2(a)(4). Compost eligible for meeting the annual recovered organic waste product procurement target must be produced at a compostable material handling operation or facility permitted or authorized under 14 CCR Chapter 3.1 of Division 7 or produced at a large volume in -vessel digestion facility that composts on -site as defined and permitted under 14 CCR Chapter 3.2 of Division 7. Compost shall meet the State's composting operations regulatory requirements.
SB 1383 Eligible Mulch means mulch eligible to meet the City's Annual Recovered Organic Waste Product Procurement Target, pursuant to 14 CCR Chapter 12 of Division 7. This SB 1383 Eligible Mulch shall meet the following conditions as specified by 14 CCR Section 18993.1(f)(4):
1. Produced at one of the following facilities:
i. A compostable material handling operation or facility as defined in 14 CCR Section 17852(a)(12), that is permitted or authorized under 14 CCR Division 7, other than a chipping and grinding operation or facility as defined in 14 CCR Section 17852(a)(10); SB 1383 Eligible Mulch excludes mulch from chipping and grinding operations.
ii. A transfer/processing facility or transfer/processing operation as defined in 14 CCR Sections 17402(a)(30) and (31), respectively, that is permitted or authorized under 14 CCR Division 7; or, iii. A solid waste landfill as defined in Public Resources Code Section 40195.1 that is permitted under 27 CCR Division 2.
2. Meet or exceed the physical contamination, maximum metal concentration, and pathogen density standards for land application specified in 14 CCR Sections 17852(a)(24.5) (A)1 through 3.
U.S. EPA Guidelines means the Comprehensive Procurement Guidelines established by the U.S. Environmental Protection Agency for federal agency purchases as of May 2002 and described at http://www.epa.gov/epaoswer/non-hw/procure/products.htm , or as updated.
Section 5.0 - Implementation
5.1 Purchasing Officer shall help departments implement this policy including the following activities:
• Educating managers and staff about City of Beaumont's Recycled Content Paper and Compost and Mulch Procurement Policy.
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City of Beaumont -Finance Department Policies and Procedures Manual 2026 • Ensuring that purchasing documents, specifications, and contracting procedures do not contradict each other and do not deter or inhibit the purchase of recycled content products as described in this policy. • Providing information to facilitate the evaluation and purchase of environmentally preferable products, including identifying appropriate products and sources and providing technical assistance. • Evaluating obstacles to purchasing such products in order to create solutions, • Tracking and recording progress in achieving successful results. • Tracking and maintaining a record of recycled content paper purchases and SB 1383 compliant compost and mulch in an SB 1383 implementation record. Such records shall include proof of purchase describing procurement of paper products by volume and type for all paper purchases and copies of certifications or other verifications required of recycled content and recyclability. All invoices or other records showing procurement of SB 1383 compliant compost and mulch shall also be kept in the City's SB 1383 implementation record.
5.2 In compliance with State law, vendors shall be required to specify and certify the minimum or actual percentage of recovered and postconsumer material in their products, even when such percentages are zero. Such information shall be provided with each invoice provided to the city for paper and paper products, including janitorial paper products.
5.3 All contracts and grants providing services or products to the City of Beaumont shall adhere to the guidelines stated in this policy to the extent possible.
Section 6.0 - Program Evaluation and Measurement
6.1 Purchasing Officer shall institute a system for tracking recycled content paper procurement and procurement of SB 1383 eligible compost and mulch in compliance with 14 CCR Section 18993.4 and Section 18993.2. Copies of invoices, receipts or other proof of purchase that describe the procurement of paper products by volume and type for all paper purchases will be maintained as part of the City's required SB 1383 implementation record (14 CCR Section 18995.2). Copies of certifications or other verification of recycled content and recyclability will also be kept.
Copies of invoices and receipts demonstrating procurement of SB 1383 eligible compost and SB 1383 eligible mulch shall also be maintained in the SB 1383 implementation record.
6.2 Departments that independently purchase paper and paper products and compost and mulch will report the required information noted in 6.1 to the Environmental Services Manager each quarter.
Section 7.0 - Effective dates
7.1 This policy shall take effect on August 16, 2022.
Exception
Exceptions to this policy may be authorized by the City Council. 126
City of Beaumont -Finance Department Policies and Procedures Manual 2026 Grant Policies and Procedures
Definition and Purpose
The definition of a grant for purposes of this policy is as follows: An award of financial assistance in the form of money or property by a funding source including the federal government, state government, other local governments, non-profit agencies, and private businesses and citizens that the City can accept or reject.
The purpose of the grant procedures outlined in this document is:
1. To ensure proper oversight of all funds awarded to the City.
2. To minimize the City's risk of losing funding due to non-compliance with grant requirements.
3. To ensure proper administration and accounting of all grants.
Scope
This policy is applicable to any City of Beaumont program, department, or fund division preparing and submitting grant applications to agencies outside the City government for funds, materials, or equipment to be received and administered by the City or by an entity for which the City acts as fiscal agent. The goals and objectives of the City departments should be established early in the planning process and should not change based on changes in the availability of different funding sources sought and received. If grant policies and regulations conflict with regulations and policies of the City, the federal and state regulations will prevail unless they are less restrictive than City policies where City policy prevails.
No grant will be accepted that will incur management reporting costs greater than the grant amount. Such costs include, but are not limited to, indirect costs, overhead and any other items needed to administer the grant.
Central Responsibility
The City Council authorizes the Administrative Services Director and Finance Director to promulgate any procedures and controls that minimize the City's risk for non-compliance with grant requirements and the Administrative Services Director or their assigned designee for providing support to requesting agencies. The Administrative Services Department will maintain the back-up file for all grants in order to facilitate management, reporting and overall monitoring. The required central grant file will be maintained by the department seeking grant funds and must be retained in accordance with City of Beaumont retention policy.
For Federal Grants, the Department applying for the grant and the Finance Department should ensure compliance with the Federal Office of Management and Budget (OMB) general requirements and any other state and/or federal requirements specified in the grant conditions. The Administrative Services Depaitiiient and Finance Department will review expenditures for obvious non-compliance and will act as liaison with independent auditors. All City programs, departments, and fund divisions shall submit any/all grant information required by the Administrative Services Department to carry out its oversight responsibilities. 127
City of Beaumont -Finance Department Policies and Procedures Manual 2026 Grant Application Procedures
4.1 The City program, department, or fund division desiring to submit a grant application soliciting funds will prepare the request as outlined by the grantor's requirements. Grant applications will be reviewed by the depar lruent(s) seeking grant(s) in order to make an independent assessment of all financial aspects of the application to ensure funds availability. The department director should sign the grant application as approval that funds are available and that they are supportive of the fiscal impacts to their department. The department applying for the grant should make every effort to project all initial and ongoing costs associated with the grant program including but not limited to staff support, needed assistance for computer systems, office space, utilities, systems furniture, vehicles, office equipment, office supplies, computer software and hardware, and/or telephone charges.
4.2 Upon the department completing its financial assessment, they shall prepare and submit a Grant Processing Request Form (Appendix A) to the Administrative Services Department with the original grant application, along with any required assurances and conditions prior to developing the application. This Form must be approved by the City Manager prior to the grant application being started. The purpose of this from notification to Administration is to eliminate duplication of submissions by City departments for the same grant, to allow Administrative Services to maintain a comprehensive list of pending grant applications as well as active grants, to provide assistance as appropriate to departments in the preparation and administration of grants, and to ensure availability of matching funds, where applicable. The Administrative Services department will obtain the City Manager's approval and notify the department that the application has been approved. Administrative Services will also send a Memorandum of Understanding, if necessary, on the grant's requirements to the department applying for the grant and will assist departments on inquiries concerning compliance issues.
4.3 The Administrative Services Department will request additional information or revised submittals if needed.
The Administrative Services and Finance Departments will work with the departments to ensure the availability of funds. For those grant applications where a Grant Processing Request Form has not been submitted within a reasonable time, Administrative Services will follow up with the applicable department to see that the proper procedures are followed. Grant applications shall not be submitted to the grantor entity prior to the Administrative Services Department receiving and the City Manager approving the Grant Process Request Form. In some cases, the grant application shall not be submitted until approved by the City Council.
4.4 Any grant pertaining to technology will be required to complete a Technology Service Request (Appendix B) Form and forward it to the Administrative Services Department before applying for the grant. City of Beaumont's Software/Hardware standards and IT staffing must be considered for any software/hardware purchases. IT staff must make assurances that any equipment/software purchased will be technologically compatible and can be supported in years to come.
4.5 If the grant is incorporated into the Adopted City of Beaumont Budget and appropriated, then no additional Board approval is required for the application and acceptance of the grant, unless otherwise required by individual grant requirements. However, supporting documentation to assist in monitoring of the grant 128
City of Beaumont -Finance Department Policies and Procedures Manual 2026 shall be forwarded to the Administrative Services Department for their records.
4.6 All grant award acceptances must have approval from the City Council. This action involves preparation of a City Council agenda item for inclusion on the next regular meeting agenda for consideration. In order for an item to be considered at a board meeting, the department must forward the required staff report and any necessary documentation to the City Clerk's office in accordance with the City's agenda procedures. Please refer to the City Council calendar or consult with the City Clerk's office for additional information on the agenda deadlines. In the event that a grant cannot be presented at City Council due to a short timeline, staff are required to bring the grant to City Council at the first available meeting for ratification.
4.7 Work on any grant -funded project shall not begin until a fully executed grant agreement is in place, signed by both the City and the grantor. This includes the initiation of purchases, project planning, or any related activities. Initiating work prior to the execution of the grant agreement may result in non -reimbursable expenditures or noncompliance with grant terms and conditions.
Note:Some grants may allow for pre -award costs. These exceptions should be evaluated on a case -by - case basis in collaboration with the Department Director and the Grants Analyst to ensure the costs allowable are properly documented.
4.8 If a grant application is denied by the grantor, a copy of the letter of denial shall be forwarded to the Administrative Services Department for their records. In addition to the letter of denial, the depth intent which submitted the grant shall draft and submit a summary of the denial to the Administrative Services Department for their records.
Grant Acceptance Procedures
5.1 Whenever possible, all requests for acceptance of grants of a recurring nature should be submitted to the Finance Department through the normal budget process that must be approved by the City Council.
5.2 The grant award letter/acceptance agreement (notification received detailing the amount of the grant awarded, grant assurances and special conditions, and the guidelines that must be followed to comply with the grant requirements) will be forwarded to the Administrative Services Depai anent, who will review the grant award for reporting requirements, special conditions, and deadlines related to administering the grant.
5.3 If deemed necessary by Administrative Services Director and time permits, the Administrative Services Department may forward the grant award letter/agreement to the City Attorney for legal review of any clauses or grant special conditions to ensure compliance with Federal or state laws.
5.4 In order for expenditures to be processed against a grant, a budget appropriation must be established using procedures and limits set forth in the City of Beaumont Financial Management Policy. The department requesting a grant will work with the Finance Department to prepare a City Council agenda item requesting appropriation of grant funds, unless the grant has already been approved by the City Council as part of the adopted annual budget process.
5.5 Upon obtaining a copy of the Council action approving a grant, the Finance Department will assign an 129
City of Beaumont -Finance Department Policies and Procedures Manual 2026 account code to the grant and the applicable department will be notified of the account code. For reimbursable grants, all reimbursement requests should be copied and forwarded to Administrative Services and Finance Departments, noting the applicable account code for the receipt of the funds. The Finance Department will notify the departments of such anticipated receipts of revenue for those reimbursements made to the City. The Finance Depai liiient will track receipts for reporting with annual audits.
5.6 Departments should notify the Administrative Services and Finance Departments if:
A. There is a subsequent alteration in the funding configuration.
B. There is a subsequent alteration in the City's fmancial obligation.
C. Grant funds will be carried forward into the next fiscal year.
D. There are any notifications that the grant will be terminated.
5.7 Departments shall process Personnel action/status forms at year end for those grants that have new account numbers each year, to eliminate necessary future adjustments.
5.8 Depailiiients are responsible for ensuring that all funds are expended or encumbered prior to the end of the grant period, for funds to be used adequately and not lost in future award periods.
Grant Master File and Fiscal File
6.1 Grant Master File
The program manager is required to maintain a grant master file in order to document all major actions from the grant award through closeout. The master file should include the following documents:
A. Grant Application: Funding opportunity announcement and the original grant application that was submitted to the awarding agency.
B. Grant Award Documents: Grant award, terms and conditions, assurances, award modifications, and approved Request for Council Action (RCA) for the acceptance of the award. Also include subrecipient agreement if portion of the award was transferred to a subrecipient.
C. Financial Documents: Approved budget and budget amendments.
D. Grant Reports: Periodic and Final Financial and/or Performance reports including any communications regarding these reports.
E. Grant Reimbursement/Payment Requests: Reimbursement/Payment Request form, supporting documents including copy of invoices, copy of transmittal letter, copy of check payment or EFT notification, and copy of Deposit Transmittal Form (DTF).
F. General Communications: Internal or external communications pertaining to the grant.
6.2 Fiscal File
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City of Beaumont -Finance Department Policies and Procedures Manual 2026 To assist in administering the grant, the Administrative Services Department should also maintain a fiscal file. The fiscal file contains all documentation related to the financial history of the grant. To ensure the creation of the fiscal file, the program manager should provide the following documents to Administrative Services:
A. Executed copy of the grant Award and approved RCA
B. Terms & Conditions
C. Award modifications
D. Approved grant budget
E. Budget modifications
F. Financial Reports
G. Reimbursement/Payment Requests and supporting documentation Grant files must be retained in accordance with the City of Beaumont's file retention policy or, for federal awards, the retention requirements for records per 2 CFR 200-333, whichever is more restrictive.
Grant Monitoring and Reporting
7.1 Monitoring of Grants
7.1.1 Departments are responsible for continuous monitoring of the financial status of grants. The Finance Department will provide depaitiiients with regular access to monthly fmancial reports for such monitoring. This report will include information, such as money already expended, remaining funding, budget to actual analysis, payments already received, grant receivable or advance payment balance, and if applicable, matching funds already provided. Departments must review the monthly fmancial reports and notify the Administrative Services and Finance Departments promptly of any discrepancies noted and/or any additional reports needed.
7.1.2 Line -item budget amendments must be approved prior to grant expenditures being made in order to avoid loss of funding or denial of reimbursement. Line -item adjustments must be completed in accordance with the awarding agency's policies and procedures. Line items can go negative, as long as the grant account is not negative in total if the granting entity allows it, but the department should remember that expenditures must be reported to the grantor by line item and must be allowable in the line item reported and spent.
7.1.3 Departments must also monitor grants for compliance with all applicable federal, state, and local regulations and ensure that grant expenditures remain in compliance with grant procurement policies and procedures. For example, equipment procured with grant funds must be disposed of in accordance with the terms of the grant and OMB Circular A-87 requires payroll costs to be supported properly based on the percentage worked on the grant. Federal grants must meet requirements set out in OMB Circulars A-87, A-102, and A-133 or the Uniform Grant Guidance, as applicable. Departments should contact Administrative Services and/or Finance if assistance is needed with compliance issues. 131
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7.1.4 Depai tments shall require Sub -recipients of grant funds to prepare and submit progress reports to the City.
Departments shall notify all sub -recipients of the grant's compliance requirements, reporting requirements, and cost principles. Departments shall establish periodic monitoring meetings with sub - recipients to ensure grant compliance. Subrecipients shall provide a written acknowledgement that they have received and agree to the items detailed above and any other requirements explained by the City.
7.2 Grant Reporting
7.2.1 The requesting department is responsible for providing performance and financial reports to grantors. If it is determined that the report preparation is to be handled by the Administrative Services or Finance Department, this must be indicated on the Grant Processing Request Form. In some cases, grantors may prohibit the same individual from submitting both performance and financial reports. If the program manager identifies this scenario, or something similar they shall notify the Administrative Services Department who will designate a different party to perform the financial report.
7.2.2 Departments handling grant reporting are responsible for complying by the due dates with all reporting requirements of the grant including financial reporting and reimbursement requests. All reimbursement requests should be copied and forwarded to Administrative Services and Finance for review and monitoring of timeliness of revenue reimbursements.
7.2.3 Timely requests for reimbursements are crucial to maximize the financial benefits of the grants to the City. Grant reimbursements should be completed in a timely manner and in accordance with the requirements of the specific grant.
Indirect Costs
8.1 Grant applicants may request indirect costs if the application guidelines do not require federally approved indirect cost rate and indirect cost are allowed in the grant. Departments should contact the Finance Department for assistance with identifying and calculating indirect costs for inclusion in grant applications.
These funds may be used by the Finance Department to offset costs in overseeing the grant including staff time, external auditor expenditures, etc.
Personnel
9.1 Any new personnel positions to be created as a result of grant funding must be approved by the City Manager and City Council, and properly classified by Human Resources. Departments are to promptly notify Payroll each year of coding changes needed for those persons being charged to grants since project/grant codes may change each year. (Coding changes are noted on personnel action/status forms and turned into Human Resources by the applicable depaitiiients.) The Depai tiiient applying for a grant that will create a new position(s) shall prepare a staffing plan and submit such plan to the Administrative Services Department.
The staffing plan should include the duration of the position(s) (temporary or permanent), detail the work to be performed by the new position(s), and describe how the position(s) will be funded upon the expiration of the grant funding.
9.2 Where employees are 100% federally funded by a grant, salaries and wages will be supported by quarterly certifications stating that the employee worked solely on that program for the period covered by the 132
City of Beaumont -Finance Department Policies and Procedures Manual 2026 certification. The certification must be signed by the supervisory official having firsthand knowledge of the work performed by the employee. Where employees are partially federally funded, their daily tasks must be listed on Daily Activity Logs if provided by the grantor to support the percentage of time spent working on the grant. Distribution percentages determined before the services are performed do not qualify as support for charges to Federal awards. For example, someone working 75% out of federal funding and 25% out of local funding must complete the daily activity log to substantiate the percentages.
9.3 Any employee whose salary is paid in part by a grant must develop an activity log that will allow him/her to track actual times and effort performed for the grant. When completing the required bi-weekly timesheet, the employee must itemize time by activity, indicating the account number and for each activity.
The program manager will review/sign the timesheet ensuring the following: (1) total hours allocated to the grant based on actual hours recorded in the employee's activity log; and (2) the account numbers and project account codes being used are correct ensuring proper distribution of wages. Once reviewed, the program manager will forward the timesheet to the department head for approval/signature. Once approved by the department head, it will go to the Administrative Services Department to the attention of the payroll technician for processing. Personnel costs that are to be funded using Grant funds may not be used for compensatory time.
Grant -Related Procurement and Policy Issues
10.1 Procurement Using Grant Funds
When submitting purchase requisitions with the intention of using grant funds, the department head or program manager must clearly indicate the source of funding for the procurement. The depai liiient head or program manager must also communicate to the Finance Department the applicable procurement standards for the grant, preferably via e-mail. The Finance Department must review the grant procurement standards and incorporate them, if necessary, in the procurement process.
10.2 Procurement Using Federal Grant Funds
10.2.1 The Finance Department must be notified that federal funds are involved for all purchases with federally funded grants, regardless of the dollar amount involved.
All purchases, of any amount, made with federal grant funds must comply with the following requirements detailed in Section 14 below.
10.2.2 If federal funding is involved, the department head, program manager and Finance Department must ensure the procurement standards outlined in 2 CFR 200-320 and the required suspension and debarment testing- 2 CFR 200-214 - for covered transactions are met. Covered transactions include procurement of goods and services that equal or exceed $25,000, non -procurement transactions as defined in 2 CFR 180.970 and subcontracts/sub awards that equal or exceed $25,000.
10.2.3 List of debarred or excluded vendors can be found in the System for Award Management web page and can be accessed at the following address: http://www.sam.gov . From there, go to Search Records at the top left of the page, and search for your vendor by name. You will receive a message showing whether your vendor is excluded or not. If excluded, you shall not purchase from that source. If there are no records matching the search request, you may purchase from that vendor, assuming all other 133
City of Beaumont -Finance Department Policies and Procedures Manual 2026 purchasing and grant requirements have been met. In either case, please print out the pages for your grant file, to show compliance with this requirement.
10.2.4 A copy of the required certification related to the suspension and disbarment of the vendor MUST be obtained before any funds are spent. The program manager must document the result of the sam.gov search in the grant Master file and fiscal file and be made available to the department head, Administrative Services Department, Finance Department and/or external auditors upon request.
10.2.5 In some cases, the City of Beaumont's procurement standards may be more restrictive than the grant's procurement standards. For example, 2 CFR 200-320 allows the use of procurement by small purchase method when acquiring goods or services that do not cost more than the simplified acquisition threshold (currently at $150,000). In this method of procurement, informal solicitation of price or rate quotes from an adequate number of sources is acceptable. However, the City of Beaumont's procurement policy (BMC; Chapter 3) requires an informal competitive bid for purchases between $45,000 and $175,000. In such a circumstance, the program manager must follow the City of Beaumont's procurement standards because it is more restrictive.
10.2.6 The Finance Department also needs to be notified so that assets acquired using Federal funds can be properly identified. Equipment items purchased with federal funds that cost $5,000 or more are to be tagged when purchased so that proper disposal procedures can be followed when items are sold or sent to surplus. Federal equipment should be inventoried at least every two years in order to be properly safeguarded against theft, damage, or loss. Inventory records should be maintained in accordance with State Library Regulations. Also, land purchases made with grant funds often have land use restrictions which will be discussed with the City Attorney's office to ensure restriction compliance. When assets acquired with Federal funds are no longer used in the grant program (i.e., grant has expired, asset was lost, stolen, or damaged, or asset became idle) the grantor must be notified. The Federal Government may be due a portion of the proceeds for equipment items with a book value of $5,000 or more at the time of disposition. If the federal entity is compensated for the current fair market value of the item, the equipment may be retained by the entity.
10.2.7 Grantees should follow the City's and/or grantor's policies and procedures for all practices including procurement for the selection of contractors and vendors. If grant applications have special conditions, a copy of such must be given to the Administrative Services and Finance Departments for assistance in compliance monitoring. If grant guidelines require grantees to abide by different procurement procedures other than those adopted by the City, the grantee should resolve the situation with the Finance Department prior to submitting the application. As a rule, the federal and state regulations prevail unless less restrictive than City policies -where City policy prevails.
Classification of Grant Revenue
A11 federal, state, and local grant revenue should be receipted as revenue as opposed to expenditure refunds in order to remain in compliance with approved grant policies and GAAP revenue recognitions requirements. Budgets of expenditures for revenues received are obtained through the City of Beaumont Financial Management Policy and as previously described in above paragraphs.
Year-end Procedures
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12.1 Indicate clearly on the June and July invoices which fiscal year (prior or current) they are to be posted.
Only goods and services received prior to July 1st can be posted back to the prior year. Receipts received in July and August for prior year expenditures should be reconciled promptly.
12.2 Ensure all funds are expended or encumbered prior to the end of the grant period so that funds will be used adequately and not lost in future award periods.
Grant Closeout
13.1 A grant is considered completed when all work funded by the grant is completed or the grant's period of performance ends. If work cannot be completed within the specified period of performance, the program manager is responsible for ensuring that a continuation or no -cost extension is requested in a timely manner. All continuation or no -cost extension requests should be submitted to the Administrative Services Department for review and approval prior to submitting the request to the grantor.
13.2 Each grant has specific closeout procedures to which the City must adhere to. The closeout documentation and the due dates for submission of required final reports and final payment request are stated in the terms and conditions of the award. The program manager must see to it that all the required work for the grant is completed, no further expenditures are incurred after the grant's period of performance and all invoices are paid and posted to the accounting software before finalizing the final financial report and the final payment request.
13.3 To ensure accuracy of the final financial report and final payment request, the program manager must obtain a final grant recap from the Finance Department and an account summary report covering the grant's period of performance. These reports must be reviewed and reconciled. Once the final financial report and fmal payment request have been prepared, it will be submitted to the department head or appropriate City management personnel for review to ensure they are mathematically accurate and supporting documentation agrees to the final financial report/fmal payment request. The department head or City management personnel will send the program manager an email indicating review and approval of the prepared final financial report/final payment request.
13.4 The program manager is responsible for complying with the due dates specified in the award terms and conditions.
Detailed Federal Grant Procurement Policy
14.1 Purpose
The City of Beaumont is a potential recipient of Federal Grant Funds and as such, is required to confirm with Federal laws and standards identified in 2 CFR 200.318-326. Therefore, procurements in which federal funds are contemplated or used must be conducted in accordance with federal procurement requirements. This policy explains the City Procurement Policy with respect to federally funded procurements by providing a cross-reference between federal procurement regulations, explains the applicable City procurement policy and how it conforms to federal requirements. CFR Reference: 2CFR 200.318(a)
14.2 Procedures
City staff shall consult this policy when dealing with any procurements in which federal funds are contemplated or used. This document will be updated as needed to reflect changes in federal regulations. All procurements in which 135
City of Beaumont -Finance Department Policies and Procedures Manual 2026 federal funds are contemplated or used must be conducted in accordance with federal procurement requirements.
This policy explains the applicable City procurement policy and how it conforms to federal requirements. Note, certain grants will have additional procurement requirements, i.e., Buy America. In those instances, all procurement requirements identified in the circular shall also apply.
14.3 Policy
General Government Standards
CFR Reference: 2CFR 200.318
14.3.1 Goal
All purchasing functions are to be conducted with the highest ethical standard. Department directors, division managers and employees must remain constantly aware of their responsibilities when spending public funds. The Finance Department will provide a purchasing process that implements and maintains the requirements of the City Municipal Code Chapter 3.0 and provide a centralized purchasing system to:
A. Establish a purchasing program providing for competitive bidding in the open market and obtaining the greatest possible advantage to the City.
B. Provide a cost-effective purchasing process utilizing high ethical standards.
C. Obtain the appropriate quality of materials and services at the lowest ultimate cost and in a timely manner.
D. Provide a system to purchase, using effective fiscal controls that ensure adherence to budget, expenditures, and encumbrances. Obtain appropriate levels of approval as established herein.
E. Award purchases to the lowest responsive and most responsible vendors meeting specifications and city requirements.
F. Promote and maintain good relationships with vendors. City staff shall deal in a professional manner and promote equal opportunity, fairness, and courtesy in all vendor relations.
14.3.2 Staff Responsibilities
It is the responsibility of all City of Beaumont staff assigned to purchase materials, equipment, supplies and services for all City functions to follow the established Procurement Process. These purchasing activities shall be conducted in the most economical and efficient manner.
14.3.3 Responsibilities of the Finance Department
Pursuant to the City Municipal Code the Finance Director is responsible for the administration of purchases for all City departments. The City Municipal Code provides for the delegation of some or all the purchasing responsibilities to the department director and to his/her designee. With the promulgation of this provision, department directors are responsible for ensuring their department purchases are made in accordance with the Purchasing Guidelines and the approved Annual budget. The Finance Director is responsible for oversight of the various departments and to ensure adherence to the rules and regulations of the City Municipal Code Chapter 3. The Finance Director will assist department directors/designees to comply with the requirements of the purchasing guidelines. 136
City of Beaumont -Finance Department Policies and Procedures Manual 2026 The Department director may delegate the authority of procurement to staff member(s) within his/her department and division. The designated staff carries the full responsibility for the purchasing processes designated to them.
14.3.4 Code of Ethics
A. Regard public service as a sacred trust, giving primary consideration to the interests of the City.
B. Purchase the best value obtainable, securing the maximum benefit for each tax dollar expended.
C. Allow for full and open competition and not participate in uniform bidding.
D. Know and respect their obligations to the public, private sector and using agencies.
E. Accord vendor representatives' courteous treatment remembering that they are important sources of information and assistance in purchasing decisions.
F. Avoid all appearances of unethical or compromising acts during interaction with vendors.
G. Ensure that all vendors have the opportunity to participate in the bidding procedure.
H. Strive constantly for greater knowledge of purchasing methods and of the goods and services to be procured.
I. Conduct one -self with fairness and dignity, and demand honesty in buying and selling.
J. Remember that their conduct reflects on the City.
14.3.5 Conflict of Interest
No officer or employee of the City having any supervisory authority to purchase any specific goods, services or construction for the City shall be engaged in the selection, award, and administration of contracts. No employee, officer, or agent may participate in the selection, award, or administration of a contract supported by a Federal award if he or she has a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract.
14.3.6 Gratuities
The Finance Director and all other officers and employees of the City are prohibited from accepting directly or indirectly from any person to whom any purchase order or contract is, or might be, awarded, any rebate, kickback, gift, money, or other unlawful consideration. The offer of such gratuity to an official or employee by any supplier or contractor shall be cause for declaring such individual to be an irresponsible bidder and for preventing such supplier or contractor from bidding. The City may elect to audit any supplier or contractor documents as it pertains 137
City of Beaumont -Finance Department Policies and Procedures Manual 2026 to this section.
14.3.7 Pre -Solicitation
A. The Finance Director and all other officers and employees of the City procuring with federal funds must avoid acquisition of unnecessary or duplicative items. Consideration should be given to consolidating or breaking out procurements to obtain a more economical purchase. Where appropriate, an analysis will be made of lease versus purchase alternatives, and any other appropriate analysis to determine the most economical purchase. CFR Reference: 2CFR 200.318(d)
B. Where advantageous for the City, when competitively bid and awarded and to foster greater economy and efficiency, and in accordance with efforts to promote cost-effective use of shared services across the Federal Government, the City is encouraging staff to enter into state and local intergovernmental agreements or inter -entity agreements where appropriate for procurement or use of common or shared goods and services. CFR Reference: 2CFR 200.318(e)
C. The City is encouraged to use value engineering clauses in contracts for construction projects of sufficient size to offer reasonable opportunities for cost reductions. Value engineering is a systematic and creative analysis of each contract item or task to ensure that its essential function is provided at the overall lower cost.
CFR Reference: 2CFR 200.318(g)
14.3.8 Post -Solicitation
A. The City must award contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. See also §200.213 Suspension and debarment. CFR Reference: 2CFR 200.318(h)
B. The City must maintain records sufficient to detail the history of procurement. These records will include but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. CFR Reference: 2CFR 200.318(i)
C. The City may use a time and materials type contract only after a determination that no other contract is suitable and if the contract includes a ceiling price that the contractor exceeds at its own risk. Time and materials type contract means a contract whose cost to a non-federal entity is the sum of:
(i) The actual cost of materials; and
(ii) Direct labor hours charged at fixed hourly rates that reflect wages, general and administrative expenses, and profit.
In addition, since time -and -material type contract generates an open-ended contract price, a time -and- materials contract provides no positive profit incentive to the contractor for cost control or labor efficiency. Therefore, each 138
City of Beaumont -Finance Department Policies and Procedures Manual 2026 contract must set a ceiling price that the contractor exceeds at its own risk. Further, City staff must assert a high degree of oversight in order to obtain reasonable assurance that the contractor is using efficient methods and effective cost controls CFR Reference: 2CFR 200.3180)
D. The City alone must be responsible, in accordance with good administrative practice and sound business judgment, for the settlement of all contractual and administrative issues arising out of procurements. These issues include, but are not limited to, source evaluation, protests, disputes, and claims. These standards do not relieve the City of any contractual responsibilities under its contracts. The federal awarding agency will not substitute its judgment for that of City staff unless the matter is primarily a federal concern.
Violations of law will be referred to the local, state, or Federal authority having proper jurisdiction. CFR Reference: 2CFR 200.318(k)
14.4 Competition
CFR Reference: 2CFR 200.319
14.4.1 All procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of this section. To ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests
for proposals must be excluded from competing for such procurements. Some of the situations considered to be restrictive of competition include but are not limited to:
A. Placing unreasonable requirements on firms for them to qualify to do business.
B. Requiring unnecessary experience and excessive bonding.
C. Noncompetitive pricing practices between firms or between affiliated companies.
D. Noncompetitive contracts to consultants that are on retainer contracts.
E. Organizational conflicts of interest.
F. Specifying only a "brand name" product instead of allowing "an equal" product to be offered and describing the performance or other relevant requirements of the procurement; and G. Any arbitrary action in the procurement process.
14.4.2 City staff must conduct procurements in a manner that prohibits the use of statutorily or administratively imposed state, local, or tribal geographical preferences in the evaluation of bids or proposals, except in those cases where applicable federal statutes expressly mandate or encourage geographic preference.
Nothing in this section preempts state licensing laws. When contracting for architectural and engineering (A/E) services, geographic location may be a selection criterion provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract.
14.4.3 City staff must have written procedures for procurement transactions. These procedures must ensure that all solicitations:
139
City of Beaumont -Finance Department Policies and Procedures Manual 2026 A. Incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured. Such description must not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product, or service to be procured and, when necessary, must set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use.
Detailed product specifications should be avoided if possible. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a "brand name or equivalent" description may be used as a means to define the performance or other salient requirements of procurement. The specific features of the named brand which must be met by offers must be clearly stated; and
B. Identify all requirements which the offerors must fulfill and all other factors to be used in evaluating bids or proposals.
14.4.4 City Staff working on each grant must ensure that all prequalified lists of persons, firms, or products which are used in acquiring goods and services are current and include enough qualified sources to ensure maximum open and free competition. Also, staff must not preclude potential bidders from qualifying during the solicitation period.
14.5 Methods of Procurement to be Followed.
CFR Reference: 2CFR 200.320
City staff must use one of the following methods of procurement:
A. Micro -purchases procedures. Procurement by micro -purchase is the acquisition of supplies or services, the aggregate dollar amount of which does not exceed $3,000 (as currently defined in CFR Reference: 2 CFD 200.67 or $2,000 in the case of acquisitions for construction subject to the Davis - Bacon Act). Procurement by micro -purchase is the acquisition of supplies or services, the aggregate dollar amount of which does not exceed the micro -purchase threshold to the extent practicable, City staff must distribute micro -purchases equitably among qualified suppliers. Micro- purchases may be awarded without soliciting competitive quotations if City staff considers the price to be reasonable.
B. Small purchase procedures. Small purchase procedures are those relatively simple and informal procurement methods for securing services, supplies, or other property that do not cost more than the Simplified Acquisition Threshold of $150,000 (as currently defined in CFR Reference: 2 CFD 200.88). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources.
C. Sealed bids (formal procurement) procedure. is the acquisition of supplies or services, the aggregate dollar amount of which exceed $150,000 Bids are publicly solicited and a firm fixed price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming with all the material terms and conditions of the invitation for bids, is the lowest in price. The sealed bid method is the preferred method for procuring construction if the conditions in paragraph (c)(1) of this section apply.
1. In order for sealed bidding to be feasible, the following conditions should be present:
140
City of Beaumont -Finance Department Policies and Procedures Manual 2026 (a) A complete, adequate, and realistic specification or purchase description is available. (b) Two or more responsible bidders are willing and able to compete effectively for the business; and
(c) The procurement lends itself to a firm fixed price contract and the selection of the successful bidder can be made principally on the basis of price.
2. If sealed bids are used, the following requirements apply:
(a) Bids must be solicited from an adequate number of known suppliers, providing them with sufficient response time prior to the date set for opening the bids, for local and tribal governments, the invitation for bids must be publicly advertised. (b) The invitation for bids, which will include any specifications and pertinent attachments, must define the items or services for the bidder to properly respond. (c) All bids will be opened at the time and place prescribed in the invitation for bids, and for local and tribal governments, the bids must be opened publicly. (d) A firm fixed price contract award will be made in writing to the lowest responsive and responsible bidder. Where specified in bidding documents, factors such as discounts, transportation cost, and life cycle costs must be considered in determining which bid is lowest.
Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of
and
(e) Any or all bids may be rejected if there is a sound documented reason.
D. Procurement by competitive proposals (RFP)
The technique of competitive proposals is normally conducted with more than one source submitting an offer, and either a fixed price or cost -reimbursement type contract is awarded. It is generally used when conditions are not appropriate for the use of sealed bids. If this method is used, the following requirements apply:
1. Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Any response to publicized requests for proposals must be considered to the maximum extent practical.
2. Proposals must be solicited from an adequate number of qualified sources.
3. City staff must have a written method for conducting technical evaluations of the proposals received and for selecting recipients.
4. Contracts must be awarded to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered; and
5. City staff may use competitive proposal procedures for qualifications -based procurement of architectural/engineering (A/E) professional services whereby competitors' qualifications are 141
City of Beaumont -Finance Department Policies and Procedures Manual 2026 evaluated, and the most qualified competitor is selected, subject to negotiation of fair and reasonable compensation. The method, where price is not used as a selection factor, can only be used in procurement of A/E professional services. It cannot be used to purchase other types of services though A/E firms are a potential source to perform the proposed effort.
E. [Reserved by Code of Federal Regulations]
F. Procurement by noncompetitive proposals (Sole/Single Source).
Procurement by noncompetitive proposals is procurement through solicitation of a proposal from only one source and may be used only when one or more of the following circumstances apply:
1. The item is available only from a single source.
2. The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation.
3. The Federal awarding agency or pass -through entity expressly authorizes noncompetitive proposals in response to a written request from City staff; or
4. After solicitation of several sources, competition is determined inadequate.
14.6 Contracting with Small and Minority Businesses, Women's Business Enterprises, and Labor Surplus Area Firms
CFR Reference: 2CFR 200.321
A. City staff must take all necessary affirmative steps to assure that minority businesses, women's business enterprises, and labor surplus area firms are used when possible.
B. Affirmative steps must include:
1. Placing qualified small and minority businesses and women's business enterprises on solicitation lists.
2. Assuring that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources.
3. Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women's business enterprises.
4. Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women's business enterprises.
5. Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Depai Intent of Commerce; and
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6. Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs (1) through (5) of this section.
14.7 Procurement of Recovered Materials
CFR Reference: 2CFR 200.322
Contracts must contain a clause stating contractors must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.
14.8 Contract Cost and Price
CFR Reference: 2CFR 200.323
14.8.1 City staff must perform a cost or price analysis in connection with every procurement action in excess of the Simplified Acquisition Threshold ($150,000) including contract modifications.
The method and degree of analysis is dependent on the facts surrounding the procurement situation, but as a starting point, City staff must make independent estimates before receiving bids or proposals.
14.8.2 City staff must negotiate profit as a separate element of the price for each contract in which there is no price competition and, in all cases, where cost analysis is performed. To establish a fair and reasonable profit, consideration must be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor's investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work.
14.8.3 Costs or prices based on estimated costs for contracts under the federal award are allowable only to the extent that costs incurred, or cost estimates included in negotiated prices would be allowable for City staff under Subpart E —Cost Principles of this part. City staff may reference its own cost principles that comply with the federal cost principles.
14.8.4 The cost plus a percentage of cost and percentage of construction cost methods of contracting must not be used.
14.9 Federal Awarding Agency or Pass -Through Entity Review CFR Reference: 2CFR 200.324
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City of Beaumont -Finance Department Policies and Procedures Manual 2026
14.9.1 City staff must make available, upon request of the federal awarding agency or pass through entity, technical specifications on proposed procurements where the federal awarding agency or pass -through entity believes such review is needed to ensure that the item or service specified is the one being proposed for acquisition.
This review generally will take place prior to the time the specification is incorporated into a solicitation document. However, if City staff desires to have the review accomplished after a solicitation has been developed, the federal awarding agency or pass through entity may still review the specifications, with such review usually limited to the technical aspects of the proposed purchase.
14.9.2 City staff must make available upon request, for the federal awarding agency or passthrough entity pre - procurement review, procurement documents, such as requests for proposals or invitations for bids, or independent cost estimates, when:
A. City staffs procurement procedures or operation fails to comply with the procurement standards in this part.
B. The procurement is expected to exceed the Simplified Acquisition Threshold and is to be awarded without competition or if only one bid or offer is received in response to a solicitation.
C. The procurement, which is expected to exceed the Simplified Acquisition Threshold specifies a "brand name" product.
D. The proposed contract is more than the Simplified Acquisition Threshold and is to be awarded to other than the apparent low bidder under a sealed bid procurement; or E. A proposed contract modification changes the scope of a contract or increases the contract amount by more than the Simplified Acquisition Threshold.
14.9.3 City staff is exempt from the pre -procurement review in paragraph (b) of this section if the federal awarding agency or pass -through entity determines that its procurement systems comply with the standards of this part:
A. City staff may request that its procurement system be reviewed by the federal awarding agency or pass -through entity to determine whether its system meets these standards in order for its system to be certified. Generally, these reviews must occur where there is continuous high -dollar funding, and third -party contracts are awarded on a regular basis.
B. City staff may self -certify its procurement system. Such self -certification must not limit the federal awarding agency's right to survey the system. Under a self -certification procedure, the federal awarding agency may rely on written assurances from City staff that it is complying with these standards. City staff must cite specific policies, procedures, regulations, or standards as being in compliance with these requirements and have its system available for review.
14.10 Bonding Requirements
CFR Reference: 2CFR 200.325
For construction or facility improvement contracts or subcontracts exceeding the Simplified Acquisition Threshold 144
City of Beaumont -Finance Department Policies and Procedures Manual 2026 ($150,000 as currently defined in CFR Reference: 2 CFD 200.88), the federal awarding agency or pass -through entity may accept the bonding policy and requirements of City staff provided that the federal awarding agency or pass -through entity has made a determination that the federal interest is adequately protected. If such a determination has not been made, the minimum requirements must be as follows:
A. A bid guarantee from each bidder equivalent to five percent of the bid price. The "bid guarantee" must consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of the bid, execute such contractual documents as may be required within the time specified. (To be submitted with the bidding documents)
B. A performance bond on the part of the contractor for 100 percent of the contract price. A "performance bond" is one executed in connection with a contract to secure fulfillment of all the contractor's obligations under such contract.
(To be submitted at time of contract award)
C. A payment bond on the part of the contractor for 100 percent of the contract price. A "payment bond" is one executed in connection with a contract to assure payment as required by law of all persons supplying labor and material in the execution of the work provided for in the contract. (To be submitted at time of contract award)
14.11 Contract Provisions
CFR Reference: 2CFR 200.326
City staffs contracts must contain the applicable provisions described in Appendix II to Part 200— Contract Provisions for non -Federal Entity Contracts under Federal Awards.
City Manager Exemption
The City Manager may exempt any grants from this policy at his/her sole discretion. 145
City of Beaumont -Finance Department Policies and Procedures Manual 2026 Appendix A
GRANT PROCESSING REQUEST FORM
Department of Administrative Services
DATE:
DEPARTMENT:
GRANT PROGRAM:
GRANTING ENTITY:
ENTITY CONTACT:
ENTITY PHONE NO:
IF FEDERAL GRANT... CFDA #
EXAMPLE OF NUMBER
Dept: Department of Education
(Entity No.) 84.XXX (Grant Program No.)
PROGRAM TITLE:
FUNDING REQUEST:
FEDERAL
STATE
LOCAL MATCH
OTHER
TOTAL
REQUEST
IF LOCAL MATCH IS REQUIRED, ARE FUNDS
AVAILABLE
IN THE DEPARTMENT BUDGET? Y/N
ACCOUNT TO WHICH THE MATCH WILL BE CODED:
INDIRECT COSTS? Y/N
AMOUNT
REIMBURSEMENT GRANT? Y/N
FINANCIAL & PROGRESS REPORTS PREPARED BY:
Department Finance
REQUEST FOR FUNDS SUBMITTED BY:
Department Finance
PROJECT DIRECTOR:
PHONE:
EMAIL:
DEPT. DIRECTOR
OR THEIR
SIGNATURE:
DATE:
DESIGNEE
APPROVING
SUBMISSON:
REVIEWED & APPROVED BY
FINANCE:
SIGNATURE:
DATE:
REVIEWED & APPROVED BY CITY
ADMINISTRATION:
SIGNATURE:
DATE:
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City of Beaumont -Finance Department Policies and Procedures Manual 2026 Appendix B
TECHNOLOGY SERVICE REQUEST FORM
Department of Administrative Services
DATE:
DEPARTMENT:
GRANT
PROGRAM:
PROGRAM
TITLE:
AMOUNT OF GRANT ($):
ONGOING IT COSTS? Y/N ($) /YR
WILL PROFESSIONAL IT SERVICES
BE NEEDED FOR INSTALLATION OR MAINTENANCE?
Yes / No? If Yes, please describe.
ARE PROFESSIONAL SERVICES OR MAINTENANCE COVERED BY GRANT? Yes / No? If Yes, please describe.
LIST ALL EQUIPMENT AND/OR SOFTWARE
TO BE ACQUIRED THROUGH THE GRANT?
attachment A)
(Include Lifecycle for each item listed. See
Item
Lifecycle
PROJECT MANAGER:
PHONE:
EMAIL:
REVIEWED & APPROVED BY
SIGNATURE:
DATE:
INFORMATION TECHNOLOGY:
REVIEWED & APPROVED BY
SIGNATURE:
DATE:
CITY ADMINISTRATION:
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City of Beaumont -Finance Department Policies and Procedures Manual 2026
ATTACHMENT A
Device
Replacement Period
Personal Computers
4-5 years depending upon function and Warranty
Ce11 Phones
2-3 years
Tablets and iPads
3-5 years
Copiers/Printers
5-7 years
Servers
5 years
Networking Infrastructure
5-7 years
AV Equipment
5-7 Years
Peripherals
As needed
148
City of Beaumont -Finance Department Policies and Procedures Manual 2026 Petty Cash Policy
Purpose
The purpose of this policy is to provide users with detailed procedures regarding the establishment and administration of a city-wide petty cash fund. Petty cash disbursements should only be used for small incidental expenditures and not as a method to bypass the City's Accounts Payable and Purchasing System. The petty cash fund is established to enable departments to make small, emergency purchases where a purchase order is not cost effective or a purchasing card cannot be used.
One petty cash account has been established which is maintained at City Ha11 by the Director of Administrative Services with authoritative oversight of the fund.
Restrictions
The petty cash fund should not be used to:
• Purchase goods currently covered by the City's negotiated contracts. • Pay personal services (i.e. typing, photography, entertainers, caterers, etc.) that would be considered either wages or independent contractor payments. All payments for personal services must be paid through either the payroll system as wages, or accounts payable system. • Pay travel expenditures (such as hotel, mileage, registration fees, etc.), except for local travel where amounts do not exceed $50.
• Reimburse expenditures greater than $50.
• Serve as a check -cashing fund.
Maintaining the Fund
ESTABLISHED MAXIMUM CASH BALANCE: $500.00
• In order to expend petty cash, a reimbursement form is completed by the individual requesting funds.
The form includes the date, name, amount, purpose and general ledger account number and is to have the applicable receipts attached.
• The form is reviewed by the Director of Administrative Services who then logs the transaction on the petty cash summary report.
• The line item on the report is initialed by the Director of Administrative Services and the individual receiving the funds.
• Annually on June 30th the cash is to be counted and reconciled with the net petty cash summary report balance to ensure that the funds are being properly tracked and reported. • The count is to be performed by two individuals and a subtotal is to be documented on the petty cash summary report and initialed by both individuals.
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City of Beaumont -Finance Department Policies and Procedures Manual 2026 Reimbursement of the Fund
• The Director of Administrative Services determines that the petty cash fund needs to be replenished. • The petty cash is counted and reconciled to the petty cash summary report. • The petty cash summary report is reconciled to all reimbursement/receipt documents in the petty cash box, and a journal entry is prepared, debiting all applicable general ledger accounts from the reimbursement forms and crediting the general bank account. • The replenishment is physically made using a change request from the bank using the Wells Fargo change order process. The withdrawal of change when Wells Fargo processes the request will be reflected in the operation checking account.
• Upon receipt of the funds from the armored transport service, two individuals will count the money to agree it to the request form, and then place the funds into the petty cash box in the safe. • The paperwork will be scanned into the Tyler Incode 10 general ledger software as support of the cash bank draft entry, and then filed as applicable.
Note: the petty cash balance will never be an exact $500.00 due to change order bundle amounts, but should not be more then $5 off of original balance
Exceptions
• In some limited circumstances, funds are given to an individual as an "advance". • The reimbursement form is completed with the amount of the advance, and no receipts, but otherwise following the process above.
• After the purchase, the individual is required to return any change and the applicable receipt(s) to the Director of Administrative Services in order to substantiate the funds spent, and to record the return of funds to the petty cash balance.
• The reimbursement form originally submitted is notated with the actual spent and the funds returned, as is the petty cash summary report.
• The line item of adjustment is initialed by the Director of Administrative Services and the individual returning the funds.
Petty Cash Gift Cards/Certificates
• When a gift card or certificate is gifted to the city, it shall be placed in the petty cash fund • The City cannot spend these but may raffle them off
• When a gift card is raffled off, they shall be recorded on the petty cash summary report and all receipts are also included as necessary.
• Annually on June 30th the gift cards/certificates shall be reconciled with the petty cash summary report. 150
City of Beaumont -Finance Department Policies and Procedures Manual 2026 Confidential Funds
(Drug Buy Money, Investigative Funds) Policy
Confidential funds are those funds allocated to the following three types of law enforcement undercover operations:
1. Confidential investigative expenses are for the purchase of services and would include travel or transportation of an undercover officer or an informant. Meals, beverages, entertainment, and similar expenses for undercover purposes, within reasonable limits, would be included.
2. Confidential funds for the purchase of evidence would include the purchase of evidence and/or contraband such as drugs, firearms, stolen property, etc., required to determine the existence of a crime or to establish the identity of a participant in a crime.
3. Confidential funds for the purchase of specific information from informants.
4. Confidential expenditures are subject to appropriation by the municipality's governing body. The governing body must ensure that the controls over disbursements are adequate to safeguard against misuse of such funds.
When the funds are replenished, legislative approval should be based on a fording that the expenditures were necessary and reasonable for proper and efficient administration of the program under which they were used.
5. The funds authorized should be established in an Imprest fund. Imprest, Petty Cash and Other Revolving Funds prescribe the minimum requirements for the establishment and operation of an Imprest fund. In addition to all those requirements the following apply:
1. The supervisor of the unit to which the Imprest fund is assigned must authorize all advances of moneys to agents or officers for the purchase of information. Such authorization must specify the information to be received, the amount of expenditures, and assumed name of informer.
2. The investigation unit must maintain confidential files of the true names, assumed names, and signature of all informers to whom payments have been made. To the extent practicable pictures and/or fingerprints of the informer payee should also be maintained.
3. The custodian should receive from the agency or officer authorized to make a confidential payment, a receipt for cash advanced to him/her for such purposes.
4. The agent or officer should receive from the informer a receipt of the following nature:
5. The signed receipt from the informer payee with a memorandum detailing the information received must be forwarded to the agent or officer in charge. The agency or officer in charge must compare the signature on the receipt with the confidential file of assumed name signatures. He/she must also evaluate the information received in relation to the expense incurred and add his/her evaluation remarks to the report of the agent or officer who made the expenditure. A
certification of payment to the custodian should serve as support for the expenditure from the Imprest fund. The certification should be witnessed by the agent or officer in charge on the basis of the report and informer payee's receipt.
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City of Beaumont -Finance Department Policies and Procedures Manual 2026
6. Each agent or officer in charge must prepare a quarterly report showing status and reconciliation of the Imprest fund and itemizing each payment, name used by informer payee, information received and use to which information was put. This report must be made part of the files and reviewed quarterly by the head of the municipality's law enforcement agency and audited by the City's Finance Department. 152
City of Beaumont -Finance Department Policies and Procedures Manual 2026 Unclaimed Money Policy
Purpose
To establish the proper disposition and accounting for unclaimed money. Government Code Sections 50050 through 50057 provide the authority for this policy.
Policy
1. Funds which are not the property of the City of Beaumont that remain unclaimed for a period of more than three (3) years will become the property of the City of Beaumont, if not claimed or if no verified complaint is filed and served, on or before the specific date stated in the public notice that is published in a newspaper of general circulation.
2. Any individual funds that are less than $15.00 or any funds regardless of amount for which the depositor's name is not known shall be transferred to the General Fund of the City after one year and without the need to publish notice.
Procedures
1. Unclaimed funds over three years old and over $15.00 will be identified on an annual basis.
2. For funds that have been unclaimed for at least a three-year period, a notice will be published once a week for two consecutive weeks in a newspaper of general circulation. The notice shall state the amount of money, the fund in which the money is held, and that the money will become the property of the City of Beaumont on a specific date (not less than 45 nor more than 60 days after the first publication). (Section 50051)
3. Upon or prior to publication, a party of interest may file a claim for the funds with the Finance Director.
The claim (see attached) must contain the claimant's name, address, telephone number, amount, tax identification number and grounds for the claim, and must become the property of the City of Beaumont.
The Finance Director can require additional information to help substantiate the claim and to establish the authority of the claimant to receive the funds. (Section 50052)
4. Notwithstanding Section 50052, the Finance Director may release the unclaimed funds to the depositor, their heir, beneficiary, or duly appointed representative if claimed prior to the date the funds become the property of the City of Beaumont and satisfactory proof has been submitted. (Section 50025.5)
5. When the unclaimed funds become the property of the City of Beaumont, 45 days and no more than 60 days after a published public notice, and are in a special fund, the City Council may transfer them to the General Fund. (Section 50053)
Glossary
Unclaimed Monies may include but are not limited to stale dated checks, bond coupons, trust funds, deposits held 153
City of Beaumont -Finance Department Policies and Procedures Manual 2026 for various purposes by City departments, and overpayments for City services.
Attachments
1. Unclaimed money —Instruction Sheet
2. Unclaimed money —Claim Form
3. Unclaimed money —Sample Notice
154
City of Beaumont -Finance Department Policies and Procedures Manual 2026 Attachment 1
UNCLAIMED MONEY INSTRUCTION SHEET
Using this instruction sheet, determine and provide the appropriate documents in order to process your claim, and return them with your completed Unclaimed Money form.
All claimants must review SECTION A for required documentation. If you are an HEIR or BENEFICIARY of the deceased owner, refer to SECTIONSA & B.
SECTION A: CLAIMANT IDENTIFIATION
1. Copy of a photo identification (e.g., driver's license, state identification card, passport, etc.) for each claimant;
2. Copy of each claimant's Social Security card or any other document showing the claimant's Social Security number (e.g., federal or state income tax return or pay stub, etc.), if applicable;
3. Original check, deposit, or instrument identified in the "Unclaimed money publication";
4. Document (e.g., correspondence, statement, etc.) associating you or the owner with the business or names in the unclaimed money publication.
NOTE: IF ITEM 3 OR 4 IS NOT AVAILABLE, YOUR CLAIM MAY BE DENIED.
SECTION B: DECEASED OWNER
If you are an HEIR of the deceased owner named on the account, you are required to submit ALL items under SECTION A, the death certificate of the deceased owner, PLUS one of the following documents:
5. Copy of Currently Certified Letters, dated within the past six months, appointing the Executor or Administrator of the descendant's estate, and the Estate Tax Identification Number; or
6. Complete copy of the court Ordered Distribution of the Descendant's Estate; or
7. If the distribution of the estate was not ordered by a court, a complete copy of the descendant's Will and/or Trust Agreement; and a completed Declaration Under Probate code Section 13101 FORM; or
8. If no Will or Trust Agreement exists, a completed Declaration Under Probate Code Section 13101 form and a Table of Heirship form. You may obtain these documents at the State Controller's web site at http://www.sco.ca.gov/col/ucp/forms/index/shtml .
If you are providing the death certificate and items 5, 6, or 8 proceed to SECTION C.
SECTION C: SIGNED CLAIM FORM/AFFIRMATION
9. If the "amount" (listed on the front page of this Claim Form) is $500 or more, complete, sign and NOTARIZE the affirmation.
10. If the "amount" is less than $500 complete and sign the Affirmation.
Confirm that all required documents are included and send the entire package to the address on the Claim Form.
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City of Beaumont -Finance Department Policies and Procedures Manual 2026 Attachment 2
UNCLAIMED MONEY CLAIM FORM
Pursuant to California Government Code §50052, I wish to file a claim for previously unclaimed funds in the amount of $ which were published in the Newspaper on
. The grounds on which I am filling this claim are:
AGENT OR INDIVIDUAL NAME
SECURITY NO.
TAXPAYER ID NO. OR SOCIAL
ADDRESS
CITY, STATE, ZIP CODE
HOME TELEPHONE
WORK TELEPHONE
I hereby certify that the above information is true and correct and is being submitted to the City of Beaumont to substantiate my claim to monies paid to the City. I further certify that I have the authority and right to claim and receive payment of these monies and hereby release the City of Beaumont, its directors, employees, representatives, attorneys and agents from all liability and further obligation with respect to this claim.
PRINTED NAME OF CLAIMANT
Mail To: City of Beaumont
Attn: Finance Department
550 E 611' St
Beaumont, CA 92223
SIGNATURE DATE
OFFICE USE ONLY
Approved ( ) Denied ( )
FINANCE DIRECTOR DATE
CITY MANAGER DATE
156
City of Beaumont -Finance Department Policies and Procedures Manual 2026 Attachment 3
SAMPLE NOTICE
Notice is hereby given that the City of Beaumont is holding funds for the following persons or entities. If said funds are not claimed by MM DD YYYY, these funds will become the property of the City of Beaumont in accordance with California Government code Sections 50050 - 50056. These funds may be released to the depositor, their heir, beneficiary, or duly appointed representative provided a claim form has been completed with the necessary information.
The Unclaimed Money Claim Form is available at the City of Beaumont Finance Department, 550 E 6th St, Beaumont, CA 92223, 951-572-3236 or on the City's website at www.beaumontca.gov . Required claim information includes name, address, phone number, tax identification number or social security number, amount of claim and grounds on which claim is founded. Once a claim is submitted, the Director of Finance will determine what, if any, additional information is necessary.
Persons/entities with funds on deposit for over three years:
AMOUNT
SOURCE OF FUNDS
$345.78
General Fund
$127.52
General fund
$1,200.00
Developer Deposit
157
City of Beaumont -Finance Department Policies and Procedures Manual 2026 Procurement Card Program Policy
Program Introduction
The objective of the City's Procurement Card Program is to streamline the traditional paper and labor-intensive procurement process for small -dollar purchases which include supplies, subscriptions, memberships, training, and certain travel expenses. The Procurement Card (P -Card) will eliminate the requisitions and purchase orders associated with small dollar purchases and will require only one payment to the bank monthly instead of individual payments to many vendors.
Currently, the City of Beaumont has chosen to piggy -pack off the State of California's contract for the U.S.
Bank Purchasing Card "CAL -Card".
The Procurement Card Program is a supplement to the City's purchasing guidelines and not intended to circumvent the City's Purchasing and Travel policies, nor any existing statutes or laws.
Issuance of the P -Card gives an employee the responsibility of a Purchasing Agent and the management of the program is overseen by their Department Director. It is the responsibility of the Procurement Card Program Coordinator (In Finance) to ensure that the employee has read and understands the Procurement Card, Purchasing, and Travel Policies before issuing a P -Card.
Intentional misuse of the P -Card may result in the reimbursement of ineligible expenses, disciplinary actions including termination, and/or notification to law enforcement agencies.
Process
• Department Director submits a completed CAL -Card Request Form to the Finance Director. • The Procurement Card Program Coordinator will set up training with the employee. • The P -card will be ordered upon completion of training. • The employee will sign a CAL -Card Agreement form and receive their P -card. • The new Cardholder will log onto https://www.access.usbank.com to set up their account and activate their card.
• The Cardholder will attach itemized receipts, leave applicable notes, and code each transaction. • When purchasing food, you MUST identify the event/training and the names of attendees. This can be written on the receipt before scanning or typed into the notes for that transaction. • Statement cycle closes on the 11`h of the month, or the following business day. • After the statement cycle closes, Cardholders will verify and reconcile their purchases then approve and forward to their designated Final Approver by the 23rd of the month. • The Final Approver will verify that all transactions meet policy requirements, review attachments and GL coding, and then make the final approval by the 30th of the month. • Accounts Payable will make the US Bank payment before the close of the next cycle date. • Procurement Card Program Coordinator will perform random audits for each cardholder. • Outside auditors will perform audits on P -Card transactions. • All cardholders will need to attend training when there are changes/updates to policy and procedures. 158
City of Beaumont -Finance Department Policies and Procedures Manual 2026 • To cancel a card, give the card to the Procurement Card Program Coordinator for deactivation and destruction.
• Upon termination of employment, the card shall be turned into HR/Payroll during the exit process.
HR/Payroll will turn it into the Procurement Card Program Coordinator for deactivation and destruction.
Card Restrictions
While the P -Card is intended for small dollar purchases, card restrictions had to be established to protect public funds, follow city policies and procedures, and stay within state and federal statutes and laws. These restrictions include:
• Alcoholic beverages
• Ammunition and weapons.
• Automotive repairs, or maintenance (unless approved by Fleet Manager). • Car washing (City will provide services via contracted service) • Cash Advances
• Drugs and narcotics
• Gasoline or diesel fuel (All city vehicles are issued a Voyager card for fuel, and most departments have spare cards). If you do not have a fuel card, you will need to pay out-of-pocket, keep your receipt, and fill out a finance claim form for reimbursement.
• Gratuity exceeding 18% (If cardholder wishes to pay more, they need to pay out-of-pocket). • Fixed asset purchases.
• Food during travel/training (City provides per diem at GSA rates). • Gift cards.
• Insurance.
• Legal fees.
• Mobile payment services such as Venmo, PayPal, Zelle, Apple Pay etc. • Rental of equipment requiring operators.
• Rental, lease, or purchase of Real Property.
• Services that are provided on city property.
• Work performed on city property by outside contractors.
The procurement card is not intended to replace effective purchase planning. Please be mindful when making purchases. Things to consider:
• Convenience fees. Does the fee benefit the city, or the cardholder? Example:
o Delivery services cost less than the employee's hourly time (benefits city). o Travel upgrades (benefits cardholder).
• Using vendors with high credit card fees. If a merchant charges a high credit card fee, then your best option is to set them up as a vendor instead of using your P -Card.
Area of Responsibility
U.S. Bank
U.S. Bank - Government Services will:
• Issue Visa cards to the Procurement Card Program Coordinator for distribution. 159
City of Beaumont -Finance Department Policies and Procedures Manual 2026 • Make changes as requested by the Procurement Card Program Coordinator. • Provide on-line access to statements within 24 hours after the end of a billing cycle (11th of each month). Cardholders may register on-line at:
https://www.access.usbank.com click on Cardholder Registration and fill in the required information.
Call the Procurement Card Program Coordinator first for the Company Access Code.
Finance Department
The Finance Department oversees the entire Procurement Card Program within the city including:
• The administration of all accounts.
• Reporting.
• Cardholder support.
• Auditing.
• Verifying the accuracy of the Cal -Card invoice and ensuring proper accounting. • Processing payment to US Bank.
Procurement Card Program Coordinator
The Procurement Card Program Coordinator is the primary employee within the Finance Department that oversees the Procurement Card Program. Their responsibilities include:
• Provide training for all Cardholders and Approving Managers. • Request and obtain Procurement Cards.
• Manage accounts on US Bank website.
• Internal Cardholder support.
• Audit transactions for policy compliance.
• Freeze and deactivate P -card accounts.
Department Director
The Department Director will oversee the overall operations of the Procurement Card Program within their department. Their responsibilities include:
• Determining which employees should have a P -Card.
• Setting monthly spending limits for Cardholders.
• Requesting increases and decreases to Cardholders spending limits. • Delegating a Final Approver for Cardholders (must be at a management level). • Communicating with Final Approver on the status of the program and any outstanding issues. • Collect cards from Cardholders in the event of cancellation.
Final Approver
The Final Approver is delegated by the Department Director to audit and approve Cardholder transactions. This person must be in a position of management and possess thorough knowledge of the Procurement Card, Purchasing, and Travel Policies and ensure they are being followed. They also need to be familiar with the department's budget to ensure the accuracy of transaction coding. Their responsibilities include:
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City of Beaumont -Finance Department Policies and Procedures Manual 2026 • Manage Cardholders to have all their transactions reconciled and approved by the 23rd of the month. • Completely review all charges to ensure that purchases are authorized within the duties of the Cardholder and proper supporting documentation is attached.
• Review supporting documentation to ensure that it is adequate to justify each purchase and complies with policy.
• Verify that each transaction has the correct GL code or Project Account that suits its purpose. • Final approve Cardholder transactions by the 30th of the month. • Communicate any issues with Depaihnent Director.
Cardholder
The Cardholder is given the responsibility of a Purchasing Agent by the Department Director. The person whose name is on the P -Card is responsible for:
• Complete CAL -Card training with Procurement Card Program Coordinator before issuance of the P -Card. • Sign your card on the signature panel.
• Ensure the P -Card is secure from theft and misuse. Review Statement for unauthorized charges against your account.
• Not allowing anyone else to use your P -Card.
• Must not be used for personal purchases.
• Notify U.S. Bank Customer Service of any billing discrepancies posted on your account that cannot be resolved with the merchant.
• Compliance with City's Procurement Card, Purchasing, and Travel policies and procedures. • Obtain an itemized receipt at the point of purchase and review it for accuracy. • When purchasing food, you MUST identify the event/training and the names of attendees. This can be written on the receipt before scanning or typed into the notes for that transaction. • Timely reconciliation of monthly transactions, approved and forwarded to Final Approver by the 23rd of each month.
• Attend all P -Card training when there are changes/updates to policy and procedures.
Procedures for the Cardholder
Purchase Card Receipt and Activation
The potential Cardholder will complete training with the Procurement Card Program Coordinator. They will read through the Cardholder packet and sign the Cardholder Agreement Form before receiving the P -Card. By signing this agreement form, the cardholder is accepting responsibility for the security and the appropriate use of the P - Card. The Cardholder should call the number shown on the card to activate it, then set up online account to monitor transactions and statements at https://www.access.usbank.com .
Merchant Card Acceptance
Occasionally, a transaction may be declined at the merchant location. The merchant is not provided a reason via electronic terminal display. When this happens, cardholder should consider the following:
• Has the merchant used the correct expiration date of the account? 161
City of Beaumont -Finance Department Policies and Procedures Manual 2026 • Is the transaction amount within the single -transaction limit? • Will the transaction amount exceed the 30 -day purchase limit? The cardholder may call the toll -free customer service number on the back of the card to determine the monthly or single -transaction limit level to date or inquire about the declined transaction.
Cardholder Statement of Account
US Bank will provide on-line access to statements within 24 hours after the end of a billing cycle (1 lth of each month or following business day). Cardholders can set up personal settings for alerts through the US Bank website. Following the closed cycle, Cardholders will:
• Verify that all transaction charges are accurate. Call US Bank Customer Service for disputes or clarifications.
o If you find a personal charge was made in error, make a payment to Customer Service Coordinator, and receive a payment receipt.
o Attach your payment receipt to the transaction in US Bank Access Online with a brief description of the error, prior to manager approval.
o The Approving Manager needs to approve this transaction once completed. • Attach all itemized receipts with detailed descriptions of purchases for Final Approver. Descriptions can be written on the receipt before scanned or typed into the notes. • Identify event/training along with names of attendees on all food purchases. • Assign a GL code or Project account number to each transaction. If you do not know, you can make notes for your Final Approver to code it for you. Credits should be coded with the same code as the original transaction that is being credited.
• Approve all transactions and forward to Final Approver by the 23rd of the month.
Incorrectly charged or unacceptable charges
If an item is incorrectly charged or the item is unacceptable, cardholders should review their receipts for the amount in question and try to resolve the problem with the merchant. If the merchant refuses to issue a credit, cardholder should complete a CSQI form, attach any pertinent documentation and fax to US Bank at 701-461-3464 or 866- 851-7347. If a resolution can not be made with the merchant, then follow the process to dispute the charge.
Disputed Item
If an item has been returned and a credit for this item does not appear on the statement within the billing cycle of the return, cardholder should complete a Cardholder Statement of Questioned Item (CSQI) form, attach the documentation showing the item was returned, and fax to US Bank at 701-461-3464 or 866-851-7347. This form is available online. The Cardholder will make a note on the receipt of the item that is being disputed and include it with the monthly statement backup.
It is the responsibility of the cardholder to track disputes until resolution.
Please note that the VISA Operating Regulations and the terms of the State of California Master Service Agreement stipulate specific timeframes during which reversals of charges may be processed. CSQI forms must be forwarded to US Bank within 60 days from the date of the statement on which the transaction first appeared, to ensure compliance with these regulations and to preserve cardholder's rights to dispute the transaction.
Credits
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City of Beaumont -Finance Department Policies and Procedures Manual 2026 Cardholders should review the cardholder Statement of Account for credits which correspond to previously disputed transactions. Enter the appropriate GL account number and then forward to the Final Approver for approval.
Fraud/Lost or Stolen Cards
If the Cardholder suspects fraudulent activity on their account, the Cardholder must notify US Bank at 800- 344-5696 immediately. The Finance Department and the Cardholder's approving manager should also be notified. If a Cal -Card has been lost or stolen, the Cardholder must immediately notify the bank and their Final Approver. The Final Approver should then notify the Depai linent Director and the Finance Department within 24 hours.
Controls
Several unique controls have been developed for this Procurement Card Program that does not exist in a traditional credit card environment. These controls help ensure that the card is being used for specific purchases and within specific dollar limits. Certification of all purchases is required by each Cardholder with verification performed by the Cardholder's Approver before payment is made.
The unique CAL -Card (VISA card) received from U.S. Bank (the present Contractor) has the cardholder's name embossed on it. The CAL -Card derives its name from the fact that the City, and other public agencies have piggy -backed off the State of California's contract with U.S. Bank. The Cardholder is the only one authorized to use the card.
No other staff member, family member, supervisor, or anyone else may use this card. It has been specially designed to avoid confusing it with the cardholder's personal credit cards. In all other respects, this is considered a regular VISA card and can be used at any merchant that accepts Visa. HOWEVER, THIS PROCUREMENT CARD AT NO TIME IS TO BE USED FOR PERSONAL PURCHASES.
Due to the expected large volume of transactions and subsequent dollars spent, it is extremely important that the control and use of credit cards be closely managed. The P -Card purchases must be constantly monitored to ensure that credit cards are used efficiently and that no abuse is allowed to occur.
The Procurement Card Program Coordinator will submit an on-line Procurement Card Request for each cardholder and assign a maximum dollar amount for all purchases made with the P -Card within a given billing period. The processing of the P -Card request will occur once the employee has successfully completed the required P -card training. Each Cardholder must sign a Cardholder Agreement Form in order to receive and utilize the P -Card.
Intentional use of the credit card for other than Official Use Only will be considered an attempt to commit fraud against the City of Beaumont. Proof of such fraud may result in immediate cancellation of your credit card and disciplinary action taken against you under applicable City administrative procedures up to and/or including termination. You (the cardholder) will be personally liable to the City for the amount of any non -approved, and/or ineligible purchases.
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City of Beaumont -Finance Department Policies and Procedures Manual 2026 Definitions
Final Approver: The Approver at the department level is a critical checkpoint for internal control purposes. The approver reviews the monthly bank statements to verify that all purchases are necessary and for official City purposes only. The Approver must have a working knowledge of various purchasing methods and be familiar with City's Procurement Card, Purchasing, and Travel policies and procedures. The Final Approver should work with the Finance or HR Department if a questionable transaction has taken place and council the Cardholder. The Approver may be responsible for any number of Cardholders.
CAL -Card: The official registered service mark name for the State of California's Purchasing Card Program through U.S. Bank.
Cardholder: An individual who is designated by a Department Head to be a procurement card recipient and make official governmental purchases. The Cardholder is the employee whose name is on the bankcard. The Cardholder is authorized to make purchases of commodities on behalf of their agency/department and should be familiar with City procurement policies and procedures. The Cardholder reconciles his/her monthly bank statement and forwards it to their designated Final Approver.
Cardholder Statement: - A monthly Statement of Account is posted and accessible to the Cardholder by U.S.
Bank at the end of the monthly billing cycle (11th or following business day), listing all transactions made during that cycle. https://www.access.usbank.com
30 -DAY PURCHASE LIMIT: This limit determines the maximum dollar amount that will be authorized for a Cardholder within a 30 -day billing cycle. Note: This is based on cycle — not a calendar month. The 30 -day purchase limit is determined during the Cardholder account setup and should be the amount that a Cardholder would be reasonably expected to spend during that period.
U.S. Bank: U.S. Bank is the contractor who maintains all CAL -Card accounts. U.S. Bank issues cards and monthly Statements of Account to Cardholders. U.S. Bank pays merchants in a timely manner and receives reimbursement from the City of Beaumont.
Procurement Card Program Coordinator: The Procurement Card Program Coordinator is part of the Finance staff and is responsible for the coordination of card requests, either new or modification to existing cards, freezing and destruction of cards. Procurement Card Program Coordinator coordinates the establishment of reports, administrative training, and cardholder support. They will perform audits to ensure policies and procedures are being followed.
General Cal -Card Information
1) The Cal -Card purchase card will be issued under the cardholder's name. The card has been specially designed to avoid confusion with personal credit cards. The card is for official City business and may not be used for personal purchases.
2) If the Cal -Card is lost or stolen, it is the cardholder's responsibility to call US Bank immediately (24/7) to ensure that the City is not held responsible for any fraudulent charges that may occur. Do not wait until you get back to work to report a lost or stolen purchase card. Please keep the US Bank 800 number in a separate place from your purchase card so that you can readily call US Bank should the need arise. 164
City of Beaumont -Finance Department Policies and Procedures Manual 2026 3) For lost or stolen purchase cards, call
1-800-344-5696
Outside of the United States, call collect
+1-701-461-2010
4) Monthly credit limits and single transaction limits may be established by the department head in coordination with the finance department for each cardholder. If a situation arises in which you anticipate the use of the card will exceed the maximum limit, contact your supervisor prior to using the card. Your supervisor will contact the Finance Director to arrange for a temporary credit limit increase. 5) The Cal -Card program is a supplement to the City's Purchasing Guidelines. As with other procurement methods, the following conditions must be met when using the card:
o The card should be used whenever possible in lieu of petty cash or emergency check requests when the dollar amount for a single item or group of items is within the City's Purchasing Guidelines. o Each single purchase may be comprised of multiple items, but the total transaction with a single vendor including tax cannot exceed the single -purchase dollar limit of your card. o Purchases should not be split to circumvent per -transaction and per -month credit limits. o Use of the Cal -Card is not intended to replace effective purchase planning that enables volume discounts. o For restaurant purchases, an itemized receipt must be obtained. That receipt should state the event/meeting the items were purchased for and the names of the attendees. A credit card charge slip that shows only the total amount charged to the credit card for total and tip is not acceptable. Food purchased during travel is not allowed on the CAL -Card since the City has chosen a per diem method per the Travel Policy.
Alcohol cannot be purchased using the Cal Card.
o Keep all your itemized receipts and order confirmations so that they can be attached to their corresponding transaction when reconciling your account on https://www.access.usbank.com . 165
City of Beaumont -Finance Department Policies and Procedures Manual 2026 Electronic Funds Policy
Introduction
The City of Beaumont processes Electronic Funds Transfers (EFTs) as a safe and efficient method to receive electronic deposits from customers and to provide payments to vendors and employees. Two commonly used EFT methods are:
• Automated Clearing House (ACH): This is an electronic payment delivery system that processes electronic credit and debit transactions, including direct deposits, within the United States using the American Bankers Association (ABA) number. The ABA number is also known as the "check routing number" or "routing transit number" and should be used as the first identifying number for ACH transactions. The bank account number and name assigned to the account are also required before an ACH transaction can be created and the exchange of funds processed between two parties.
• Fedwire: The most costly EFT to process and uses a Real Time Gross Settlement Funds Transfer system operated by the Federal Reserve Banks. There are two Fedwire options: (1) domestic wires and (2) international wires. Each option has a different settlement time and each requires unique banking information that is dependent upon where the settlement of funds is to occur.
The procedures outlined herein are designed for all departments, employees, and vendors who receive and make electronic payments on behalf of the city. The following areas are responsible for transacting EFTs:
• Finance Department
• Administrative Services Department
All EFT's processed by the City occur using the systems listed below. •ACH: Originations used to initiate vendor, and employee ACH payments. The Tyler system will generate an electronic file and a EFT check register report that will be used to complete the ACH transmission form. The ACH transmission form will be completed by the Finance Department and sent to the Administrative Services Department to generate a standard ACH transmission file. The electronic generate banking file from Tyler system is electronically transmitted to the City's banking institution, authorizing the debit and credit of funds between banks.
• Wire Transfer: The primary method used to initiate wire transfers. The on-line systems should only be used by employees with proper system credentials. The security administrators in the Finance Department shall ensure that adequate separation of duties exist in accordance with internal control standards and that the integrity of system user profiles is protected. Steps are also taken to limit the number of users who have access to create or approve wire transfers and their authorized wire amounts. In addition, banking controls require two separate users to complete a wire. One individual initiates and a separate individual must approve.
The Finance Department and Administrative Services Department staff who initiate or complete EFT transactions are responsible for ensuring the financial internal controls are maintained, the activity is posted timely, and operational procedures are in place to reduce the risk of loss of City funds arising from fraud, employee error, misrepresentation by third parties, or imprudent actions by City employees. The Finance department will monitor bank balances daily for unusual or unexpected transactions, reconcile bank activity to the general ledger in a timely manner, and investigate and resolve reconciling items.
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City of Beaumont -Finance Department Policies and Procedures Manual 2026 Incoming EFTs:
ACH/Wire Transfers Received
Departments requesting to receive payment by ACH or wire transfer must have the customer send their company's ACH/EFT payment request form to the Finance Department.
The Finance Department will complete the form, requiring all EFT payments to be posted directly to the operating account, and will obtain the proper authorization from Finance Director. After the form is completed, the Accounting Tech staff member will forward the information back to the customer so the customer can initiate the EFT with their banking institution. The completed form will not be returned to the department requesting the information and depai lniental staff has no authority to complete the document on behalf of the City.
Outgoing EFTS:
ACH Payments to Vendors (Domestic)
A domestic vendor may receive an ACH payment by completing a VendorACH/Direct Deposit Authorization Form and by submitting a copy of a voided check. Each department will be responsible for sending out the Vendor ACH/Direct Deposit Authorization Form to the vendor and to then forward onto the Finance Department. The Finance Department will review the ABA number, bank account number, and name as shown on the supporting documentation. If all information on the form and the supporting documentation is correct the data is then recorded in the Vendor Profile in Tyler Systems under Payment Terms by Accounts Payable. The banking information set up in Tyler Systems is then reviewed by the Assistant Finance Directorfor account accuracy. The supporting documentation is then filed and stored on the finance share drive. Any subsequent requests to change vendor banking information will be confirmed directly via phone with the vendor completing a new Vendor ACH/Direct Deposit Authorization Form by each department and then forwarded onto the Finance Department.
ACH overpayments require notification to Wells Fargo within five days of the payment to ensure funds are returned.
A Wells Fargo ACH/Reversal/Deletion Request form will be completed by Finance Departiiient or Administrative Services Director. The form is then sent to the Finance Department for approval and faxed to Wells Fargo's ACH services section to reverse the overpayment. The Finance Department verifies the reversal occurs and the funds are deposited into the operating account the following business day.
Certain vendors have been given authority, with maximum withdrawal limitations, to initiate ACH payments (i.e. the Internal Revenue Service for payroll taxes). The establishment, approval and exception review of these payments occur through the Wells Fargo system. The Finance Department monitors daily to ensure the banking activity has been posted into the City's Financials system and validated.
Accounts payable processes all vendor payments according to the pay cycle schedule and generates a check/ACH register. All ACH direct deposit payments have file detail and total amounts submitted to the bank for processing and the Finance Department verifies that the totals submitted to the bank have been received and posted by the bank for processing.
Fedwire Payments to Vendors (Domestic or International) In cases where immediate payment is needed, a vendor may be paid by domestic or international wire. 167
City of Beaumont -Finance Department Policies and Procedures Manual 2026 I. Domestic wires. If a domestic vendor requests payment via a Fedwire, the following steps are required for the EFT to occur:
a) The department requesting the vendor payment will forward an invoice from the vendor containing the vendor's wire information, or an authorized letter. This information is forwarded to Accounts Payable for review and to ensure the vendor is established in the Tyler vendor system. b) The Transfer Request form, back-up wire information, invoice and other supporting documents will be forwarded to those authorized in the Finance Department to initiate wires. The bank and invoice information must be verified and if there is an inconsistency with the information provided, the wire initiator will contact the initiating department to obtain additional or corrected information. If all information agrees with the documentation, the wire will be requested in Wells Fargo by the Administrative Services Director. c) The form and all documentation will be forwarded to an appropriate staff member for secondary approval. The pending wire information is reviewed online against the back-up documentation. If there is an error, the wire will be rejected online and the wire initiator will make any necessary corrections to the data. If all information is correct, the wire will be approved. The payment approval confirmation will be attached to the documentation for future reference. The form and all documentation will be forwarded to a Assistant Finance Director for entry into the Tyler System.
II. Establishing a wire template. The City may establish a wire template for wires that will be completed on a regular basis for items such as investments or regularly scheduled payments. a) The wire template is established by the wire initiator and approved by an appropriate staff member using banking information provided on signed company letterhead or an invoice.
Employee Direct Deposits
Direct Deposit is an encouraged condition of employment at the City. If for some reason an employee cannot or does not want to participate in direct deposit, they must request in writing to the Human Resources Department to be exempt from participating in direct deposit. Approval to NOT participate in direct deposit must be granted by the Human Resources Department.
Checking and savings accounts are generally the only types of accounts that can be used for direct deposit. Although the City policy states that funds cannot be sent to a money market account, the system has allowed money market accounts when the account sequence is similar to that of a checking or savings account.
Employees should take the following steps to establish direct deposit when first hired:
1) Submit a Direct Deposit Authorization form to the Human Resources Department. 2) This form must contain account documentation in order to assure proper setup. Account documentation may include a "VOIDED" check (for checking accounts) or a bank notification stating the bank's transit and routing number in addition to the employee's account number (for saving accounts). Using this form, employees have the option to have their paycheck sent to 1, 2 or 3 bank accounts. 3) Account documentation is reviewed to assure the information does not appear altered or manipulated in any way.
If evidence of such is present, the employee will be contacted to verify the information. In addition, if a void check which does not contain the employee's name is submitted, the employee will be contacted to verify the information.
The outcome of these communications will be documented on the direct deposit form. Suspicious or fraudulent situations should be routed to the attention of Humans Resources Depaituient. 168
City of Beaumont -Finance Department Policies and Procedures Manual 2026 Direct deposit information can be edited through Tyler Incode. The same restrictions on bank account types apply, but there is no limit on the number of accounts to which direct deposit can be distributed when updating directly into Tyler Incode.
After the input has been completed and saved in Tyler Incode, the Human Resources Department processor will initial and date the Direct Deposit Authorization Form. The initialed form is given to the Payroll Benefits Supervisor for review to ensure the saved name, routing, and bank account numbers all agree with the "VOIDED" check or a bank notification stating the bank's transit and routing number in addition to the employee's account number. More detailed instructions and screen prints are maintained in Human Resources for review.
When Fraud is Identified
Banking Fraud can occur in various forms. When Fraud is discovered in the EFT procedure, the Fraud must be reported to the Finance Director immediately (in absence of the Finance Director, the Assistant Finance Director must be notified). The Finance Director must notify the City Manager, Treasurer, and Police Chief. Chair of the possible fraud as soon as possible after it is detected. Steps will be taken with Wells Fargo to mitigate the fraud.
Banking Definitions
Automated Clearing House (ACH). An electronic payment delivery system which allows payment or collection of funds electronically through a financial network occurring within the United States. ACH processes large volumes of credit and debit transactions in batches.
American Bankers Association (ABA) Number. The ABA number is the nine (9) digit bank code assigned to financial institutions by the American Bankers Association (ABA) to identify the financial institution upon which a payment is drawn and submitted to within the United States. The ABA number is also known as the "check routing number" or "routing transit number. The ABA number may differ depending on where an account is opened and the type of transaction that is being processed (checks, domestic wires or ACH's).
Bank Account. A financial account recording the financial transactions between the customer and their bank and the resulting financial position of the customer with the bank and that is primarily used for processing checks, domestic wires and EFT ACHs.
Direct Deposit. An electronic method of payment in which money is transferred to the payee's account without the use of checks, processed through the ACH payment system.
Fedwire. (A.k.a. Wire Transfer -Domestic or International). The Real Time Gross Settlement Funds Transfer system operated by the Federal Reserve Banks that enables financial institutions to electronically transfer funds to each other. Messages are transferred requesting debits and credits to correspondent accounts (in addition to other types of accounts). Actual settlements occur through Fedwire, CHIPS, correspondent accounts or other means. Domestic wires settle the same day and International wires can take up to two days to settle if foreign currency exchange is involved. The system is reliable and secure and is more costly compared to transactions involving checks or ACH.
Policy and Procedure Management
169
City of Beaumont -Finance Department Policies and Procedures Manual 2026 The Finance Department may modify these directives and procedures from time to time as required, provided that all modifications are consistent with California statutes, federal laws and banking rules and regulations.
This policy will be reviewed annually for changes or updates. 170
City of Beaumont -Finance Department Policies and Procedures Manual 2026 Deposit -Based Funds Policy
Purpose
For transparency purposes, the receipt and draw down of deposit -based funds must follow a standard system of entry, tracking and reporting with documentation to support the use of funds. The EnerGov system is used by the Community Development and Public Works Depaitinents for project management. This system allows for the input, receipt and tracking of all deposit related funds and activities. The EnerGov system can also produce project specific reports showing itemized deposit usage which can be utilized internally by staff or provided to the applicant to show how a deposit has been drawn down and the remaining deposit balance.
Below are the recommended project deposit policy and procedures:
Policy
The fee schedule reflects the minimum initial deposit required per application. It is not reflective of the entire cost of project review and processing. If no amount is specified, the initial deposit is the Department's initial estimate of the actual cost of the service or process.
The initial minimum deposit for each application must be received prior to staff beginning review of a project.
Once a deposit balance is drawn down to 20% remaining, City staff shall evaluate the remaining work and determine if additional funds are required. If additional funds are required, a request for an additional deposit shall be made to the project proponent.
All fees are based on the adopted Fee Schedule, approved by City Council, and are not subject to City staff direction; however, if a project proponent protests additional fees associated with additional plan reviews, the project proponent may request a review of the matter by the Department Director. The Director shall determine whether the costs were or were not appropriate and may then reduce the costs charged. The Director shall, in writing, notify the appealing person of the decision. Work on any application may continue during any appeal process provided there are sufficient funds on deposit.
The developer or project proponent may request a refund of any remaining deposit no sooner than 60 days after final closure of a project. Within 120 days of the final closure of any deposit -based fee case, Department staff will process a refund (if applicable) through regular Accounts Payable protocols.
If any portion of the application fees has been paid by a City Department to another jurisdiction, agency, or depaitinent for the performance of services related to the application, the Department will not refund any such portion of fees until the other jurisdiction, agency or department authorizes the Department to do so. In the absence of such authorization, it will be the applicant's responsibility to contact the other jurisdiction, agency, or department for a refund of the fees paid to it.
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City of Beaumont -Finance Department Policies and Procedures Manual 2026 Procedures
Funds received for a project shall be receipted and input into the EnerGov system within 3 business days of receipt.
Deposit shall be checked daily or prior to working on a project and as needed throughout life of the project to ensure escrow account balances remain positive. All deposit accounts shall be reviewed monthly with Finance records.
Time worked on a project shall be entered daily and billed in 15 -minute increments.
Consultant or outside services fees paid by an applicant shall be entered into EnerGov and billed against the deposit as invoices are received.
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City of Beaumont -Finance Department Policies and Procedures Manual 2026 Donation Acceptance Policy
Purpose
The purpose of this document is to establish a policy that is consistent with the City's strategic goals for actively seeking sponsorships and donations in a transparent and accountable manner from individuals, community groups, charitable organizations, and businesses who wish to make sponsorships and donations to the City of Beaumont.
Additionally, this policy will provide uniform criteria and procedures to guide the review and acceptance of such sponsorships and donations, confirm that the City has adequate resources to administer sponsorships and donations, and ensure that the City appropriately acknowledges the generosity of the donor.
Definitions
Donation or Gift shall mean a monetary contribution, personal property, real property, equipment, tangible items, or any other asset that the City has accepted and for which the donor has not received any legal consideration in return. For purposes of this Policy, the terms "donation" and "gift" shall be synonymous.
Donor shall mean a person or legal entity that proposes or provides a donation to the City.
Endowment shall mean monetary donations that are restricted by the respective donor to the extent that only earnings, and not principal, may be expended by the City for the donor's designated or intended purposes. Such donations are restricted donations in the sense that the donor -specified purpose is to preserve the purpose of the initial donation.
In -kind donations shall mean a non -cash contribution of goods, services, or other tangible assets made to the city.
Restricted Donation shall mean monetary donations whose expenditure is restricted to a Donor -specified purpose, which may identify a particular City department, program, project, or other purpose as the beneficiary of the donation. For example: such donations may include the funds directed to support a public art initiative or to support construction of a skate park.
Sponsorship shall mean a business relationship where one party (the sponsor) provides financial support, goods, or services to another party (City event or program) in exchange for specific promotional benefits.
Unrestricted Donation shall mean a donation made to the City by a donor without any limitations or restrictions being placed upon its use.
General Guidelines
1. Donations do not become the property of the City until accepted by the City in a manner consistent with this Policy.
2. In the event that any City employee, volunteer, or elected official is offered a restricted donation on behalf of the City, that City employee, volunteer, or elected official shall direct the donor to provide such restricted donation directly to the Finance Department for processing. The Finance Department shall notify the City Manager's Office immediately with receipt of donation.
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3. The City Manager's Office shall be responsible for authorizing acceptance of restricted donations.
4. In the event that any City employee, volunteer, or elected official is offered an unrestricted donation, they may receive the donation on behalf of the City and are required to bring the donation to the Finance Department for deposit.
5. In order to efficiently accept, expend, and account for funds donated to the City:
a. The City Manager's Office shall be responsible for authorizing acceptance of unrestricted donations up to the amount of $30,000(or equivalent value), except in the case of donations made towards the City'sK9 program, with which those donations are automatically accepted. b. The City Council shall be responsible for authorizing acceptance of unrestricted donations exceeding the amount of $30,000(or equivalent value).
6. All donations will be evaluated by the City prior to acceptance to determine whether the donation is consistent with the corresponding department or program's mandate; is in the City's best interest; and is consistent with applicable City laws, policies, ordinances, and resolutions.
7. The City has no obligation to accept any donation proposed by a donor. The City reserves the right to decline any donation if, upon review, acceptance of the donation is determined in the sole discretion of the City to not be in the best interests of the City.
8. The City does not provide legal, accounting, tax or other such advice to donors. Each donor is ultimately responsible for ensuring the donor's proposed donation meets and furthers the donor's charitable, financial, and estate planning goals. As such, each donor is encouraged to meet with a professional advisor before making any donation to the City.
9. On behalf of the City and depending on the amount of an individual donation, the City Manager, or the City Council must determine whether an expenditure of City funds, either a direct outlay of City funds or the use of City employees and materials, is associated with or required by acceptance of that individual donation prior to acceptance.
10. The donation must be used for official City business, and not for political activities or other personal business.
Donations may not confer personal benefit to any City employee or City official.
11. No undue public benefit or similar advantage is to accrue to the donor or to any person affiliated with, related to, or closely connected to the donor because of the donation.
12. A donor may restrict a donation for a particular City department, location or purpose, but not designate the City official who may use the donation.
13. If required, the City will report a donation made to the City to the Fair Political Practices Commission (FPPC) in accordance with the timelines and directives described in title 2, section 18944 of the California Code of Regulations.
14. If a donation to the City is made at an elected City official's behest from a single source in a calendar year, and the donation meets or exceeds the amount established by the FPPC, the elected City official must file a FPPC Form 803 with the City Clerk disclosing this information. 174
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15. The City department or office administering the donation is responsible for acknowledging receipt of and thanking, on behalf of the City, the donors of donations.
16. The City shall comply with all applicable laws and regulations of the Internal Revenue Service regarding the acceptance of donations.
17. The City department or office administering the donation shall work with the Finance Director or his or her designee to determine the appropriate accounting for the donation.
18. Donors are required to advise the City if the donor is making a donation to the City on a date that falls within thirty (90) days from when the donor, or the donor's organization or company, was, is, or plans to be involved with an application for a City permit or planning approval or with responding to an active City solicitation for goods and/or services.
Policy
Unrestricted Donations of Monetary or Tangible Items
All donations to the City shall immediately be submitted for consideration for acceptance. City staff shall review every donation and determine if the benefits to be derived warrant acceptance of the donation.
Unrestricted monetary donations will be deposited into the City's Other Special Revenue Fund.
Council Notification: The Finance Department shall notify the City Council on an annual basis of all accepted and rejected monetary donations received and processed.
Restricted Donations of Monetary or Tangible Items
The City Manager's Office with the support of the Executive staff will determine whether to accept or reject the donation based on whether the donation:
• is in the City's best interest and is consistent with applicable City ordinances, resolutions, and policies • has any special restrictions and if so, if those restrictions are acceptable to the City • obligates the City to make an immediate or initial City expenditure which has not been included in the approved City budget
• creates a new, one-time or an on -going general maintenance obligation for the City.
Donations of Real Property
The City Council shall be responsible for authorizing acceptance of donations of real property.
The City Manager's Office shall administer the donation of real property, in conjunction with any other City departments deemed appropriate.
Donations of Trust and Endowment Funds
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City of Beaumont -Finance Department Policies and Procedures Manual 2026 The Finance Department shall administer donations of trust and endowment funds in accordance with Generally Accepted Accounting Principles applying the relevant Governmental Accounting Standards Board pronouncements.
In general, endowments exist to invest resources for the purpose of generating income. As such, in order for a donation to be considered for the establishment of an endowment fund at the request of the donor, the City in its sole discretion shall apply minimum dollar amount thresholds in keeping with the best interests of the City.
Sponsorships
City sponsorships must align with the agency's mission and will be presented and evaluated in a non- discriminatory manner.
The City will ensure that all sponsorship opportunities are publicly advertised and accessible to a wide range of potential sponsors.
Sponsorship agreements should be formalized through written contracts that outline the terms, benefits, and obligations of both parties.
Sponsorship revenues must be used in accordance with applicable laws, budgets, and restrictions, and should support the intended program, event, or service.
The sponsorship will be deposited with the Finance Department and accounted for in accordance with Generally Accepted Accounting Principles.
If sponsorship involves programs funded by federal or state grants, the city will comply with additional regulations such as the Uniform Guidance for federal funds, to ensure no conflicts with grant conditions or objectives. 176
City of Beaumont -Finance Department Policies and Procedures Manual 2026 City of Beaumont Donation Acknowledgement Form
Finance Department
550 E 6thSt
Beaumont, CA 92223
Phone: 951-572-3236
DONOR INFORMATION
Company/Individual:
Contact person:
Address:
City/State/Zip:
Phone: Email:
DONATION INFORMATION
Amount of Monetary Donation:
Stated Purpose for Donation:
Description of Gift or In -Kind Donation:
Valuation of Gift or In-IGnd Donation:
Any Donor -Specified Restrictions on the Use of the Donation:
Donor Signature: Date Accepted: Signature of City Representative:
Thank you for your donation to the City of Beaumont.
The City Manager's Office/Finance Depaitiiient will be in touch with you shortly.
Your generosity is appreciated.
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City of Beaumont -Finance Department Policies and Procedures Manual 2026 Vehicle/Facility/Equipment/IT Internal
Service Funds Policy
Purpose
The purpose of this policy is to provide the City with a process to control unpredictable budgetary variations from year to year by determining where vehicles, equipment, facility and IT infrastructure are in their lifecycle and applying consistent budgetary allocations to a replacement fund to strategically address aging assets.
Committee
A committee shall be established with responsibility of reviewing aging schedules of such assets and determining the retirement of aging assets and replacement of vehicles, equipment or IT infrastructure as needed. The Committee will follow the Fixed Asset Policy set forth by the City Council on useful life of such assets which is presented below:
Asset:
Police Patrol
Heavy Duty Work Truck
Standard Vehicle
Motorcycle
Nominal Service Life
5 years/ 80,000 miles
.6 years/ 100,000 miles
8 years/ 120,000 miles
.5 years/ 80,000 miles
Hybrid Electric
Field Equipment
Handheld Landscaping Equipment
Heavy Equipment
Trailers
Personal Computers
Cell Phones
Tablets and Ipads
Copiers/Printers
Servers
Networking Infrastructure
AV Equipment
Asset:
Fire Squad
Fire Engine
Fire Truck
.10 years/ 120,000 miles
.4-6 years
2-4 years
8-10 years
15 years
4-5 years
2-3 years
3-5 years
.5-7 years
5 years
5-7 years
5-7 years
Nominal Service Life
15 years
10 years
12 years
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City of Beaumont -Finance Department Policies and Procedures Manual 2026 IT Infrastructure has a shorter useful life and is always changing as technology improves. The need for an internal service fund for these expenditures is that IT infrastructure can be costly even though the useful life might be less than 5 years. Keeping up with technology advances helps to preserve and secure the City's assets.
It is the responsibility of the departments to inform the Committee of analytical information and usage/condition of the assets/fleet just before the budget development process and the annual vehicle/equipment purchasing cycle.
The Committee shall be comprised of representatives from various departments or as approved by the City Manager.
Required Committee Members:
• Deputy City Manager
• Administrative Services Director
• Chief of Police
• Finance Director
• Vehicle Maintenance Supervisor
• IT Manager
• Budget Specialist or Purchasing Officer
• Various Applicable Dept Representatives
Summary of Review Committee Responsibilities
• Evaluate usage reports
• Review and/or develop new standards
• Evaluate equipment technology
• Evaluate the need for required additions (not including replacements) • Evaluate requested replacements that do not meet replacement criteria (age or mileage) • Review the use of equipment or vehicles that have already been replaced and kept as reserve or special use vehicles
• Evaluate/review all recommended replacement equipment, vehicles and planned building/facility maintenance projects
Committee Meeting
The committee will meet annually sometime in November/December which is prior to budget season to allow time for budget planning.
Fund Replenishment
The City obtains funds for the future replacement of vehicles, equipment and IT infrastructure through annual charges to the using depailments over the nominal life cycle of each unit. The amount of the allocation will be evaluated annually with changes recommended based upon needs vs resources. The Finance Director invests the funds and credits interest or dividend earnings into the fund. The Finance Director will also return residual (disposal) value of the assets back into the fund after the sale is finalized. This system assures availability of funds when it becomes necessary to purchase these assets. The Vehicle, Equipment, facility and IT Infrastructure Internal Service 179
City of Beaumont -Finance Department Policies and Procedures Manual 2026 Funds are self-supporting and is the main vehicle for budgeting and providing adequate funding for all vehicles, equipment, building maintenance and IT infrastructure for the City (not including Enterprise Funds).
Replacements
The Committee establishes useful nominal (life cycles) for all types of vehicles, equipment, facilities and IT infrastructure, which comply with the Fixed Asset Policy, that are incorporated into a technical amortization schedule. This amortization schedule guides depar tments in their annual cost for purchase/ownership and replacement costs for vehicles, equipment, facility and IT infrastructure at the termination of the life cycle. This also becomes the fiscal budget for all City assets.
The Finance Department will communicate on an annual basis (or more frequently) with all City Departments those assets that are eligible for replacement. This is based on the termination of life cycles, which then enable those vehicles and equipment to become replacement candidates. Nominal life cycle analysis is the benchmark for replacing equipment. Each year during budget preparation, the Committee evaluates the assets that are eligible, or requested to be replaced. During this period, departments are required to submit their requests to replace or change their vehicles/equipment, facilities or needed IT infrastructure to the Finance Department. Once technical evaluations have been completed, the Committee will then assemble a recommendation for replacement.
Because a particular piece of equipment is eligible for replacement (based on its useful life and amortization cycles), does not automatically guarantee the replacement. Many other factors go into the evaluation process to make certain the asset is no longer feasible to retain or is otherwise unusable in its originally designed capacity relative to the departments mission. Age, mileage, repair history, current condition, forecasted repair costs, depreciation and market value are included in the evaluation process. After the evaluations have been completed, the Finance Department meets and discusses the eligible asset with the affected departments to:
1) Review the list of asset candidates
2) Decide further whether to replace or retain the recommended asset 3) Aid the department with a budget forecast
4) Discuss necessary operational equipment needs
IT Infrastructure is different by nature as some items may be enhancements rather than replacement. The IT department will be responsible for submitting an annual report to the committee of current infrastructure, the condition of that infrastructure and the potential lapse in quality of the infrastructure. The IT department will also be responsible to justify and detail any requests for new infrastructure with explanation to how the new expenditure will assist to preserve and protect City assets or its viability in protecting against fraud and manipulation. They will also need to provide ongoing costs or long-term savings that would be associated with any new purchase.
The overall decision for replacement will lie with the City Manager and Finance Director based on economic conditions and available funds.
Component Cost
Each component cost has its own value and needs to be analyzed individually. The components are defined as follow:
Purchase Price
Future cost asset at anticipated time of purchase
including inflation
Resale Value
Value of the asset at time of replacement
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City of Beaumont -Finance Department Policies and Procedures Manual 2026 M&O Costs
Yearly operation and maintenance costs over the life
of the asset
Age
The age of the asset. Age may be misleading if
replacement parts are not readily available
Mileage
The number of miles on a vehicle. Mileage is a good historical indicator on the condition of equipment as
to when costly repairs may occur
Mechanical Condition
Relative condition of the asset in respect to anticipated major repairs. Do maintenance costs
exceed replacement costs?
Usability
Does the asset allow the operator to perform the
function in an efficient and effective manner?
Life cycles and utilization must be evaluated using age, miles, fuel consumption, or other factors such as maintenance costs, etc. The Vehicle Maintenance
Supervisor will run a report out of Dossier that provides usage updates to ensure accurate information. This information can then be used by the Committee in November or December.
Multi -Functional Units
It should be a priority to identify locations or tasks that are conducive to converting existing single task units into units with multiple capabilities. For example, a low -usage, single application pickup may have multiple applications if a van was substituted in its place.
A more versatile unit may be acquired during the normal replacement cycle. Funding for the upgraded or more versatile unit may come from the equipment/vehicle replacement fund and supplemented by capital funds from the departments that will benefit from the upgrade. Should the fund reserve have sufficient funds, the decision to fund an upgrade shall be based on a recommendation made by the depai tiiient(s) to the committee.
If it is practical to acquire a multi -functional unit outside the normal replacement cycle, the unit or units that shall be replaced and can be used in trade for the upgraded unit. These units may also be sold at auction, combining the sales revenue with accumulated replacement funds in order to acquire the more appropriate vehicle (if appropriate).
Capital asset policy of disposal authority still apply.
The guidelines used by the committee are intentionally kept general so that a maximum amount of creativity and inter -departmental cooperation may be applied to a wide variety of tasks, applications, and programs and that will enhance depaitiiient operations and save the City money.
Enhancements
Any new assets (enhancements) that are not of a replacement nature will need to be approved through the budgetary process and authorized by the City Manager as an enhancement to their department budget. The using department needs to justify and budget for the initial procurement of all capital assets. When the City receives the asset the Finance Department adds the asset into the main inventory system, establishes an estimated useful life, calculates 181
City of Beaumont -Finance Department Policies and Procedures Manual 2026 the future replacement costs that includes adjustment for CPI and inflation, and then establishes the amortization schedule for the new asset. The Finance Department will communicate on an annual basis (or more frequently) with all City Departments those assets that are eligible for replacement.
Economic Analysis and Revenues
The Vehicle, Equipment, Facility and IT Infrastructure Replacement Funds must continue to maintain an appropriate fund balance that is sustainable and available for replacements. The oversight of this fund is administered through the Finance Department.
The revenue projections for this fund are increased using a 3.5% inflation rate growth factor for forecasting purposes. Once the actual replacement costs of an asset are determined, the amount is entered into an amortization schedule. Until this time, an estimated budget amount is used for calculation purposes.
Yearly contribution amounts are based on initial acquisition cost (with all make- ready costs) then calculated based on this estimated future year (end of life cycle) replacement cost. Often times, vehicle and equipment costs are less than the budgeted amount, thus enabling the funds to cover unanticipated or emergency replacements when authorized. This is an important mechanism as emergency vehicle and equipment replacements do in fact occur. Each asset is entered into the amortization document with the actual cost of the asset and the estimated useful life. A formula is then calculated that gives the estimated replacement cost based in part on a current year inflation growth rate per year. The formula is: year acquired, useful life, estimated replacement year, inflation rate, interest earnings and the estimated replacement cost equal the annual contribution. Once a vehicle has reached its useful life and is not recommended for replacement, only the 3.5% inflation rate is charged to the using department. The amount of reserves to be held in the reserve fund will be determined by adoption of the annual budget upon recommendation of the City Manager. Generally, the reserve will not be less than two and one-half times the total annual depreciation for the budget year.
Economic Analysis and Revenues
Annually the Finance Department will provide departments a list of inventory from the fixed assets system.
It is the department heads responsibility to ensure the inventory is updated with accurate information which will then be given to the Committee. The aging schedules will be updated with the information provided by the departments. The depai -ments may request more information from the Finance Department and, if not represented on the committee, send a representative to the meeting to clarify their vehicle/equipment information and provide additional detail as well.
Results of the meetings shall be documented and summarized for review by the City Manager. This information may also become a part of the City's budget program review process to evaluate departmental program needs and effectiveness.
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City of Beaumont -Finance Department Policies and Procedures Manual 2026 Pension Funding Policy
Purpose
The purpose of the Pension Funding Policy (the "Policy") for the City of Beaumont is to establish a comprehensive and prudent framework to manage the City's defined benefit pension obligations, in alignment with the best practices of the Government Finance Officer's Association (GFOA). This Policy serves as a guiding document to:
1. Articulate Pension Management Goals: Clearly outline the City's objectives in managing pension funds, ensuring that they are well-defined and focused on the long- term sustainability of the pension system.
2. Affirm Commitment to Pension Promises: Emphasize the Council's unwavering commitment to fulfilling the pension benefits promised to employees, highlighting the importance of this responsibility in the City's financial planning.
3. Demonstrate Fiscal Responsibility: Show the Council's dedication to long-term fiscal discipline. This involves making prudent financial decisions that protect the interests of the City, its creditors, employees, and stakeholders, ensuring the financial health and credibility of the City.
4. Set Reserve Targets and Augment Assets: Establish clear reserve targets and implement strategies to enhance the pension fund's assets. This is crucial for mitigating the volatility risks associated with the pension fund's assets and liabilities.
5. Outline Transparency and Governance Procedures: Define and implement robust governance structures and transparency measures. This ensures that the pension management process is open, accountable, and subject to appropriate oversight.
6. Support Informed Decision -Making: Aid the City Council in making informed decisions by balancing the pension plan's funding objectives with the City's broader responsibilities to its citizens, including maintaining service quality and financial stability.
7. Ensure Financial Stability and Flexibility: Align the Policy with the City's long-term financial plan, ensuring that it contributes to maintaining the City's sound financial position. It should provide guidance for annual budget decisions and ensure the City retains the flexibility to adapt to changing service priorities, revenue levels, and operating costs.
8. Safeguard Interests of Stakeholders: Structure all pension funding decisions to protect the interests of current and future taxpayers, ratepayers, and residents of the City. This involves ensuring that the decisions made today do not unduly burden future generations. 183
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9. Guarantee Pension Benefits: Protect the City's capability to provide its employees with the promised pension benefits, ensuring that the pension plan remains a reliable and stable source of post -retirement income for the City's workforce.
Through these guiding principles, the City of Beaumont aims to manage its pension obligations responsibly and sustainably, ensuring fiscal health and stability while fulfilling its commitments to employees and stakeholders.
Background
The City is committed to fiscal sustainability by employing long-term financial planning efforts, maintaining appropriate reserve levels, and employing prudent practices in governance, management, budget administration, and financial reporting. This Policy is intended to make all relevant information readily available to decision -makers and the public to improve the quality of decisions, identify policy goals, and to demonstrate a commitment to long-term financial planning.
Developing a funding policy to address an unfunded accrued liability offers several benefits.
Below are a few of the key advantages:
1. Framework for Managing Future Liabilities: Establishing a funding policy provides a structured approach to managing future liabilities. It helps in minimizing the impact on operational aspects of the organization. By adopting such a policy, there's a commitment to a disciplined decision -making process, which enhances predictability in funding requirements.
2. Enhanced Transparency and Understanding: Having a written summary of the funding policy, which is readily available to employees and the public, fosters transparency in funding decisions. This transparency is crucial for increasing the overall understanding of pension funding issues among all stakeholders.
3. Improved Risk Management: The process of developing a funding policy itself is beneficial as it aids in the identification, understanding, and management of risk factors.
These factors can significantly affect the variability of funding requirements and the security of benefits for both current employees and retirees.
A well-defined funding policy not only ensures better management of liabilities but also promotes transparency and improves risk management, leading to more secure and predictable funding for pensions.
The primary goal of funding defined benefit pension plans is to ensure that sufficient assets will be accumulated to deliver promised benefits when they come due. The City's pension funding goal is to fund its pension benefit obligations and establish sound funding guidelines that promote pension benefit security while preserving sufficient liquidity as not to negatively impact the City's ability to continue to provide services to the community. California Public Employer's Retirement Law (PERL) requires member agencies to contribute an Actuarial Determined Contribution (ADC) which is the City's minimum required employer contribution. The ADC is composed of the annual service cost of active employees (Normal Cost) plus an amount required to amortize any unfunded accrued liability (UAL Payment). If all other actuarial assumptions are met, making the 184
City of Beaumont -Finance Department Policies and Procedures Manual 2026 UAL payment improves the funded status of the plan by approximately 1 %-2% per year until the market value of assets with Ca1PERS reaches 100% of the funded status with Ca1PERS.
The City recognizes there are a significant number of assumptions that go into the development of the City's accrued pension liability and the annual volatility associated with the market value of assets, that underpin the City's unfunded accrued liability, and should not be disruptive for budgeting and planning purposes. This policy will guide the City's strategy to maintain a target minimum balance in the City §115 Pension Trust to minimize annual disruption and preserve flexibility. The policy also contemplates a maximum combined balance of assets with Ca1PERS and assets held in the City's §115 Pension Trust relative to the City's total accrued pension liability.
Funding Guidelines and Policy Parameters
Commitment to Funding the ADC: Committing to paying the full Actuarially Determined Contribution (ADC) each period is crucial for a pension plan sponsor for several reasons:
1. Ensuring Financial Sustainability: The ADC is calculated to ensure that the pension plan can meet its long-term obligations. By consistently funding the full ADC, the plan sponsor helps maintain the financial health and sustainability of the pension fund.
2. Preventing Unfunded Liabilities: Underfunding the ADC can lead to the growth of unfunded liabilities. Over time, these unfunded liabilities can become substantial, increasing the financial burden on the pension plan and potentially leading to a funding crisis.
3. Stabilizing Contribution Rates: Regularly funding the ADC helps to stabilize contribution rates over time. This consistency aids in budgeting and financial planning for both the plan sponsor and the beneficiaries.
4. Maintaining Plan Solvency: Paying the full ADC helps ensure that the plan remains solvent and can continue to pay out benefits as promised to current and future retirees.
This is crucial for maintaining the trust and confidence of the plan members.
5. Compliance with Actuarial Standards and Policies: The ADC is determined based on actuarial standards and reflects the best estimate of what needs to be contributed to adequately fund the pension liabilities. Paying the full ADC demonstrates a commitment to these professional standards and sound financial practices.
6. Avoiding Cost Shifting to Future Generations: By fully funding the ADC, the plan sponsor avoids shifting the burden of current pension costs to future generations or future taxpayers. This is an important aspect of equitable and responsible fiscal management.
7. Enhancing Credit Ratings and Investor Confidence: Investors and credit rating agencies often view the full funding of pension obligations as a sign of financial health and responsible management. This can lead to better credit ratings and lower borrowing costs for the sponsoring government or organization.
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8. Risk Management: Adequate funding reduces the risk associated with pension liabilities, such as investment risk, demographic risk, and inflation risk, by ensuring that funds are available to meet these challenges.
As a key component of prudent fiscal management for pension plan sponsors, ensuring the long- term viability of the pension plan and safeguarding the interests of both current and future retirees, the City is committed to paying the full ADC each year plus any additional amounts it deems appropriate and consistent with this funding policy.
Preservation of Financial and Budget Flexibility: The concept of "Preservation of Financial and Budget Flexibility" through maintaining adequate reserves is vital for the City, particularly in light of managing its accrued pension liabilities. Here's a refined explanation:
1. Importance of Reserves for Financial Flexibility: Reserves are crucial in providing financial flexibility. They function as a safeguard against unpredictability and economic fluctuations. This is particularly pertinent considering the substantial accrued pension liabilities and the volatility of the assets earmarked to fund these obligations.
2. Preparing for Market Downturns and UAL Payment Increases: In the event of a significant market downturn, the City faces the risk of being required by Ca1PERS (California Public Employees' Retirement System) to increase its Unfunded Accrued Liability (UAL) contributions to compensate for market -related shortfalls. This scenario necessitates prudent financial planning.
3. Determining a Minimum Reserve Threshold: To effectively address this risk, the City should consider maintaining a minimum reserve amount. A target balance of 3-5% of the City's budget is suggested as a prudent benchmark. This reserve level is expected to be sufficient for managing unexpected hikes in UAL payments, thereby ensuring financial stability during turbulent times.
The establishment of a target minimum reserve balance of 3-5% reflects a strategic approach to financial planning. It ensures that the City is equipped to handle unforeseen financial demands, particularly in relation to pension liabilities, while continuing to fulfill its service and infrastructure obligations to the community.
Maximum Reserves Available to Mitigate Pension Liabilities: The concept of "Maximum Reserves Available to Mitigate Pension Liabilities" reflects a prudent approach adopted by the City to balance its financial resources. This approach acknowledges the limited nature of available funds and emphasizes the importance of striking a balance between two key aspects:
1. Funding Long -Term Obligations: The City recognizes the significance of adequately funding its long-term obligations, such as pension liabilities. This involves setting aside sufficient reserves to ensure these obligations can be met over time. By doing so, the City aims to maintain financial stability and fulfill its commitments to current and future retirees.
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2. Meeting Current Service Needs: At the same time, the City is aware of the immediate service needs of its current residents. This necessitates the allocation of resources to provide essential services and maintain the quality of life within the community. The City must ensure that while funding long-term obligations, it does not neglect the immediate and ongoing needs of its residents.
The concept of "Maximum Reserves Available" thus serves as a guiding principle for the City's financial planning. It requires careful consideration and management of available resources to simultaneously address long-term pension liabilities and current service requirements, acknowledging that resources are finite and must be judiciously allocated to meet both current and future needs.
Opportunities to save Pension interest costs: "Saving Pension Interest Costs" involves strategic management of the City's payments towards Ca1PERS' Unfunded Accrued Liability (UAL) under the existing amortization policies.
1. Challenges with Ca1PERS' UAL Amortization Policies: Ca1PERS' UAL amortization policies, while designed to be accommodating for local agencies, especially those with limited budget flexibility, often result in extended and negatively amortizing payment schedules. This means that the debt may increase in the short term as interest outpaces the principal repayments.
2. Default Payment Schedule as the Minimum Requirement: The default payment schedule set by Ca1PERS represents the minimum amount that local agencies are required to pay. However, this minimum approach can lead to substantial interest costs over time due to the slow and negatively amortizing nature of the repayment structure.
3. Accumulating Funds for UAL Repayment: The City should consider accumulating available funds to address the inefficiencies of slow and negatively amortizing UAL repayment schedules. This involves setting aside funds beyond the minimum required to maintain budget flexibility. Once this minimum threshold is secured, any excess funding and earnings can be allocated for strateg.
4. Role of the City Manager and Finance Director: The excess funds and earnings should be made available to the City Manager, or as delegated, to the Finance Director. Their role would be to identify opportunities to reduce interest costs by making additional payments above the default schedule provided by Ca1PERS.
5. Annual Review and Decision -Making Process: Annually, the City Manager or Finance Director should evaluate and recommend strategies to the City Council during the Budget Process. This recommendation should focus on how best to utilize excess funds for reducing the long-term interest costs associated with the UAL repayment, thus ensuring more efficient and cost-effective debt management.
By strategically managing funds to make additional payments towards the UAL, the City can reduce the long-term interest costs associated with its pension obligations. This approach requires careful financial planning and regular review, with the goal of balancing fiscal responsibility and 187
City of Beaumont -Finance Department Policies and Procedures Manual 2026 budget flexibility while minimizing overall interest expenses.
Plan Solvency: The concept of "Plan Solvency" for the City's pension plan involves a targeted approach to managing pension assets and liabilities, with the goal of maintaining a robust funded status.
1. Target Funded Status of 110%: The City aims to achieve a combined funded status of 110% of the accrued pension liability. This target ensures a buffer against the volatility of pension assets. The target funded status is comprised of the sum of funds held with Ca1PERS and any additional funds the City has reserved and specifically designated for pension liabilities (e.g. §115 pension trust).
2. Response to Varying Levels of Funded Status:
• If funded status is below 110%: The City will aim to reserve or contribute to Ca1PERS an amount that is at least 0.25% of its accrued liability, in addition to the City's Actuarially Determined Contribution (ADC).
• If funded status falls below 90%: The response remains the same as above, with an emphasis on reserving or contributing at least 0.5% of the accrued liability along with the ADC.
• If funded status falls below 75%: The City will endeavor to set aside or contribute to Ca1PERS an amount greater than or equal to 0.75% of its accrued liability, in addition to the ADC.
Due to the volatility of pension assets, the City shall strive to achieve a combined funded status of 110% of the accrued liability. The total funding amount will be a combination of the amount on deposit with Ca1PERS, and any funds reserved by the City that are "designated" for pension liabilities.
188
City of Beaumont -Finance Department Policies and Procedures Manual 2026 Illustration Of Funding Guidelines and Policy Parameters Recommended Funded Status Guidelines
Pension Reserve (115 Trust)
Assets with CaIPERS
Combined Funded Status
Funding Guidelines*
If greater than 90% funded status
If Less than 90% but greater than 75%
If less than 75% but greater than 65%
If less than 65% of funded status
Recommended
Policy % (AL)
Target
Target
Min.
Max
3%
20%
70%
90%
90%
110%
Minimum
Contribution
Policy
ADC + .25% AL
ADC + .50% of AL
ADC + .75% of AL
ADC +1%of AL
Recommended Targets based
On Current (AL) $120M
($ For Illustration Purposes)
Target Min.
Target Max
$ 3,600,000
$ 24,000,000
$ 84,000,000
$ 108,000,000
$ 108,000,000
$ 132,000,000
Minimum Contribution
Guidelines
($ For Illustration Purposes)
$300,000
$600,000
$900,000
$1,200,000
* Actuarial Determined Contribution (ADC) is the minimum required employer contribution. Additional contribution may be directed to increase to the City's 115 Pension Trust or to direct contribution to CaIPERS provided the contribution would not foreseeably result in a funded status greater than 90% at Ca'PERS. ** Funds in excess of combined funded status guidelines shall be used to make the minimum required employer contributions (ADC).
Governance Procedures
This section outlines the governance protocols for ensuring responsible management, transparent communication, and strategic oversight of the pension funding policy.
Annual Communication and Reporting
1. Annual Progress Reports: Employers are required to annually communicate comprehensive information necessary to assess progress towards pension funding objectives.
2. Three -Year Historical Analysis: Employers should include an aggregate summary of the plan's three-year historical funded status. This analysis helps in identifying trends, assessing the effectiveness of current strategies, changes in market conditions, and making informed adjustments.
189
City of Beaumont -Finance Department Policies and Procedures Manual 2026
3. Projected Funded Status and Investment Returns: After actual investment return experience is known, the City should project the funded status for the upcoming valuation year. This projection allows for potential changes in funded status and early identification of potential funding challenges.
4. Long-term Forecast of UAAL Costs: A minimum 7-10 year forecast of the Unfunded Actuarial Accrued Liability (UAAL) costs is mandatory. This long-term forecast plays a crucial role in strategic planning and future budgeting.
Strategic Evaluation and Budget Recommendations
Annual Strategy Analysis: Each year, the City Manager or Finance Director is tasked with evaluating the pension fund's status and recommending strategies to the City Council during the Budget Process. These strategies should focus on efficiently allocating funds to preserve budget flexibility, reduce interest costs, reduce negative amortization associated with Unfunded Actuarial Liability (UAL) repayment and/or improve the funded status of the pension plan(s) as identified in the Funding Guidelines and Policy Parameters section of this policy.
1. Review of Fiscal Year End Surplus/Deficit: Upon the conclusion of the fiscal year or after the annual audit, City staff will assess all discretionary fund reserve balances. Depending on the circumstances, even shortly after the budget adoption, there may be a decision to utilize any available reserves or one-time savings from the previous fiscal year. These funds could be allocated to the §115 pension reserve, used for payments to Ca1PERS from the year-end surplus, or employed to address specific goals outlined in the strategic analysis.
2. Budget Appropriation Recommendations: In the annual budget, the City Manager and/or Finance Director are required to propose appropriations covering the Actuarially Determined Contribution (ADC) to the pension fund, along with any additional amounts specified in the "Funding Guidelines and Policy Parameters" section of this policy. This is crucial to ensure that pension funding is consistently and comprehensively integrated into the city's financial planning process.
3. Handling Unforeseen Circumstances: Occasionally, the City Manager may propose to the City Council the use of a portion of the pension reserve to meet the annual ADC, especially if maintaining the targeted minimum balance in the reserve could negatively impact community services. The policy stipulates that the reserve's target balance should be restored within a five- year timeframe. This provision allows for flexibility in financial management while ensuring long-term fiscal responsibility and sustainability of the pension reserve. 190
City of Beaumont -Finance Department Policies and Procedures Manual 2026 Appendix
ADC (Actuarially Determined Contribution): The ADC is the employer's annual required contribution to a pension plan, as calculated by actuaries. It typically includes two main components: the Normal Cost, which is the cost of pension benefits accruing in the current year, and an Amortization Payment towards the Unfunded Actuarial Accrued Liability (UAAL). The ADC is designed to cover the cost of benefits earned in the current year and to systematically eliminate any existing funding shortfall over an appropriate period. This contribution is crucial for maintaining the fmancial health and sustainability of the pension plan.
Normal Cost: is a key actuarial concept representing the cost of pension benefits accruing during a fiscal period, based on the present value of these future benefits. It's a crucial component in determining how much an employer and employees need to contribute to a pension plan each year together with assumed investment earnings to adequately fund the promised benefits.
UAL Payment: A payment made towards the Unfunded Actuarial Accrued Liability (UAAL) of a pension plan. It represents contributions specifically intended to address the deficit between the plan's current assets and the present value of its future pension obligations. This deficit arises due to various reasons, such as changes in actuarial assumptions, investment performance, or alterations in plan benefits. While Normal Cost looks forward, focusing on the current period's service, UAL payments address past service costs that have not been fully funded.
Prepayment of ADC: At the beginning of each fiscal year, the City analyzes the cost/benefits of prepaying ADP due to Ca1PERS during that fiscal year. The City strives to continue taking advantage of any prepayment discount that is afforded by CaIPERS.
Additional Discretionary Payments (ADPs): ADPs may be deposited with Ca1PERS at any time.
Within the constraints of this policy and appropriation by City Council, the City may make ADPs to Ca1PERS to achieve one or more of the three objectives above, especially when it is clear that components of the UAL (gain/loss bases) are negatively amortizing, or other opportunities exist that would likely result in an economic benefit to the City. Unless explicitly authorized by Council, ADPs to Ca1PERS should not be made if it can reasonably expect that assets with Ca1PERS would exceed 90% of the City's accrued liability.
Restructuring UAL Payment Schedule: The City may also consider full or partial restructuring of the UAL payment schedule (Fresh Start) to achieve one or more of the objectives above including preserving future financial flexibility or avoiding slow or negative amortization.
Pension Reserve: In a prudent effort to preserve financial liquidity and budget flexibility the City shall maintain a pension reserve within the constraints and limitations of this policy. The primary purpose of the reserve is to act as a "Pension Stabilization" fund acknowledging the Ca1PERS investment portfolio is volatile, the funded status can swing dramatically from one year to the next and may result in future budgetary challenges.
Before executing any of the pension payment strategies and tactics above, careful consideration should 191
City of Beaumont -Finance Department Policies and Procedures Manual 2026 be made so that the resulting transaction should not adversely impact the liquidity, budget flexibility and general operations of the City while maintaining the City's minimum general fund balance per the general fund policy.
Fixed (Closed) Amortization Periods: Consistent with GFOA recommendations Ca1PERS uses a closed amortization period based on fixed periods, meaning the timeframe over which the liability is to be paid off doesn't change with time. This contrasts with open amortization periods, which reset, potentially extending the payoff indefinitely.
Amortization Period Length: Consistent with GFOA recommendations the period should not exceed 25 years, with a preference for 15-20 years. This range is considered optimal for balancing the need to pay off liabilities in a reasonable timeframe without causing excessive short-term financial strain.
Layered Amortization Approach: Consistent with GFOA recommendations Ca1PERS uses a layered amortization approach which involves separately tracking and amortizing different components of the unfunded liability as they arise. By treating each component (such as changes in actuarial assumptions, benefit changes, or investment gains/losses) separately, the plan can more accurately align costs with the causes of unfunded liabilities. This approach can lead to more transparent and manageable funding strategies.
Balancing Goals of Rapid UAL Amortization (Paydown):
• Demographic Matching: This refers to equitably allocating the cost of the pension liabilities among different generations. The idea is to ensure that each generation pays its fair share of the pension costs without unduly burdening future generations. • Volatility Management: This aims to maintain funding at a stable, predictable level, typically as a consistent percentage of payroll. This helps in budgeting and financial planning for the pension plan.
192
City of Beaumont -Finance Department Policies and Procedures Manual 2026 193
BEAUMONT
-C A L I F O R N A -
Staff Report
TO: Honorable Mayor and Members of the City Council
FROM: Chapman and Cutler LLP
BY: Nicole Wheelwright, Deputy City Clerk
DATE: May 5, 2026
SUBJECT: Tax Equity and Fiscal Responsibility (TEFRA) Hearing for Aurora Recovery Center Located at 210 West Sixth Street
Description: Consideration of the approval of the issuance of bonds by the Public Finance Authority (the "PFA") in an aggregate principal amount not to exceed $750,000,000 for the benefit of Flyland Holdings LLC and its affiliates, for the purpose of satisfying the requirements of Section 147(f) of the Internal Revenue Code and Section 4 of the PFA's Joint Powers Agreement.
Background and Analysis:
Flyland Holdings LLC (the "Borrower"), a Wisconsin limited liability company and a disregarded entity of Stepstone Health Foundation, a Delaware nonprofit corporation and an organization described in Section 501(c)(3) of the Internal Revenue Code, as amended (the "Code"), has requested that the Public Finance Authority (the "PFA") serve as the issuer of tax-exempt and/or taxable revenue bonds in an aggregate principal amount not to exceed $750,000,000 (the "Bonds"). The proceeds of the Bonds will be loaned to the Borrower and used, together with certain other funds, (i) to pay or reimburse the Borrower and/or Flyland Recovery Network, LLC ("FRN"), the costs of acquiring, directly or indirectly through the acquisition of a membership interest in the Users (as hereinafter defined), certain substance use disorder and behavioral health facilities and related improvements located in the States of Florida, Ohio, Indiana, Texas and California and owned or operated by the Users, including the Facility (as hereinafter defined) located in the City of Beaumont, California (the "City"); (ii) funding one or more debt service reserve funds for the benefit of the Bonds, if deemed necessary or desirable by the Issuer or the Borrower; (iii) funding working capital for the Borrower or the Users, if deemed necessary or desirable by the Issuer or the Borrower; (iv) funding interest accruing on the Bonds, if deemed necessary or desirable by the Issuer or the Borrower; and (v) paying certain expenses incurred in connection with the issuance of the Bonds, including the cost of any bond insurance or other credit or liquidity enhancement, if any (collectively, the "Project"). The Bonds will be issued as qualified 501(c)(3) bonds pursuant to Section 145 of the Code.
A portion of the proceeds of the Bonds in a principal amount not to exceed $67,000,000 will be used to finance the acquisition of an inpatient substance use disorder and behavioral health facility known as Aurora Recovery Center located at 210 West 6th Street, Beaumont, California 92223 (the "Facility") which will be owned or principally used by one or more of the Borrower, FRN, and URP California LLC (the "Corporation" and, together with FRN and certain other affiliated entities, the "Users").
In order for all or a portion of the Bonds to qualify as tax-exempt bonds, the City must conduct a public hearing (the "TEFRA Hearing") providing the members of the community an opportunity to speak in favor of or against the use of the Bonds for the financing of the Project. Prior to such TEFRA Hearing, reasonable notice must be provided to the members of the community. Following the close of the TEFRA Hearing, an "applicable elected representative" of the governmental unit hosting the Project must provide its approval of the issuance of the Bonds for the financing of the Project.
Adoption of the resolution is solely for the purposes of satisfying the requirements of Section 147(f) of the Code and Section 4 of the Agreement (as hereinafter defined) and the City will have no obligation with respect to the Bonds.
The PFA is a commission organized under and pursuant to Section 66.0304 of the Wisconsin Statutes and the Amended and Restated Joint Exercise of Powers Agreement Relating to the Public Finance Authority, dated as of September 28, 2010 (the "Agreement"), among certain political subdivisions of the State of Wisconsin. The PFA is authorized to issue revenue bonds for financing projects located throughout the United States, making it an efficient and cost-effective conduit issuer for borrowers with facilities in multiple jurisdictions.
Fiscal Impact:
There is no fiscal impact to the City. The Bonds will be issued as limited obligations of the PFA, payable solely from revenues and receipts derived from a loan to be made by the PFA to the Borrower with the Bond proceeds. The City bears no liability with respect to the issuance of the Bonds. Further, the City is not a party to any of the financing documents related to the Bond issuance and is not named in any of the disclosure documents describing the Bonds or the proposed financing.
Recommended Action:
Hold a public hearing; and
Waive the full reading and adopt by title only, "Resolution of the Council of the City of Beaumont, California Approving the Issuance of the Public Finance Authority Revenue
Bonds, (Flyland Holdings LLC Obligated Group) Series 2026 in an Aggregate Principal Amount Not To Exceed $750,000,000 and Certain Other Matters Relating Thereto" Attachments:
A. Resolution Approving Bond Issuance
B. Public Notice
RESOLUTION NO. 2026 -
RESOLUTION OF THE COUNCIL OF THE CITY OF BEAUMONT, CALIFORNIA
APPROVING THE ISSUANCE OF THE PUBLIC FINANCE AUTHORITY REVENUE BONDS, (FLYLAND HOLDINGS LLC OBLIGATED GROUP) SERIES 2026 IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $750,000,000 AND CERTAIN OTHER MATTERS
RELATING THERETO
WHEREAS, the Public Finance Authority, a unit of government and a body corporate and politic under the laws of the State of Wisconsin (the "Issuer"), has been requested to issue bonds in one or more series in an aggregate principal amount not to exceed $750,000,000 (the "Bonds"), the proceeds of which will be loaned to Flyland Holdings LLC (the "Borrower"), a Wisconsin limited liability company and a disregarded entity of Stepstone Health Foundation, a Delaware nonprofit corporation and an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code"), and used, together with certain other funds, (i) to pay or reimburse the Borrower and/or Flyland Recovery Network, LLC ("FRN"), the costs of acquiring, directly or indirectly through the acquisition of a membership interest in the Users (as hereinafter defined), certain substance use disorder and behavioral health facilities and related improvements located in the States of Florida, Ohio, Indiana, Texas and California and owned or operated by the Users, including the Facility (as hereinafter defined) located in the City of Beaumont, California (the "City"); (ii) funding one or more debt service reserve funds for the benefit of the Bonds, if deemed necessary or desirable by the Issuer or the Borrower; (iii) funding working capital for the Borrower or the Users, if deemed necessary or desirable by the Issuer or the Borrower; (iv) funding interest accruing on the Bonds, if deemed necessary or desirable by the Issuer or the Borrower; and (v) paying certain expenses incurred in connection with the issuance of the Bonds, including the cost of any bond insurance or other credit or liquidity enhancement, if any (collectively, the "Project");
WHEREAS, a portion of the proceeds of the Bonds in a principal amount not to exceed $67,000,000 will be used to finance the acquisition of an inpatient substance use disorder and behavioral health facility known as Aurora Recovery Center located at 210 West 6th Street, Beaumont, California 92223 (the "Facility") which will be owned or principally used by one or more of the Borrower, FRN, and URP California LLC (the "Corporation" and, together with FRN and certain other affiliated entities, the "Users");
WHEREAS, pursuant to Section 147(f) of the Code, the issuance of the Bonds by the Issuer must be approved by a governmental unit having jurisdiction over the area in which the Facility is located;
WHEREAS, the City Council of the City (the "Council ") is the elected legislative body of the City and is one of the applicable elected representatives required to approve the issuance of the Bonds under Section 147(f) of the Code;
WHEREAS, the Council understands that its actions in holding the public hearing and in adopting this Resolution do not obligate the City in any manner for payment of the principal, interest, fees or any other costs associated with the issuance of the Bonds, and the Council 1924184379,,,Attachment A - Reso TEFRA Hearing
10001635
expressly conditions its approval of the issuance of the Bonds by the Issuer by the adoption of this Resolution on this understanding;
WHEREAS, the Issuer has requested that the Council approve the issuance of the Bonds by the Issuer in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Amended and Restated Joint Exercise of Powers Agreement Relating to the Public Finance Authority, dated as of September 28, 2010 (the "Agreement"), among certain political subdivisions of the State of Wisconsin; and WHEREAS, pursuant to Section 147(f) of the Code, the Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Issuer.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Beaumont, California as follows:
SECTION 1. Each of the above recitals is true and correct.
SECTION 2. The Council hereby approves the issuance of the Bonds by the Issuer. It is the purpose and intent of the Council that this Resolution constitute approval of the issuance of the Bonds by the Issuer for the purposes of (a) Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Facility is located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement.
SECTION 3. The officers and employees of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this Resolution and the financing transaction approved hereby.
SECTION 4. The Council expressly conditions its approval of this Resolution on its understanding that the City shall have no obligation whatsoever to pay any principal, interest, fees or other costs associated with the Issuer's issuance of the Bonds.
SECTION 5. This Resolution shall be effective upon its adoption. -2-
MOVED, PASSED, and ADOPTED this 5th day of May, 2026 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
By:
Jessica Voigt
Mayor of the City of Beaumont
(SEAL)
ATTEST:
By:
Nicole Wheelwright
Deputy City Clerk of the City of Beaumont
-3-
THE PRESS -ENTERPRISE
KEEP YOUR EYES ON 'Ii I I 'PRISE
pe.com
3512 14 Street
Riverside, California 92501
(951) 368-9229
[email protected]
City of Beaumont
550 E. 6th Street
Beaumont, California 92223
Account Number:
Ad Order Number:
Customer's Reference/PO Number:
Publication:
Publication Dates:
Total Amount:
Payment Amount:
Amount Due:
Notice ID:
Invoice Text:
5209298
0011789605
The Press -Enterprise
04/23/2026
$731.46
$0.00
$731.46
GV1WGLI2mfKzEVXTf3hB
Public Notice City of Beaumont NOTICE IS HEREBY GIVEN that the Beaumont City Council will conduct a public hearing to consider the matter below. The City Council Public Hearing will be held at 6:00pm on Tuesday, May 5, 2026, at 550 E. 6th Street, Beaumont, California 92223, to receive testimony and comments from all interested persons regarding the adoption of the following matter: RESOLUTION OF THE COUNCIL OF THE CITY OF BEAUMONT, CALIFORNIA APPROVING THE Issuance of the Public Finance Authority Revenue Bonds, (Flyland Holdings LLC Obligated Group) SERIES 2026 in an Aggregate Principal Amount Not to Exceed $750,000,000 AND CERTAIN OTHER MATTERS RELATING THERETO The Public Finance Authority (the " Issuer "), a unit of government and a body corporate and politic under the laws of the State of Wisconsin, proposes to issue one or more series of revenue bonds (the " Bonds ") in an aggregate principal amount not to exceed $750,000,000 for the purpose of, in part, financing facilities located in the City of Beaumont, California (the " City "). The proceeds of the Bonds will be loaned to Flyland Holdings LLC (the " Borrower "), a Wisconsin limited liability company and a disregarded entity of Stepstone Health Foundation, a Delaware nonprofit corporation and an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the " Code "), to provide the Borrower and/or Flyland Recovery Network, LLC (" FRN ") with moneys to finance or refinance projects located in the States of Florida, Ohio, Indiana, Texas and California. The public hearing is being held pursuant to Section 147(f) of the Code. Subsequent to the public hearing, the members of the City Council of the City will meet to consider approval of the issuance of the Bonds by
TEFRA Hearing on May 5 2026 - Page 1 of 2
THE PRESS -ENTERPRISE
KEEP YOUR EYES ON THE
The Press -Enterprise
3512 14 Street
Riverside, California 92501
(951) 368-9229
City of Beaumont
550 E. 6th Street
Beaumont, California 92223
Publication: The Press -Enterprise
PROOF OF PUBLICATION OF
Ad Desc: 0011789605
FILE NO. 0011789605
PROOF OF PUBLICATION
I am a citizen of the United States. I
am over the age of eighteen years and
not party to or interested in the above -
entitled matter. I am an authorized
representative of THE PRESS -
ENTERPRISE, a newspaper of
general circulation, printed and
published daily in the County of
Riverside, and which newspaper has
been adjudicated a newspaper of
general circulation by the Superior
Court of the County of Riverside, State
of California, under date of April 25,
1952, Case Number 54446, under
date of March 29, 1957, Case Number
65673, under date of August 25, 1995,
Case Number 267864, and under date
of September 16, 2013, Case Number
RIC 1309013; that the notice, of which
the annexed is a printed copy, has
been published in said newspaper in
accordance with the instructions of the
person(s) requesting publication, and
not in any supplement thereof on the
following dates, to wit:
04/23/2026
I certify (or declare) under the penalty
of perjury that the foregoing is true and
correct.
Date: April 23, 2026.
At: Riverside, California
Signature
Public Notice City of Beaumont
NOTICE IS HEREBY GIVEN that the Beaumont City Council will conduct a public hearing to consider the matter below. The Clty Council Public Hearing will be held at 6:00pm on Tuesday, May 5, 2026, at 550 E. 6th Street, Beaumont, California 92223, to receive testimony and comments from all interested persons regarding the adoption of the following matter:
RESOLUTION OF THE COUNCIL OF THE CITY OF BEAUMONT,
CALIFORNIA APPROVING THE Issuance of the Public Finance Authority Revenue Bonds, (Flyland Holdings LLC Obligated Group) SERIES 2026 in an Aggregate Principal Amount Not to Exceed 5750,000,000 AND CERTAIN
OTHER MATTERS RELATING THERETO
The Public Finance Authority (the " Issuer "), a unit of government and a body corporate and politic under the laws of the State of Wisconsin, proposes to Issue one or more series of revenue bonds (the " Bonds ") in an aggregate principal amount not to exceed $750,000,000 for the purpose of, in part, financing facilities located in the City of Beaumont, California (the " Clty "). The proceeds of the Bonds will be loaned to Hyland Holdings LLC (the " Borrower "), a Wisconsin limited liability company and a disregarded entity of Stepstone Health Foundation, CI Delaware nonprofit corporation and an organization described in Section 501 (c) (3) of the Internal Revenue Code of 1986, cis amended (the " Code "), to provide the Borrower and/or Flyland Recovery Network, LLC (" FRN ") with moneys to finance or refinance prolects located in the States of Florida, Ohio, Indiana, Texas and California. The public hearing Is being held pursuant to Section 147(f) of the Code. Subsequent to the public hearing, the members of the Clty Council of the Clty will meet to consider approval of the issuance of the Bonds by the issuer.
Public approval by the lurlsdlctlons in which the prolects will be located outside of the City will be obtained following a public notice and public hearing in such lurlsdlctlons regarding the Bonds and the facilities to be financed or refinanced by the proceeds thereof.
The portion of the proceeds of the Bonds expected to finance protects located in the City will not exceed $67,000,000 and will be used, together with certain other funds, for the purpose of (1) paying or reimbursing the Borrower and/or FRN, the costs of acquiring, directly or indirectly through the acquisition of a membership Interest in the Users (as hereinafter defined), certain substance use dlsorder and behavioral health facilities and related improvements located in the Clty and owned or operated by the Users as further described below; (11) funding one or more debt service reserve funds for the benefit of the Bonds, If deemed necessary or desirable by the issuer or the Borrower; (III) funding working capital for the Borrower or the Users, if deemed necessary or desirable by the Issuer or the Borrower; (lv) funding interest accruing on the Bonds, If deemed necessary or desirable by the issuer or the Borrower; (Inc' (v) paying certain expenses incurred In connection with the issuance of the Boncis, including the cost of any bond insurance or other credit or liquidity enhancement, if any. The Bonds will be issued as qualified 501 (c) (3) bonds pursuant to Section 145 of the Code.
AI'I of the facilities and improvements financed or refinanced by the Bonds located in the Clty are or will be owned or principally used by one or more of the Borrower, FRN, and URP California LLC (the " Corporation " and, together with FRN, the " Users ") and are located at 210 West 6th Street, Beaumont, California 92223, which is an inpatient substance use dlsorder and behavioral health facility known cis Aurora Recovery Center.
The Bonds are special, limited obligations of the issuer, payable solely out of funds to be paid by the Borrower pursuant to an agreement (or agreements) to be entered into between the Borrower and the Issuer and any other revenues and/or other funds pledged and assigned for the payment of the Bonds. The City will not issue the Bonds, nor will the Clty nor the State of California have any liability with respect to the Bonds or the sale or offering thereof.
Public comments can he made in person, using the public comment phone line or by written email. Phone-in comments will be accepted by calling the designated public comment phone line (951) 922-4845 prior to the corresponding item. Public comments shall not exceed three minutes unless otherwise authorized by City Council. Written comments can he emcalled to NicoleWraBeaumontCa.gov with "Public Comment" in the sublect line. Publlc comments accepted via email will be read aloud during the corresponding item of the meeting sublect to a three minute time limit. Comments can be submitted any time prior to the meeting as well as during the meeting until the end of the corresponding item.
This meeting will be conducted in person and also and will be recorded for live streaming. All Clty of Beaumont public meetings will be made available via live streaming and made ctval[able on the City's official YouTube webpage. Please use the following link during the meeting for live stream access: BectumontCu.gov/Lvestre[im.
In compliance with the Americans with Disabilities Act, if you need
TEFRA Hearing on May 5 2026 - Page 1 of 2
special assistance fo participate in this meeting, please contact the Office of the City Clerk at (951) 922-4845. Notification 48 hours prior to the meeting will enable the C Ity fo make reasonable arrangements to ensure accessibility to this meeting.
The Press -Enterprise
Published: 4/23/26
TEFRA Hearing on May 5 2026 - Page 2 of 2
BEAUMONT
-C A L I F O R N A -
Staff Report
TO: Honorable Mayor and Members of the City Council
FROM: Robert L. Vestal, City Engineer I Public Works Director BY: Dustin Christensen, Principal Engineer
DATE: May 6, 2026
SUBJECT: Albert A. Webb Associates Professional Service Agreement — Capital Improvement Project (CIP) R26-08 Brookside Avenue Street Improvements
Description: Award a Professional Services Agreement (PSA) to Albert A. Webb Associates for the Design of the Brookside Avenue Street Improvements Project (CIP R26-08).
Background and Analysis:
The Brookside Avenue Street Improvements Project will improve Brookside Avenue between Cherry Avenue and Winesap Avenue. This section of roadway currently serves as a flood control channel during rain events, carrying flows to the drainage channel at the intersection of Cherry and Brookside. This project will design a separate channel along the south side of Brookside Avenue, diverting flows into the channel and improving the accessibility and operation of Brookside Avenue.
On January 27, 2026, the City publicly issued a Request for Proposal (RFP) inviting qualified engineering firms to submit proposals for the design of the Brookside Avenue Street Improvements. Highlights of the scope of services include the following:
• Project Management
• Coordination with the Riverside County Flood Control and Water Conservation District (RCFC&WCD)
• Hydrological analysis and hydrology report
• Environmental compliance (CEQA)
• Preparation of construction plans, specifications, and cost estimates On February 26, 2026, the City received ten (10) proposals in response to its request.
Each firm was evaluated by a five -person panel of city staff from the public works and planning departments. Proposals were evaluated based on the following criteria:
• Demonstrated Professional Skills and Credentials (20%) • Related Experience and Previous Projects (15%)
• Understanding of the Scope of Services (25%)
• Approach to Performing the Services (25%)
• Ability and Available Resources to perform the required services (15%) Based on the proposal evaluations and scoring, staff recommends awarding a design contract to Albert A. Webb Associates. Webb Associates provided the strongest proposal and team for completing the work. Webb Associates also demonstrated familiarity with the project due to the fact that they are already working with RCFC&WCD on the design of the downstream flood control facilities that this project will connect to.
For reference and transparency, the full proposal from Albert A. Webb Associates has been included as an attachment to this report. The scope and fee provided is commensurate with the level of effort required to complete the design of this project.
Fiscal Impact:
The cost to prepare this staff report is estimated to be $350.
Funding for this Project is provided by CIP R26-08 Brookside Avenue Street Improvements Project. The following is a summary of the funding and budget for the project:
CIP R-26-08 Brookside Ave. Street Improvements Project Funding Summary
Estimated Total Project Budget= $0
Current Project Budget= $5,000,000
Developer
Contribution,
$5,000,000 , 100%
CIP R-26-08 Brookside Ave. Street Improvements Project Budget Summary
Project
Component
Project Management
Est. Total Current
Budget Budget
Paid to Remaining
Date Budget
Preliminary Services
-NNW
Environmental
Design
MP — $660,000 " $660,000
- $40,000
r-
$40,000
Right -of -Way
Construction
'l $4,300,0001
'$4,300,000
1 Construction Management
Equipment
ftimpe
$-
$5,000,000
$-
$5,000,000
Recommended Action:
Approve the agreement with Albert A. Webb Associates for professional design services, for the period of May 5, 2026, through May 5, 2031, in an amount not to exceed $596,400;
Approve the contingency of $59,640 for a total not -to -exceed of $656,040 and authorize the City Manager to sign off on any preceding amendments or purchase change orders within the authorized contingency amount; and,
Authorize the issuance of a purchase order to Albert A. Webb Associates in the amount of $596,400 for professional design services.
Attachments:
A. Proposal and Fee for Design Services — Webb Associates B. Professional Services Agreement — Webb Associates
C. Levine Act Statement — Webb Associates
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951.686.1070
3788 McCray Street
Riverside. CA 92506
Table of
Contents
A. Cover Letter 3
B. Introduction/Information 5
Understanding of Services 5
Participating Firms 5
C. Firm Profile 6
WEBB Overview 6
Participating Firms and Subconsultants 7
D. Key Personnel 8
E. Scope of Services 10
F. Approach 16
Critical Issues and Solutions 16
Deliverables and Design Approach 16
Quality Assurance and Quality Control 17
Project Schedule 18
G. Additional Information 20
H. References 21
I. Resumes 24
J. Cost Proposal 37
K. License and Insurance Confirmation 37
February 26, 2026
Barbara Mason, Purchasing Manager
City of Beaumont
550 E. 6th Street
Beaumont, CA 92223
A L B E R T
A.
WEBB
A S S O C I AT E S
RE: PROPOSAL FOR ENGINEERING DESIGN SERVICES FOR THE R-26-08 BROOKSIDE STREET
IMPROVEMENTS
Dear Ms. Mason:
Brookside Avenue's transformation from an de facto flood channel into a safe, functional roadway with integrated drainage infrastructure represents a critical investment in community connectivity and public safety for the City of Beaumont (City). Albert A. Webb Associates (WEBB) understands that success on this project requires more than technical competence. It demands seamless coordination with Riverside County Flood Control and Water Conservation District's (RCFC&WCD) Marshall Creek Stage 1 Storm Drain project that we are currently designing, intimate knowledge of RCFC&WCD standards and approval processes, and the ability to navigate complex multi -agency requirements while keeping residents informed and minimizing disruption.
WEBB brings three distinct advantages to the Brookside project that position us as the ideal partner for the City:
Strategic Advantage Through Marshall Creek Design Leadership As the design engineer for the downstream Marshall Creek Stage 1 Storm Drain, WEBB possesses unparalleled insight into the hydraulic constraints, tie-in requirements, and coordination protocols that will govern the Brookside Channel design. This existing relationship eliminates redundant coordination efforts, accelerates decision -making, and ensures seamless integration between upstream and downstream facilities. Our team already understands the approved hydrology, knows the RCFC&WCD reviewers, and has established communication protocols to streamline your project delivery.
Proven RCFC&WCD Navigation Expertise
Our team has successfully processed over 65 combined years of flood control projects through RCFC&WCD's rigorous approval process. We know their unbending standards, understand when to engage decision -makers throughout design development, and have established relationships that facilitate efficient review cycles. Joseph Caldwell, PE, CPESC, CPSWQ, QSD, QSP, CFM, our Water Resources Practice Leader, has guided numerous partner -led projects through District approval, including complex channel designs that balance flood protection with community access and environmental compliance. This experience translates directly into reduced review cycles, fewer plan revisions, and faster project delivery for the City.
Traffic Management and Community Impact Mitigation
The reconstruction of Brookside Avenue between Cherry Avenue and Winesap Avenue requires careful design to direct runoff to the proposed flood control channel. This reconstruction will inevitably affect residents and commuters. WEBB has assigned Nick Lowe, PE, Deputy Director of our Traffic and Transportation Department, to develop engineered improvement plans along with traffic control plans that maintain continuous residential access while protecting public safety. Nick's dual perspective from both public agency and private consulting roles ensures that roadway design, construction phasing, detour routing, and access maintenance strategies will be incorporated into the contract documents rather than left to contractor interpretation. This proactive approach reduces complaints, minimizes change orders, and demonstrates the City's commitment to being a good neighbor during construction.
3788 McCray Street, Riverside, CA 92506 I P: 951 686 1070 I F: 951.788.1256 I www.webbassociates.com
WEBB has thoroughly reviewed all elements of this RFP and confirms our understanding of the project requirements and services needed. We commit to completing all tasks as specified and will comply with all terms and conditions of the RFP and the Professional Services Agreement.
Thank you for considering WEBB as your partner on this transformative infrastructure project. We look forward to the opportunity to discuss how our unique qualifications and strategic advantages will benefit the City of Beaumont.
Joseph Caldwell, PE, CPESC, CPSWQ, QSD, QSP, CFM, is authorized by WEBB to negotiate and contractually bind the firm for this engagement and will act as the primary contact for all contract matters.
Sincerely,
Joseph Caldwell, PE, CPESC, CPSWQ, QSD, QSP, CFM
Practice Area Leader
[email protected]
951.320.6029
3788 McCray Street, Riverside, CA 92506 I P: 951 686 1070 I F: 951.788.1256 I www.webbassociates.com
The City of Beaumont is seeking a consultant to deliver complete, bid -ready Plans, Specifications, and Estimates (PS&E) for the Brookside Street Improvements, while
successfully coordinating with the Riverside County Flood Control and Water Conservation District (RCFC&WCD) and
meeting all applicable City, County, and District standards.
This Project is part of a broader master drainage effort led by RCFC&WCD, and the Brookside improvements
must integrate seamlessly with the Marshall Creek Stage 1 Storm Drain Project, including hydraulic performance, physical tie-in geometry, and RCFC&WCD review and
approval protocols.
Understanding of Services
Brookside Avenue currently functions as an unintended
flood conveyance corridor during storm events, resulting in roadway closures and impaired access during heavy
rains. The City's objective is to convert Brookside from a flood -prone route into a reliable roadway by constructing a channel along the south side of Brookside Avenue that captures flows and ties into downstream facilities, while also improving roadway grades, elevations, and pavement section design.
WEBB understands that this Project is not a single -
discipline drainage design effort; it is a coordinated, multi - agency infrastructure program requiring integrated delivery of the following interdependent components:
• Drainage Channel Design (RCFC&WCD
Standards): Design an appropriately sized, fully
lined concrete trapezoidal channel on the south
side of Brookside Avenue with access ramps for
maintenance and a compliant interface to Marshall
Creek Stage 1 downstream facilities.
• Roadway Improvements and Flow Transfer:
Redesign Brookside Avenue between Cherry
Avenue and Orchard Heights Avenue to safely
transfer storm flows from the roadway to the new
channel. The design must consider the City's intent
to transition from an inverted crown section to a tilt
section and incorporate appropriate transitions and
collection/conveyance features.
• Intersection and Turn Pocket Improvements:
Deliver street widening and intersection
improvements at Cherry/Brookside, including a
northbound Cherry to eastbound Brookside right -
turn pocket, and provide a right -turn pocket at
Orchard Heights Avenue (eastbound Brookside to
southbound Orchard Heights), considering pole
conflicts and feasible alternatives.
• ADA and Multi -Use Access: Design a new ADA
ramp at the southeast corner of Cherry/Brookside,
and a 20 -foot public access/maintenance road
adjacent to the channel, with driveway approaches
at Cherry and Orchard Heights, per RCFC&WCD
standards.
• Utility Coordination and Relocation Plans:
Identify, pothole as needed, and coordinate
with utility owners for design of relocations and
permitting for affected utilities (including likely
waterline relocation and potential SCE pole
relocations), along with anticipated gas and
communications conflicts.
• Environmental and MSHCP Compliance: Prepare
a No Further Action (NFA) letter for the City's
administrative record to document this project was
evaluated in previous CEQA documents. Prepare
compliance studies for the Western Riverside
County Multiple Species Habitat Conservation Plan
for use in obtaining encroachment permits from
RCFC&WCD.
• Progressive Design Submittals: Prepare and
manage 30%, 60%, 90%, and 100% plan
submittals for City and RCFC&WCD review,
incorporating Partner Led Project guidance, and
delivering complete PS&E, specifications, and
engineer's cost estimates at required milestones.
Because RCFC&WCD will review each milestone submittal
and the Brookside channel cannot adversely impact
the downstream facility, the controlling success factor is early, continuous hydraulic and design integration
between Brookside and Marshall Creek Stage 1, coupled
with disciplined management of utility conflicts, ROW
constraints, and construction phasing impacts on
residents and access. WEBB's team approach is built
to reduce rework, shorten review cycles, and deliver a
complete, coordinated PS&E package that can be bid with confidence and constructed with fewer change orders.
Participating Firms
WEBB will serve as the prime consultant for this project with the following subconsultants offering support:
• Geocon, Inc. - Geotechnical Analysis
• Underground Solutions, Inc. - Potholing
• Utility Specialists - Dry Utility Consulting
• Osprey Environmetnal Associates, Inc. -
Environmental Consulting
WEBB Overview
Albert A. Webb Associates (WEBB) has been a trusted
provider of civil engineering services to public sector clients across California since 1945. Our longevity reflects a foundation of financial stability and adaptability through decades of evolving economic landscapes. As a mid -sized consulting firm with offices in Riverside and Murrieta, WEBB is strategically positioned to serve the diverse needs of our clients effectively.
We offer comprehensive in-house professional services,
bringing decades of experience to public and private sector clients throughout Inland Southern California. Our team specializes in addressing the unique challenges faced by cities, water and special districts, counties, regional agencies, and industry partners. From project development and planning to design, entitlement, funding assistance, permitting, construction management, and inspection, our services span the entire project lifecycle.
WEBB's enduring legacy, financial strength, and dedicated team of experts make us the preferred partner for public sector entities in California. We are committed to delivering excellence, ensuring the success of every project, and fostering lasting professional partnerships.
Legal Form of Company: Corporation
Principal Office for Implementation of Contract: Corporate Headquarters, Riverside (3788 McCray Street, Riverside, CA 92506)
A L B E R T
WEBB
A S S O C I AT E S
G
L
Engineering & Planning
Excellence Since 1945
WEBB offers the following services:
Water Resources
Traffic & Transportation
D
Environmental Services
Landscape Architecture
.s.
Construction Management
& Inspection
Learn more by visiting
webbassociates.com/services
Land Development
Engineering
Corporate Headquarters
3788 McCray Street
Riverside, CA 92506
Tel: 951.686.1070
Murrieta Office • Nevada Office
41870 Kalmia Street . 2030 Lake Las Vegas Pkwy
Murrieta, CA 92562 ; Henderson, NV 89011
Tel: 951.686.1070 • Tel: 951.675.5010
th
NIVERssR`
192
Associates
41. 40+
• Licensed
•• Professionals
CITY OF BEAUMONT
R-26-08 BROOKSIDE STREET IMPROVEMENTS
6 Participating Firms and Subconsultants
Geocon, Inc.
Geotechnical Analysis
24711 Redlands Boulevard Unit A, Loma Linda, CA 92354
GF.OCON
Geocon, Inc. (Geocon) has provided geologic services in California for over 48 years, including seismic hazard analyses, subsurface fault, landslide, liquefaction, geotechnical investigations and assessments, geologic mapping, and geotechnical evaluation of levee stability. Geocon has determined methods and designs necessary for slope stabilization, seepage, mitigation of collapsible soils, induced soil settlement, expansive soils, subsurface dewatering, and drainage.
WEBB has worked with Geocon for over 30 years.
Underground Solutions, Inc.
Potholing
120 N Andreasen Drive, Escondido, CA 92029
UNDERGROUND SOLUTIONS
Underground Solutions, Inc. (USI) is Southern California's leading underground utility location company, known for its experience and expertise. The company was established by seasoned utility contracting professionals who recognized the need for safe, fast, and accurate underground utility locating services. Thanks to its highly qualified operators and management team, USI is committed to providing quick, safe, and precise utility locating. Their high -velocity air -driven excavation technology enables them to create precise holes in the ground without causing damage to the utilities being located.
Utility Specialists
Utility Consultant
41880 Kalmia Street, Murrieta, CA 92562
c5-
Utility Specialists
results through teamwork
Founded in 1976, Utility Specialists excels in designing and negotiating extensions for natural gas, electric, and telecommunication systems. With a strong presence across Southern California, we bring a wealth of experience to every project. Our team of seasoned project managers and skilled technical staff are experts in dry utility coordination.
We leverage cutting -edge technology and design tools, as well as real-time project monitoring, to deliver seamless utility solutions. As pioneers in dry utility construction coordination, we ensure projects are completed on time and operationally efficient from design through installation. With offices in Orange, Riverside, and San Diego Counties, Utility Specialists is dedicated to providing top -tier service and innovative solutions to meet the evolving needs of our clients.
Osprey Enviromental Associates, Inc.
Environmental Consultant
40330 Parado Del Sol Drive, Temecula, CA 92592
Osprey Environmental Associates, Inc. (Osprey) is a premier environmental consulting firm based in Temecula, CA, serving the Inland Empire and beyond. Specializing in biological and aquatic resource assessment and management, environmental documentation and permitting, environmental due diligence, cultural resource management, geographic information systems (GIS), and drone services, Osprey leads with expertise and innovation. Their commitment is rooted in leveraging the latest technology and prioritizing data accuracy. They are dedicated to tailoring solutions that efficiently meet the unique environmental consulting needs of their clients across diverse industries. Their goal is to deliver exceptional environmental consulting services that ensure regulatory compliance and environmental stewardship.
A L B E R T
A.
WEBB
A S S OC I AT E S
Environmental Associates
CITY OF BEAUMONT
R-26-08 BROOKSIDE STREET IMPROVEMENTS