Beaumont City Council
July 21, 2026

[INSERT ALL MAPS]

TABLE OF CONTENTS
Page
INTRODUCTION 1
Financing Purpose 1
The Bonds; The Local Obligations 1
Legal Authority 3
Sources of Payment for the Bonds and the Local Obligations 3 Description of the Bonds 4
The City 4
The Authority 4
Professionals Involved in the Offering 5
Continuing Disclosure 5
FINANCING PLAN 5
Purpose of Issue and the Refunding Plan 5
Estimated Sources and Uses of Funds 6
THE BONDS 7
General Provis ions 7
Redemption 8
Payment, Registration, Transfer and Exchange of Bonds 10 Book -Entry Only System 12
Estimated Debt Service Schedules: Bonds and Local Obligations 13 Debt Service Coverage for the Bonds 15
SECURITY FOR THE BONDS 15
General 15
Revenues and Flow of Funds 15
Reserve Fund 17
Surplus Fund 19
No Additional Bonds Except to Refund Bonds 19
BOND INSURANCE 20
Bond Insurance Policy 20
[Bond Insurer] 20
SECURITY FOR THE LOCAL OBLIGATIONS 20
General 20
Local Obligation Indentures 21
Local Obligation Parity Bonds 23
Priority of Lien 24
Covenants of the Community Facilities District 24
Special Taxes Are Not Within Teeter Plan 25
THE TAXING JURISDICTIONS 25
The Taxing Jurisdictions in the Aggregate 25
The Local Obligations 29
SPECIAL RISK FACTORS 29
Risks of Real Estate Secured Investments Generally 29
The Bonds are Limited Obligations of the Authority 30
No Obligation of the City 30
No Cross-Collateralization Between Taxing Jurisdictions 30 Potential Early Redemption of Bonds from Prepayments or Other Sources 30 Property Values 31
Natural Disasters 31
Property Insurance 32
Hazardous Substances 33

TABLE OF CONTENTS
(continued)
Page
Cybersecurity 33
Parity Taxes and Special Assessments 33
Payment of the Special Tax is not a Personal Obligation of the Owners 34 Disclosures to Future Purchasers 34
Special Tax Delinquencies 34
Insufficiency of Special Taxes 35
Risks Associated with Bond Insurance 36
FDIC/Federal Government Interests in Properties 36
Bankruptcy and Foreclosure 38
Funds Invested in the County Investment Pool 38
No Acceleration Provision 38
Limitations on Remedies 39
Loss of Tax Exemption 39
Limited Secondary Market 39
Proposition 218 40
Ballot Initiatives 40
Litigation with Respect to Community Facilities District 40 LEGAL MATTERS 42
Tax Matters 42
Absence of Litigation 43
Legal Opinion 44
MISCELLANEOUS 44
Ratings 44
Verification of Mathematical Accuracy 45
Underwriting 45
Continuing Disclosure 45
Additional Information 46
APPENDIX A INFORMATION REGARDING THE TAXING JURISDICTIONS A-1 APPENDIX B SUMMARY OF PRINCIPAL LEGAL DOCUMENTS B-1

APPENDIX C

APPENDIX D

DEMOGRAPHIC INFORMATION REGARDING THE COUNTY OF
RIVERSIDE AND THE CITY OF BEAUMONT C-1

RATES AND METHODS OF APPORTIONMENT OF SPECIAL TAXES FOR THE TAXING JURISDICTIONS D-1
APPENDIX E FORM OF BOND COUNSEL OPINION E-1
APPENDIX F FORM OF CONTINUING DISCLOSURE AGREEMENT F-1
APPENDIX G DTC AND THE BOOK -ENTRY -ONLY SYSTEM G-1
APPENDIX H SPECIMEN MUNICIPAL BOND INSURANCE POLICY H-1 ll

OFFICIAL STATEMENT
$38,000,000

BEAUMONT PUBLIC IMPROVEMENT AUTHORITY
LOCAL AGENCY REVENUE REFUNDING BONDS, SERIES 2026

INTRODUCTION
The purpose of this Official Statement, which includes the cover page and Appendices hereto (the "Official Statement"), is to provide certain information concerning the sale and issuance of $38,000,000* Beaumont Public Improvement Authority Local Agency Revenue Refunding Bonds, Series 2026 (the "Bonds").

This Introduction is not a summary of this Official Statement. It is only a brief description of and guide to, and is qualified by, more complete and detailed information contained in the entire Official Statement and the documents summarized or described herein. A full review should be made of the entire Official Statement. The offering of the Bonds to potential investors is made only by means of the entire Official Statement.

Financing Purpose
Purpose of the Bonds. The Bonds are being issued by the Beaumont Public Improvement Authority (the "Authority") to acquire the "Local Obligations" described below (see "FINANCING PLAN" herein) and to:
(i) purchase a municipal bond insurance policy (the "Policy") issued by [Bond Insurer] (the "Insurer" or "_") for the purpose of paying the principal of and interest on the Bonds when due; and (ii) purchase a reserve policy issued by the Insurer to be credited to the Reserve Fund for the Bonds (the "Reserve Policy") to satisfy the initial Reserve Requirement; and (m)
pay the costs of issuing the Bonds.

Purpose of the Local Obligations. The net proceeds of the Local Obligations, along with other available funds, will be used (see "FINANCING PLAN" herein) to make deposits into five separate escrow funds (collectively, the "Escrow Funds") to be held by Zions Bancorporation, National Association, as escrow agent (the "Escrow Agent") pursuant to five separate Escrow Agreements, each dated as of [Dated Date] (collectively, the "Escrow Agreements") for the purpose of redeeming the Prior Bonds (as defined below).

The Bonds; The Local Obligations
The Bonds. The Bonds are payable from "Revenues," as defined below, generally consisting of revenues received by the Authority as the result of the payment of debt service on the Local Obligations, and amounts held in the funds and accounts established and held for the benefit of the Bonds under the Indenture (as defined below).

Local Obligations. The "Local Obligations" consist of the five separate series of bonds described below issued by the City of Beaumont Community Facilities District No. 93-1 ("CFD No. 93-1"), the City of Beaumont Community Facilities District No. 2016-1 (Fairway Canyon) ("CFD No. 2016-1), and City of Beaumont Community Facilities District No. 2016-2 (Sundance) ("CFD No. 2016-2" and, together with CFD * Preliminary, subject to change.

No. 93-1 and CFD No. 2016-1, the "Community Facilities Districts"), each formed by the City of Beaumont (the "City") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Mello -Roos Act"):

City of Beaumont Community Facilities District No. 93-1 (Improvement Area No. 8D) 2026 Special Tax Refunding Bonds: $6,515,000* City of Beaumont Community Facilities District No. 93-1 (Improvement Area No. 8D) 2026 Special Tax Refunding Bonds (the "Improvement Area No. 8D Bonds") being issued by CFD No. 93-1 to refund the outstanding City of Beaumont Community Facilities District No. 93- 1 Improvement Area No. 8D Special Tax Bonds, Series 2018A (the "Prior Improvement Area No. 8D Bonds"). The Improvement Area No. 8D Bonds are payable from Special Taxes levied on taxable property in Improvement Area No. 8D of CFD No. 93-1. The Improvement Area No. 8D Bonds are being issued on parity with certain outstanding bonds of CFD 93-1 for Improvement Area No. 8D. See Appendix A "INFORMATION REGARDING THE TAXING JURISDICTIONS — Community Facilities District No. 93-1 (Improvement Area No. 8D)."
City of Beaumont Community Facilities District No. 93-1 (Improvement Area No. 8E) 2026 Special Tax Refunding Bonds: $10,095,000* City of Beaumont Community Facilities District No. 93-1 (Improvement Area No. 8E) 2026 Special Tax Refunding Bonds (the "Improvement Area No. 8E Bonds") being issued by the CFD No. 93-1 to refund the outstanding City of Beaumont Community Facilities District No. 93-1 (Improvement Area No. 8E) 2018 Special Tax Bonds (the "Prior Improvement Area No. 8E Bonds"). The Improvement Area No. 8E Bonds are payable from Special Taxes levied on taxable property in Improvement Area No. 8E of CFD No. 93-1. See Appendix A "INFORMATION REGARDING THE TAXING JURISDICTIONS — Community Facilities District No. 93-1 (Improvement Area No. 8E)." City of Beaumont Community Facilities District No. 93-1 (Improvement Area No. 17C) 2026 Special Tax Refunding Bonds: $6,990,000* City of Beaumont Community Facilities District No. 93-1 (Improvement Area No. 17C) 2026 Special Tax Refunding Bonds (the "Improvement Area No. 17C Bonds") being issued by the CFD No. 93-1 to refund the outstanding City of Beaumont Community Facilities District No. 93- 1 (Improvement Area No. 17C) 2018 Special Tax Bonds (the "Prior Improvement Area No. 17C Bonds"). The Improvement Area No. 17C Bonds are payable from Special Taxes levied on taxable property in Improvement Area No. 17C of CFD No. 93-1. See Appendix A "INFORMATION REGARDING THE TAXING JURISDICTIONS — Community Facilities District No. 93-1 (Improvement Area No. 17C)." City of Beaumont Community Facilities District No. 2016-1 (Fairway Canyon) 2026 Special Tax Refunding Bonds: $6,655,000* City of Beaumont Community Facilities District No. 2016-1 (Fairway Canyon) 2026 Special Tax Refunding Bonds (the "CFD No. 2016-1 Bonds") being issued by CFD No. 2016-1 to refund the outstanding City of Beaumont Community Facilities District No. 2016-1 (Fairway Canyon) 2019 Special Tax Bonds (the "Prior CFD No. 2016-1 Bonds"). The CFD No. 2016-1 Bonds are payable from Special Taxes levied on taxable property in CFD No. 2016-1. See Appendix A "INFORMATION REGARDING THE TAXING JURISDICTIONS — CFD No. 2016-1."
City of Beaumont Community Facilities District No. 2016-2 (Sundance) 2026 Special Tax Refunding Bonds: $7,745,000* City of Beaumont Community Facilities District No. 2016-2 (Sundance) 2026 Special Tax Refunding Bonds (the "CFD No. 2016-2 Bonds") being issued by CFD No. 2016-2 to refund the outstanding City of Beaumont Community Facilities District No. 2016-2 (Sundance) 2019 Special Tax Bonds (the "Prior CFD No. 2016-2 Bonds"). The CFD No. 2016-2 Bonds are payable from Special Taxes levied on taxable property in CFD No. 2016-2. See Appendix A "INFORMATION REGARDING THE TAXING JURISDICTIONS — CFD No. 2016-2."
CFD No. 93-1, CFD No. 2016-1 and CFD No. 2016-2 are referred to in this Official Statement each as a "Community Facilities District" and collectively as the "Community Facilities Districts." Improvement Area * Preliminary, subject to change.

Nos. 8D, 8E, and 17C of CFD No. 93-1, and CFD No. 2016-1 and CFD No. 2016-2 are referred to in this Official Statement each as a "Taxing Jurisdiction" and collectively as the "Taxing Jurisdictions." Legal Authority
The Bonds. The Bonds are being issued under Article 4 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the "Act") and an Indenture of Trust dated as of [Dated Date] (the "Indenture"), by and between the Authority and Zions Bancorporation, National Association, as trustee (the "Trustee").

The Local Obligations. The Improvement Area No. 8D Bonds are being issued pursuant to the Mello -Roos Act and a separate bond indenture dated as of July 1, 2017, as supplemented by a first supplemental bond indenture dated as of June 1, 2018, and a second supplemental bond indenture dated as of [Dated Date], each by and between the related Community Facilities District and Zions Bancorporation, National Association as successor trustee. The Local Obligations other than the Improvement Area No. 8D Bonds are being issued pursuant to the Mello -Roos Act and four separate bond indentures, each dated as of [Dated Date], each by and between the related Community Facilities District and Zions Bancorporation, National Association, as trustee. The bond indenture as supplemented for the Improvement Area No. 8D Bonds and the separate bond indentures for the other Taxing Jurisdictions are each referred to separately herein as a "Local Obligation Indenture" and together, the "Local Obligation Indentures." Sources of Payment for the Bonds and the Local Obligations The Bonds. The Bonds are secured by a first lien on and pledge of all of the Revenues. "Revenues" are defined in the Indenture to include:
(a) all amounts received from the Local Obligations;
(b) any proceeds of the Bonds originally deposited with the Trustee and all moneys deposited and held from time to time by the Trustee in the funds and accounts established under the Indenture with respect to the Bonds (other than the Administrative Expense Fund, the Rebate Fund and the Surplus Fund); and (c) investment income with respect to any moneys held by the Trustee in the funds and accounts established under the Indenture with respect to the Bonds (other than investment income on moneys held in the Administrative Expense Fund, the Rebate Fund and the Surplus Fund).

Certain Funds Not Pledged. Amounts held in the Administrative Expense Fund, the Rebate Fund and the Surplus Fund are not pledged to the repayment of the Bonds.

See "SECURITY FOR THE BONDS — Revenues and Flow of Funds" herein.

Reserve Fund for the Bonds. A Reserve Fund for the Bonds is established pursuant to the Indenture in an amount equal to the Reserve Requirement. The Reserve Requirement for the Bonds, as of the date of issuance of the Bonds, equals $ . The Indenture establishes within the Reserve Fund an account with respect to each series of Local Obligations (each a "Reserve Account"). The Insurer has made a commitment to issue, simultaneously with the initial issuance of the Bonds, the Reserve Policy in the amount equal to the Reserve Requirement for deposit in the Reserve Fund, effective as of the date of issuance of the Bonds. See "SECURITY FOR THE BONDS — Revenues and Flow of Funds" and "— Reserve Fund" herein.

Bond Insurance. Concurrently with the issuance of the Bonds, the Insurer will issue the Policy for the Bonds. See the caption "BOND INSURANCE." A specimen of the Policy is set forth in Appendix H. 3

Local Obligations. Each series of Local Obligations are secured by Net Special Taxes collected in the applicable Taxing Jurisdictions as a result of the levy of Special Taxes on parity with any Local Obligation Parity Bonds (defined herein). The Improvement Area No. 8D Bonds are issued on parity with the CFD No. 93-1 Improvement Area No. 8D Special Tax Refunding Bonds, Series 2017A (the "Improvement Area No. 8D Parity Bonds"), currently outstanding in the amount of $533,555. Net Special Taxes are the Gross Taxes which remain after the payment of Administrative Expenses up to the amount permitted by the applicable Local Obligation Indenture. See "SECURITY FOR THE LOCAL OBLIGATIONS — Local Obligation Indentures.

The Local Obligations are not cross -collateralized. In other words, Special Taxes from one Taxing Jurisdiction cannot be used to cover any shortfall in the payment of debt service on the Local Obligation of another Taxing Jurisdiction. However, the Reserve Fund held by the Trustee and funded with the deposit therein of the Reserve Policy and proceeds of the Local Obligations will be available in the event of delinquent Revenues to the extent set forth therein. See "SECURITY FOR THE BONDS — Reserve Fund" herein.

Description of the Bonds
Payments. Interest is payable semiannually on March 1 and September 1 of each year, commencing March 1, 2027. Principal of and premium, if any, on the Bonds shall be payable by the Trustee. See "THE BONDS — General Provisions" and "— Book -Entry Only System" herein.

Denominations. The Bonds will be issued in denominations of $5,000 each or integral multiples thereof.

Redemption. The Bonds are subject to redemption prior to their maturity, including from the prepayment of Special Taxes from within a Taxing Jurisdiction. See "THE BONDS — Redemption" herein.

Registration, transfers and exchanges. The Bonds will be issued as fully registered bonds, registered in the name of Cede & Co. as nominee of The Depository Trust Company, New York, New York ("DTC"), and will be available to actual purchasers of the Bonds (the "Beneficial Owners") under the book -entry system maintained by DTC. See "THE BONDS — Payment, Registration, Transfer and Exchange of Bonds" and "— Book -Entry Only System."
The City
The City is located in the western portion of the County of Riverside (the "County"), California and encompasses approximately 30.9 square miles. The City was incorporated in 1912 as a general law city. As of January 1, 2025, the City had a population of approximately 59,708.

Neither the Bonds nor the Local Obligations are a debt of the City, and no revenues of the City are pledged to repayment of the Bonds or the Local Obligations.

The Authority
The Authority is a joint exercise of powers authority between the City and the City of Beaumont Parking Authority organized and existing pursuant to the Act. The purpose of the Authority is to provide, through the issuance of revenue bonds, a financing pool to fund capital improvement projects. These revenue bonds are to be repaid solely from the revenues of certain public obligations. The Authority has no taxing power. The City Council acts as the governing body of the Authority. 4

Professionals Involved in the Offering
All proceedings in connection with the issuance of the Bonds are subject to the approval of Stradling Yocca Carlson & Rauth LLP, Newport Beach, California, Bond Counsel and Disclosure CounseL Slovak Baron Empey Murphy & Pinkney LLP, Palm Springs, California, will render a legal opinion on certain matters for the Authority and the Community Facilities Districts. Spicer Consulting Group, LLC, Murrieta, California is acting as Special Tax Consultant to the City. Zions Bancorporation, National Association, Los Angeles, California, will act as Trustee with respect to the Bonds and the Local Obligations and Escrow Agent. Stifel, Nicolaus & Company, Incorporated, is acting as underwriter in connection with the issuance and delivery of the Bonds. Kutak Rock LLP is serving as Underwriter's Counsel. Causey Public Finance LLC, will provide escrow verification services.

Payment of the fees of Bond Counsel, Disclosure Counsel, the Underwriter and counsel to the Underwriter is contingent upon issuance of the Bonds. Stradling Yocca Carlson & Rauth LLP, represents the Underwriter in connection with financings unrelated to the Authority, the City and the Community Facilities Districts.

Continuing Disclosure
The Authority will enter into a Continuing Disclosure Agreement with Spicer Consulting Group, LLC, and will covenant therein for the benefit of holders and beneficial owners of the Bonds to provide certain financial information and operating data relating to the Authority and the Taxing Jurisdictions by not later than February 10 following the end of its Fiscal Year (which currently ends June 30), commencing with the report for the 2025-26 Fiscal Year (the "Annual Report"), and to provide notices of the occurrence of certain enumerated events. The first Annual Report will be due February 10, 2027. The Annual Report and notices of certain listed events (the "Listed Events") will be filed with the Electronic Municipal Market Access System of the Municipal Securities Rulemaking Board available on the Internet at http://emma.msrb.org ("EMMA").

The specific nature of the information to be contained in each Annual Report and any notices of the Listed Events is set forth in Appendix F — "FORM OF CONTINUING DISCLOSURE AGREEMENT." These covenants will be made in order to assist the Underwriter in complying with SEC Rule 15c2 -12(b)(5) (the "Rule"). See "MISCELLANEOUS — Continuing Disclosure" herein.

FINANCING PLAN
Purpose of Issue and the Refunding Plan
Acquisition of the Local Obligations. The Authority is issuing the Bonds to purchase the Local Obligations.

Refunding of the Prior Bonds. Certain proceeds of the Local Obligations together with certain other funds will be deposited into the Escrow Funds pursuant to the Escrow Agreements. Funds deposited into the Escrow Funds pursuant to the Escrow Agreements will be used to refund and redeem each of the Prior Bonds, as follows:
(a) Prior Improvement Area No. 8D Bonds: Proceeds of the Improvement Area No. 8D Bonds deposited into an Escrow Fund relating to the Prior Improvement Area No. 8D Bonds will be used to redeem the outstanding Prior Improvement Area No. 8D Bonds on September 1, 2026 at a redemption price equal to 102% of the principal amount to be redeemed, together with accrued interest to the redemption date. (b) Prior Improvement Area No. 8E Bonds: Proceeds of the Improvement Area No. 8E Bonds deposited into an Escrow Fund relating to the Prior Improvement Area No. 8E Bonds will be used to redeem the outstanding Prior Improvement Area No. 8E Bonds on September 1, 2026 at a redemption price equal to 102% of the principal amount to be redeemed, together with accrued interest to the redemption date. 5

(c) Prior Improvement Area No. 17C Bonds: Proceeds of the Improvement Area No. 17C Bonds deposited into an Escrow Fund relating to the Prior Improvement Area No. 17C Bonds will be used to redeem the outstanding Prior Improvement Area No. 17C Bonds on September 1, 2026 at a redemption price equal to 102% of the principal amount to be redeemed, together with accrued interest to the redemption date. (d) Prior CFD No. 2016-1 Bonds: Proceeds of the CFD No. 2016-1 Bonds deposited into an Escrow Fund relating to the Prior CFD No. 2016-1 Bonds will be used to redeem the outstanding Prior CFD No. 2016-1 Bonds on September 1, 2026 at a redemption price equal to 102% of the principal amount to be redeemed, together with accrued interest to the redemption date. (e) Prior CFD No. 2016-2 Bonds: Proceeds of the CFD No. 2016-2 Bonds deposited into an Escrow Fund relating to the Prior CFD No. 2016-2 Bonds will be used to redeem the outstanding Prior CFD No. 2016-2 Bonds on September 1, 2026 at a redemption price equal to 101% of the principal amount to be redeemed, together with accrued interest to the redemption date.

Certain moneys in the existing funds and accounts relating to the Prior Bonds also will be transferred to the Escrow Funds and be applied to the defeasance and redemption of the Prior Bonds. See "— Estimated Sources and Uses of Funds" below. See also "MISCELLANEOUS — Verification of Mathematical Accuracy" below.

Estimated Sources and Uses of Funds
The Bonds. The anticipated sources and uses of funds relating to the Bonds are as follows:

Total
Sources:

Principal Amount of the Bonds
Plus Net Original Issue Premium
Less Underwriter's Discount
Total Sources
Uses:

Purchase of Local Obligations (1)
Costs of Is suanc e(2)
Total Uses
(1)
(2)
Proceeds of the Bonds will be used to acquire the Local Obligations. See the sources and uses of funds for the Local Obligations below.

The Trustee will retain and deposit in the Costs of Issuance Fund each Taxing Jurisdiction's proportionate share of the costs of issuance of the Bonds.
6

Local Obligations. The anticipated sources and uses of funds relating to the Local Obligations and prior funds on hand are as follows:

Improvement Improvement Improvement CFD CFD
Area No. 8D Area No. 8E Area No. 17C No. 2016-1 No. 2016-2 Bonds Bonds Bonds Bonds Bonds
Sources
Principal Amount
Plus/Less [Net] Original Issue
Premium/Discount
Plus Prior Funds
Less Underwriter's Discount
Total Sources
Uses
Escrow Funds('
Costs ofIssuancem
Total Uses
(1) See "FINANCING PLAN —Purpose of Issue and the Refunding Plan." (2) Reflects each Taxing Jurisdiction's proportionate share of the costs of issuance of the Bonds.

THE BONDS
General Provisions
The Bonds will be dated their date of delivery, and the Bonds will be issued in the aggregate principal amounts set forth on the inside front cover hereof. The Bonds will bear interest from their dated date at the rates per annum set forth on the inside front cover hereof, payable semiannually on each March 1 and September 1, commencing March 1, 2027 (each, an "Interest Payment Date"), and will mature in the amounts and on the dates set forth on the inside front cover hereof. The Bonds will be issued in fully registered form in denominations of $5,000 each or any integral multiple thereof.

Interest on the Bonds will be payable on each Interest Payment Date to the person whose name appears on the Bond Register as the Owner as of the Record Date immediately preceding each Interest Payment Date. Interest will be paid by check of the Trustee mailed on the Interest Payment Date by first class mail, postage prepaid, to the Owner at the address as it appears on the Bond Register or by wire transfer to an account in the United States of America upon instructions of any Owner of $1,000,000 or more in aggregate principal amount of Bonds of a Series provided to the Trustee, in writing, at least five (5) Business Days before the Record Date for such Interest Payment Date. The Bonds are issued in fully registered form and will be registered in the name of Cede & Co., as nominee of DTC. DTC will act as securities depository of the Bonds. Ownership interests in the Bonds may be purchased in book -entry form only in denominations of $5,000 and any integral multiple. See the subsection hereof entitled "— Book -Entry Only System." Principal of and premium (if any) on any Bond will be paid upon presentation and surrender thereof, at maturity or the prior redemption thereof, at the Trust Office of the Trustee.

Each Bond will bear interest from the Interest Payment Date next preceding the date of authentication thereof, unless (a) it is authenticated after a Record Date (the 15th calendar day of the month preceding the month in which such Interest Payment Date occurs, whether or not such day is a Business Day) and on or before the following Interest Payment Date, in which event it will bear interest from such Interest Payment Date; or (b) it is authenticated on or before August 15, 2026 in which event it will bear interest from the Dated Date; provided, however, that if, as of the date of authentication of any Bond, interest thereon is in default, such Bond will bear interest from the Interest Payment Date to which interest has previously been paid or 7

made available for payment thereon, or from the Dated Date if no interest has been paid or made available for payment.

Redemption
Optional Redemption. The Bonds maturing on or before September 1, 20_ are not subject to optional redemption prior to maturity. The Bonds maturing on or after September 1, 20 may be redeemed at the option of the Authority, from any source of available funds, prior to maturity on any date on or after September 1, 20 as a whole, or in part from maturities of the Local Obligations simultaneously redeemed, if any redemption of Local Obligations is being made in conjunction with such optional redemption, and otherwise from such maturities as are selected by the Authority, at a redemption price equal to the par amount of the Bonds to be redeemed, together with accrued interest thereon to the date of redemption, without premium.

If the source of funds to optionally redeem the Bonds is to be from a redemption of a Local Obligation, then prior to consenting to the optional redemption of any Local Obligation which it has purchased and is held under the Indenture, the Authority will deliver to the Trustee a certificate of an Independent Accountant or an Independent Financial Consultant verifying that, following such optional redemption of the Local Obligations and redemption of Bonds, the principal and interest generated from the remaining Local Obligations is adequate to make the timely payment of principal and interest due on the Bonds remaining Outstanding following such optional redemption.

Special Redemption. The Bonds are subject to special redemption on any Interest Payment Date from proceeds of early redemption of Local Obligations from the prepayment of Special Taxes within a Taxing Jurisdiction, in connection with Local Obligations, in whole or in part, from maturities corresponding proportionately to the maturities of the Local Obligations simultaneously redeemed, at the principal amount thereof, plus a premium expressed below as a percentage of the principal amount so redeemed, plus accrued interest to the date of redemption thereof:

Redemption Dates Redemption Prices
Any Interest Payment Date through and including March 1, 20_ September 1, 20 and March 1, 20
September 1, 20_ and March 1, 20_
September 1, 20 and any Interest Payment Date thereafter 103%
102
101
100
The total number of Special Tax prepayments to date within the Taxing Jurisdictions is set forth in the table below.
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CITY OF BEAUMONT

SUMMARY OF PREPAYMENTS OF SPECIAL TAXFS WITHIN THE TAXING JURISDICTIONS Taxing Jurisdictions
Parcels
Projected to be
Total Original Fully Prepaid Levied in Fiscal
Parcels Parcels Year 2026-27
CFD No. 93-1 Improvement Area No. 8D 279 0 279
CFD No. 93-1 Improvement Area No. 8E 372 0 372
CFD No. 93-1 Improvement Area No. 17C 216 1 215
CFD No. 2016-1 372 0 372
CFD No. 2016-2 527 0 527
Total 1,766 1 1,765
Source: Spicer Consulting Group, LLC.

Mandatory Sinking Fund Redemption. The Term Bonds maturing on September 1, 20 (the "20 Term Bonds") shall be called before maturity and redeemed, from the Sinking Fund Payments that have been deposited into the Principal Account, on September 1, 20_, and on each September 1 thereafter prior to maturity, in accordance with the schedule of Sinking Fund Payments set forth below. The 20_ Term Bonds so called for redemption shall be selected by the Trustee by lot and shall be redeemed at a redemption price for each redeemed Term Bond equal to the principal amount thereof, plus accrued interest to the redemption date, without premium, as follows:

Sinking Fund Redemption Date
(September 1) Sinking Fund Payments
(maturity)
The Term Bonds maturing on September 1, 20 (the "20 Term Bonds") shall be called before maturity and redeemed, from the Sinking Fund Payments that have been deposited into the Principal Account, on September 1, 20_, and on each September 1 thereafter prior to maturity, in accordance with the schedule of Sinking Fund Payments set forth below. The 20_ Term Bonds so called for redemption shall be selected by the Trustee by lot and shall be redeemed at a redemption price for each redeemed Term Bond equal to the principal amount thereof, plus accrued interest to the redemption date, without premium, as follows:

Sinking Fund Redemption Date
(September 1) Sinking Fund Payments
(maturity)
In the event of a partial optional redemption or extraordinary redemption of 20 Term Bonds or the 20 Term Bonds, each of the remaining Sinking Fund Payments for such Term Bonds will be reduced, as nearly as practicable, on a pro rata basis, in integral multiples of $5,000.

Notice of Redemption. So long as the Bonds are held in book -entry form, notice of redemption will be sent by the Trustee to DTC and not to the Beneficial Owners of the Bonds under the DTC book -entry only system. Neither the Authority nor the Trustee is responsible for notifying the Beneficial Owners, who are to be notified in accordance with the procedures in effect for the DTC book -entry system. See Appendix G — "DTC AND THE BOOK -ENTRY -ONLY SYSTEM."
9

The Trustee on behalf, and at the expense of, the Authority shall send notice of any redemption (other than mandatory sinking fund redemption) to the respective Owners of any Bonds designated for redemption at their respective addresses appearing on the Bond Register, and to the Securities Depositories and to the Information Services, at least twenty (20) but not more than sixty (60) days prior to the date fixed for redemption. Neither failure to receive any such notice so sent nor any defect therein shall affect the validity of the proceedings for the redemption of such Bonds or the cessation of the accrual of interest thereon. Such notice shall state the date of the notice, the redemption date, the redemption place and the redemption price and shall designate the CUSIP numbers, Bond numbers and the maturity or maturities (in the event of redemption of all of the Bonds of such maturity or maturities in whole) of the Bonds to be redeemed, and shall require that such Bonds be then surrendered at the Trust Office of the Trustee for redemption at the redemption price, giving notice also that further interest on such Bonds will not accrue after the redemption date.

In addition to the foregoing notice, further notice shall be sent by the Trustee in said form to any Bondowner whose Bond has been called for redemption but who has failed to submit his Bond for payment by the date which is sixty days after the redemption date, but no defect in said further notice nor any failure to give or receive all or any portion of such further notice shall in any manner defeat the effectiveness of a call for redemption.

Unless funds for the optional redemption of any Bonds are irrevocably deposited with the Trustee prior to rendering notice of redemption to the Bondowners, such notice shall state that such redemption is subject to the deposit of funds by the Authority. Any notice of optional redemption shall be cancelled and annulled if for any reason funds will not be or are not available on the date fixed for redemption for the payment in full of the Bonds then called for redemption, and such cancellation shall not constitute an Event of Default under the Indenture. The Authority and the Trustee shall have no liability to the Owners or any other party related to or arising from such rescission of redemption. The Trustee shall send notice of such resc ission of redemption in the same manner as the original notice of redemption was sent.

Selection of Bonds of a Maturity for Redemption. Unless otherwise provided under the Indenture, whenever provision is made in the Indenture for the redemption of less than all of the Bonds of a maturity, the Trustee shall select the Bonds to be redeemed from all Bonds of such maturity not previously called for redemption, by lot in any manner which the Trustee in its sole discretion shall deem appropriate and fair. For purposes of such selection, all Bonds shall be deemed to be comprised of separate $5,000 authorized denominations, and such separate authorized denominations shall be treated as separate Bonds which may be separately redeemed.

Partial Redemption of Bonds. In the event only a portion of any Bond is called for redemption, then upon surrender of such Bond the Authority shall execute and the Trustee shall authenticate and deliver to the Owner thereof, at the expense of the Authority, a new Bond or Bonds of the same maturity date, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the Bond to be redeemed.

Effect of Redemption. From and after the date fixed for redemption, if funds available for the payment of the principal of and interest (and premium, if any) on the Bonds so called for redemption have been duly provided, such Bonds so called will cease to be entitled to any benefit under the Indenture other than the right to receive payment of the redemption price, and no interest will accrue thereon from and after the redemption date specified in such notice. All Bonds redeemed pursuant to the Indenture will be cancelled and destroyed.

Payment, Registration, Transfer and Exchange of Bonds
Book -Entry Only System. The Bonds will be issued as fully registered bonds, registered in the name of Cede & Co. as nominee of DTC, and will be available to actual purchasers of the Bonds (the "Beneficial Owners") in the denominations set forth above, under the book -entry system maintained by DTC, only through brokers and dealers who are or act through DTC Participants (as defined in Appendix B) as described herein. 10

Beneficial Owners will not be entitled to receive physical delivery of the Bonds. See "THE BONDS — Book -Entry Only System." In the event that the book -entry -only system is no longer used with respect to the Bonds, the Bonds will be registered and transferred in accordance with the Indenture. See "THE BONDS — Book -Entry Only System."
Transfer of Bonds. Subject to the book -entry only provisions of the Indenture, any Bond may in accordance with its terms, be transferred, upon the Bond Register, by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such Bond for cancellation, accompanied by delivery of a written instrument of transfer in a form approved by the Trustee, duly executed. Whenever any Bond is surrendered for transfer, the Authority will execute and the Trustee will thereupon authenticate and deliver to the transferee a new Bond or Bonds of like tenor, maturity and aggregate principal amount. No Bonds selected for redemption will be subject to transfer pursuant to the Indenture nor will any Bond be subject to transfer during the fifteen days prior to the selection of Bonds for redemption.

The cost of printing any Bonds and any services rendered or any expenses incurred by the Trustee in connection with any transfer or exchange will be paid by the Authority. However, the Owners of the Bonds will be required to pay any tax or other governmental charge required to be paid for any exchange or registration of transfer and the Owners of the Bonds will be required to pay the reasonable fees and expenses of the Trustee and Authority in connection with the replacement of any mutilated, lost or stolen Bonds.

Exchange of Bonds. Subject to the book -entry only provisions of the Indenture, Bonds may be exchanged at the Trust Office of the Trustee for Bonds of the same tenor and maturity and of other authorized denominations. No Bonds selected for redemption will be subject to exchange pursuant to the Indenture, nor will any Bond be subject to exchange during the fifteen days prior to the selection of Bonds for redemption.

The cost of printing Bonds and any services rendered or expenses incurred by the Trustee in connection with any transfer or exchange will be paid by the Authority.

Temporary Bonds. The Bonds may be issued initially in temporary form exchangeable for definitive Bonds when ready for delivery. The temporary Bonds may be printed, lithographed or typewritten, will be of such denominations as may be determined by the Authority and may contain such reference to any of the provisions of the Indenture as may be appropriate. Every temporary Bond will be executed by the Authority and be registered and authenticated by the Trustee upon the same conditions and in substantially the same manner as the definitive Bonds. If the Authority issues temporary Bonds, it will execute and furnish definitive Bonds without delay, and thereupon the temporary Bonds may be surrendered for cancellation, in exchange therefor at the Trust Office of the Trustee, and the Trustee will authenticate and deliver in exchange for such temporary Bonds an equal aggregate principal amount of defmitive Bonds of authorized denominations. Until so exchanged, the temporary Bonds will be entitled to the same benefits under the Indenture as defmitive Bonds authenticated and delivered thereunder.

Bond Register. The Trustee will keep or cause to be kept at its Trust Office sufficient records for the registration and transfer of the Bonds, which will be the Bond Register and will at all times during regular business hours be open to inspection by the Authority upon reasonable notice; and, upon presentation for such purpose, the Trustee will, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on said records, Bonds as provided in the Indenture.

Bonds Mutilated, Lost, Destroyed or Stolen. If any Bond becomes mutilated, the Authority, at the expense of the Owner of said Bond, will execute, and the Trustee will thereupon authenticate and deliver, a new Bond of like tenor and authorized denomination in exchange and substitution for the Bond so mutilated, but only upon surrender to the Trustee of the Bond so mutilated. Every mutilated Bond so surrendered to the Trustee will be cancelled by it and destroyed in accordance with the retention policy of the Trustee then in effect. If any Bond issued under the Indenture is lost, destroyed or stolen, evidence of such loss, destruction or theft may be submitted to the Trustee and, if such evidence be satisfactory to it and indemnity satisfactory to it is given, at the expense of the Bond Owner, the Authority will execute, and the Trustee will thereupon 11

authenticate and deliver, a new Bond of like tenor in lieu of and in substitution for the Bond so lost, destroyed or stolen (or if any such Bond has matured or has been called for redemption, instead of issuing a substitute Bond the Trustee may pay the same without surrender thereof upon receipt of indemnity satisfactory to the Trustee). The Trustee may require payment of a reasonable fee for each new Bond issued under the Indenture and of the expenses which may be incurred by the Authority and the Trustee. Any Bond issued under the Indenture in lieu of any Bond alleged to be lost, destroyed or stolen will constitute an original contractual obligation on the part of the Authority whether or not the Bond alleged to be lost, destroyed or stolen be at any time enforceable by anyone, and will be equally and proportionately entitled to the benefits of the Indenture with all other Bonds secured by the Indenture.

Book -Entry Only System
While the Bonds are subject to the book -entry system, the principal, interest and any redemption premium with respect to a Bond will be paid by the Trustee to DTC, which in turn is obligated to remit such payment to its DTC Participants for subsequent disbursement to Beneficial Owners of the Bonds, as described in Appendix G — "DTC AND THE BOOK -ENTRY -ONLY SYSTEM" herein. So long as Cede & Co. is the registered owner of the Bonds, references herein to the Owners of the Bonds shall mean Cede & Co. and not the Beneficial Owners of the Bonds. The Authority gives no assurance that DTC or the DTC Participants will distribute payments or notices to Beneficial Owners. 12

Estimated Debt Service Schedules: Bonds and Local Obligations The following table presents the debt service schedule for the Bonds, assuming there are no early redemptions of Bonds prior to maturity (other than mandatory sinking fund redemption):

TABLE 1

ANNUALIZED DEBT SERVICE SCHEDULE FOR THE BONDS
Year Ending Total
September 1 Principal Interest Debt Service
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
Total
$ $
$ $
13

The following table summarizes the anticipated debt service payments to be received by the Authority as the result of its ownership of the Local Obligations, assuming there are no early redemptions of Local Obligations prior to their respective maturities (other than mandatory sinking fund redemption).

TABLE 2

ANNUALIZED DEBT SERVICE SCHEDULE FOR THE LOCAL OBLIGATIONS Bond Year CFD No. 93-1 CFD No. 93-1 CFD No. 93-1
Ending Improvement Area Improvement Area Improvement Area September 1 No. 8D Bonds No. 8E Bonds No. 17C Bonds CFD No. 2016-1 Bonds CFD No. 2016-2 Bonds Total 2026 $
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
Total $
Source: Underwriter.
$ $
$ $
14 $ $

Debt Service Coverage for the Bonds
Scheduled payments of principal of and interest on the Bonds equals 100% of the projected Revenues that will be generated by the anticipated payment of debt service on each of the Local Obligations while the Bonds are outstanding. According to the Special Tax Consultant, based on the annual debt service for the Local Obligations, with respect to each Taxing Jurisdiction, the Special Taxes levied at the maximum Special Tax rates under the related Rate and Method (as defined below), less estimated Administrative Expenses and assuming no delinquencies, would generate in each Fiscal Year not less than 110% of debt service payable with respect to each related series of Local Obligations. See Appendix A— "INFORMATION REGARDING THE TAXING JURISDICTIONS." However, under the Mello -Roos Act, under no circumstances may Special Taxes levied against any parcel of property used for private residential purposes in a Taxing Jurisdiction be increased by more than ten percent (10%) as a consequence of delinquency or default by the owner of any other parcel within such Taxing Jurisdiction. See "SECURITY FOR THE LOCAL OBLIGATIONS."

SECURITY FOR THE BONDS
General
As described below, the Bonds are payable primarily from Revenues consisting primarily of amounts received by the Authority as the result of its acquisition of the Local Obligations.

The Bonds are special obligations of the Authority payable solely from and secured solely by the Revenues and amounts in certain funds and accounts pledged therefor in the Indenture. The Bonds are not a debt or liability of the City, the State of California or any political subdivisions thereof other than the Authority to the limited extent described herein. The faith and credit of the Authority is not pledged to secure the payment of Bonds, nor is any of its political subdivisions liable therefor, nor in any event shall the Bonds or any interest or redemption premium thereunder be payable out of any funds or properties other than those of the Authority as set forth in the Indenture. The Authority has no taxing power.

Revenues and Flow of Funds
Bonds; Revenues. Subject to the provisions of the Indenture, the Bonds are secured by a first lien on and pledge (which shall be effected in the manner and to the extent provided in the Indenture) of all of the Revenues. The Bonds are equally secured by a pledge, charge and lien upon the Revenues without priority for any Bond over any other Bond; and the payment of the interest on and principal of the Bonds and any premiums upon the redemption of any Bonds are secured by an exclusive pledge, charge and lien upon the Revenues. So long as any of the Bonds are Outstanding, the Revenues shall not be used for any purpose except as is expressly permitted by the Indenture.

Collection by the Trustee. The Authority has transferred in trust, granted a security interest in and assigned to the Trustee, for the benefit of the Owners from time to time of the Bonds, respectively, all of the Revenues and all of the right, title and interest of the Authority in the Local Obligations, subject to the terms of the Indenture. The Trustee is entitled to and will collect and receive all of the Revenues and any Revenues collected or received by the Authority will be deemed to be held, and to have been collected or received, by the Authority as the agent of the Trustee and will forthwith be paid by the Authority to the Trustee. The Trustee also is entitled to and, subject to the provisions of the Indenture, the Trustee will take all steps, actions and proceedings reasonably necessary in its judgment to enforce, either jointly with the Authority or separately, all of the rights of the Authority and all of the obligations of the City and the Community Facilities Districts under the Local Obligations.
15

Deposit of Revenues. All Revenues derived from the Local Obligations, other than Local Obligation Delinquency Revenues, will be promptly deposited by the Trustee upon receipt thereof in the Revenue Fund.

Any Revenues which represent the payment of delinquent principal of or interest on an issue of Local Obligations will be first applied to make payments required pursuant to the Indenture upon the occurrence of an Event of Default and next to be deposited to the Reserve Fund to replenish the amount on deposit therein to the Reserve Requirement, or to reimburse the Insurer for Policy Costs.

Application of Revenues. On each Interest Payment Date, the Trustee will transfer from the Revenue Fund, and deposit into the following respective accounts for the Bonds, the following amounts in the following order of priority, the requirements of each such account (including the making up of any deficiencies in any such account resulting from lack of Revenues sufficient to make any earlier required deposit) at the time of deposit to be satisfied before any transfer is made to any account subsequent in priority:

Interest Account. On each Interest Payment Date, the Trustee shall deposit in the Interest Account an amount required to cause the aggregate amount on deposit in the Interest Account to equal the amount of interest becoming due and payable on such Interest Payment Date on all Outstanding Bonds on such date. All moneys in the Interest Account shall be used and withdrawn by the Trustee solely for the purpose of paying interest on the Bonds as it shall become due and payable (including accrued interest on any Bonds redeemed prior to maturity). In the event that the amounts on deposit in the Interest Account on any Interest Payment Date, after any transfers from the Reserve Fund pursuant to the Indenture, are insufficient for any reason to pay the aggregate amount of interest then coming due and payable on the Outstanding Bonds, the Trustee shall apply such amounts to the payment of interest on each of the Outstanding Bonds on a pro rata basis.

Principal Account. On each September 1 on which principal (or sinking fund payments) of the Bonds shall be payable, the Trustee shall deposit in the Principal Account an amount required to cause the aggregate amount on deposit in the Principal Account to equal the principal amount of, and premium (if any) on, the Bonds coming due and payable on such date, or required to be redeemed on such date pursuant to the Indenture; provided, however, that no amount shall be deposited to effect an optional redemption of Bonds pursuant to the Indenture unless the Trustee has first received a certificate of an Independent Accountant or an Independent Financial Consultant certifying that such deposit to effect an optional redemption of the Bonds will not impair the ability of the Authority to make timely payment of the principal of and interest on the Bonds, assuming for such purposes that the Community Facilities Districts continue to make timely payments on all Local Obligations not then in default. All moneys in the Principal Account shall be used and withdrawn by the Trustee solely for the purpose of (i) paying the principal of the Bonds at the maturity thereof or (ii) paying the sinking fund payments with respect to the Bonds or (iii) paying the principal of and premium (if any) on any Bonds upon the redemption thereof pursuant to the Indenture.

Reserve Fund. On each Interest Payment Date on which the balance in the Reserve Fund is less than the Reserve Requirement, or amounts are due to an insurer under a Reserve Credit Facility, after making deposits to the Interest Account and the Principal Account as described above, the Trustee shall transfer from the Revenue Fund, an amount sufficient to increase the balance in the Reserve Fund to the Reserve Requirement or to reimburse an insurer for draws under a Reserve Credit Facility, by depositing the amount necessary to make the various accounts therein equal to, together, the Reserve Requirement, provided the value of the moneys deposited therein, as invested, shall be valued at market value on such transfer date for purposes of making such determination; and provided, further, that the replenishment of the accounts of the Reserve Fund shall be made in accordance with the Indenture as described under "—Reserve Fund" below.

Deficiencies. If on any Interest Payment Date or date for redemption the amount on deposit in the Revenue Fund is inadequate to make the transfers above as a result of a payment default on an issue of Local Obligations, the Trustee will immediately notify the issuer of such Local Obligations of the amount needed to make the required deposits under "— Application of Revenues." In the event that following such notice the Trustee receives Local Obligations Delinquency Revenues from the issuer of such Local Obligation to cure 16

such shortfall, the Trustee shall deposit such amounts to the Revenue Fund for application in accordance with the Indenture. The Trustee shall disburse or transfer all Revenues representing Local Obligations Delinquency Revenues of the respective Community Facilities District first to cure any event of default on the Bonds caused by the nonpayment of the Local Obligations of such Taxing Jurisdiction and then to replenish the amount in the Reserve Fund to the Reserve Requirement, subject to the limitations described under the caption "— Reserve Fund" below.

Rebate Fund. On each Interest Payment Date after making the transfers required described above, upon receipt of a Request of the Authority to do so, the Trustee shall transfer from the Revenue Fund to the Rebate Fund for deposit in the accounts therein the amounts specified in such Request of the Authority.

Surplus Fund. On September 1 of each year, after making the deposits described above, and upon reimbursement to the Insurer for any amounts owed under the Insurance Policy, the Trustee will transfer all amounts remaining on deposit in the Revenue Fund to the Administrative Expense Fund unless the Trustee has received a request of the Authority directing it to transfer all or a portion of the said amounts to the Surplus Fund, in which case the Trustee shall make the transfer to the Surplus Fund.

Reserve Fund
An account for each issue of Local Obligations will be established in the Reserve Fund (each, a "Reserve Account"). The Reserve Policy in the amount of $ will be deposited into the Reserve Fund, which amount equals the Reserve Requirement as of the date of issuance of the Bonds. Each Local Obligation's initial Proportionate Share will initially be as follows:
• $ in the Improvement Area No. 8D Reserve Account
• $ in the Improvement Area No. 8E Reserve Account
• $ in the Improvement Area No. 17C Reserve Account
• $ in the CFD No. 2016-1 Reserve Account
• $ in the CFD No. 2016-2 Reserve Account
The Indenture defines "Proportionate Share" to mean as of the date of calculation for any issue of the Local Obligations, the ratio derived by dividing the outstanding principal amount of such Local Obligations by the principal amount of the Outstanding Bonds.

The aggregate of the foregoing amounts is equal to the Reserve Requirement as of the date of issuance of the Bonds, which is an amount equal to the lowest of (i) 10% of the initial principal amount of the Bonds, (ii) Maximum Annual Debt Service on the Outstanding Bonds, or (iii) 125% of average Annual Debt Service on the Outstanding Bonds. Pursuant to the Indenture, the Reserve Requirement shall never be greater than the initial Reserve Requirement. In the event that the amount of the Reserve Requirement is changed, the Trustee will, upon receipt of a Request of the Authority, adjust the shares of each Reserve Account to reflect the new Reserve Requirement.

The Insurer has made a commitment to issue, simultaneously with the initial issuance of the Bonds, the Reserve Policy in the amount equal to the Reserve Requirement for deposit in the Reserve Fund, effective as of the date of issuance of the Bonds. Under the terms of the Reserve Policy, the Insurer will unconditionally and irrevocably guarantee to pay that portion of the scheduled payments of principal of and interest on the Bonds that becomes due for payment but shall be unpaid by reason of nonpayment by the Authority, to the extent set forth in the Reserve Policy and in the Indenture. See Appendix B — "SUMMARY OF PRINCIPAL LEGAL DOCUMENTS -AUTHORITY INDENTURE REVENUES; FLOW OF FUNDS —Reserve Fund" for provisions relating to the Reserve Policy.

Subject to the limitations set forth in the following paragraph, moneys in the Reserve Fund will be used to pay the principal of and interest on the Bonds when the moneys in the Interest Account and the 17

Principal Account of the Revenue Fund are insufficient therefor. In addition, amounts in the Reserve Fund may be applied (i) in connection with an optional redemption of Bonds or a defeasance thereof, (ii) when the balance therein equals the principal and interest due on the Bonds to and including maturity, (iii) credited to a Taxing Jurisdiction as a result of a reduction in the Reserve Requirement resulting from the redemption of the Local Obligations relating to such Taxing Jurisdiction and the Bonds so redeemed in connection therewith, or (iv) when amounts in certain accounts of the Reserve Fund are transferred to the Interest Account and the Principal Account as a credit against the payments due on the Local Obligations in the event amounts in a Reserve Account are sufficient to repay the remaining principal and interest due on the related Local Obligations that will be applied to the Bonds, as specified below.

If the amounts in the Interest Account or the Principal Account of the Revenue Fund are insufficient to pay the principal of or interest on the Bonds when due or mandatory sinking fund payments on the Bonds when due, the Trustee shall withdraw from the applicable Reserve Account or Reserve Accounts an amount equal to the deficiency resulting from the delinquency in the payment of scheduled debt service on the applicable Series of Local Obligations and transfer such amount to the Interest Account, the Principal Account or both, as applicable. If there are insufficient funds on deposit in a Reserve Account to cover a deficiency resulting from the delinquency in the payment of scheduled debt service on the applicable Series of Local Obligations, the Trustee shall withdraw from each of the other Reserve Accounts an amount based upon the Proportionate Share applicable to each such Reserve Account of such remaining deficiency and transfer such amounts to the Interest Account, the Principal Account or both, as applicable.

Upon the transfer by the Trustee to the Reserve Fund of delinquent Revenues, such Revenues shall be allocated to the Reserve Accounts as follows:

First, to the Insurer to reimburse it for all Policy Costs due as a result of a draw on the Reserve Policy and reimbursement of amounts with respect to any other Reserve Credit Facility due as a result of delinquencies on the Local Obligations of the Taxing Jurisdiction. Such reimbursements shall be credited first to each Reserve Account for any series of Local Obligations, other than the Reserve Account to which such delinquent Revenues relate on a Proportionate Share basis if such reimbursements are owing as a result from draws due to delinquencies in the payment of scheduled debt service on that series of Local Obligations from which such delinquent Revenues were received. Such reimbursements will next be credited to the Reserve Account for the series of Local Obligations from which the delinquent Revenues were received.

Second, to the Reserve Account for any series of Local Obligations, other than the Reserve Account to which such delinquent Revenues relate, that amount necessary to increase the amount on deposit in such account to the Reserve Requirement on a Proportionate Share basis if the deficiency in the amount on deposit in such account resulted from draws on such account due to delinquencies in the payment of scheduled debt service on that series of Local Obligations from which such delinquent Revenues were received. In the event that such delinquent Revenues are not sufficient to increase the amount on deposit in each of the applicable Reserve Accounts to the Reserve Requirement, a Proportionate Share of such delinquent Revenues shall be deposited in each such Reserve Account.

Third, after increasing the amount on deposit in each applicable Reserve Account to the applicable Proportionate Share of the Reserve Requirement pursuant to the second step, to the Reserve Account for the series of Local Obligations from which the delinquent Revenues were received that amount necessary to replenish the amount on deposit in such Reserve Account to the applicable Proportionate Share of the Reserve Requirement.

Fourth, after making all deposits pursuant to the three steps above, the remaining delinquent Revenues, if any, shall be transferred to the Revenue Fund.

When amounts in a Reserve Account are sufficient to repay the remaining principal and interest due on the related Local Obligations that will be applied to the Bonds, such amounts will be transferred to the 18

Interest Account and the Principal Account as a credit against the payments due on such Local Obligations, with the amount transferred from a Reserve Account being deposited first to the Interest Account as a credit on the interest due on such Local Obligations on such date and the balance being deposited to the Principal Account as a credit on the principal due on such Local Obligations on such date.

Surplus Fund
Any amounts transferred to the Surplus Fund pursuant to the Indenture shall no longer be considered Revenues and are not pledged to repay the Bonds. So long as Local Obligations are outstanding, on September 1 of each year after setting aside any amount specified in a Request of the Authority as necessary to pay Administrative Expenses, the remaining balance, if any, in the Surplus Fund shall (i) be transferred by the Trustee to the City for credit to the special tax funds for the Local Obligations, and the Community Facilities Districts shall be credited a percentage of the total amount available on each September 1 that is equal to the percentage which each series of its outstanding Local Obligations represents of all outstanding Local Obligations held by the Trustee as of the date of disbursement or (ii) as set forth in a Request of the City be applied to the redemption of Local Obligations pursuant to the terms of the Local Obligation Indentures with each series of Local Obligations to be credited a percentage of the total amount available on each September 1 that is equal to the percentage which a series of outstanding Local Obligations represents of all outstanding Local Obligations held by the Trustee as of the date of disbursement. In the event that the Local Obligations have been redeemed or defeased in whole or in part, then such credit shall be applied among the Local Obligations based on a Certificate of an Independent Financial Consultant prepared at the direction of the Authorized Representative of the City. In the event the Community Facilities Districts are no longer obligated to levy Special Taxes to repay Local Obligations, then any amounts in the Surplus Fund may be used by the Authority for any lawful purpose, including, but not limited to, the payment of expenses of the Authority, the City or the Community Facilities Districts relating to the Bonds, the Local Obligations, the Community Facilities Districts, or any other purpose as specified in a Request of the Authority delivered to the Trustee.

No Additional Bonds Except to Refund Bonds
The Authority may issue Additional Bonds in such principal amount as will be determined by the Authority, pursuant to a Supplemental Indenture adopted or entered into by the Authority.

Additional Bonds may only be issued subject to the following conditions precedent established by the Indenture:
(a) The Authority is in compliance with all covenants set forth in the Indenture and all Supplemental Indentures.
(b) The proceeds of such Additional Bonds will be applied to accomplish a refunding of all or a portion of the Bonds or any Additional Bonds Outstanding. The issuance of Additional Bonds to refund a portion of the Bonds or any Additional Bonds Outstanding will require the prior written c onsent of the Insurer. (c) The Supplemental Indenture providing for the issuance of such Additional Bonds will provide that interest thereon will be payable on September 1 and March 1, and principal thereof will be payable on September 1 in any year in which principal is payable.
(d) Prior to the delivery of any Additional Bonds, a written certificate must be provided to the Authority and the Trustee by an Independent Financial Consultant which certifies that following the issuance of the Series of Additional Bonds and the Local Obligations, the principal and interest generated from the Local Obligations is adequate to make the timely payment of principal and interest due on the Bonds and the Series of Additional Bonds to be issued under the Indenture. 19

(e) The Supplemental Indenture providing for the issuance of Additional Bonds may provide for the establishment of separate funds and accounts.
(f) No Event of Default has occurred and be continuing with respect to the Bonds or any of the Local Obligations.
(g) The Authority will deliver to the Trustee a written Certificate of the Authority certifying that the conditions precedent to the issuance of such Additional Bonds set forth in subsections (a), (b), (c), (d) and (f) above have been satisfied and that, upon the issuance of such Additional Bonds an amount equal to the Reserve Requirement, as adjusted (if necessary) to reflect the issuance of such Additional Bonds will be on deposit in the Reserve Fund.

BOND INSURANCE
[The information under this caption has been prepared by [Bond Insurer] (the "Bond Insurer") for inclusion in this Official Statement. None of the Authority, the Districts or the Underwriter has reviewed this information, nor do such entities make any representation with respect to the accuracy or completeness thereof or any information incorporated by reference. Reference is made to Appendix H for a specimen of the Policy.

Bond Insurance Policy
Concurrently with the issuance of the Bonds, [Bond Insurer] will issue its Municipal Bond Insurance Policy (the "Policy") for the Bonds. The Policy guarantees the scheduled payment of principal of and interest on the Bonds when due as set forth in the form of the Policy included as an appendix to this Official Statement.

The Policy is not covered by any insurance security or guaranty fund established under New York, Maryland, California, Connecticut or Florida insurance law. [Bond Insurer]
[To Come]

SECURITY FOR THE LOCAL OBLIGATIONS
General
Each series of Local Obligations is a limited obligation of the respective Community Facilities District payable solely from Net Special Taxes (defined below) collected in the applicable Taxing Jurisdiction and amounts deposited by such Community Facilities District in the applicable Special Tax Fund. Each Community Facilities District's limited obligation to pay the principal of, premium, if any, and interest on the applicable Local Obligations from Net Special Taxes collected in the applicable Taxing Jurisdiction and amounts in the applicable Special Tax Fund is absolute and unconditional.

No Local Obligation (and no obligations issued on a parity therewith under the Local Obligation Indentures relating to the Local Obligations, each a "Local Obligation Parity Bond") is a legal or equitable pledge, charge, lien or encumbrance upon any of the respective Community Facilities District's respective property, or upon any of their income, receipts or revenues, except the Net Special Taxes collected in the applicable Taxing Jurisdiction and other amounts in the applicable Special Tax Fund which are, under the terms of each Local Obligation Indentures and the Mello -Roos Act, set aside for the payment of the Local Obligations and interest thereon and neither the respective members of the legislative body of the Community Facilities Districts or the City Council nor any persons executing the Bonds are liable personally on the Bonds by reason of their issuance.
20

The "Special Taxes" for each Taxing Jurisdiction are levied and collected according to the rate and method of apportionment (each, a "Rate and Method") established for such Taxing Jurisdiction. See Appendix A — "INFORMATION REGARDING THE TAXING JURISDICTIONS" and Appendix D — "RATES AND METHODS OF APPORTIONMENT OF SPECIAL TAXES FOR THE TAXING JURISDICTIONS."
The Local Obligations are not cross -collateralized. In other words, Special Taxes collected in one Taxing Jurisdiction cannot be used to cover any shortfall in the payment of debt service on the Local Obligations of another Taxing Jurisdiction. However, the Reserve Fund held by the Trustee and funded at the Reserve Requirement will be available in the event of delinquent Revenues. See "SECURITY FOR THE BONDS — Reserve Fund" herein.

Except for the foregoing, no other taxes are pledged to the payment of the Local Obligations and Local Obligation Parity Bonds. The Local Obligations and any Local Obligation Parity Bonds are not general or special obligations of the City nor general obligations of the Community Facilities Districts, but are limited obligations of each Community Facilities District payable solely from amounts deposited by such Community Facilities District in certain funds established under the applicable Local Obligation Indentures, as more fully described herein. Each Community Facilities District's limited obligation to pay the principal of, premium, if any, and interest on the respective Local Obligations and any Local Obligation Parity Bonds from amounts in certain funds established under the applicable Local Obligation Indentures is absolute and unconditional, free of deductions and without any abatement, offset, recoupment, diminution or set-off whatsoever. No Owner of the Local Obligations or any Local Obligation Parity Bonds may compel the exercise of the taxing power by any Community Facilities District (except as pertains to the Special Taxes) or the City or the forfeiture of any of their property. The principal of and interest on the Local Obligations and any Local Obligation Parity Bonds and premiums upon the redemption thereof, if any, are not a debt of the City, the State of California or any of its political subdivisions within the meaning of any constitutional or statutory limitation or restriction.

The Special Taxes are collected in the manner and at the same time as ad valorem property taxes are collected and is subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem property taxes; provided, however, that a Community Facilities District may directly bill the Special Tax, and may collect Special Taxes at a different time or in a different manner as determined by the City CounciL
Under the Mello -Roos Act under no circumstances will the Special Taxes levied against any parcel in a Taxing Jurisdiction for which an occupancy permit for private residential use has been issued be increased by more than ten percent (10%) per Fiscal Year as a consequence of delinquency or default by the owner of any other parcel within such Taxing Jurisdiction. Therefore, even though the maximum Special Tax rates may allow for Special Tax increases greater than 10%, in the event of high delinquencies in a Taxing Jurisdiction, a Community Facilities District could not increase the Special Taxes in such Taxing Jurisdiction in the Fiscal Year following such delinquencies by more than 10% on the residential units. See "SPECIAL RISK FACTORS — Special Tax Delinquencies."
Local Obligation Indentures
The Local Obligations will be issued under separate Local Obligation Indentures. The following describes certain provisions of the Local Obligation Indentures, which, except as noted, are substantially similar. Capitalized terms used in this section but not otherwise defined herein have the meanings provided in Appendix B — "SUMMARY OF PRINCIPAL LEGAL DOCUMENTS."
Under the Local Obligation Indentures other than for the Improvement Area No. 8D Bonds, the "Net Special Taxes" pledged by the Community Facilities District to the Local Obligations (and any related Local 21

Obligation Parity Bonds) is defined as "Gross Special Taxes" minus amounts set aside to pay Administrative Expenses.
"Gross Special Taxes" is defined in each such Local Obligation Indenture as the amount of all Special Taxes received by the Community Facilities District from the Taxing Jurisdiction, together with the proceeds collected from the sale of property pursuant to the foreclosure provisions of the Local Obligation Indenture for the delinquency of such Special Taxes remaining after the payment of all costs related to such foreclosure actions.

Each such Local Obligation Indenture separately limits annual transfers to the Administrative Expense Fund to an "Administrative Expense Requirement" of $30,000 per Bond Year. When actual Administrative Expenses exceed the Administrative Expense Requirement, the excess may not be transferred until debt service, Reserve Account, and Proportionate Share requirements have been satisfied. Following those required transfers, the respective Community Facilities District may direct additional amounts to the Administrative Expense Fund.

Under the Local Obligation Indenture for the Improvement Area No. 8D Bonds, the corresponding pledged revenue term is "Net Taxes," which is defined as Special Taxes minus amounts set aside to pay Administrative Expenses not to exceed the Administrative Expenses Cap. The "Administrative Expenses Cap" is $30,000 per Bond Year (or such lesser amount as may be designated by the District). For purposes of this Official Statement, the term "Net Special Taxes" includes "Net Taxes" under the Local Obligation Indenture for the Improvement Area No. 8D Bonds.

For Improvement Area No. 8D, "Administrative Expenses" are the administrative costs with respect to the calculation and collection of the Special Taxes, including all attorneys' fees and other costs related thereto, the fees and expenses of the Trustee, any fees and related costs which are not otherwise paid as Costs of Issuance, and any other costs otherwise incurred by the City staff on behalf of the Community Facilities District in order to carry out the purposes of the Community Facilities District as set forth in the related Resolution of Formation and any obligation of the Community Facilities District hereunder. "Administrative Expenses" with respect to all Taxing Jurisdictions other than Improvement Area No. 8D are the administrative costs with respect to the calculation and collection of the Special Taxes, including all attorneys' fees and other costs related thereto, the fees and expenses of the Trustee, any fees and related costs for credit enhancement for the Local Obligations or which are not otherwise paid as Costs of Issuance, any costs related to the applicable Community Facilities District's compliance with state and federal laws requiring continuing disclosure of information concerning the Local Obligations, the applicable Community Facilities District, and any other costs otherwise incurred by the City on behalf of the applicable Community Facilities District, in order to carry out the purposes of the applicable Community Facilities District, as set forth in the Resolution of Formation and any obligation of the applicable Community Facilities District under the Local Obligation Indenture. Administrative Expenses also include the administrative costs with respect to the collection of Delinquency Proceeds. The Taxing Jurisdictions other than Improvement Area No. 8D establish an "Administrative Expense Requirement" similar to the Improvement Area No. 8D "Administrative Expense Cap" of $30,000 in each Bond Year as more particularly described in Appendix B — "SUMMARY OF PRINCIPAL LEGAL DOCUMENTS."
The portion of any Prepayment received by the Community Facilities District that is to be applied to the redemption of Local Obligations will be identified as such by the Community Facilities District and transferred to the trustee thereunder ("Zions Bancorporation") for deposit in the Redemption Account. Except for the foregoing portion of any Prepayment to be deposited to the Redemption Account, each Community Facilities District will, as soon as practicable, transfer the Special Taxes received by the Community Facilities District to Zions Bancorporation for deposit in the applicable Special Tax Fund to be held by Zions Bancorporation in trust for the Owners of the Local Obligations. 22

For Improvement Area No. 8D, Zions Bancorporation will transfer the Special Taxes on deposit in the Special Tax Fund on the dates and in the amounts set forth in the Local Obligation Indenture, in the following order of priority, to:
(1) the Administrative Expenses Account of the Special Tax Fund; (2) the Interest Account of the Special Tax Fund;
(3) the Principal Account of the Special Tax Fund;
(4) the Redemption Account of the Special Tax Fund;
(5) the applicable subaccount of the Reserve Account of the Special Tax Fund; (6) the Rebate Fund; and
(7) the Surplus Fund.

With respect to all other Taxing Jurisdictions, Zions Bancorporation will transfer the Special Taxes on deposit in the Special Tax Fund on the dates and in the amounts set forth in the applicable Local Obligation Indenture, in the following order of priority, to:
(1) The Administrative Expense Fund;
(2) The Interest Account of the Special Tax Fund;
(3) The Principal Account of the Special Tax Fund;
(4) The Trustee for deposit in the Reserve Account under the Authority Indenture the amount necessary to cause the balance on deposit therein to equal the Community Facilities District's Proportionate Share of the Reserve Requirement;
(5) The Redemption Account of the Special Tax Fund; and (6) The Surplus Fund.

Each Local Obligation Indenture creates and establishes a Surplus Fund to be maintained by Zions Bancorporation. As soon as practicable after each September 1, and in any event prior to each October 1, Zions Bancorporation will transfer all remaining amounts in the Special Tax Fund to the Surplus Fund, unless on or prior to such date, it has received a Certificate of an Authorized Representative directing that certain amounts be retained in the Special Tax Fund because the applicable Community Facilities District has included such amounts as being available in the Special Tax Fund in calculating the amount of the levy of Special Taxes for such Fiscal Year. The amounts in the Surplus Fund are not pledged to the repayment of the Local Obligations or any related Local Obligation Parity Bonds and may be used by the applicable Community Facilities District for any lawful purpose.

Local Obligation Parity Bonds
The Local Obligation Indentures authorize the Community Facilities District to issue additional bonds payable from Special Taxes on a parity with the related Local Obligations but only for the purpose of refunding all or a portion of the applicable Local Obligations or Local Obligation Parity Bonds. Local Obligations will only be refunded if a corresponding amount of Bonds is refunded. For a description of the 23

conditions established in each Local Obligation Indentures for the issuance of Local Obligation Parity Bonds, see Appendix B — "SUMMARY OF PRINCIPAL LEGAL DOCUMENTS." The Improvement Area No. 8D Bonds will be issued on parity with the CFD No. 93-1's outstanding Improvement Area No. 8D Special Tax Refunding Bonds Series 2017A, currently outstanding in the amount of $533,555.

Priority of Lien
Each installment of the Special Taxes and any interest and penalties thereon, constitutes a lien on the parcel of land on which it was imposed until the same is paid. Such lien is co -equal to and independent of the lien for general taxes or any other Community Facilities District special taxes. See "THE TAXING JURISDICTIONS — The Taxing Jurisdictions in the Aggregate" herein.

Covenants of the Community Facilities District
In its respective Local Obligation Indenture, the Community Facilities Districts have made certain covenants, certain of which are described below.

Punctual Payment. The Community Facilities Districts will duly and punctually pay or cause to be paid the principal of and interest on every Local Obligation and Local Obligation Parity Bond issued under its Local Obligation Indenture, together with the premium, if any, thereon on the date, at the place and in the manner set forth in the Local Obligations and Local Obligation Parity Bonds and in accordance with its Local Obligation Indenture to the extent that Net Special Taxes and other amounts pledged thereunder are available therefor, and that the payments into the Funds and Accounts created thereunder will be made, all in strict conformity with the terms of the Local Obligations, any Local Obligation Parity Bonds, and its Local Obligation Indenture, and that it will faithfully observe and perform all of the conditions, covenants and requirements of its Local Obligation Indenture and all Supplemental Indentures and of the Local Obligations and any Local Obligation Parity Bonds issued under its Local Obligation Indenture.

Against Encumbrance. The Community Facilities Districts will not mortgage or otherwise encumber, pledge or place any charge upon any of the Net Special Taxes except as provided in the Local Obligation Indenture, and will not issue any obligation or security having a lien or charge upon the Net Special Taxes superior to or on a parity with the Local Obligations, other than Local Obligation Parity Bonds. Nothing in the Local Obligation Indenture shall prevent the Community Facilities Districts from issuing or incurring indebtedness which is payable from a pledge of Net Special Taxes which is subordinate in all respects to the pledge of Net Special Taxes to repay the Local Obligations and the Local Obligation Parity Bonds.

Levy of Special Tax. So long as any Local Obligations or Local Obligation Parity Bonds issued are Outstanding, each Community Facilities Districts covenants to levy the Special Tax in an amount sufficient, together with other amounts on deposit in the Special Tax Fund and available for such purpose, to pay (1) the principal of and interest on the Local Obligations and Local Obligation Parity Bonds when due, (2) the Administrative Expenses, (3) any amounts required to maintain the Reserve Account of the Special Tax Fund at the Reserve Requirement, (4) any amounts required to replenish the Reserve Account under the Authority Indenture to the Proportionate Share and pay all Policy Costs resulting from the delinquency in the payment of scheduled debt service on the Local Obligations and any Local Obligation Parity Bonds, (5) and any amounts due to the Insurer not included in (1) through (4) above. Each Community Facilities District further covenants that it will take no actions that would discontinue or cause the discontinuance of the Special Tax levy or the Community Facilities District's authority to levy the Special Tax for so long as the Local Obligations and any Local Obligation Parity Bonds are Outstanding.

Commence Foreclosure Proceedings. Each Community Facilities District covenants for the benefit of the Owners of the Local Obligations and any Local Obligation Parity Bonds that it will review the public 24

records of the County of Riverside, California, in connection with the collection of the Special Tax not later than July 1 of each year to determine the amount of Special Tax collected in the prior Fiscal Year; and with respect to individual delinquencies within a Taxing Jurisdiction, if the Community Facilities District determines that any single property owner subject to the Special Tax is delinquent in the payment of Special Taxes in the aggregate of $2,500 or more or as to any single parcel the delinquent Special Taxes represent more than 5% of the aggregate Special Taxes within a Taxing Jurisdiction, then the Community Facilities District will send or cause to be sent a notice of delinquency (and a demand for immediate payment thereof) to the property owner within 45 days of such determination, and (if the delinquency remains uncured) the Community Facilities District will cause judicial foreclosure proceedings to be filed in the Superior Court within ninety (90) days of such determination against all properties for which the Special Taxes remain delinquent; provided that, with respect to the Taxing Jurisdictions other than Improvement Area No. 8D, notwithstanding the foregoing, the Community Facilities District may elect to defer foreclosure proceedings on any parcel so long as the amount in the Reserve Account is at least equal to the Reserve Requirement and the amount in the Reserve Account for any series of Local Obligations is at least equal to the Community Facilities District's Proportionate Share. Each Community Facilities District may, but shall not be obligated to, advance funds from any source of legally available funds in order to maintain the Reserve Account and the Reserve Account for any series of Local Obligations. Under the Local Obligation Indentures for all Taxing Jurisdictions other than Improvement Area No. 8D, each Community Facilities District may treat any delinquent Special Tax sold to an independent third -party or to any funds of the City for at least 100% of the delinquent amount as having been paid. Proceeds of any such sale up to 100% of the delinquent amount will be deposited in the Special Tax Fund.

Special Taxes Are Not Within Teeter Plan
The Special Taxes are not encompassed within the alternate procedure for the distribution of certain property tax levies on the secured roll pursuant to Chapter 3, Part 8, Division 1 of the California Revenue and Taxation Code (Section 4701 et seq.), commonly referred to as the "Teeter Plan." The County has adopted a Teeter Plan under which a tax distribution procedure is implemented and secured roll taxes are distributed to taxing agencies within the County on the basis of the tax levy, rather than on the basis of actual tax collections.

However, by policy, the County does not include special taxes, assessments or assessments in its Teeter Plan.

The Special Taxes of the Taxing Jurisdictions are not included in the County's Teeter Plan.

THE TAXING JURISDICTIONS
The Taxing Jurisdictions in the Aggregate
Introduction. Set forth under this caption is certain information describing the Taxing Jurisdictions in the aggregate. See Appendix A hereto for more information with respect to each Taxing Jurisdiction.

Although the Authority believes the information with respect to the Taxing Jurisdictions, in the aggregate, is relevant to an informed decision to purchase the Bonds, investors should be aware that the debt service on one series of Local Obligations may not be used to make up any shortfall in the debt service on another series of Local Obligations. Moreover, the parcels in each Taxing Jurisdiction are taxed according to the applicable Rate and Method, and the applicable Special Taxes may only be applied to pay the debt service on the Local Obligations related to the Taxing Jurisdiction in which such Special Taxes are levied and not on the debt service of any other Local Obligations.

Potential investors should further be aware that Special Taxes are levied against individual parcels within each Taxing Jurisdiction and that any such parcel may have a value -to -lien ratio less than the overall value -to -lien ratio for such Taxing Jurisdiction and less than the value -to -lien ratio of the Taxing Jurisdictions in the aggregate.

Property Values & Development Status. The most recent aggregate assessed value reported by the County Assessor for the property in the Taxing Jurisdictions for the Fiscal Year 2025-26 was $765,188,043. 25

The planned developments within the Taxing Jurisdictions are complete with residential homes. Currently, all completed homes have been conveyed to individual owners. Table 3 below shows the development status within the Taxing Jurisdictions as of April 1, 2026.

TABLE 3

CITY OF BEAUMONT

THE TAXING JURISDICTIONS IN AGGREGATE
DEVELOPMENT STATUS AS OF APRIL 1, 2026
Sold TotalAcres of Percent Sold to
Approximate Dwelling Parcels Under Undeveloped Undeveloped Total Individual Taxing Jurisdictions Gross Acres Units(1) Development(2) Parcels Land( Parcels Homeowners655 CFD No. 93-1 IA 8D 16.00 279 0 0 0 279 100.00%
CFD No. 93-1 IA 8E 81.58 372 0 0 0 372 100.00
CFD No. 93-1 IA 17C 36.37 215 0 0 0 215 100.00
CFD No. 2016-1 67.58 372 0 0 0 372 100.00
CFD No. 2016-2 72.29 527 0 0 0 527 100.00
Totals: 273.82 1,765 0 0 0 1,765 100.00%
(ii Equals the estimated number of completed dwelling units no longer owned by developers as of April 1, 2026. (2) Parcels for which building permits have been obtained as of April 1,2026, but which have not been completed and conveyed t o purchasers. (3) Parcels with no building permits obtained as of April 1, 2026. (4) Equals Acreage of Parcels with no building permits obtained as of April 1, 2026. (5) Equals the Sold Dwelling Units column divided by the Total Parcels column, expressed as a percentage.

Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC.

Value -To -Lien Ratios. The aggregate assessed value of all of the taxable property in the Taxing Jurisdictions, as established by the County Assessor for Fiscal Year 2025-26 was $763,188,043. The aggregate principal amount of the Local Obligations is $38,000,000*. The following tables set forth the aggregate assessed value -to -lien ratios of all the taxable property in the Taxing Jurisdictions based on Fiscal Year 2025-26 assessed values in each of the Taxing Jurisdictions and the principal amount direct and overlapping land -secured debt, including the Local Obligations.

TABLE 4

CITY OF BEAUMONT

TAXING JURISDICTIONS IN AGGREGATE
ASSESSED VALUE -TO -LIEN RATIOS*
Direct and Assessed
Local Overlapping Land Assessed Value -to -Lien
Taxing Jurisdictions Obligationsw* Secured Debt Total Debt* Value") Ratio")* CFD No. 93-1 IA 8D $ 6,515,000 $ 533,555(4) $ 7,048,555 $ 95,525,891 13.55:1 CFD No. 93-1 IA 8E 10,095,000 0 10,095,000 179,456,040 17.78:1 CFD No. 93-1 IA 17C 6,990,000 0 6,990,000 83,749,919 11.98:1 CFD No. 2016-1 6,655,000 0 6,655,000 180,047,717 27.05:1 CFD No. 2016-2 7,745,000 0 7,745,000 224A08,476 28.97:1 Totals: $ 38,000,000 $ 533,555 $ 38,533,555 $ 763,188,043 19.81:1 ' Preliminary, subject to change.
(1) Based on aggregate principal amount of the Local Obligations. Does not include any general obligation bonded indebtedness applicable to the Taxing Jurisdictions.
(2) Reflects Fiscal Year 2025-26 assessed value of all taxable property in the Taxing Jurisdictions. (3) Calculated by dividing the Assessed Value column by the Total Debt column. (4) Reflects Improvement Area No. 8D Parity Bonds.

Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC. * Preliminary, subject to change.
26

Table 5 sets forth the number of Taxing Jurisdictions and dwelling units within the Taxing Jurisdictions which will be levied to pay debt service on the Local Obligations by Bond Year through September 1, 2049, the final maturity of the Bonds.

TABLE 5

CITY OF BEAUMONT

THE TAXING JURISDICTIONS IN AGGREGATE

BY BOND YEAR
Fiscal Year
Bond Year 2025-26 Assessed
Ending No. of Taxing Dwelling Assessed Value to Lien
September 1 Jurisdictions") Units Value Total Deb//)* Ratio* 2026 5 1,765 $763,188,043 $38,533,555 19.81:1
2027 5 1,765 763,188,043 38,533,555 19.81:1
2028 5 1,765 763,188,043 38,533,555 19.81:1
2029 5 1,765 763,188,043 38,533,555 19.81:1
2030 5 1,765 763,188,043 38,533,555 19.81:1
2031 5 1,765 763,188,043 38,533,555 19.81:1
2032 5 1,765 763,188,043 38,533,555 19.81:1
2033 5 1,765 763,188,043 38,533,555 19.81:1
2034 5 1,765 763,188,043 38,533,555 19.81:1
2035 5 1,765 763,188,043 38,533,555 19.81:1
2036 5 1,765 763,188,043 38,533,555 19.81:1
2037 5 1,765 763,188,043 38,533,555 19.81:1
2038 5 1,765 763,188,043 38,533,555 19.81:1
2039 5 1,765 763,188,043 38,533,555 19.81:1
2040 5 1,765 763,188,043 38,533,555 19.81:1
2041 5 1,765 763,188,043 38,533,555 19.81:1
2042 5 1,765 763,188,043 38,533,555 19.81:1
2043 5 1,765 763,188,043 38,533,555 19.81:1
2044 5 1,765 763,188,043 38,533,555 19.81:1
2045 5 1,765 763,188,043 38,533,555 19.81:1
2046 5 1,765 763,188,043 38,533,555 19.81:1
2047 5 1,765 763,188,043 38,533,555 19.81:1
2048 5 1,765 763,188,043 38,533,555 19.81:1
2049 2 899 404,456,193 14,400,000 28.09:1
Preliminary, subject to change.
(I) See Table 7 for the final maturity date of the Local Obligations for each Taxing Jurisdiction. (2) Based on outstanding the Local Obligations and Fiscal Year 2025-26 assessed values. Does not include any general obligation bonded indebtedness applicable to the Taxing Jurisdictions. Actual assessed value to lien ratios in future years will be different from the amounts set forth in this table.

Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC. 27

Effective Tax Rates. Table 6 below shows the average effective tax rates of property with completed homes within the Taxing Jurisdictions based on the average Fiscal Year 2025-26 assessed values, the average Fiscal Year 2025-26 actual levies for all other overlapping taxing jurisdictions and the projected average Fiscal Year 2026-27 Special Tax levy for each Taxing Jurisdiction. Based on the foregoing, the projected average effective tax rate for the parcels within the Taxing Jurisdictions ranges from approximately 1.77% to 2.10%.

TABLE 6

CITY OF BEAUMONT

THE TAXING JURISDICTIONS IN AGGREGATE

AVERAGE DWELLING UNIT EFFECTIVE TAX RATES
Taxing Jurisdictions
CFD No. 93-1 IA 8D
CFD No. 93-1 IA 8E
CFD No. 93-1 IA 17C
CFD No. 2016-1
CFD No. 2016-2
Average
Assessed Value
— Completed
Dwelling Unit
$342,386.71
482,408.71
389,534.51
483,999.24
425,822.54
Average Taxing
Jurisdiction
Special Tax
$1,471.33
1,759.41
2,148.84
1,367.61
1,113.38
Average Ad
Valorem Taxes
Per Completed
Dwelling Unit
$4,437.19
6,251.82
5,048.21
6,272.44
5,518.49
Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC.

Average Other
Taxes and
Assessments Per
Completed
Dwelling Unit
$792.30
630.31
974.89
940.78
1,574.53
Average Effective
Tax Rate -
Completed
Dwelling Unit

1.96%

1.79 2.10

1.77 1.93
Top Taxpayers within the Taxing Jurisdictions. No single owner owns more than three parcels within any one Taxing Jurisdiction, and no single taxpayer is projected to be responsible for more than 1.07% of Fiscal Year 2026-27 Special Taxes within any one Taxing Jurisdiction. See Appendix A — "INFORMATION REGARDING THE TAXING JURISDICTIONS."
Delinquencies. Special Taxes were levied against 1,765 parcels in the Taxing Jurisdictions in Fiscal Year 2025-26. For the Fiscal Year 2025-26 Special Tax levy, as of May 11, 2026, 36 parcels were delinquent in the payment of the Special Tax levy. For the Special Tax levies, collections and delinquency rates in each of the Taxing Jurisdictions see Appendix A — "INFORMATION REGARDING THE TAXING JURISDICTIONS."
28

The Local Obligations
The table below summarizes the final maturity dates of the Local Obligations and the principal amount of each Local Obligation. For a description of the total debt service on the Bonds provided by each Local Obligation, see Table 2 under the heading "THE BONDS — Estimated Debt Service Schedules: Bonds and Local Obligations" herein.

TABLE 7

CITY OF BEAUMONT

SUMMARY OF LOCAL OBLIGATIONS
Maturity Date Principal
Taxing Jurisdictions (September 1) Amount*
CFD No. 93-1 Improvement Area No. 8D 2048 $ 6,515,000
CFD No. 93-1 Improvement Area No. 8E 2048 10,095,000
CFD No. 93-1 Improvement Area No. 17C 2048 6,990,000
CFD No. 2016-1 2049 6,655,000
CFD No. 2016-2 2049 7.745,000
Total $ 38,000,000
Preliminary, subject to change.

SPECIAL RISK FACTORS
The purchase of the Bonds involves significant risks and is not a suitable investment for all investors.

The following is a discussion of certain risk factors which should be considered, in addition to other matters set forth herein, in evaluating the investment quality of the Bonds. This discussion does not purport to be comprehensive or definitive and does not purport to be a complete statement of all factors which may be considered as risks in evaluating the credit quality of the Bonds. The occurrence of one or more of the events discussed herein could adversely affect the ability or willingness of property owners in the Taxing Jurisdictions to pay their Special Taxes when due. Such failures to pay Special Taxes could result in the inability of any Community Facilities District to make full and punctual payments of debt service on the Local Obligations which comprise the Revenues available to pay debt service on the Bonds. In addition, the occurrence of one or more of the events discussed herein could adversely affect the value of the property in the Taxing Jurisdictions. See "—Property Values" and "—Limited Secondary Market." Risks of Real Estate Secured Investments Generally
Because the timely payment of debt service on the Bonds will be dependent upon the timely payment of the Local Obligations and the timely payment of the Local Obligations will be dependent upon the timely payment of Special Taxes, which are secured ultimately by the Taxable Property within the Taxing Jurisdictions, the Bond Owners will be subject to the risks generally incident to an investment secured by real estate, including, without limitation, (i) adverse changes in local market conditions, such as changes in the market value of real property in and around the vicinity of the Taxing Jurisdictions, the supply of or demand for competitive properties in such area, and the market value of residential property or buildings and/or sites in the event of sale or foreclosure; (ii) changes in real estate tax rates and other operating expenses, governmental rules (including, without limitation, zoning laws and laws relating to endangered species and hazardous materials) and fiscal policies; (iii) natural disasters (including, without limitation, earthquakes, wildfires, floods, drought and windstorms), which may result in uninsured losses; and (iv) adverse changes in local market conditions.
29

The Bonds are Limited Obligations of the Authority
The Bonds are limited obligations of the Authority payable only from amounts pledged under the Indenture, which consist primarily of payments made to the Trustee on the Local Obligations and the Reserve Fund. Funds for the payment of the principal of and the interest on the Local Obligations are derived only from payments of Special Taxes. The amount of Special Taxes that are collected could be insufficient to pay principal of and interest on the Local Obligations due to non-payment of the Special Taxes levied or due to insufficient proceeds received from a judicial foreclosure sale of land within the Taxing Jurisdictions following delinquency. Each Community Facilities District's legal obligations with respect to any delinquent Special Taxes is limited to the institution of judicial foreclosure proceedings under certain circumstances with respect to any parcels for which Special Taxes is delinquent. The Bonds cannot be accelerated in the event of any default.

Failure by owners of the parcels within the Taxing Jurisdictions to pay Special Tax installments when due, delay in foreclosure proceedings, or the inability of a Community Facilities District to sell parcels which have been subject to foreclosure proceedings for amounts sufficient to cover the delinquent installments of Special Taxes levied against such parcels may result in the inability of a Community Facilities District to make full or timely payments of debt service on the Local Obligations, which may, in turn, result in the depletion of the Reserve Fund and the inability of the Authority to make full or timely payment on the Bonds.

No Obligation of the City
The Local Obligations and the interest thereon, and in turn, the Bonds, are not payable from the general funds of the City. Except with respect to the Special Taxes, neither the credit nor the taxing power of the Community Facilities Districts or the City is pledged for the payment of the Local Obligations or the interest thereon, and except to compel a levy of the Special Taxes securing the Local Obligations, no Owner of the Bonds may compel the exercise of any taxing power by the Community Facilities Districts or the City or force the forfeiture of any property of the City or the Community Facilities Districts. The principal of, premium, if any, and interest on the Bonds are not a debt of the City or the Community Facilities Districts or a legal or equitable pledge, charge, lien or encumbrance upon any of the City's or the Community Facilities Districts' property or upon any of the City's or the Community Facilities Districts' income, receipts or revenues, except the Revenues and other amounts pledged under the Indenture.

No Cross-Collateralization Between Taxing Jurisdictions The Local Obligations are not cross -collateralized. In other words, the Special Taxes from one Taxing Jurisdiction cannot be used directly to cover any shortfall in the payment of debt service on the Local Obligations of another Taxing Jurisdiction. However, all amounts in the Reserve Fund are available to pay debt service on the Bonds if the amounts in the Interest Account or the Principal Account of the Revenue Fund are insufficient to pay the principal of or interest on the Bonds when due. See the caption "SECURITY FOR THE BONDS — Reserve Fund."
Potential Early Redemption of Bonds from Prepayments or Other Sources Property owners within the Taxing Jurisdictions are permitted to prepay their Special Taxes at any time. Such prepayments could also be made from the proceeds of bonds issued by or on behalf of an overlapping community facilities district. Such prepayments will result in a redemption of Local Obligations on the first March 1 or September 1 which is more than 30 days following the receipt of the prepayment. The proceeds of the Local Obligations so redeemed will then be used to make a mandatory redemption of the Bonds. Such mandatory redemption of Bonds that were purchased at a price greater than par could reduce the otherwise expected yield on such Bonds. See "THE BONDS — Redemption — Special Redemption." 30

Property Values
The value of property within the Taxing Jurisdictions is an important factor in evaluating the investment quality of the Bonds. In the event that a property owner defaults in the payment of a Special Tax installments, a Community Facilities District's only remedy is to judicially foreclose on that property.

Prospective purchasers of the Bonds should not assume that the property within the Taxing Jurisdictions could be sold for the assessed values described herein at a foreclosure sale for delinquent Special Tax installments or for an amount adequate to pay delinquent Special Tax installments.

The assessed values set forth in this Official Statement do not represent market values arrived at through an appraisal process and generally reflect only the sales price of a parcel when acquired by its current owner, increased or decreased annually by an amount determined by the Riverside County Assessor based on current market conditions, generally not to exceed an increase of more than 2% per Fiscal Year from the date of purchase (except in the case of new construction subsequent to such acquisition). No assurance can be given that a parcel could actually be sold for its assessed value.

The actual market value of the property is subject to future events such as downturn in the economy, occurrences of certain acts of nature and the decisions of various governmental agencies as to land use, all of which could adversely impact the value of the property in the Taxing Jurisdictions which is the security for the Local Obligations, which secure the Bonds. As discussed herein, many factors could adversely affect property values within the Taxing Jurisdictions.

Natural Disasters
The Taxing Jurisdictions, lice all California communities, may be subject to unpredictable seismic activity, fires, flood, or other natural disasters. Southern California is a seismically active area. Seismic activity represents a potential risk for damage to buildings, roads, bridges and property within the Taxing Jurisdictions. In addition, land susceptible to seismic activity may be subject to liquefaction during the occurrence of such event. According to the Seismic Safety Commission, the area within the Taxing Jurisdictions are located within Zone 4, which is considered to be the highest risk zone in California. There are only two zones in California: Zone 4, which is assigned to areas near major earthquake faults, and Zone 3, which is assigned to all other areas of more moderate seismic activity. In addition, the property within the Taxing Jurisdictions are located in a Fault -Rupture Hazard Zone (formerly referred to as an Alquist-Priolo Study Zone).

The Taxing Jurisdictions are not located within a 500 -year floodplain.* Notwithstanding the foregoing, property in the Taxing Jurisdictions may be subject to unpredictable seismic activity, fires, flood, or other natural disasters.

In recent years, wildfires have caused extensive damage throughout the State, including within the County. Certain of these fires have burned thousands of acres and destroyed hundreds and in some cases thousands of homes. In some instances entire neighborhoods have been destroyed. Several fires in recent years damaged or destroyed property in areas that were not previously considered to be at risk from such events. In particular, certain electrical operators in the State have seen their distribution/transmission lines cause billions of dollars in property damage and the loss of lives. In 2023, as in several prior years, for example, devastating wildfires burned in various communities in the State, causing wide -spread damage. In 2025, communities in Los Angeles County, including Pacific Palisades, Malibu and Altadena, experienced widespread devastation from wildfires causing losses of life, thousands of burned homes, and billions of dollars in property damage. Riverside County is also periodically subject to large-scale wildfires and is expected to be subject to wildfires in the future. In recent years, wildfires have burned hundreds of acres at a time and destroyed dozens of homes and structures in Riverside County. The City is located in the San * NTD: Need to confirm.
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Gorgonio Pass between the San Bernardino Mountains and the San Jacinto Mountains. Both mountain regions are heavily forested and routinely subject to forest fires.

On March 24, 2025, CAL FIRE released an updated Fire Hazard Severity Zone ("FHSZ") map for the Southern California region. This map evaluates "Hazard," defined as the likelihood and expected fire behavior over a 30 to 50 -year period, without considering mitigation measures such as home hardening, recent wildfires, or fuel reduction efforts. Pursuant to Sections 4201-4204 of the California Public Resources Code, the State Fire Marshal is mandated to classify State Responsibility Areas ("SRAs")—where the state has financial responsibility for wildfire protection —into FHSZs categorized as "Moderate," "High," or "Very High." These classifications are based on fuel loading, slope, fire weather, and other relevant factors, including wind -driven wildfire spread patterns. In Local Responsibility Areas ("LRAs"), where local agencies have financial responsibility for wildfire protection, agencies are required to adopt FHSZ maps encompassing all three hazard classes. Following the completion of the SRA mapping process in late 2025, [the City initiated the local adoption process for its LRA maps in early 2026 to align with the 2025 California Fire Code and the City's updated Local Hazard Mitigation Plan. Each Taxing Jurisdiction's specific classification is determined by the most recent City -adopted FHSZ boundaries. As of April 2026, portions of [Taxing Jurisdictions] are located within a FHSZ categorized as High or Very High]*.

On January 16, 2025, Governor Gavin Newsom issued Executive Order N-10-25 (the "Governor's Order), which canceled penalties, costs and interest on overdue property taxes (including special taxes) within certain zip codes affected by the Palisades Fire during calendar year 2025. This order resulted in significant delays in the collection of special taxes within impacted community facilities districts. In several instances, these districts were required to draw upon established reserve funds to meet debt service obligations on outstanding special tax revenue bonds. Though the Taxing Jurisdictions are not directly impacted by the Governor's Order, in the event of a major fire or other natural disaster affecting the City or a Taxing Jurisdiction, a similar order affecting the City or Taxing Jurisdiction in the future could impact the debt service payment for the Bonds.

There is a risk of residential property within the Taxing Jurisdictions being destroyed by wildfires and no assurance can be given as to the severity or frequency of wildfires within the vicinity of the Taxing Jurisdiction. Additionally, property located adjacent to burn areas can be subject to mudslides and flooding, which can cause significant damage and destruction to property.

In the event of a severe earthquake, fire, flood or other natural disaster, there may be significant damage to both property and infrastructure in the Taxing Jurisdictions. As a result, a substantial portion of the property owners may be unable or unwilling to pay the Special Taxes when due. In addition, the value of property in the Taxing Jurisdictions could be diminished in the aftermath of such a natural disaster, reducing the resulting proceeds of foreclosure sales in the event of delinquencies in the payment of the Special Taxes.

Property Insurance
In recent years, homeowners in many areas in the State have experienced significant increases in premiums for property and homeowners' insurance policies as well as difficulty in obtaining such insurance from commercial insurance companies. The increases have been driven by, among other factors, the risk of wildfire damage to property in the State.

In addition, no assurances can be made that adequate homeowners' insurance coverage will be available in the future from reputable insurance companies, with premiums comparable to historical rates, or at all. The inability to obtain adequate insurance coverage could impact the ability of the homeowners' in the Taxing Jurisdictions to reconstruct their homes in the event of damage. * NTD: Confirm.
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Hazardous Substances
While government taxes, assessments and charges are a common claim against the value of a parcel, other less common claims may also be relevant. One of the most serious in terms of the potential reduction in the value of a parcel is a claim with regard to a hazardous substance. In general, the owners and operators of a parcel may be required by law to remedy conditions relating to releases or threatened releases of hazardous substances. The federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, sometimes referred to as "CERCLA" or the "Super Fund Act," is the most well-known and widely applicable of these laws, but California laws with regard to hazardous substances are also stringent and similar in effect.

Under many of these laws, the owner (or operator) is obligated to remedy a hazardous substance c ondition of a parcel whether or not the owner (or operator) had anything to do with creating or handling the hazardous substance. The effect, therefore, should any of the parcels within the Taxing Jurisdictions be affected by a hazardous substance, is to reduce the marketability and value by the costs of remedying the condition.

The City is not aware of the presence of any federally or state classified hazardous substances in violation of any environmental laws, located on the property within the Taxing Jurisdictions. However, it is possible that such materials do currently exist and that the City is not aware of them.

It is possible that property in the Taxing Jurisdictions may be liable for hazardous substances in the future as a result of the existence, currently, of a substance presently classified as hazardous but which has not been released or the release of which is not presently threatened, or the existence, currently, on the property of a substance not presently classified as hazardous but which may in the future be so classified. Additionally, such liabilities may arise not simply from the existence of a hazardous substance but from the method of handling such substance. All of these possibilities could have the effect of reducing the value of the applicable property.

Cybersecurity
The City, like many other public and private entities, relies on computer and other digital networks and systems to conduct their operations. The City is potentially subject to multiple cyber threats, including without limitation hacking, viruses, ransomware, malware and other attacks. No assurance can be given that the efforts of the City to manage cyber threats and attacks will be successful in all cases, or that any such attack will not materially impact the operations or finances of the City, or the administration of the Bonds.

The City is also reliant on other entities and service providers in connection with the administration of the Bonds, including without limitation the County tax collector for the levy and collection of Special Taxes and the Trustee. No assurance can be given that the City and these other entities will not be affected by cyber threats and attacks in a manner that may affect the levy and collection of Special Taxes or the payment of debt service on the Bonds.

Parity Taxes and Special Assessments
Property within the Taxing Jurisdictions is subject to taxes and other charges levied by several other public agencies. See the discussion of direct and overlapping indebtedness in Appendix A — "INFORMATION REGARDING THE TAXING JURISDICTIONS." None of the Authority, the Community Facilities Districts or the City has control over the ability of other entities and districts to issue indebtedness secured by special taxes or assessments payable from all or a portion of the property within the Taxing Jurisdictions.

The Special Taxes and any penalties thereon will constitute a lien against the lots and parcels of land on which they will be annually imposed until they are paid. Such lien is on a parity with the lien of all special taxes and special assessments levied by other agencies and is co -equal to and independent of the lien for general ad valorem property taxes regardless of when they are imposed upon the same property. The Special 33

Taxes have priority over all existing and future private liens imposed on the property. See "— Bankruptcy and Foreclosure" below.

None of the Authority, the Community Facilities Districts or the City has control over the ability of other entities and districts to issue indebtedness secured by special taxes, ad valorem taxes or assessments payable from all or a portion of the property within the Taxing Jurisdictions. In addition, the landowners within the Taxing Jurisdictions may, without the consent or knowledge of the Authority, the Community Facilities Districts or the City, petition other public agencies to issue public indebtedness secured by special taxes, ad valorem taxes or assessments. Any such special taxes, ad valorem taxes or assessments may have a lien on such property on a parity with the Special Taxes and could reduce the estimated value -to -lien ratios for property within the Taxing Jurisdictions described in this Official Statement.

Payment of the Special Tax is not a Personal Obligation of the Owners An owner of a taxable parcel is not personally obligated to pay the Special Tax. Rather, the Special Tax is an obligation which is secured only by a lien against the taxable parcel. If the proceeds received from the sale of a taxable parcel following a Special Tax delinquency are not sufficient, taking into account other liens imposed by public agencies, to pay the full amount of the Special Tax delinquency, the Community Facilities Districts have no recourse against the owner of the parcel.

Disclosures to Future Purchasers
The willingness or ability of an owner of a parcel to pay the Special Tax may be affected by whether or not the owner was given due notice of the Special Tax authorization at the time the owner purchased the parcel, was informed of the amount of the Special Tax on the parcel should the Special Tax be levied at the maximum tax rate and the risk of such a levy and, at the time of such a levy, has the ability to pay it as well as pay other expenses and obligations. The City has caused a notice of the Special Tax that may be levied against the taxable parcels in each Taxing Jurisdiction to be recorded in the Office of the Recorder for the County.

While title companies normally refer to such notices in title reports, there can be no guarantee that such reference will be made or, if made, that a prospective purchaser or lender will consider such Special Tax obligation in the purchase of a property within the Taxing Jurisdictions or lending of money thereon.

The Mello -Roos Act requires the subdivider (or its agent or representative) of a subdivision to notify a prospective purchaser or long-term lessor of any lot, parcel, or unit subject to a Mello -Roos special tax of the existence and maximum amount of such special tax using a statutorily prescribed form. California Civil Code Section 1102.6b requires that in the case of transfers other than those covered by the above requirement, the seller must at least make a good faith effort to notify the prospective purchaser of the special tax lien in a format prescribed by statute. Failure by an owner of the property to comply with the above requirements, or failure by a purchaser or lessor to consider or understand the nature and existence of the Special Tax, could adversely affect the willingness and ability of the purchaser or lessor to pay the Special Tax when due.

Special Tax Delinquencies
Under provisions of the Mello -Roos Act, the Special Taxes, from which funds necessary for the payment of principal of and interest on the Local Obligations and, thus, the Bonds are derived, are customarily billed to the properties within the Taxing Jurisdictions on the ad valorem property tax bills sent by the County to owners of such properties. The Mello -Roos Act currently provides that such Special Tax installments are due and payable, and bear the same penalties and interest for non-payment, as do ad valorem property tax installments.

See the delinquency tables in Appendix A — "INFORMATION REGARDING THE TAXING JURISDICTIONS" for the delinquency history of each Taxing Jurisdiction over the last five Fiscal Years. 34

See "SECURITY FOR THE LOCAL OBLIGATIONS — Covenants of the Community Facilities District — Commence Foreclosure Proceedings," for a discussion of the provisions which apply, and procedures which each Community Facilities District is obligated to follow under the respective Local Obligation Indentures, in the event of delinquencies in the payment of Special Taxes. See "— Bankruptcy and Foreclosure" below for a discussion of the policy of the Federal Deposit Insurance Corporation (the "FDIC") regarding the payment of special taxes and assessment and limitations on each Community Facilities District's ability to foreclose on the lien of the Special Taxes in certain circumstances.

Each Community Facilities District has the authority and the obligation, subject to the Mello -Roos Act and the maximum Special Tax rates set forth in each Rate and Method, to increase the levy of Special Taxes against non -delinquent property owners in the applicable Taxing Jurisdiction in the event other owners within such Taxing Jurisdiction are delinquent. Pursuant to each Rate and Method, under no circumstances may the Special Tax levied against any parcel for which an occupancy permit for private residential use has been issued be increased by more than 10% per Fiscal Year as a consequence of delinquency or default by the owner of any other parcel or parcels within the Taxing Jurisdiction. Thus, the Community Facilities Districts may not be able to increase Special Tax levies in future Fiscal Years by enough to make up for delinquencies for prior Fiscal Years. This would result in draws on the Reserve Fund, and if delinquencies continue and in the aggregate exceed the Reserve Fund balance, defaults would occur in the payment of principal and interest on the Bonds.

Insufficiency of Special Taxes
Notwithstanding that the maximum Special Taxes that may be levied in the Taxing Jurisdictions exceeds debt service due on the Local Obligations, the Special Taxes collected could be inadequate to make timely payment of debt service either because of nonpayment or because property becomes exempt from taxation. Each Rate and Method exempts certain specified property from the Special Tax levy. See "Appendix D — "RATES AND METHODS OF APPORTIONMENT OF SPECIAL TAXES FOR THE TAXING JURISDICTIONS."
If for any reason property within a Taxing Jurisdiction becomes exempt from taxation by reason of ownership by a non-taxable entity such as the federal government, another public agency or other organization determined to be exempt, subject to the limitations of the maximum authorized rates, the Special Tax will be reallocated to the remaining taxable properties within such Taxing Jurisdiction. This could result in certain owners of property paying a greater amount of the Special Tax and could have an adverse impact upon the ability and willingness of the owners of such property to pay the Special Tax when due.

The Mello -Roos Act provides that, if any property within a Taxing Jurisdiction not otherwise exempt from the Special Tax is acquired by a public entity through a negotiated transaction, or by gift or devise, the Special Tax will continue to be levied on and enforceable against the public entity that acquired the property.

In addition, the Mello -Roos Act provides that, if property subject to the Special Tax is acquired by a public entity through eminent domain proceedings, the obligation to pay the Special Tax with respect to that property is to be treated as if it were a special assessment and be paid from the eminent domain award. The constitutionality and operation of these provisions of the Mello -Roos Act have not been tested in the courts.

Due to problems of collecting taxes from public agencies, if a substantial portion of land within a Taxing Jurisdiction became owned by public agencies, collection of the Special Tax might become more difficult and could result in collections of the Special Tax which might not be sufficient to pay principal of and interest on the related Local Obligations when due, or if a substantial portion of land within a Taxing Jurisdiction became exempt from the Special Tax because of public ownership, or otherwise, the maximum Special Taxes which could be levied upon the remaining taxable property therein might not be sufficient to pay principal of and interest on the related Local Obligations when due, and in either case a default could occur with respect to the payment of such principal and interest, and, in turn, a default could occur in the payment of the principal and interest on the Bonds.
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Moreover, under no circumstances may the Special Tax levied against any parcel for which an occupancy permit for private residential use has been issued within a Taxing Jurisdiction be increased by more than 10% per Fiscal Year as a consequence of delinquency or default by the owner of any other parcel or parcels within such Taxing Jurisdiction. Thus, the Community Facilities Districts may not be able to increase Special Tax levies in a Taxing Jurisdiction in future Fiscal Years by enough to make up for delinquencies within such Taxing Jurisdiction for prior Fiscal Years. This may result in draws on the Reserve Fund, and if delinquencies continue and in the aggregate exceed the Reserve Fund balance, defaults would occur in the payment of principal and interest on the Bonds. See "SECURITY FOR THE LOCAL OBLIGATIONS." Risks Associated with Bond Insurance
In the event that the Authority defaults in the payment of principal of or interest on the Bonds when due, the Owners of the Bonds will have a claim under the Policy for such payments. See the caption "BOND INSURANCE." In the event that the Insurer becomes obligated to make payments on the Bonds, no assurance can be given that such event will not adversely affect the market for the Bonds. In the event that the Insurer is unable to make payments of principal of or interest on the Bonds when due under the Policy or the Reserve Policy, the Bonds will be payable solely from Revenues and amounts that are held in certain funds and accounts established under the Indenture, as described under the caption "SECURITY FOR THE BONDS." The long-term credit rating on the Bonds is dependent in part on the financial strength of the Insurer and its claims -paying ability. The Insurer's financial strength and claims -paying ability are predicated upon a number of factors which could change over time. If the long-term ratings of the Insurer are lowered, such event could adversely affect the market for the Bonds. See the caption "MISCELLANEOUS —Ratings." None of the Authority, the Community Facilities Districts, the City or the Underwriter has made an independent investigation of the claims -paying ability of the Insurer, and no assurance or representation regarding the financial strength or projected fmancial strength of the Insurer is being made by the Authority, the Community Facilities Districts, the City or the Underwriter in this Official Statement. Therefore, when making an investment decision with respect to the Bonds, potential investors should carefully consider the ability of the Authority to pay principal and interest on the Bonds, assuming that the Policy is not available to pay principal and interest on the Bonds, and the claims -paying ability of the Insurer through final maturity of the Bonds.

So long as the Policy remains in effect and the Insurer is not in default of its obligations thereunder, the Insurer has certain notice, consent and other rights under the Indenture and will have the right to control all remedies in the event of a default under the Indenture as to the Bonds. The Insurer is not required to obtain the consent of the Owners of the Bonds with respect to the exercise of remedies. See Appendix B.

FDIC/Federal Government Interests in Properties
General. The ability of the Community Facilities Districts to foreclose the lien of delinquent unpaid Special Tax installments may be limited with regard to properties in which the Federal Deposit Insurance Corporation (the "FDIC"), the Drug Enforcement Agency, the Internal Revenue Service, or other federal agency has or obtains an interest.

The supremacy clause of the United States Constitution reads as follows: "This Constitution, and the Laws of the United States which shall be made in Pursuance thereof; and all Treaties made, or which shall be made, under the Authority of the United States, shall be the supreme Law of the Land; and the Judges in every State shall be bound thereby, any Thing in the Constitution or Laws of any State to the contrary notwithstanding."
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This means that, unless Congress has otherwise provided, if a federal governmental entity owns a parcel that is subject to Special Taxes within the Taxing Jurisdictions but does not pay taxes and assessments levied on the parcel (including Special Taxes), the applicable state and local governments cannot foreclose on the parcel to collect the delinquent taxes and assessments.

Moreover, unless Congress has otherwise provided, if the federal government has a mortgage interest in the parcel and a Community Facilities District wishes to foreclose on the parcel as a result of delinquent Special Taxes, the property cannot be sold at a foreclosure sale unless it can be sold for an amount sufficient to pay delinquent taxes and assessments on a parity with the Special Taxes and preserve the federal government's mortgage interest. In Rust v. Johnson (9th Circuit; 1979) 597 F.2d 174, the United States Court of Appeal, Ninth Circuit held that the Federal National Mortgage Association ("FNMA") is a federal instrumentality for purposes of this doctrine, and not a private entity, and that, as a result, an exercise of state power over a mortgage interest held by FNMA constitutes an exercise of state power over property of the United States.

The Community Facilities Districts have not undertaken to determine whether any federal governmental entity currently has, or is likely to acquire, any interest (including a mortgage interest) in any of the parcels subject to the Special Taxes within the Taxing Jurisdictions, and therefore expresses no view concerning the likelihood that the risks described above will materialize while the Bonds are outstanding.

FDIC. In the event that any financial institution making any loan which is secured by real property within the Taxing Jurisdictions is taken over by the FDIC, and prior thereto or thereafter the loan or loans go into default, resulting in ownership of the property by the FDIC, then the ability of the Community Facilities Districts to collect interest and penalties specified by State law and to foreclose the lien of delinquent unpaid Special Taxes may be limited. The FDIC's policy statement regarding the payment of state and local real property taxes (the "Policy Statement") provides that property owned by the FDIC is subject to state and local real property taxes only if those taxes are assessed according to the property's value, and that the FDIC is immune from real property taxes assessed on any basis other than property value. According to the Policy Statement, the FDIC will pay its property tax obligations when they become due and payable and will pay claims for delinquent property taxes as promptly as is consistent with sound business practice and the orderly administration of the institution's affairs, unless abandonment of the FDIC's interest in the property is appropriate. The FDIC will pay claims for interest on delinquent property taxes owed at the rate provided under state law, to the extent the interest payment obligation is secured by a valid lien. The FDIC will not pay any amounts in the nature of fines or penalties and will not pay nor recognize liens for such amounts. If any property taxes (including interest) on FDIC -owned property are secured by a valid lien (in effect before the property became owned by the FDIC), the FDIC will pay those claims. The Policy Statement further provides that no property of the FDIC is subject to levy, attachment, garnishment, foreclosure or sale without the FDIC's consent. In addition, the FDIC will not permit a lien or security interest held by the FDIC to be eliminated by foreclosure without the FDIC's consent.

The Policy Statement states that the FDIC generally will not pay non -ad valorem taxes, including special assessments, on property in which it has a fee interest unless the amount of tax is fixed at the time that the FDIC acquires its fee interest in the property, nor will it recognize the validity of any lien to the extent it purports to secure the payment of any such amounts. Special taxes imposed under the Mello -Roos Act and a special tax formula which determines the special tax due each year are specifically identified in the Policy Statement as being imposed each year and therefore covered by the FDIC's federal immunity. The Ninth Circuit has issued a ruling on August 28, 2001 in which it determined that the FDIC, as a federal agency, is exempt from special taxes under the Mello -Roos Act.

The Community Facilities Districts are unable to predict what effect the application of the Policy Statement would have in the event of a delinquency in the payment of Special Taxes on a parcel within a Taxing Jurisdiction in which the FDIC has or obtains an interest, although prohibiting the lien of the Special Taxes to be foreclosed out at a judicial foreclosure sale could reduce or eliminate the number of persons willing to purchase a parcel at a foreclosure sale. Such an outcome could cause a draw on the Reserve Fund 37

and perhaps, ultimately, if enough property were to become owned by the FDIC, a default in payment on the Bonds.

Bankruptcy and Foreclosure
In the event of a delinquency in the payment of the Special Taxes, the applicable Community Facilities District, under certain circumstances, is required to commence enforcement proceedings as described under the heading "SECURITY FOR THE LOCAL OBLIGATIONS — Covenants of the Community Facilities District." However, prosecution of such proceedings could be delayed due to crowded local court calendars, dilatory legal tactics, or bankruptcy. It is also possible that the applicable Community Facilities District will be unable to realize proceeds in an amount sufficient to pay the applicable delinquency.

Moreover, the ability of a Community Facilities District to commence and prosecute enforcement proceedings may be limited by bankruptcy, insolvency and other laws generally affecting creditors' rights (such as the Soldiers' and Sailors' Relief Act of 1940) and by the laws of the State relating to judicial and non -judicial foreclosure. Although bankruptcy proceedings would not cause the liens of the Special Taxes to become extinguished, the amount and priority of any Special Tax liens could be modified if the value of the property falls below the value of the lien. If the value of the property is less than the lien, such excess amount could be treated as an unsecured claim by the bankruptcy court. In addition, bankruptcy of a property owner could result in a delay in the enforcement proceedings because federal bankruptcy laws provide for an automatic stay of foreclosure and tax sale proceedings. Any such delay could increase the likelihood of delay or default in payment of the principal of and interest on the Local Obligations, and the possibility of delinquent tax installments not being paid in full. The various legal opinions delivered in connection with the issuance of the Bonds, including Bond Counsel's approving legal opinion, are qualified as to the enforceability of the Bonds, the Indenture, the Local Obligations and the Local Obligation Indentures by reference to bankruptcy, reorganization, moratorium, insolvency and other laws affecting the rights of creditors generally or against public corporations such as the Community Facilities Districts.

Funds Invested in the County Investment Pool
On January 24, 1996, the United States Bankruptcy Court for the Central District of California held that a State statute providing for a priority of distribution of property held in trust conflicted with, and was preempted by, federal bankruptcy law. In that case, the court addressed the priority of the disposition of moneys held in a county investment pool upon bankruptcy of the county. Following payment of the Special Taxes to the applicable Community Facilities District and prior to payment by Zions Bancorporation of debt service on the Local Obligations, such funds may be invested in the name of the City or such Community Facilities District for a period of time in the County investment pooL In the event of a petition of or the adjustment of County debts under Chapter 9 of the Federal Bankruptcy Code, a court might hold that such Community Facilities District and in turn the Authority and the Bond owners do not have a valid and/or prior lien on the Special Taxes or debt service payments on the Local Obligations where such amounts are deposited in the County investment pool and may not provide the Bond owners with a priority interest in such amounts.

In that circumstance, unless the Bond owners could "trace" the funds that have been deposited in the County investment pool, the Bond owners would be unsecured (rather than secured) creditors of the County. There can be no assurance that the Bond owners could successfully so trace the Special Taxes or debt service payments.

No Acceleration Provision
The Bonds do not contain a provision allowing for the acceleration of the Bonds in the event of a payment default or other default under the terms of the Bonds or the Indenture. Pursuant to the Indenture, an Owner of the Bonds is given the right for the equal benefit and protection of all owners similarly situated to pursue certain remedies described in Appendix B — "SUMMARY OF PRINCIPAL LEGAL DOCUMENTS - SUMMARY OF AUTHORITY INDENTURE - EVENTS OF DEFAULT AND REMEDIES." 38

Limitations on Remedies
Remedies available to the Owners of the Bonds may be limited by a variety of factors and may be inadequate to assure the timely payment of principal of and interest on the Bonds.

Bond Counsel has limited its opinion as to the enforceability of the Bonds and of the Indenture to the extent that enforceability may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium, or other similar laws affecting generally the enforcement of creditors' rights, by equitable principles, by the exercise of judicial discretion and by limitations on remedies against public agencies in the State. The lack of availability of certain remedies or the limitation of remedies may entail risks of delay, limitation or modification of the rights of the owners of the Bonds.

Loss of Tax Exemption
As discussed under the caption "LEGAL MATTERS — Tax Matters" herein, interest on the Bonds could become includable in gross income for purposes of federal income taxation retroactive to the date the Bonds were issued, as a result of future acts or omissions of the Authority, the City or the Community Facilities Districts in violation of covenants in the Indenture or the Local Obligation Indentures, respectively.

Should such an event of taxability occur, the Bonds are not subject to a special redemption and will remain outstanding until maturity or until redeemed under one of the other redemption provisions contained in the Indenture.

Future legislative proposals, if enacted into law, clarification of the Code or court decisions may cause interest on the Bonds to be subject, directly or indirectly, to federal income taxation or to be subject to or exempted from state income taxation, or otherwise prevent Beneficial Owners from realizing the full current benefit of the tax status of such interest. The introduction or enactment of legislative proposals, clarification of the Code or court decisions may also affect the market price for, or marketability of, the Bonds. Prospective purchasers of the Bonds should consult their own tax advisors regarding any pending or proposed federal or state tax legislation, regulations or litigation, as to which Bond Counsel expresses no opinion.

It is possible that subsequent to the issuance of the Bonds there might be federal, State, or local statutory changes (or judicial or regulatory interpretations of federal, State, or local law) that affect the federal, State, or local tax treatment of the Bonds or the market value of the Bonds. No assurance can be given that subsequent to the issuance of the Bonds such changes or interpretations will not occur. See "LEGAL MATTERS — Tax Matters" below.

Limited Secondary Market
There can be no guarantee that there will be a secondary market for the Bonds or, if a secondary market exists, that such Bonds can be sold for any particular price. Although the Authority has committed to provide certain statutorily required financial and operating information, there can be no assurance that such information will be available to Bondowners on a timely basis. See "INTRODUCTION — Continuing Disclosure" and Appendix F — "FORM OF CONTINUING DISCLOSURE AGREEMENT." Any failure to provide annual financial information, if required, does not give rise to monetary damages but merely an action for specific performance. Occasionally, because of general market conditions, lack of current information, the absence of a credit rating for the Bonds or because of adverse history or economic prospects connected with a particular issue, secondary marketing practices in connection with a particular issue are suspended or terminated. Additionally, prices of issues for which a market is being made will depend upon then prevailing circumstances. Such prices could be substantially different from the original purchase price. 39

Proposition 218
An initiative measure commonly referred to as the "Right to Vote on Taxes Act" (the "Initiative") was approved by the voters of the State of California at the November 5, 1996 general election. The Initiative added Article XIIIC and Article XIIID to the California Constitution. According to the "Title and Summary" of the Initiative prepared by the California Attorney General, the Initiative limits "the authority of local governments to impose taxes and property -related assessments, fees and charges." The provisions of the Initiative continue to be interpreted by the courts. The Initiative could potentially impact the Special Taxes available to the Community Facilities Districts to pay the principal of and interest on the respective Local Obligations as described below.

Among other things, Section 3 of Article XIII states that ". . . the initiative power shall not be prohibited or otherwise limited in matters of reducing or repealing any local tax, assessment, fee or charge." The Mello -Roos Act provides for a procedure which includes notice, hearing, protest and voting requirements to alter the rate and method of apportionment of an existing special tax. However, the Mello -Roos Act prohibits a legislative body from adopting any resolution to reduce the rate of any special tax or terminate the levy of any special tax pledged to repay any debt incurred pursuant to the Mello -Roos Act unless such legislative body determines that the reduction or termination of the special tax would not interfere with the timely retirement of that debt. On August 1, 1997, a bill was signed into law by the Governor of the State enacting Government Code Section 5854, which states that:

Section 3 of Article XIIIC of the California Constitution, as adopted at the November 5, 1996, general election, shall not be construed to mean that any owner or beneficial owner of a municipal security, purchased before or after that date, assumes the risk of, or in any way consents to, any action by initiative measure that constitutes an impairment of contractual rights protected by Section 10 of Article I of the United States Constitution.

Accordingly, although the matter is not free from doubt, it is likely that the Initiative has not conferred on the voters the power to repeal or reduce the Special Taxes if such reduction would interfere with the timely retirement of the Local Obligations.

The interpretation and application of the Initiative will continue to be determined by the courts with respect to a number of the matters discussed above, and it is not possible at this time to predict with certainty the outcome of such determination or the timeliness of any remedy afforded by the courts. See "SPECIAL RISK FACTORS — Limitations on Remedies."
Ballot Initiatives
Articles XIII A, XIII B, XIII C and XIII D, all of which placed certain limitations on the power of local agencies to tax, collect and expend revenues, were adopted pursuant to measures qualified for the ballot pursuant to California's constitutional initiative process and the State Legislature has in the past enacted legislation which has altered the spending limitations or established minimum funding provisions for particular activities. From time to time, other initiative measures could be adopted by California voters or legislation enacted by the legislature. The adoption of any such initiative or legislation might place limitations on the ability of the State, the City, or the Community Facilities Districts to increase revenues or to increase appropriations or on the ability of the landowners within the Taxing Jurisdictions to complete proposed future development.

Litigation with Respect to Community Facilities District Shapiro. The California Court of Appeal, Fourth Appellate District, Division One, issued its opinion in City of San Diego v. Melvin Shapiro (2014) 228 CaLApp.4th 756 (the "San Diego Decision"). The case involved a Convention Center Facilities District (the "CCFD") established by the City of San Diego ("San 40

Diego"). The CCFD is a financing district much like a community facilities district established under the provisions of the Act. The CCFD is comprised of all of the real property in San Diego. However, the spec ial tax to be levied within the CCFD was to be levied only on hotel properties located within the CCFD.

The election authorizing the special tax was limited to owners of hotel properties and lessees of real property owned by a governmental entity on which a hotel is located. Thus, the election was not a registered voter election. Such approach to determining who would constitute the qualified electors of the CCFD was modeled after Section 53326(c) of the Act, which generally provides that, if a special tax will not be apportioned in any tax year on residential property, the legislative body may provide that the vote shall be by the landowners of the proposed district whose property would be subject to the special tax. The Court held that the CCFD special tax election was invalid under the California Constitution because Article XIIIA, Section 4 thereof and Article XIIIC, Section 2 thereof require that the electors in such an election be the registered voters within the district.

Horizon. The Sacramento County Superior Court had issued a tentative ruling in Horizon Capital Investments, LLC v. City of Sacramento et al. (Case No. 34-2017-80002661). That ruling subsequently became the court's final order. As described below, this case involved an election to approve the levy of a special tax within a community facilities district ("CFD") formed under the Act.

In 2017, the City of Sacramento initiated proceedings to form a CFD to finance certain costs to operate and maintain a streetcar line. As permitted by the Act, the proposed district included non-contiguous parcels of non-residential property. Because there were fewer than 12 registered voters residing within the territory of the proposed CFD, the City Council submitted the special tax proposed to be levied within the proposed CFD to the owners of land within the proposed CFD, as required by the Act. The proposed special tax received the requisite two-thirds vote in the landowner election.

Petitioners Horizon Capital Investments, LLC et al. filed a writ of mandate and complaint for reverse validation and declaratory relief. Petitioners argued, and the superior court agreed in its final ruling, that under section 4(a) of article XIII A of the California Constitution (which provides that "Cities, Counties and special districts, by a two-thirds vote of the qualified electors of such district [sic], may impose special taxes on such district...") the phrase "qualified electors" means the registered voters of the entire City of Sacramento and not just the owners of the property within the boundaries of the proposed CFD. Citing the San Diego Decision, the tentative ruling states that the phrase "qualified electors of the district" refers to the registered voters of the entity imposing the special tax, which in this case was the City of Sacramento. Because the vote within the proposed CFD was by landowners only and not by all registered voters in the City of Sacramento, the final ruling states that the special tax is invalid.

The superior court's final ruling is not binding upon other courts within the State and does not directly apply to the Taxing Jurisdictions, the Special Taxes, or the Local Obligations. The City of Sacramento did not appeal the superior court's ruling.

The Special Tax Election in the Taxing Jurisdictions. With respect to the San Diego Decision, the facts of such case show that there were thousands of registered voters within the CCFD (viz., all of the registered voters in San Diego). The elections held in the Taxing Jurisdictions had less than 12 registered voters at the time of the election to authorize the Special Taxes. In the San Diego Decision, the court expressly stated that it was not addressing the validity of landowner voting to impose special taxes pursuant to the Act in situations where there are fewer than 12 registered voters. Thus, by its terms, the court's holding in the San Diego Decision does not apply to the Special Tax elections in the Taxing Jurisdictions. Moreover, Section 53341 of the Act provides that any "action or proceeding to attack, review, set aside, void or annul the levy of a special tax...shall be commenced within 30 days after the special tax is approved by the voters." Similarly, Section 53359 of the Act provides that any action to determine the validity of bonds issued pursuant to the Act be brought within 30 days of the voters approving the issuance of such bonds. The petitioners in Horizon filed the writ of mandate within 30 days of the landowner election. Voters in each Taxing Jurisdictions approved 41

their respective Special Tax more than three years ago. Based on Sections 53341 and 53359 of the Act and analysis of existing laws, regulations, rulings and court decisions, the City believes that no successful challenge to the their respective Special Taxes being levied in accordance with the applicable Rate and Method may now be brought.

LEGAL MA11ERS
Tax Matters
In the opinion of Stradling Yocca Carlson & Rauth LLP, Newport Beach, California, Bond Counsel, under existing statutes, regulations, rulings and judicial decisions, and assuming the accuracy of certain representations and compliance with certain covenants and requirements described herein, interest (and original issue discount) on the Bonds is excluded from gross income for federal income tax purposes, and is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals. However, it should be noted that, with respect to applicable corporations as defined in Section 59(k) of the Internal Revenue Code of 1986, as amended (the "Code"), generally certain corporations with more than $1,000,000,000 of average annual adjusted financial statement income, interest (and original issue discount) with respect to the Bonds might be taken into account in determining adjusted financial statement income for purposes of computing the alternative minimum tax imposed by Section 55 of the Code on such corporations. In the further opinion of Bond Counsel, interest (and original issue discount) on the Bonds is exempt from State of California personal income tax.

The excess of the stated redemption price at maturity of a Bond over the issue price of a Bond (the first price at which a substantial amount of the Bonds of a maturity is to be sold to the public) constitutes original issue discount. Original issue discount accrues under a constant yield method, and original issue discount will accrue to a Beneficial Owner before receipt of cash attributable to such excludable income. The amount of original issue discount deemed received by the Beneficial Owner will increase the Beneficial Owner's basis in the applicable Bond.

Bond Counsel's opinion as to the exclusion from gross income for federal income tax purposes of interest (and original issue discount) on the Bonds is based upon certain representations of fact and certifications made by the Authority, the Community Facilities Districts and others and is subject to the condition that the Authority and the Community Facilities Districts comply with all requirements of the Internal Revenue Code of 1986, as amended (the "Code"), that must be satisfied subsequent to the issuance of the Bonds to assure that interest (and original issue discount) on the Bonds will not become includable in gross income for federal income tax purposes. Failure to comply with such requirements of the Code might cause the interest (and original issue discount) on the Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. The Authority and the Community Facilities Districts will covenant to comply with all such requirements.

The amount by which a Beneficial Owner's original basis for determining loss on sale or exchange in the applicable Bond (generally, the purchase price) exceeds the amount payable on maturity (or on an earlier call date) constitutes amortizable bond premium, which must be amortized under Section 171 of the Code; such amortizable bond premium reduces the Beneficial Owner's basis in the applicable Bond (and the amount of tax-exempt interest received), and is not deductible for federal income tax purposes. The basis reduction as a result of the amortization of bond premium may result in a Beneficial Owner realizing a taxable gain when a Bond is sold by the Beneficial Owner for an amount equal to or less (under certain circumstances) than the original cost of the Bond to the Beneficial Owner. Purchasers of the Bonds should consult their own tax advisors as to the treatment, computation and collateral consequences of amortizable bond premium.

Bond Counsel's opinions may be affected by actions taken (or not taken) or events occurring (or not occurring) after the date hereof. Bond Counsel has not undertaken to determine, or to inform any person, whether any such actions or events are taken or do occur. The Indenture, the Local Obligations Indentures and 42

the Tax Certificate relating to the Bonds permit certain actions to be taken or to be omitted if a favorable opinion of a bond counsel is provided with respect thereto. Bond Counsel expresses no opinion as to the effect on the exclusion from gross income for federal income tax purposes of interest on any Bond if any such action is taken or omitted based upon the advice of counsel other than Bond Counsel Although Bond Counsel will render an opinion that interest (and original issue discount) on the Bonds is excluded from gross income for federal income tax purposes provided that the Authority and the Community Facilities Districts continue to comply with certain requirements of the Code, the ownership of the Bonds and the accrual or receipt of interest (and original issue discount) with respect to the Bonds may otherwise affect the tax liability of certain persons. Bond Counsel expresses no opinion regarding any such tax consequences.

Accordingly, before purchasing any of the Bonds, all potential purchasers should consult their tax advisors with respect to collateral tax consequences relating to the Bonds.

The Internal Revenue Service (the "IRS") has initiated an expanded program for the auditing of tax- exempt bond issues, including both random and targeted audits. It is possible that the Bonds will be selected for audit by the IRS. It is also possible that the market value of the Bonds might be affected as a result of such an audit of the Bonds (or by an audit of similar bonds). No assurance can be given that in the course of an audit, as a result of an audit, or otherwise, Congress or the IRS might not change the Code (or interpretation thereof) subsequent to the issuance of the Bonds to the extent that it adversely affects the exclusion from gross income of interest (and original issue discount) on the Bonds or their market value.

SUBSEQUENT TO THE ISSUANCE OF THE BONDS THERE MIGHT BE FEDERAL, STATE,

OR LOCAL STATUTORY CHANGES (OR JUDICIAL OR REGULATORY CHANGES TO OR

INTERPRETATIONS OF FEDERAL, STATE, OR LOCAL LAW) THAT AFFECT THE FEDERAL,

STATE, OR LOCAL TAX TREATMENT OF THE BONDS INCLUDING THE IMPOSITION OF

ADDITIONAL FEDERAL INCOME OR STATE TAXES BEING IMPOSED ON OWNERS OF TAX- EXEMPT STATE OR LOCAL OBLIGATIONS, SUCH AS THE BONDS. THESE CHANGES COULD ADVERSELY AFFECT THE MARKET VALUE OR LIQUIDITY OF THE BONDS. NO ASSURANCE

CAN BE GIVEN THAT SUBSEQUENT TO THE ISSUANCE OF THE BONDS STATUTORY CHANGES

WILL NOT BE INTRODUCED OR ENACTED OR JUDICIAL OR REGULATORY INTERPRETATIONS WILL NOT OCCUR HAVING THE EFFECTS DESCRIBED ABOVE. BEFORE PURCHASING ANY OF

THE BONDS, ALL POTENTIAL PURCHASERS SHOULD CONSULT THEIR TAX ADVISORS

REGARDING POSSIBLE STATUTORY CHANGES OR JUDICIAL OR REGULATORY CHANGES OR

INTERPRETATIONS, AND THEIR COLLATERAL TAX CONSEQUENCES RELATING TO THE BONDS.

See Appendix E — "FORM OF BOND COUNSEL OPINION" for a form of the opinion to be provided by Bond Counsel on the date of issuance of the Bonds.

Absence of Litigation
The Authority will certify at the time the Bonds are issued that no litigation is pending or threatened concerning the validity of the Bonds or the Local Obligations and that no action, suit or proceeding is known by the Authority to be pending that would restrain or enjoin the delivery of the Bonds or the Local Obligations, or contest or affect the validity of the Bonds or the Local Obligations or any proceedings of the Authority taken with respect to the Bonds or the Local Obligations. The Community Facilities Districts will also certify, at the time the Bonds are issued, that no litigation is pending or threatened concerning the validity the Local Obligations and that no action, suit or proceeding is known by the Community Facilities Districts to be pending that would restrain or enjoin the delivery of the Local Obligations, or contest or affect the validity of the Local Obligations or any proceedings of the Community Facilities Districts taken with respect to the Local Obligations.
43

Legal Opinion
Certain proceedings in connection with the issuance of the Bonds are subject to the approval as to their legality of Stradling Yocca Carlson & Rauth LLP, Newport Beach, California, Bond Counsel for the Authority in connection with the issuance of the Bonds. The opinion of Bond Counsel approving the validity of the Bonds substantially in the form attached as Appendix E hereto will be attached to each Bond. Bond Counsel's employment is limited to a review of legal procedures required for the approval of the Bonds and to rendering an opinion as to the validity of the Bonds and the exemption of interest (and original issue discount) on the Bonds from income taxation. Bond Counsel expresses no opinion to the Owners of the Bonds as to the accuracy, completeness or fairness of this Official Statement or other offering materials relating to the Bonds and expressly disclaims any duty to do so.

Payment of the fees of Bond Counsel, Disclosure Counsel, the Underwriter and Underwriter's Counsel is contingent upon issuance of the Bonds.

MISCELLANEO US
Ratings
S&P Global Ratings, a Standard & Poor's Financial Services LLC business ("S&P"), is expected to assign the rating of "" to the Bonds based upon the delivery of the Policy by the Insurer at the time of issuance of the Bonds. See "BOND INSURANCE" herein.

In addition, S&P has assigned its underlying rating of "" to the Bonds, independent of the delivery of the Policy. There is no assurance that any credit rating given to the Bonds will be maintained for any period of time or that the ratings may not be lowered or withdrawn entirely by S&P if, in the judgment of S&P, circumstances so warrant. Any downward revision or withdrawal of such ratings may have an adverse effect on the market price of the Bonds. Such ratings reflect only the views of S&P and an explanation of the significance of such ratings may be obtained from S&P. Generally, rating agencies base their ratings on information and materials furnished to them (which may include information and material from the City, the Authority or the Community Facilities Districts which is not included in this Official Statement) and on investigations, studies and assumptions by the rating agencies.

The Authority has covenanted in a Continuing Disclosure Agreement to file notices of any rating changes on the Bonds. See the caption "—Continuing Disclosure" and Appendix F. Notwithstanding such covenant, information relating to rating changes on the Bonds may be publicly available from the rating agencies prior to such information being provided to the Authority and prior to the date the Authority is obligated to file a notice of rating change. Purchasers of the Bonds are directed to the rating agencies and their respective websites and official media outlets for the most current ratings changes with respect to the Bonds after the initial issuance of the Bonds.

None of the City, the Authority, the Community Facilities Districts or the Underwriter makes any representation as to the Insurer's creditworthiness or any representation that the Insurer's credit rating will be maintained in the future. The rating agencies have previously taken action to downgrade the ratings of certain municipal bond insurers and have published various releases outlining the processes that they intend to follow in evaluating the ratings of financial guarantors. For some fmancial guarantors, the result of such evaluations could be a rating affirmation, a change in rating outlook, a review for downgrade or a downgrade. Potential investors are directed to the rating agencies for additional information on the applicable rating agencies' evaluations of the financial guaranty industry and individual fmancial guarantors, including the Insurer. See the caption "BOND INSURANCE" for further information relating to the Insurer. 44

Verification of Mathematical Accuracy
Causey Public Finance, LLC, upon delivery of the Bonds, will deliver a report on the mathematical accuracy of certain computations, contained in schedules provided to them which were prepared by the Underwriter, relating to the sufficiency of moneys and securities deposited into the Escrow Funds to pay, when due, the principal, whether at maturity or upon prior redemption, and interest requirements of the Prior Bonds.

The report of Causey Public Finance, LLC, will include the statement that the scope of its engagement is limited to verifying the mathematical accuracy of the computations contained in such schedules provided to it, and that it has no obligation to update its report because of events occurring, or data or information coming to its attention, subsequent to the date of its report.

Underwriting
The Bonds are being purchased by Stifel, Nicolaus & Company, Inc. (the "Underwriter"), at a purchase price of $ (representing the par amount of the Bonds, plus/less [net] original issue premium/discount of $ , less Underwriter's discount of $ ).

The purchase agreement relating to the Bonds between the Authority and the Underwriter provides that all Bonds will be purchased if any are purchased, and that the obligation to make such purchase is subject to certain terms and conditions set forth in said purchase contract, including, but not limited to, the approval of certain legal matters by counseL
The Underwriter and its affiliates comprise a full -service financial institution engaged in activities which may include sales and trading, commercial and investment banking, advisory, investment management, investment research, principal investment, hedging, market making, brokerage and other financial and non- financial activities and services. The Underwriter and its affiliates may have provided, and may in the future provide, a variety of these services to the Authority or City and to persons and entities with relationships with the Authority or City, for which they received or will receive customary fees and expenses.

In the ordinary course of these business activities, the Underwriter and its affiliates may purchase, sell or hold a broad array of investments and actively trade securities, derivatives, loans and other financial instruments for their own account and for the accounts of their customers, and such investment and trading activities may involve or relate to assets, securities and/or instruments of the Authority or City (directly, as collateral securing other obligations or otherwise) and/or persons and entities with relationships with the Authority or City.

The Underwriter and its affiliates may also communicate independent investment recommendations, market color or trading ideas and/or publish or express independent research views in respect of such assets, securities or instruments and may at any time hold, or recommend to clients that they should acquire such assets, securities and instruments. Such investment and securities activities may involve securities and instruments of the Authority or City.

Continuing Disclosure
The Authority will execute a Continuing Disclosure Agreement by and between the Authority and Spicer Consulting Group, LLC, as Dissemination Agent, in the form attached hereto as Appendix F for the benefit of the Owners and Beneficial Owners of the Bonds to provide certain financial information and operating data relating to the Authority and the Taxing Jurisdictions (the "Annual Report") and to provide notices of the occurrence of certain enumerated events (the "Listed Events"). The Annual Report will be filed by the Dissemination Agent with the Electronic Municipal Market Access System of the Municipal Securities Rulemaking Board ("EMMA") and notices of Listed Events will be filed by the Dissemination Agent with EMMA The specific nature of the information to be included in the Annual Reports and the notices of Listed 45

Events is set forth in Appendix F — "FORM OF CONTINUING DISCLOSURE AGREEMENT." The Continuing Disclosure Agreement will be executed and delivered by the Authority in order to assist the Underwriter in complying with the Rule. The Annual Reports are to be filed by the Authority no later than the February 10 after the end of the Authority's Fiscal Year, which is currently June 30. The first Annual Report will be due February 10, 2027.

The City will assist the Authority in preparing the Annual Reports. In order to ensure ongoing compliance by the District with its continuing disclosure undertaking, (i) City staff will take steps to ensure that the filing due date is correctly documented in policies and procedures and a single City staff member has been assigned primary responsibility to monitor compliance; and (ii) the City has contracted with Spicer Consulting Group, LLC to assist in filing accurate, complete and timely disclosure reports on behalf of the Authority. In addition, the City has adopted policies and procedures with respect to its continuing disclosure prac tic es.

Additional Information
References are made herein to certain documents and reports which are brief summaries thereof which do not purport to be complete or definitive, and reference is made to such documents and reports for full and complete statements of the contents thereof.

Any statements in this Official Statement involving matters of opinion, whether or not expressly so stated, are intended as such and not as representations of fact. This Official Statement is not to be construed as a contract or agreement between the Authority and the purchasers or Owners of any of the Bonds.

The execution and delivery of this Official Statement has been duly authorized by the Authority.

BEAUMONT PUBLIC IMPROVEMENT AUTHORITY
BY:

Executive Director
46

APPENDIX A

INFORMATION REGARDING THE TAXING JURISDICTIONS
CFD No. 93-1 Improvement Area No. 8D
Location and Description. The City formed the CFD No. 93-1 in August 1993 and Improvement Area No. 8D in July 2007 to finance the construction, acquisition and equipping of certain roadways, storm drain facilities, sewer facilities, dry utility facilities. Improvement Area No. 8D includes 279 taxable parcels.

Improvement Area No. 8D is 100% "Developed Property." A parcel is "Developed Property" if a building permit has been issued on or before June 1 preceding the Fiscal Year in which the Special Tax was levied. As of March 1, 2026, all 279 completed single-family detached homes have been conveyed to individual homeowners in Improvement Area No. 8D. For Fiscal Year 2026-27, all subdivided parcels in Improvement Area No. 8D will be levied as Developed Property, of which are partially prepaid with an approximately % reduced assigned tax of $ per unit.* No property owners have fully prepaid the Special Taxes in Improvement Area No. 8D.

Assigned Special Taxes. Table A-1 below sets forth the current Assigned Special Taxes that may be levied on the property within Improvement Area No. 8D in Fiscal Year 2026-27 based on the development status within Improvement Area No. 8D as of April 1, 2026. The Special Taxes in Improvement Area No. 8D may not be levied after the 2050-51 Fiscal Year. The final maturity of the Improvement Area No. 8D Bonds is September 1, 2048.

For the complete text of the Improvement Area No. 8D's Rate and Method, see Appendix D — "RATES AND METHODS OF APPORTIONMENT OF SPECIAL TAXES FOR THE TAXING JURISDICTIONS."
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
NTD: Special tax consultant to provide.

A-1

TABLE A-1

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 93-1
IMPROVEMENT AREA NO. 8D
ASSIGNED SPECIAL TAX RATES FOR FISCAL YEAR 2026-27
Land Use Designation
Residential Property
Residential Property
Residential Property
Total
Residential
Floor Area
(sq. ft)
1,700
Assigned
Special Tax
Rates
Fiscal Year
2025-26")
$1,803.94
1,851.49
2,086.27
* Preliminary, subject to change.
(1) Includes estimated Administrative Expenses of $30,000.

Source: Spicer Consulting Group, LLC.

Special Tax
Levy Rates
Fiscal Year
2025-26*
$ 1,319.71
1,354.50
1,526.26
Percent of
Assigned No. of
Rate* Units

73.2%

73.2 73.2
11 76
192
279
Aggregate
Projected Special
Taxes Fiscal Percent of
Year 2025-26* Total*
$ 14,516.83
102,941.88
293,041.29
$ 410,500.00

3.5%

25.1 71.4
100.0%
Direct and Overlapping Debt. The Authority has obtained the assessed values of all of the taxable property in Improvement Area No. 8D, as established by the County Assessor for Fiscal Year 2025-26, which totals $95,525,891.

Improvement Area No. 8D is included within the boundaries of overlapping local agencies providing governmental services. Some of these local agencies have outstanding bonds, and/or the authority to issue bonds, payable from taxes or assessments. The existing and authorized indebtedness payable from taxes and assessments that may be levied upon the property within Improvement Area No. 8D is shown in Table A-2 below. In addition to current debt, new community facilities districts and/or special assessment districts could be formed in the future encompassing all or a portion of the property within Improvement Area No. 8D; and such districts or the agencies that formed them could issue more bonds and levy additional special taxes or assessments. The assessed value -to -lien ratio of the property within Improvement Area No. 8D, based on the Fiscal Year 2025-26 assessed values and all such estimated direct and overlapping special tax and assessment indebtedness within Improvement Area No. 8D, including the Improvement Area No. 8D Parity Bonds, and assuming that the Improvement Area No. 8D Bonds have been issued to refund the Prior Improvement Area No. 8D Bonds, equals approximately 13.55:1*. This ratio does not include other overlapping debt general obligation debt within Improvement Area No. 8D. Taking that direct and overlapping general obligation debt into account, the ratio of the aggregate assessed value of the taxable property within Improvement Area No. 8D to the total principal amount of all direct and overlapping debt for Improvement Area No. 8D is approximately 11.05:1*.
* Preliminary, subject to change.

A-2

TABLE A-2

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 93-1
IMPROVEMENT AREA NO. 8D

DIRECT AND OVERLAPPING DEBT
AS OF APRIL 1, 2026*
I. Fiscal Year 2025-26 Assessed Value P)
II. Land Secured Bond Indebtedness
Outstanding Direct and
Overlapping Bonded Debt
City of Beaumont, CFD No. 93-1 IA 8D, 2017A
City of Beaumont, CFD No.93-1 IA 8D, 2026
TOTAL LAND SECURED BONDED DEBT t2/
Authorized but Unissued Direct and
Overlapping Indebtedness
City of Beaumont, CFD No.93-1 IA 8D,2026
TOTAL UNISSUED LAND SECURED INDEBTEDNESS (21

TOTAL OUTSTANDING AND UNISSUED LAND SECURED INDEBTEDNESS III. General Obligation Bond Indebtedness
Outstanding Direct and
Overlapping Bonded Debt
San Gorgonio Pass Memorial Hospital
Mt San Jacinto Jr College
Beaumont Unified School District
TOTAL OUTSTANDING GENERAL OBLIGATION BONDED DEBT (2)
Authorized but Unissued Direct and
Overlapping Indebtedness
San Gorgonio Pass Memorial Hospital
Mt San Jacinto Jr College
Beaumont Unified School District
TOTAL UNISSUED GENERAL OBLIGATION INDEBTEDNESS (21
Type
CFD
CFD
Type
CFD
Type
GO
GO
GO
Type
GO
GO
GO

TOTAL OUTSTANDING AND UNISSUED GENERAL OBLIGATION INDEBTEDNESS

TOTAL OF ALL OUTSTANDING DIRECT AND OVERLAPPING BONDED DEBT

TOTAL OF ALL OUTSTANDING DIRECT AND UNISSUED DIRECT OVERLAPPING

INDEBTEDNESS
IV. Ratios to Appraisal Value
(2)
(3)
Parcels in
CFD No. 93-1
Issued Outstanding Applicable LA 8D (3)
$726,793 $ 533,555 100.000% 279
$7,675,000* $ 6,515,000* 100.000% 279
Parcels in
CFD No. 93-1
Authorized Unissued Applicable L4 8D (3)
$10,000,000 $ 0 100.000% 279
Parcels in
CFD No. 93-1
Issued Outstanding Applicable LA 8D (3)
$108,000,000 $86,960,000 0.582% 279
295,000,000 233,100,000 0.066 279
140,998,583 121,631,194 0.770 279
Parcels in
CFD No. 93-1
Authorized Unissued Applicable L4 8D (3)
$108,000,000 $ 4,717 0.582% 279
295,000,000 4,506 0.066 279
141,000,000 1,417 0.770 279
Outstanding Land Secured Bonded Debt 13.55:1
Total Outstanding Bonded Debt 11.05:1*
$95,525,891
Amount
Applicable
$ 533,555
6,515,000*
$ 7,048,555"
Amount
Applicable
$ 0
$ 0
$ 7,048,555*
Amount
Applicable
$ 505,915
153,187
936.253
$ 1,595,354
Amount
Applicable
$ 0
0 11
$ 11
$ 1,595,365
$ 8,643,909*
$ 8,643,920*
Preliminary, subject to change.

Assessed Value is based on the information provided from the Riverside County Assessor's Equalized Roll as of January 1, 2025 and may not accurately reflect true market value.

Spicer Consulting Group is not aware of any additional bonded debt for parcels in Improvement Area No. 8D.

All taxable parcels have been subdivided into 279 individual parcels and have all been classified as developed property per the Rate and M ethod.

Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC.

A-3

Value -to -Lien. Home construction has been completed on the Taxable Property within Improvement Area No. 8D, which homes have all been transferred to individual homeowners. Table A-3 sets forth the value -to -lien ratio of the property within Improvement Area No. 8D for the ten property owners with the largest share of the Special Tax levy and for all other owners of Taxable Property in the aggregate, in each case based on Fiscal Year 2025-26 assessed values and the projected Fiscal Year 2026-27 Special Tax levy.

Table A-4 below sets forth the stratification of value -to -liens of the Taxable Property within Improvement Area No. 8D based on Fiscal Year 2025-26 assessed value and each parcel's respective share of the principal amount of the Improvement Area No. 8D Bonds (allocated to each parcel based upon its respective share of the total projected Special Tax levy for Fiscal Year 2026-27). The ratio of the value of an individual lot within Improvement Area No. 8D to its respective share of the principal amount of the Improvement Area No. 8D Bonds can be expected to vary.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
A-4

TABLE A-3

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 93-1
IMPROVEMENT AREA NO. 8D
ESTIMATED VALUE -TO -LIEN FOR TOP 10 TAXPAYERS
Property Owner

TAH M S BORROWER

WAITE KEITH K

M CCABE JUDITH LIVING TRUST UTD
03/05/20

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER
Subtotal

ALL OTHER INDIVIDUAL PROPERTY
OWNERS
Totals
Projected
Fiscal Year
2026-27
Parcels Special Tax*
Percent of
Projected
Total
Fiscal Year
2026-27
Special Tax*
Fiscal Year
2026-27
Assessed Value
3 $ 4,372 1.07% $ 751,127
2 3,053 0.74 957,168
2 2,881 0.70 640,336
1 1,526 0.37
1 1,526 0.37
1 1,526 0.37
1 1,526 0.37
1 1,526 0.37
1 1,526 0.37
1 1.526 0.37
14 20,989 5.11
265 389,511 94.89
316,564
270,290
470,000
473,380
278,534
364,470
280,021
4,801,890
90,724,001
279 $ 410,500 100.00% $ 95,525,891
Preliminary, subject to change.
(1) Excludes all other overlapping bonded indebtedness applicable within Improvement Area No. 8D.

Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC.

A-5
Estimated
Overlapping
Land Secured
Bonded Debt (I)*
$ 69,391
48,446
45,720
24,223
24,223
24,223
24,223
24,223
24,223
24,223
333,119
6,181,881
CFD No.
93-1 IA D
2017A
Bonds
$ 5,683
3,968
3,744
1,984
1,984
1,984
1,984
1,984
1,984
1,984
Total
Outstanding Value -to -
Debt Lien Ratio*
$ 75,074
52,414
49,464
26,207
26,207
26,207
26,207
26,207
26,207
26;207
27,281 360,400
506,274 6,688,155

10.01:1

18.26:1

12.95:1

12.08:1

10.31:1

17.93:1

18.06:1

10.63:1

13.91:1

10.69:1

13.32:1

13.56:1
$ 6,515,000 $ 533,555 $ 7,048,555 13.55:1

TABLE A-4

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 93-1
IMPROVEMENT AREA NO. 8D
VALUE -TO -LIEN STRATIFICATION FOR TAXABLE PROPERTY(¢)* CFD No. 93-1
No. of L4 8D Percent Share CFD No. 93-1 CFD No.

Parcels of % of % of Estimated of Estimated L4 8D Percent Share 93-1 L4 D Aggregate Value -to -Lien Developed Developed Assessed Assessed Fiscal Year Fiscal Year Proposed 2026 of Proposed 2026 2017A Value -to - Category Property Property Value (I) Value 2026-27 Levy* 2026-27 Levy* Bonds (2)rt PFA Bonds* Bonds Lien* Less than 10.00:1 (3) 16 5.73% $ 3,669,765 3.84% $ 23,698 5.77% $ 376,113 5.77% $ 30,802 9.76:1

10.00:1to12.00:1 92 32.97 25,900,866 27.11 136,154 33.17 2,160,889 33.17 176,969 11.08:1

12.01:1 to 14.00:1 80 28.67 26,216,540 27.44 118,526 28.87 1,881,117 28.87 154,057 12.88:1

14.01:1 to 16.00:1 24 8.60 8,588,557 8.99 34,019 8.29 539,912 8.29 44,217 14.70:1

16.01:1 to 18.00:1 25 8.96 11,010,518 11.53 37,298 9.09 591,946 9.09 48,478 17.19:1

18.01:1 to20.00:1 34 12.19 16,300,320 17.06 50,003 12.18 793,598 12.18 64,993 18.98:1 Greater than 8 2.87 3,839,325 4.02 10,801 2.63 171,425 2.63 14,039 20.70:1

20.00:1(3)
Totals 279 100.00% $ 95,525,891 100.00% $410,500 100.00% $6,515,000 100.00% $ 533,555 13.55:1 Preliminary, subject to change.
(I) Assessed Value is based on the information provided from the Riverside County Assessor's Equalized Roll as of January 1, 2025 and may not accurately reflect true market value.
(2) Responsibility of the par amount has been allocated based on the projected Fiscal Year 2025-26 Special Tax levy, with development status as of April 1, 2026, and bond sizing as provided by the Underwriter.
(3) The minimum value to lien in the less than 10.00:1 category is 5.72:1. The maximum value to lien in the Greater than 20.00:1 category is 21.45:1. (4) Excludes overlapping general obligation debt.

Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC.

A-6

Historical Assessed Values. The following table summarizes the assessed values within Improvement Area No. 8D for the Fiscal Years shown.

TABLE A-5

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 93-1
IMPROVEMENT AREA NO. 8D

ASSESSED VALUATION HISTORY
FISCAL YEARS 2020-21 THROUGH 2025-26
Fiscal Year
2021-22
2022-23
2023-24
2024-25
2025-26
Land Assessed
Valuation
$12,132,090
13,087,207
14,064,326
14,502,146
15,871,805
Structure Assessed
Valuation
$65,347,807
68,917,050
73,752,657
77,160,947
79,654,086
Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC.

Total Assessed
Valuation
$77,479,897
82,004,257
87,816,983
91,663,093
95,525,891
Delinquencies. Unpaid amounts of the Special Taxes become delinquent after December 10 and April 10 of each Fiscal Year. Table A-6 below summarizes the Special Tax delinquencies within Improvement Area No. 8D for Fiscal Years 2020-21 through 2025-26 as of May 11, 2026.

TABLE A-6

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 93-1
IMPROVEMENT AREA NO. 8D

SPECIAL TAX LEVIES, DELINQUENCIES AND DELINQUENCY RATES FISCAL YEARS 2020-21 THROUGH 2025-26
Delinquencies as of May 11, 2026
Fiscal Amount Parcels Parcels Amount Percent
Year Levied Levied Delinquent Delinquent Delinquent
2020-21 $454,164 279 0 $ 0 0.00%
2021-22 462,140 279 0 0 0.00
2022-23 469,463 279 0 0 0.00
2023-24 481,162 279 0 0 0.00
2024-25 491,716 279 0 0 0.00
2025-26 501,494 279 5 6,421 1.28
Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC.

A-7

CFD No. 93-1 Improvement Area No. 8E
Location and Description. The City formed CFD No. 93-1 in August 1993 and Improvement Area No. 8E in May 2015 to finance the construction, acquisition and equipping of certain roadways, landscaping, and wastewater facilities. Improvement Area No. 8E includes 372 taxable parcels. Improvement Area No. 8E is 100% "Developed Property." A parcel is "Developed Property" if a building permit has been issued on or before June 1 preceding the Fiscal Year in which the Special Tax was levied. As of April 1, 2026, 372 completed single-family detached homes have been conveyed to individual homeowners in Improvement Area No. 8E. For Fiscal Year 2026-27, all subdivided parcels in Improvement Area No. 8D will be levied as Developed Property, of which are partially prepaid with an approximately %o reduced assigned tax of $ per unit.` No property owners have fully prepaid the Special Taxes in Improvement Area No. 8D.

Assigned Special Taxes. Table A-7 below sets forth the current Assigned Special Taxes that may be levied on the property within Improvement Area No. 8E in Fiscal Year 2026-27 based on the development status within Improvement Area No. 8E as of April 1, 2026. The Special Taxes in Improvement Area No. 8E may not be levied after the 2055-56 Fiscal Year. The final maturity of the Improvement Area No. 8E Bonds is September 1, 2048.

For the complete text of the Improvement Area No. 8E' s Rate and Method, see Appendix D — "RATES AND METHODS OF APPORTIONMENT OF SPECIAL TAXES FOR THE TAXING JURISDICTIONS."
[REMAINDER OF PAGE INTENTIONALLYLEFT BLANK.]
NTD: Special tax consultant to provide.

A-8

TABLE A-7

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 93-1
IMPROVEMENT AREA NO. 8E
ASSIGNED SPECIAL TAX RATES FOR FISCAL YEAR 2026-27
Land Use Designation
Assigned
Special Tax Special Tax Aggregate
Residential Rates Levy Rates Percent of Projected Special Floor Area Fiscal Year Fiscal Year Assigned No. of Taxes Fiscal Percent of (sq. ft) 2026-27") 2026-27* Rate* Units Year 2025-26* Total* Residential Property 3,300 2,462.93 1,969.29 80.0 47 293,041.29 71.4 Total 372 $ 654,500.00 100.0%
Preliminary, subject to change.
(1) Includes estimated Administrative Expenses of $30,000.

Source: Spicer Consulting Group, LLC.

Direct and Overlapping Debt. The Authority has obtained the assessed values of all of the taxable property in Improvement Area No. 8E, as established by the County Assessor for Fiscal Year 2025-26, which totals $179,456,040.

Improvement Area No. 8E is included within the boundaries of overlapping local agencies providing governmental services. Some of these local agencies have outstanding bonds, and/or the authority to issue bonds, payable from taxes or assessments. The existing and authorized indebtedness payable from taxes and assessments that may be levied upon the property within Improvement Area No. 8E is shown in Table A-8 below. In addition to current debt, new Community Facilities Districts and/or special assessment districts could be formed in the future encompassing all or a portion of the property within Improvement Area No. 8E; and such districts or the agencies that formed them could issue more bonds and levy additional special taxes or assessments. The assessed value -to -lien ratio of the property within Improvement Area No. 8E, based on the Fiscal Year 2025-26 assessed values and all such estimated direct and overlapping special tax and assessment indebtedness within Improvement Area No. 8E, and assuming that the Improvement Area No. 8E Bonds have been issued to refund the Prior Improvement Area No. 8E Bonds, equals approximately 17.78:1*. This ratio does not include other overlapping debt general obligation debt within Improvement Area No. 8E. Taking that direct and overlapping general obligation debt into account, the ratio of the aggregate assessed value of the taxable property within Improvement Area No. 8E to the total principal amount of all direct and overlapping debt for Improvement Area No. 8E is approximately 13.71:1".

Preliminary, subject to change.

A-9

TABLE A-8

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 93-1
IMPROVEMENT AREA NO. 8E

DIRECT AND OVERLAPPING DEBT
AS OF APRIL 1, 2026
I. Fiscal Year 2025-26 Assessed Value (1)
II. Land Secured Bond Indebtedness
Outstanding Direct and
Overlapping Bonded Debt
City of Beaumont, CFD No. 93-1 IA 8E, 2026
TOTAL LAND SECURED BONDED DEBT (2)
Authorized but Unissued Direct and
Overlapping Indebtedness
City of Beaumont, CFD No.93-1 IA 8E,2026
TOTAL UNISSUED LAND SECURED INDEBTEDNESS (2)

TOTAL OUTSTANDING AND UNISSUED LAND SECURED INDEBTEDNESS III. General Obligation Bond Indebtedness
Outstanding Direct and
Overlapping Bonded Debt
San Gorgonio Pass Memorial Hospital
Mt San Jacinto Jr College
Beaumont Unified School District
TOTAL OUTSTANDING GENERAL OBLIGATION BONDED DEBT (2)
Authorized but Unissued Direct and
Overlapping Indebtedness
San Gorgonio Pass Memorial Hospital
Mt San Jacinto Jr College
Beaumont Unified School District
TOTAL UNISSUED GENERAL OBLIGATION INDEBTEDNESS (2)
$179,456,040
Parcels in
% CFD No. 93-1 Amount
Type Issued Outstanding Applicable IA 8E (32 Applicable CFD $12,680,000' $10,095,000* 100.000% 372 $10,095.000* $10,095,000
Parcels in
% CFD No. 93-1 Amount
Type Authorized Unissued Applicable L4 8E (3) Applicable CFD $20,000,000 $ 0 100.000% 372 $ 0
$ 0
$10,095,000*
Parcels in
% CFD No. 93-1 Amount
Type Issued Outstanding Applicable L4 8E°) Applicable
GO $108,000,000 $86,960,000 1.093% 372 $ 950,417
GO 295,000,000 233,100,000 0.123 372 287,779
GO 140,998,583 121,631,194 1.446 372 1,758,855
$ 2,997,051
Parcels in
% CFD No. 93-1 Amount
Type Authorized Unissued Applicable L4 8E (3) Applicable GO $108,000,000 $ 0 1.093% 372 $ 0
GO 295,000,000 0 0.123 372 0
GO 141,000,000 1,417 1.446 372 20
$ 20
TOTAL OUTSTANDING AND UNISSUED GENERAL OBLIGATION INDEBTEDNESS $ 2,997,072

TOTAL OF ALL OUTSTANDING DIRECT AND OVERLAPPING BONDED DEBT

TOTAL OF ALL OUTSTANDING DIRECT AND UNISSUED DIRECT OVERLAPPING INDEBTEDNESS IV. Ratios to Appraisal Value
(1)
(2)
(3)
Outstanding Land Secured Bonded Debt 17.78:1*
Total Outstanding Bonded Debt 13.71:1*
$14,368,408*
$15,054,371"
Preliminary, subject to change.

Assessed Value is based on the information provided from the Riverside County Assessor's Equalized Roll as of January 1, 2025 and may not accurately reflect true market value.

Spicer Consulting Group is not aware of any additional bonded debt for parcels in Improvement Area No. 8E.

All taxable parcels have been subdivided into 372 individual parcels and have all been classified as developed property per the Rate and M ethod.

Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC.

A-10

Value -to -Lien. Home construction has been completed on the Taxable Property within Improvement Area No. 8E, which homes have all been transferred to individual homeowners. Table A-9 sets forth the value -to -lien ratio of the property within Improvement Area No. 8E for the ten property owners with the largest share of the Special Tax levy and for all other owners of Taxable Property in the aggregate, in each case based on Fiscal Year 2025-26 assessed values and the projected Fiscal Year 2026-27 Special Tax levy.

Table A-10 below sets forth the stratification of value -to -liens of the Taxable Property within Improvement Area No. 8E based on Fiscal Year 2025-26 assessed value and each parcel's respective share of the principal amount of the Improvement Area No. 8E Bonds (allocated to each parcel based upon its respective share of the total projected Special Tax levy for Fiscal Year 2026-27). The ratio of the value of an individual lot within Improvement Area No. 8E to its respective share of the principal amount of the Improvement Area No. 8E Bonds can be expected to vary.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
A-11

TABLE A-9

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 93-1
IMPROVEMENT AREA NO. SE
ESTIMATED VALUE -TO -LIEN FOR TOP 10 TAXPAYERS
Property Owner
Percent of
Projected Projected Total
Fiscal Year Fiscal Year Fiscal Year
2026-27 2026-27 2025-26 CFD No. 93-1 IA 8E Value -to -Lien Parcels Special Tax" Special Tax* Assessed Value Local Obligations' * Ratio* INDIVIDUAL OWNER 2 $ 3,675 0.56% $ 944,388 $ 56,682 16.66:1 INDIVIDUAL OWNER 1 1,969 0.30 590,563 30,374 19.44:1
INDIVIDUAL OWNER 1 1,969 0.30 607,951 30,374 20.02:1
INDIVIDUAL OWNER 1 1,969 0.30 568,198 30,374 18.71:1
INDIVIDUAL OWNER 1 1,969 0.30 714,402 30,374 23.52:1
INDIVIDUAL OWNER 1 1,969 0.30 562,997 30,374 18.54:1
INDIVIDUAL OWNER 1 1,969 0.30 529,084 30,374 17.42:1
INDIVIDUAL OWNER 1 1,969 0.30 516,519 30,374 17.01:1
INDIVIDUAL OWNER 1 1,969 0.30 638,633 30,374 21.03:1
INDIVIDUAL OWNER 1 1,969 0.30 511.602 30,374 16.84:1
Subtotal 11 21,399 3.27 6,184,337 330,050 18.74:1
ALL OTHERINDIVIDUAL PROPERTY OWNERS 361 633,101 96.73 173,271,703 9,764,950 17.74:1 Totals 372 $ 654,500 100.00% $ 179,456,040 $10,095,000 17.78:1 Preliminary, subject to change.
(1) Excludes all other overlapping bonded indebtedness applicable within Improvement Area No. 8E.

Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC.

A-12

TABLE A-10

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 93-1
IMPROVEMENT AREA NO. 8E
VALUE -TO -LIEN STRATIFICATION FOR TAXABLE PROPERTY(4)* No. of CFD No. 93-1 Percent Share of
Parcels of % of L4 8E Projected Projected Fiscal CFD No. 93-1 Percent Share Aggregate Value -to -Lien Developed Developed Assessed % of Fiscal Year Year IA 8E Local of IA 8E Local Value -to - Category Property Property Value (I) Assessed Value 2026-27 Levy* 2026-27 Levy* Obligations (2)* Obligations* Lien* Less than 10.00:1 w 4 1.08% $ 653,434 0.36% $ 7,037 1.08% $ 108,531 1.08% 6.02:1

10.00:1 to 13.00:1 7 1.88 2,100,104 1.17 11,858 1.81 182,902 1.81 11.48:1

13.01:1 to 16.00:1 112 30.11 43,752,926 24.38 189,741 28.99 2,926,565 28.99 14.95:1

16.01:1 to 19.00:1 139 37.37 66,469,510 37.04 249,055 38.05 3,841,421 38.05 17.30:1

19.01:1 to22.00:1 67 18.01 37,763,217 21.04 118,717 18.14 1,831,089 18.14 20.62:1

22.01:1to25.00:1 37 9.95 23,778,863 13.25 66,584 10.17 1,026,985 10.17 23.15:1 Greater than 25.00:1(3) 6 1.61 4,937,986 2.75 11.508 1.76 177.506 1.76 27.82:1 Totals 372 100.00% $179,456,040 100.00% $ 654,500 100.00% $ 10,095,000 100.00% 17.78:1 Preliminary, subject to change.
(1) Assessed Value is based on the information provided from the Riverside County Assessor's Equalized Roll as of January 1, 2025 and may not accurately reflect true market value.
(2) Responsibility of the par amount has been allocated based on the projected Fiscal Year 2026-27 Special Tax levy, with development status as of April 1, 2026, and bond sizing as provided by the Underwriter.
(3) The minimum value to lien in the less than 10.00:1 category is 2.55:1. The maximum value to lien in the Greater than 25.00:1 category is 32.04:1. (4) Excludes overlapp ing general obligation debt.

Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC.

A-13

Historical Assessed Values. The following table summarizes the assessed values within Improvement Area No. 8E for the Fiscal Years shown.

TABLE A-11

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 93-1
IMPROVEMENT AREA NO. 8E

ASSESSED VALUATION HISTORY
FISCAL YEARS 2021-22 THROUGH 2025-26
Fiscal Year
Land Assessed
Valuation
Structure Assessed
Valuation
Total Assessed
Valuation
2021-22 $16,804,485 $137,723,057 $154,527,542
2022-23 16,903,768 144,955,267 161,859,035
2023-24 17,166,892 151,838,180 169,005,072
2024-25 17,482,890 156,351,549 173,834,439
2025-26 18,729,389 160,726,651 179,456,040
Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC.

Delinquencies. Unpaid amounts of the Special Taxes become delinquent after December 10 and April 10 of each Fiscal Year. Table A-12 below summarizes the Special Tax delinquencies within Improvement Area No. 8E for Fiscal Years 2020-21 through 2025-26 as of May 11, 2026.

TABLE A-12

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 93-1
IMPROVEMENT AREA NO. 8E

SPECIAL TAX LEVIES, DELINQUENCIES AND DELINQUENCY RATES FISCAL YEARS 2020-21 THROUGH 2025-26
Delinquencies as of May 11, 2026
Fiscal Amount Parcels Parcels Amount Percent
Year Levied Levied Delinquent Delinquent Delinquent
2020-21 $659,947 372 0 $ 0 0.00%
2021-22 672,846 372 1 877 0.13
2022-23 687,466 371 1 1,798 0.26
2023-24 700,248 372 1 1,826 0.26
2024-25 722,450 372 1 1,884 0.26
2025-26 735,670 372 8 10,884 1.48
Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC.

A-14

CFD No. 93-1 Improvement Area No. 17C
Location and Description. The City formed the Community Facilities District in August 1993 and Improvement Area No. 17C in July 2012 to finance the construction, acquisition and equipping of certain roadways, sewer facilities and dry utility facilities. Improvement Area No. 17C includes 215 taxable parcels.

Improvement Area No. 17C is 100% "Developed Property." A parcel is "Developed Property" if a building permit has been issued on or before June 1 preceding the Fiscal Year in which the Special Tax was levied. As of April 1, 2026, 215 completed single-family detached homes have been conveyed to individual homeowners in Improvement Area No. 17C. For Fiscal Year 2026-27, all subdivided parcels in Improvement Area No. 17C will be levied as Developed Property, of which are partially prepaid with an approximately %o reduced assigned tax of $ per unit.* Improvement Area No. 17C originally included 216 taxable parcels but one property owner has fully prepaid the Special Taxes in Improvement Area No. 17C, resulting in 215 taxable parcels going forward.

Assigned Special Taxes. Table A-13 below sets forth the current Assigned Special Taxes that may be levied on the property within Improvement Area No. 17C in Fiscal Year 2026-27 based on the development status within Improvement Area No. 17C as of April 1, 2026. The Special Taxes in Improvement Area No. 17C may not be levied after the 2056-57 Fiscal Year. The final maturity of the Improvement Area No. 17C Bonds is September 1, 2048.

For the complete text of the Improvement Area No. 17C's Rate and Method, see Appendix D — "RATES AND METHODS OF APPORTIONMENT OF SPECIAL TAXES FOR THE TAXING JURISDICTIONS."
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
* NTD: Special tax consultant to provide.

A-15

TABLE A-13

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 93-1
IMPROVEMENT AREA NO. 17C
ASSIGNED SPECIAL TAX RATES FOR FISCAL YEAR 2026-27
Assigned Special Aggregate
Special Tax Tax Levy Projected
Residential Rates Rates Percent of Special Taxes
Floor Area Fiscal Year Fiscal Year Assigned No. of Fiscal Year Percent of Land Use Type (sq. ft) 2026-2711) 2026-27* Rate* Units 2026-27* Total* Residential Property 2,700 3,123.76 2,472.42 79.1 12 29,669.00 6_4 Total 215 $ 462,000.00 100.0%
(I) Includes estimated Administrative Expenses of $30,000..

Source: Spicer Consulting Group, LLC.

Direct and Overlapping Debt. The Authority has obtained the assessed values of all of the taxable property in Improvement Area No. 17C, as established by the County Assessor for Fiscal Year 2025-26, which totals $83,749,919.

Improvement Area No. 17C is included within the boundaries of overlapping local agencies providing governmental services. Some of these local agencies have outstanding bonds, and/or the authority to issue bonds, payable from taxes or assessments. The existing and authorized indebtedness payable from taxes and assessments that may be levied upon the property within Improvement Area No. 17C is shown in Table A-14 below. In addition to current debt, new Community Facilities Districts and/or special assessment districts could be formed in the future encompassing all or a portion of the property within Improvement Area No. 17C; and such districts or the agencies that formed them could issue more bonds and levy additional special taxes or assessments. The assessed value -to -lien ratio of the property within Improvement Area No. 17C, based on the Fiscal Year 2025-26 assessed values and all such estimated direct and overlapping special tax and assessment indebtedness within Improvement Area No. 17C, and assuming that the Improvement Area No. 17C Bonds have been issued to refund the Prior Improvement Area No. 17C Bonds, equals approximately 11.98:1`. This ratio does not include other overlapping debt general obligation debt within Improvement Area No. 17C.

Taking that direct and overlapping general obligation debt into account, the ratio of the aggregate assessed value of the taxable property within Improvement Area No. 17C to the total principal amount of all direct and overlapping debt for Improvement Area No. 17C is approximately 9.98:1*. * Preliminary, subject to change.

A-16

TABLE A-14

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 93-1
IMPROVEMENT AREA NO. 17C

DIRECT AND OVERLAPPING DEBT
AS OF APRIL 1, 2026
I. Fiscal Year 2025-26 Assessed Value (1)
II. Land Secured Bond Indebtedness
Outstanding Direct and
Overlapping Bonded Debt
City of Beaumont, CFD No. 93-1 IA 17C, 2026
TOTAL LAND SECURED BONDED DEBT (2)
Authorized but Unissued Direct and
Overlapping Indebtedness
City of Beaumont, CFD No.93-1 IA 17C,2026
TOTAL UNISSUED LAND SECURED INDEBTEDNESS (2)

TOTAL OUTSTANDING AND UNISSUED LAND SECURED INDEBTEDNESS III. General Obligation Bond Indebtedness
Outstanding Direct and
Overlapping Bonded Debt
San Gorgonio Pass Memorial Hospital
Mt San Jacinto Jr College
Beaumont Unified School District
TOTAL OUTSTANDING GENERAL OBLIGATION BONDED DEBT (2)
Authorized but Unissued Direct and
Overlapping Indebtedness
San Gorgonio Pass Memorial Hospital
Mt San Jacinto Jr College
Beaumont Unified School District
TOTAL UNISSUED GENERAL OBLIGATION INDEBTEDNESS (2)
Parcels in
CFD No. 93-1
Type Issued Outstanding Applicable L417Ctj.)
CFD $8,730,000' $ 6,990,000* 100.000% 215
Parcels in
CFD No. 93-1
Type Authorized Unissued Applicable L4 17C (3)
CFD $20,000,000 $ 0 100.000% 215
Parcels in
CFD No. 93-1
Type Issued Outstanding Applicable L417C(3)
GO $108,000,000 $86,960,000 0.510% 215
GO 295,000,000 233,100,000 0.058 215
GO 140,998,583 121,631,194 0.675 215
Parcels in
% CFD No. 93-1
Type Authorized Unissued Applicable L417C(3)
GO $108,000,000 $ 0 0.510% 215
GO 295,000,000 0 0.058 215
GO 141,000,000 1,417 0.675 215

TOTAL OUTSTANDING AND UNISSUED GENERAL OBLIGATION INDEBTEDNESS

TOTAL OF ALL OUTSTANDING DIRECT AND OVERLAPPING BONDED DEBT

TOTAL OF ALL OUTSTANDING DIRECT AND UNISSUED DIRECT OVERLAPPING INDEBTEDNESS IV. Ratios to Appraisal Value
(1)
(2)
(3)
Outstanding Land Secured Bonded Debt 11.98:14
Total Outstanding Bonded Debt 9.98:14
Preliminary, subject to change.

Assessed Value is based on the information provided from the Riverside County Assessor's Equalized Roll as may not accurately reflect true market value.

Spicer Consulting Group is not aware of any additional bonded debt for parcels in Improvement Area No. 17C.

All taxable parcels have been subdivided into 215 individual parcels and have all been classified as developed and M ethod.

Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC. $83,749,919
Amount
Applicable
$ 6,990,000%
$ 6,990,000`
Amount
Applicable
$ 0
$ 0
$ 6,990,0004
Amount
Applicable
$ 443,548
134,303
820,836
$ 1,398,687
Amount
Applicable
$ 0
0 10
$ 10
$ 8,388,687*
$ 8,388,696`
of January 1, 2025 and
property per the Rate
A-17

Value -to -Lien. Home construction has been completed on the Taxable Property within Improvement Area No. 17C, which homes have all been transferred to individual homeowners. Table A-15 sets forth the value -to -lien ratio of the property within Improvement Area No. 17C for the ten property owners with the largest share of the Special Tax levy and for all other owners of Taxable Property in the aggregate, in each case based on Fiscal Year 2025-26 assessed values and the projected Fiscal Year 2026-27 Special Tax levy.

Table A-16 below sets forth the stratification of value -to -liens of the Taxable Property within Improvement Area No. 17C based on Fiscal Year 2025-26 assessed value and each parcel's respective share of the principal amount of the Improvement Area No. 17C Bonds (allocated to each parcel based upon its respective share of the total projected Special Tax levy for Fiscal Year 2026-27). The ratio of the value of an individual lot within Improvement Area No. 17C to its respective share of the principal amount of the Improvement Area No. 17C Bonds can be expected to vary. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
A-18

TABLE A-15

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 93-1
IMPROVEMENT AREA NO. 17C
ESTIMATED VALUE -TO -LIEN FOR TOP 10 TAXPAYERS
Properly Oirner

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER
Subtotal

ALL OTHER INDIVIDUAL PROPERTY OWNERS
Totals
Projected
Fiscal Year
2026-27
Parcels Special Tax*
1 $ 2,472
1 2,472
1 2,472
1 2,472
1 2,472
1 2,472
1 2,472
1 2,472
1 2,472
1 2,472
10 24,724
205 437,276
215 $462,000
Percent of
Projected Total
Fiscal Year
2026-27
Special Tax*

0.54%

0.54 0.54

0.54 0.54

0.54 0.54

0.54 0.54

0.54 5.35

94.65 100.00%
Preliminary, subject to change.
(1) Excludes all other overlapping bonded indebtedness applicable within Improvement Area No. 17C.

Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC.

A-19
Fiscal Year
2025-26
Assessed Value
CFD No. 93-1
IA 17C Local Value -to -Lien
Obligationsfl)* Ratio*
$ 440,468 $ 37,407
601,351 37,407
461,514 37,407
524,946 37,407
458,949 37,407
508,541 37,407
508,541 37,407
434,699 37,407
413,426 37,407
457.580 37,407
4,810,015 374,073
78,939,904 6,615,927
$ 83,749,919 $ 6,990,000

11.77:1

16.08:1

12.34:1

14.03:1

12.27:1

13.59:1

13.59:1

11.62:1

11.05:1

12.23:1

12.86:1

11.93:1

11.98:1

TABLE A-16

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 93-1
IMPROVEMENT AREA NO. 17C

VALUE -TO -LIEN STRATIFICATION FOR TAXABLE PROPERTYN)
CFD No. 93-1
No. of L4 17C Percent Share of
Parcels of % of Projected Fiscal Projected Fiscal CFD No. 93-1 Percent Share Aggregate Value -to -Lien Developed Developed Assessed % of Year Year L4 17C Local ofL417CLocal Value -to - Category Property Property Value (I) Assessed Value 2026-27 Levy` 2026-27 Levy* Obligations hJ* Obligations* Lien* Less than 8.00:1w 2 0.93% $ 445,100 0.53% $ 4,423 0.96% $ 66,917 0.96% 6.65:1

8.00:1 to 10.00:1 36 16.74 10,760,227 12.85 76,996 16.67 1,164,946 16.67 9.24:1

10.01:1 to 12.00:1 102 47.44 36,412,408 43.48 218,389 47.27 3,304,192 47.27 11.02:1

12.01:1 to 14.00:1 36 16.74 15,093,337 18.02 78,459 16.98 1,187,075 16.98 12.71:1

14.01:1 to 16.00:1 10 4.65 5,034,432 6.01 21,892 4.74 331,219 4.74 15.20:1

16.01:1 to 18.00:1 24 11.16 13,076,838 15.61 51,222 11.09 774,982 11.09 16.87:1 Greaterthan18.00:1w 5 2.33 2,927,577 3.50 10.619 2.30 160.669 2.30 18.22:1 Totals 215 100.00% $ 83,749,919 100.00% $462,000 100.00% $6,990,000 100.00% 11.98:1 Preliminary, subject to change.
(�) Assessed Value is based on the information provided from the Riverside County Assessor's Equalised Roll as of January 1, 2025 and may not accurately reflect true market value.
(2) Responsibility of the par amount has been allocated based on the projected Fiscal Year 2026-27 Special Tax levy, with development status as of April 1, 2026, and bond sizing as provided by the Underwriter.
(3) The minimum value to lien in the less than 8.00:1 category is 6.05:1. The maximum value to lien in the Greater than 18.00:1 category is 18.72:1. (4) Excludes overlapping general obligation debt.

Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC.

A-20

Historical Assessed Values. The following table summarizes the assessed values within Improvement Area No. 17C for the Fiscal Years shown.

TABLE A-17

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 93-1
IMPROVEMENT AREA NO. 17C

ASSESSED VALUATION HISTORY
FISCAL YEARS 2021-22 THROUGH 2025-26
Fiscal Year
2021-22
2022-23
2023-24
2024-25
2025-26
Land Assessed
Valuation
$10,653,3 96
10,851,606
11,010,352
11,202,63 8
11,494,031
Structure Assessed
Valuation
$59,829,123
62,407,986
66,554,825
69,859,868
72,255,888
Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC.

Total Assessed
Valuation
$70,482,519
73,259,592
77,565,177
81,062,506
83,749,919
Delinquencies. Unpaid amounts of the Special Taxes become delinquent after December 10 and April 10 of each Fiscal Year. Table A-18 below summarizes the Special Tax delinquencies within Improvement Area No. 17C for Fiscal Years 2020-21 through 2025-26 as of May 11, 2026.

TABLE A-18

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 93-1
IMPROVEMENT AREA NO. 17C

SPECIAL TAX LEVIES, DELINQUENCIES AND DELINQUENCY RATES FISCAL YEARS 2020-21 THROUGH 2025-26
Delinquencies as of May 11, 2026
Parcels Amount Percent
Fiscal Year Amount Levied Parcels Levied Delinquent Delinquent Delinquent 2020-21 $471,022 215 0 $ 0 0.00%
2021-22 479,523 215 0 0 0.00
2022-23 492,122 215 0 0 0.00
2023-24 499,122 215 0 0 0.00
2024-25 514,863 215 0 0 0.00
2025-26 525,021 215 6 9,253 1.76
Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC.

A-21

CFD No. 2016-1
Location and Description. The City formed CFD No. 2016-1 in May 2016 to finance the construction, acquisition and equipping of certain sewer system improvements, storm drain improvements, dry utilities infrastructure, street improvements and gas line relocation. CFD No. 2016-1 includes 372 taxable parcels. CFD No. 2016-1 is 100% "Developed Property." A parcel is "Developed Property" if a building permit has been issued on or before March 1 preceding the Fiscal Year in which the Special Tax was levied.

As of April 1, 2026, 372 completed single-family detached homes have been conveyed to individual homeowners in CFD No. 2016-1. For Fiscal Year 2026-27, all subdivided parcels in CFD No. 2016-1 will be levied as Developed Property, of which are partially prepaid with an approximately % reduced assigned tax of $ per unit.* No property owners have fully prepaid the Special Taxes in CFD No. 2016-1.

Assigned Special Taxes. Table A-19 below sets forth the current Assigned Special Taxes that may be levied on the property within CFD No. 2016-1 in Fiscal Year 2026-27 based on the development status within CFD No. 2016-1 as of April 1, 2026. The Special Taxes in CFD No. 2016-1 may not be levied after the 2055- 56 Fiscal Year. The final maturity of the CFD No. 2016-1 Bonds is September 1, 2049.

For the complete text of the CFD No. 2016-1's Rate and Method, see Appendix D — "RATES AND METHODS OF APPORTIONMENT OF SPECIAL TAXES FOR THE TAXING JURISDICTIONS." [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK. J
NTD: Special tax consultant to provide.

A-22

TABLE A-19

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2016-1
ASSIGNED SPECIAL TAX RATES FOR FISCAL YEAR 2026-27
Zone 1 — Developed Property
Land Use Type
Residential Property
Residential Property
Residential Property
Residential Property
Total
Zone 2 — Developed Property
Land Use Type
Residential Property
Residential Property
Residential Property
Residential Property
Total
Zone 3 — Developed Property
Land Use Type
Residential Property
Residential Property
Residential Property
Residential Property
Total
Residential Floor
Area (sq. ft.)
3,499
Residential Floor
Area (sq. ft.)
3,499
Residential Floor
Area (sq. ft.)
3,499
Preliminary, subject to change.
(1) Includes estimated Administrative Expenses of $30,000.

Source: Spicer Consulting Group, LLC.

Assigned Special
Tax Rates
Fiscal Year
2026-27(1)
$1,830.00
$1,863.00
$1,999.00
$2,150.00
Assigned Special
Tax Rates
Fiscal Year
2026-27(1)
$1,440.00
$1,600.00
$1,865.00
$2,019.00
Assigned Special
Tax Rates
Fiscal Year
2026-270)
$1,440.00
$1,600.00
$1,865.00
$2,019.00
Special Tax
Levy Rates
Fiscal Year Percent of
2026-27* Assigned Rate*
$1,462.03
$1,488.40
$1,597.05
$1,717.69
Special Tax
Levy Rates
Fiscal Year
2026-27*
$1,150.45
$1,278.28
$1,490.00
$1,613.03
Special Tax
Levy Rates
Fiscal Year
2026-27*
A-23
$1,150.45
$0.00
$0.00
$0.00

79.9%

79.9%

79.9%

79.9%
Percent of
Assigned Rate*

79.9%

79.9%

79.9%

79.9%
Percent of
Assigned Rate*

79.9%

0.0%

0.0%

0.0%
No. of
Units
5 50
40 12
107
No. of
Units
17 79
58 17
171
No. of
Units
Aggregate Projected
Special Taxes
Fiscal Year 2026-
27*
$ 7,310.17
74,419.89
63,882.06
20,612.27
$ 166,224.39
Aggregate Projected
Special Taxes
Fiscal Year 2026-
27*
$ 19,557.69
100,984.15
86,419.74
27,421.51
$ 234,383.09
Aggregate Projected
Special Taxes
Fiscal Year 2026-
27*
94 $ 108,142.52
0 $0.00
0 $0.00
0 0.00
94 $ 108,142.52
Percent of
Total*

1.4%

14.6 12.6

4.1 32.7%
Percent of
Total*

3.8%

19.8 17.0

5.4 46.1%
Percent of
Total*

21.3%

0.0%

0.0%

0.0%

21.3%

Direct and Overlapping Debt. The Authority has obtained the assessed values of all of the taxable property in CFD No. 2016-1, as established by the County Assessor for Fiscal Year 2025-26, which totals $180,047,717.

CFD No. 2016-1 is included within the boundaries of overlapping local agencies providing governmental services. Some of these local agencies have outstanding bonds, and/or the authority to issue bonds, payable from taxes or assessments. The existing and authorized indebtedness payable from taxes and assessments that may be levied upon the property within CFD No. 2016-1 is shown in Table A-20 below. In addition to current debt, new Community Facilities Districts and/or special assessment districts could be formed in the future encompassing all or a portion of the property within CFD No. 2016-1; and such districts or the agencies that formed them could issue more bonds and levy additional special taxes or assessments. The assessed value -to -lien ratio of the property within CFD No. 2016-1, based on the Fiscal Year 2025-26 assessed values and all such estimated direct and overlapping special tax and assessment indebtedness within CFD No. 2016-1, and assuming that the CFD No. 2016-1 Bonds have been issued to refund the Prior CFD No. 2016-1 Bonds, equals approximately 27.05:1*. This ratio does not include other overlapping debt general obligation debt within CFD No. 2016-1. Taking that direct and overlapping general obligation debt into account, the ratio of the aggregate assessed value of the taxable property within CFD No. 2016-1 to the total principal amount of all direct and overlapping debt for CFD No. 2016-1 is approximately 18.63:1*. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
* Preliminary, subject to change.

A-24

TABLE A-20

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2016-1

DIRECT AND OVERLAPPING DEBT
AS OF APRIL 1, 2026
I. Fiscal Year 2025-26 Assessed Value (') $180,047,717
II. Land Secured Bond Indebtedness
Parcels in
Outstanding Direct and % CFD No. Amount
Overlapping Bonded Debt Type Issued Outstanding Applicable 2016-1° Applicable City of Beaumont, CFDNo.2016-1,2026 CFD $9,045,000* $ 6,655,000* 100.000% 372 $6,655,000* TOTAL LAND SECURED BONDED DEBT (2) $ 6,655,000*
Parcels in
Authorized but Unissued Direct and % CFD No. Amount
Overlapping Indebtedness Type Authorized Unissued Applicable 2016-11s) Applicable City of Beaumont, CFD No. 2016-1,2026 CFD $13,000,000 $ 0 100.000% 372 $ 0 TOTAL UNISSUED LAND SECURED INDEBTEDNESS (2) $ 0
TOTAL OUTSTANDING AND UNISSUED LAND SECURED INDEBTEDNESS $ 6,655,000* III. General Obligation Bond Indebtedness
Parcels in
Outstanding Direct and % CFD No. Amount
Overlapping Bonded Debt Type Issued Outstanding Applicable 2016-1(3) Applicable San Gorgonio Pass Memorial Hospital GO $108,000,000 $86,960,000 1.097% 372 $ 953,551 Mt San Jacinto Jr College GO 295,000,000 233,100,000 0.124 372 288,727 Beaumont Unified School District GO 140,998,583 121,631,194 1.451 372 1,764,654 TOTAL OUTSTANDING GENERAL OBLIGATION BONDED DEBT (2) $ 3,006,933 Parcels in
Authorized but Unissued Direct and % CFD No. Amount
Overlapping Indebtedness Type Authorized Unissued Applicable 2016-1 (3) Applicable San Gorgonio Pass Memorial Hospital GO $108,000,000 $ 0 1.097% 372 $ 0 Mt San Jacinto Jr College GO 295,000,000 0 0.124 372 0
Beaumont Unified School District GO 141,000,000 1,417 1.451 372 21 TOTAL UNISSUED GENERAL OBLIGATION INDEBTEDNESS (2) $ 21 TOTAL OUTSTANDING AND UNISSUED GENERAL OBLIGATION INDEBTEDNESS $ 3,006,953 TOTAL OF ALL OUTSTANDING DIRECT AND OVERLAPPING BONDED DEBT $ 9,661,933* TOTAL OF ALL OUTSTANDING DIRECT AND UNISSUED DIRECT OVERLAPPING $ 9,661,953*

INDEBTEDNESS
IV. Ratios to Appraisal Value
Outstanding Land Secured Bonded Debt 27.05:1'
Total Outstanding Bonded Debt 18.63:1'
(2)
(3)
Preliminary, subject to change.

Assessed Value is based on the information provided from the Riverside County Assessor's Equalized Roll as ofJanuary 1, 2025 and may not accurately reflect true market value.

Spicer Consulting Group is not aware of any additional bonded debt £r parcels in CFD No. 2016-1.

All taxable parcels have been subdivided into 372 individual parcels and have all been classified as developed property per the Rate and Method.

Source: County ofRiverside Assessor's Office; Spicer Consulting Group, LLC.

Value -to -Lien. Home construction has been completed on the Taxable Property within CFD No. 2016-1, which homes have all been transferred to individual homeowners. Table A-21 sets forth the value -to - lien ratio of the property within CFD No. 2016-1 for the ten property owners with the largest share of the Special Tax levy and for all other owners of Taxable Property in the aggregate, in each case based on Fiscal Year 2025-26 assessed values and the projected Fiscal Year 2026-27 Special Tax levy.

Table A-22 below sets forth the stratification of value -to -liens of the Taxable Property within CFD No. 2016-1 based on Fiscal Year 2025-26 assessed value and each parcel's respective share of the principal amount of the CFD No. 2016-1 Bonds (allocated to each parcel based upon its respective share of the total projected Special Tax levy for Fiscal Year 2026-27). The ratio of the value of an individual lot within CFD No. 2016-1 to its respective share of the principal amount of the CFD No. 2016-1 Bonds can be expected to vary.

A-25

TABLE A-21

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2016-1
ESTIMATED VALUE -TO -LIEN FOR TOP 10 TAXPAYERS
Property Owner

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER
Subtotal

ALL OTHER INDIVIDUAL PROPERTY OWNERS
Totals
Projected
Fiscal Year
2026-27
Parcels Special Tax*
2 $ 2,639
1 1,718
1 1,718
1 1,718
1 1,718
1 1,718
1 1,718
1 1,718
1 1,718
1 1,718
11 18,098
361 490,652
372 $ 508,750
Preliminary, subject to change.
(l) Excludes all other overlapping bonded indebtedness applicable within CFD No. 2016-1.

Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC.

A-26
Percent of
Projected Total
Fiscal Year
2026-27
Special Tax*

0.52%

0.34 0.34

0.34 0.34

0.34 0.34

0.34 0.34

0.34 3.56

96.44 100.00%
Fiscal Year
2025-26
Assessed Value
CFD No. 2016-1
Local
Obligationsa) *
Value -to -Lien
Ratio*
$ 914,361 $ 34,519 26.49:1
672,587 22,469 29.93:1
670,290 22,469 29.83:1
514,741 22,469 22.91:1
638,524 22,469 28.42:1
525,511 22,469 23.39:1
633,529 22,469 28.20:1
622,192 22,469 27.69:1
619,788 22,469 27.58:1
570,072 22A69 25.37:1
6,381,595 236,742 26.96:1
173,666,122 6,418,258 27.06:1
$ 180,047,717 $ 6,655,000 27.05:1

TABLE A-22

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2016-1
VALUE -TO -LIEN STRATIFICATION FOR TAXABLE PROPERTY(4)* No. of CFD No. 2016-1 Percent Share of Percent Share
Parcels of % of Projected Fiscal Projected Fiscal CFD No. 2016-1 of CFD No. 2016- Aggregate Value -to -Lien Developed Developed Assessed % of Year Year Local 1 Local Value -to - Category Property Property Value (I) Assessed Value 2026-27 Levy* 2026-27 Levy' Obligations alp Obligations' Lien' Less than 20.00:1t') 14 3.76% $ 3,627,168 2.01% $ 18,819 3.70% $ 246,169 3.70% 14.73:1

20.00:1to24.00:1 54 14.52 23,448,094 13.02 78,642 15.46 1,028,725 15.46 22.79:1

24.01:1to28.00:1 173 46.51 79,868,051 44.36 235,652 46.32 3,082,580 46.32 25.91:1

28.01:1to32.00:1 75 20.16 39,037,212 21.68 101,094 19.87 1,322,424 19.87 29.52:1

32.01:1to36.00:1 41 11.02 24,777,575 13.76 55,689 10.95 728,473 10.95 34.01:1 Greater than36.00:1w 15 4.03 9,289,617 5.16 18,854 3.71 246,629 3.71 37.67:1 Totals 372 100.00% $180,047,717 100.00% $508,750 100.00% $6,655,000 100.00% 27.05:1 Preliminary, subject to change.
(1) Assessed Value is based on the information provided from the Riverside County Assessor's Equalized Ro11 as of January 1, 202 5 and may not accurately reflect true market value. (2) Responsibility ofthe paramount has been allocated based on the projected Fiscal Year 2026-27 Special Tax levy, with development status as of April 1,2026, and bond sizing as provided by the Underwriter.
(3) The minimum value to lien in the less than 20.00:1 category is 2.87:1. The maximum value to lien in the Greater than 36.00:1 category is 40.52:1. (4) Excludes overlapping general obligation debt.

Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC.

A-27

Historical Assessed Values. The following table summarizes the historical and current assessed values within CFD No. 2016-1 for the Fiscal Years shown.

TABLE A-23

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2016-1

ASSESSED VALUATION HISTORY
FISCAL YEARS 2021-22 THROUGH 2025-26
Fiscal Year
Land Assessed
Valuation
Structure Assessed
Valuation
Total Assessed
Valuation
2021-22 $23,415,092 $132,240,196 $155,655,288
2022-23 23,766,652 138,055,001 161,821,653
2023-24 24,180,919 144,554,328 168,735,247
2024-25 24, 554,294 149,977, 875 174,532,169
2025-26 25,414,239 154,633,478 180,047,717
Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC.

Delinquencies. Unpaid amounts of the Special Taxes become delinquent after December 10 and April 10 of each Fiscal Year. Table A-24 below summarizes the Special Tax delinquencies within CFD No. 2016-1 for Fiscal Years 2020-21 through 2025-26 as of May 11, 2026.

TABLE A-24

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2016-1

SPECIAL TAX LEVIES, DELINQUENCIES AND DELINQUENCY RATES FISCAL YEARS 2020-21 THROUGH 2025-26
Delinquencies as of May 11, 2026
Parcels Am ount Percent
Fiscal Year Ain ount Levied Parcels Levied Delinquent Delinquent Delinquent 2020-21 $ 576,584 372 0 $ 0 0.00%
2021-22 576,634 372 0 0 0.00
2022-23 576,535 372 1 1,304 0.23
2023-24 580,298 372 1 1,312 0.23
2024-25 587,090 372 1 1,328 0.23
2025-26 587,600 372 4 3,775 0.64
Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC.

A-28

CFD No. 2016-2
Location and Description. The City formed the CFD No. 2016-2 in February 2017 to pay or advance certain development impact fees to the City for construction of certain public infrastructure facilities, as well as to finance the construction, acquisition and equipping of certain roadways. CFD No. 2016-2 includes 527 taxable parcels. CFD No. 2016-2 is 100% "Developed Property." A parcel is "Developed Property" if a building permit has been issued on or before March 1 preceding the Fiscal Year in which the Special Tax was levied. As of April 1, 2026, 527 completed single-family detached homes have been conveyed to individual homeowners in CFD No. 2016-2. For Fiscal Year 2026-27, all subdivided parcels in CFD No. 2016-2 will be levied as Developed Property, of which are partially prepaid with an approximately % reduced assigned tax of $ per unit.* No property owners have fully prepaid the Special Taxes in CFD No. 2016-2.

Assigned Special Taxes. Table A-25 below sets forth the current Assigned Special Taxes that may be levied on the property within CFD No. 2016-2 in Fiscal Year 2026-27 based on the development status within CFD No. 2016-2 as of April 1, 2026. The Special Taxes in CFD No. 2016-2 may not be levied after the 2055- 56 Fiscal Year. The final maturity of the CFD No. 2016-2 Bonds is September 1, 2049.

For the complete text of the CFD No. 2016-2's Rate and Method, see Appendix D — "RATES AND METHODS OF APPORTIONMENT OF SPECIAL TAXES FOR THE TAXING JURISDICTIONS." [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK. J
NTD: Special tax consultant to provide.

A-29

TABLE A-25

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2016-2
ASSIGNED SPECIAL TAX RATES FOR FISCAL YEAR 2026-27
Zone 1 —Developed Property
Land Use Type
Residential Property
Residential Property
Residential Property
Residential Property
Residential Property
Total
Zone 2 — Developed Property
Land Use Type
Residential Property
Residential Property
Residential Property
Residential Property
Residential Property
Total
Zone 3 — Developed Property
Land Use Type
Residential Property
Residential Property
Residential Property
Residential Property
Residential Property
Total
Residential Floor
Area (sq. ft)
2,800
Residential Floor
Area (sq. ft)
2,800
Residential Floor
Area (sq. ft)
2,800
Preliminary, subject to change.
(1) Includes estimated Administrative Expenses of $30,000.

Source: Spicer Consulting Group, LLC.

Assigned Special Tax
Rates
Fiscal Year
2026-27'1
$1,184.00
1,219.00
1,294.00
1,369.00
1,496.00
Assigned Special Tax
Rates
Fiscal Year
2026-27°
$1,254.00
1,324.00
1,499.00
1,599.00
1,726.00
Assigned Special Tax
Rates
Fiscal Year
2026-27°
$1,663.00
1,738.00
1,813.00
1,918.00
2,058.00
Special Tax
Levy Rates
Fiscal Year Percent of
2026-27* Assigned Rate*
$946.23
974.20

0.00 0.00

0.00 79.9%

79.9 0.0

0.0 0.0
Special Tax
Leiy Rates
Fiscal Year Percent of
2026-27* Assigned Rate*
$1,002.17
1,058.11
1,197.97
1,277.89

0.00 79.9%

79.9 79.9

79.9 0.0
Special Tax
Levy Rates
Fiscal Year Percent of
2026-27* Assigned Rate
A-30
$1,329.04
1,388.97
1,448.91
1,532.83
1,644.71

79.9%

79.9 79.9

79.9 79.9
No. of
Units
Aggregate Projected
Special Taxes Fiscal Percent of
Year 2026-27* Total*
54 $ 51,096.38
141 137,362.27
0 0.00
0 0.00
0 0.00
195 $ 188,458.64
No. of
Units

8.7%

23.4 0.0

0.0 0.0

32.1%
Aggregate Projected
Special Taxes Fiscal Percent of
Year 2026-27` Total*
43 $ 43,093.39
137 144,961.67
28 33,543.19
36 46,004.00
0 0.00
244 $ 267,602.24
No. of
Units

7.3%

24.7 5.7

7.8 0.0

45.6%
Aggregate Projected
Special Taxes Fiscal Percent of
Year 2026-27` Total"
8 $ 10,632.29
20 27,779.50
19 27,529.36
24 36,787.86
17 27.960.11
88 $ 130,689.11

1.8%

4.7 4.7

6.3 4.8

22.3%

Direct and Overlapping Debt. The Authority has obtained the assessed values of all of the taxable property in CFD No. 2016-2, as established by the County Assessor for Fiscal Year 2025-26, which totals $224,408,476.

CFD No. 2016-2 is included within the boundaries of overlapping local agencies providing governmental services. Some of these local agencies have outstanding bonds, and/or the authority to issue bonds, payable from taxes or assessments. The existing and authorized indebtedness payable from taxes and assessments that may be levied upon the property within CFD No. 2016-2 is shown in Table A-26 below. In addition to current debt, new Community Facilities Districts and/or special assessment districts could be formed in the future encompassing all or a portion of the property within CFD No. 2016-2; and such districts or the agencies that formed them could issue more bonds and levy additional special taxes or assessments. The assessed value -to -lien ratio of the property within CFD No. 2016-2, based on the Fiscal Year 2025-26 assessed values and all such estimated direct and overlapping special tax and assessment indebtedness within CFD No. 2016-2, and assuming that the CFD No. 2016-2 Bonds have been issued to refund the Prior CFD No. 2016-2 Bonds, equals approximately 28.97:1*. This ratio does not include other overlapping debt general obligation debt within CFD No. 2016-2. Taking that direct and overlapping general obligation debt into account, the ratio of the aggregate assessed value of the taxable property within CFD No. 2016-2 to the total principal amount of all direct and overlapping debt for CFD No. 2016-2 is approximately 19.53:1*. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
* Preliminary, subject to change.

A-31

TABLE A-26

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2016-2

DIRECT AND OVERLAPPING DEBT
AS OF APRIL 1, 2026
I. Fiscal Year 2025-26 Assessed Value (1) $224,408,476
II. Land Secured Bond Indebtedness
Parcels in
Outstanding Direct and % CFD No. Amount
Overlapping Bonded Debt Type Issued Outstanding Applicable 2016-1° Applicable City of Beaumont, CFDNo.2016-1,2026 CFD $10,285,000* $ 7,745,000* 100.000% 527 $7,745,000* TOTAL LAND SECURED BONDED DEBT (2) $ 7,745,000*
Parcels in
Authorized but Unissued Direct and % CFD No. Amount
Overlapping Indebtedness Type Authorized Unissued Applicable 2016-169 Applicable City of Beaumont, CFD No. 2016-1, 2026 CFD $14,000,000 $ 0 100.000% 527 $ 0 TOTAL UNISSUED LAND SECURED INDEBTEDNESS (2) $ 0
TOTAL OUTSTANDING AND UNISSUED LAND SECURED INDEBTEDNESS $ 7,745,000* III. General Obligation Bond Indebtedness
Parcels in
Outstanding Direct and % CFD No. Amount
Overlapping Bonded Debt Type Issued Outstanding Applicable 2016-1 (3') Applicable San Gorgonio Pass Memorial Hospital GO $108,000,000 $86,960,000 1.367% 527 $ 1,188,490 Mt San Jacinto Jr College GO 295,000,000 233,100,000 0.154 527 359,865 Beaumont Unified School District GO 140,998,583 121,631,194 1.808 527 2,199,436 TOTAL OUTSTANDING GENERAL OBLIGATION BONDED DEBT (2) $ 3,747,791 Parcels in
Authorized but Unissued Direct and % CFD No. Amount
Overlapping Indebtedness Type Authorized Unissued Applicable 2016-1 (3) Applicable San Gorgonio Pass Memorial Hospital GO $108,000,000 $ 0 1.367% 527 $ 0 Mt San Jacinto Jr College GO 295,000,000 0 0.154 527 0
Beaumont Unified School District GO 141,000,000 1,417 1.808 527 26 TOTAL UNISSUED GENERAL OBLIGATION INDEBTEDNESS (z( $ 26 TOTAL OUTSTANDING AND UNISSUED GENERAL OBLIGATION INDEBTEDNESS $ 3,747,816 TOTAL OF ALL OUTSTANDING DIRECT AND OVERLAPPING BONDED DEBT $11,492,791* TOTAL OF ALL OUTSTANDING DIRECT AND UNISSUED DIRECT OVERLAPPING $11,492,816*

INDEBTEDNESS
IV. Ratios to Appraisal Value
Outstanding Land Secured Bonded Debt 28.97:1*
Total Outstanding Bonded Debt 19.53:1*
(I)
(2)
(3)
Preliminary, subject to change.

Assessed Value is based on the information provided from the Riverside County Assessor's Equalized Roll as of January 1, 202 5 and may not accurately reflect true market value.

Spicer Consulting Group is not aware of any additional bonded debt for parcels in CFD No. 2016-2.

All taxable parcels have been subdivided into 527 individual parcels and have all been classified as developed property per the Rate and Method.

Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC.

A-32

Value -to -Lien. Home construction has been completed on the. Taxable Property within CFD No. 2016-2, which homes have all been transferred to individual homeowners. Table A-27 sets forth the value -to - lien ratio of the property within CFD No. 2016-2 for the ten property owners with the largest share of the Special Tax levy and for all other owners of Taxable Property in the aggregate, in each case based on Fiscal Year 2025-26 assessed values and the projected Fiscal Year 2026-27 Special Tax levy.

Table A-28 below sets forth the stratification of value -to -liens of the Taxable Property within CFD No. 2016-2 based on Fiscal Year 2025-26 assessed value and each parcel's respective share of the principal amount of the CFD No. 2016-2 Bonds (allocated to each parcel based upon its respective share of the total projected Special Tax levy for Fiscal Year 2026-27). The ratio of the value of an individual lot within CFD No. 2016-2 to its respective share of the principal amount of the CFD No. 2016-2 Bonds can be expected to vary.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
A-33

TABLE A-27

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2016-2
ESTIMATED VALUE -TO -LIEN FOR TOP 10 TAXPAYERS
Property Owner

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER

INDIVIDUAL OWNER
Subtotal

ALL OTHER INDIVIDUAL PROPERTY OWNERS
Totals
Projected
Fiscal Year
2026-27
Parcels Special Tax*
1 $ 1,645
1 1,645
1 1,645
1 1,645
1 1,645
1 1,645
1 1,645
1 1,645
1 1,645
1 1,645
10 16,447
517 570,303
527 $ 586,750
Preliminary, subject to change.
(1) Excludes all other overlapping bonded indebtedness applicable within. CFD No. 2016-2.

Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC.

A-34
Percent of
Projected Total
Fiscal Year
2026-27
Special Tax*

0.28%

0.28 0.28

0.28 0.28

0.28 0.28

0.28 0.28

0.28 2.80

97.20 100.00%
Fiscal Year
2025-26
Assessed Value
CFD No. 2016-2
Local
Obligationsfl)
*
$ 527,308 $ 21,710
671,058 21,710
509,072 21,710
524,230 21,710
440,613 21,710
617,100 21,710
468,401 21,710
485,634 21,710
662,898 21,710
464,051 21,710
5,370,365 217,099
219,038,111 7,527,901
$ 224,408,476 $ 7,745,000
Value -to -Lien
Ratio*

24.29:1

30.91:1

23.45:1

24.15:1

20.30:1

28.42:1

21.58:1

22.37:1

30.53:1

21.38:1

24.74:1

29.10:1

28.97:1

TABLE A-28

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2016-2
VALUE -TO -LIEN STRATIFICATION FOR TAXABLE PROPERTY(4)
No. of CFD No. 2016-1 Percent Share of Percent Share
Parcels of % of Projected Fiscal Projected Fiscal CFD No. 2016-1 of CFD No. Aggregate Value -to -Lien Developed Developed Assessed % of Year Year Local 2016-1 Local Value -to - Category Property Property Value (I) Assessed Value 2026-27 Levy* 2026-27 Levy' Obligations alp Obligations* Lien' Less than 20.00:1 t') 7 1.33% $ 1,808,149 0.81% $ 9,664 1.65% $ 127,570 1.65% 14.17:1

20.00:1to26.00:1 97 18.41 40,195,535 17.91 130,779 22.29 1,726,256 22.29 23.28:1

26.01:1to32.00:1 308 58.44 123,636,875 55.09 329,780 56.20 4,353,040 56.20 28.40:1

32.01:1to38.00:1 47 8.92 22,208,145 9.90 48,552 8.27 640,875 8.27 34.65:1

38.01:1to44.00:1 64 12.14 34,222,602 15.25 64,050 10.92 845,453 10.92 40.48:1 Greater than44.00:1W 4 0.76 2,337,170 1.04 3.925 0.67 51.806 0.67 45.11:1 Totals 527 100.00% $224,408,476 100.00% $586,750 100.00% $7,745,000 100.00% 28.97:1 Preliminary, subject to change.
(1) Assessed Value is based on the information provided from the Riverside County Assessor's Equalized Ro11 as of January 1, 202 5 and may not accurately reflect true market value. (2) Responsibility ofthe paramount has been allocated based on the projected Fiscal Year 2026-27 Special Tax levy, with development status as of April 1,2026, and bond sizing as provided by the Underwriter.
(3) The minimum value to lien in the less than 20.00:1 category is 2.84:1. The maximum value to lien in the Greater than 44.00:1 category is 47.45:1. (4) Excludes overlapping general obligation debt.

Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC.

A-35

Historical Assessed Values. The following table summarizes the assessed values within CFD No. 2016-2 for the Fiscal Years shown.

TABLE A-29

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2016-2

ASSESSED VALUATION HISTORY
FISCAL YEARS 2021-22 THROUGH 2025-26
Fiscal Year
2021-22
2022-23
2023-24
2024-25
2025-26
Land Assessed
Valuation
$28,091,173
28,860,882
29,446,950
29,905,908
31,444,922
Structure Assessed
Valuation
$162,547,099
170,766,465
182,094,602
187,924,791
192,963,5 54
Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC.

Total Assessed
Valuation
$190,638,272
199,627,347
211,541,552
217,830,699
224,408,476
Delinquencies. Unpaid amounts of the Special Taxes become delinquent after December 10 and April 10 of each Fiscal Year. Table A-30 below summarizes the Special Tax delinquencies within CFD No. 2016-2 for Fiscal Years 2020-21 through 2025-26 as of May 11, 2026.

TABLE A-30

CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2016-2

SPECIAL TAX LEVIES, DELINQUENCIES AND DELINQUENCY RATES FISCAL YEARS 2020-21 THROUGH 2025-26
Delinquencies as of May 11, 2026
Parcels Amount Percent
Fiscal Year Amount Levied Parcels Levied Delinquent Delinquent Delinquent 2020-21 $669,494 523 0 $0 0.00%
2021-22 $666,894 527 0 0 0.00
2022-23 $669,096 527 1 820 0.12
2023-24 $672,586 527 1 824 0.12
2024-25 $674,220 527 0 0 0.00
2025-26 $675,434 527 4 5,322 0.79
Source: County of Riverside Assessor's Office; Spicer Consulting Group, LLC.

A-36

APPENDIX B

SUMMARY OF PRINCIPAL LEGAL DOCUMENTS
B-1

APPENDIX C

DEMOGRAPHIC INFORMATION REGARDING THE COUNTY OF RIVERSIDE

AND THE CITY OF BEAUMONT
The Bonds are not obligations of the City of Beaumont (the "City') or the County of Riverside (the "County") and do not represent a lien or charge against any funds or property of the City or the County. The following information is provided only to give prospective investors an overview of the general economic condition of the City, the County and the State of California (the "State").

General
The City was founded in 1912 in Riverside County, California. The City is located approximately 78 miles east of Los Angeles and encompasses an area of 30.9 square miles. The City currently has an estimated population of approximately 59,708 persons.

Population
The following table offers population estimates as of January 1 for the City, the County and the State for years 2021 through 2025.

Area 2021 2022 2023 2024 2025
City of Beaumont 53,969 54,495 56,293 58,665 59,708
County of Riverside 2,423,069 2,435,510 2,467,690 2,491,037 2,495,640 State of California 39,369,530 39,179,680 39,228,444 39,420,663 39,529,101 Source: California State Department of Finance, E-4 Population Estimates for Cities, Counties, and the State, 2021-2025 with 2020 Census Benchmark.

Building Activity
The following tables provide summaries of the building permit valuations and the number of new dwelling units authorized in the City and County for years 2020 through 2024.

BUILDING PERMIT VALUATIONS
City of Beaumont
2020-2024
(Dollars in Thousands)
2020 2021 2022 2023 2024
Valuation ($000):

Residential $ 73,829 $ 141,171 $ 160,159 $ 161,510 $ 113,475 Non-residential 25,559 16,448 20,799 97,862 33,703
Total* $ 99,388 $ 157,619 $ 180,958 $ 259,372 $ 147,178 Residential Units:

Single family 271 494 651 519 270
Multiple family 0 0 0 0 55
Total 271 494 651 519 325
* Totals may not add to sums due to rounding.

Source: Construction Industry Research Board.

C-1

BUILDING PERMIT VALUATIONS
County of Riverside
2020-2024
(Dollars in Thousands)
Valuation ($000):

Residential
Non-residential
Total*
Residential Units:

Single family
Multiple family
Total
2020
2021 2022
2023 2024
$ 2,519,303 $ 2,262,642 $ 2,921,113 $ 3,306,086 $ 2,650,673 L153.778 1,543,998 1.701,618 1,676,498 1,436,924
$ 3,673,081 $ 3,806,640 $ 4,622,731 $ 4,982,584 $ 4,087,597 8,443 7,360 8,863 8,894 6,882
723 1,126 2,861 6,428 2,275
9,166 8,486 11,724 15,322 9,157
* Totals may not add to sums because of rounding.

Source: Construction Industry Research Board.

Employment
The following tables show the largest employers located in the City and County as of June 30, 2025.

LARGEST EMPLOYERS
City of Beaumont
(as of June 30, 2025)
Rank Name ofBusiness

1. Amazon

2. Beaumont Unified School District

3. CJ Foods

4. Walmart
Employees
5,800
2,520
630
550
Type ofBusiness
Online Retail
School District
Food & Food Service
Retail Store
Source: City of Beaumont Annual Comprehensive Financial Report for year ended June 30, 2025.

Rank

LARGEST EMPLOYERS
County of Riverside
(as of June 30, 2025)
Name of Business

1. County of Riverside

2. Amazon

3. State of California

4. Walmart

5. Riverside Unified School District

6. Moreno Valley Unified School District

7. Kaiser Permanente Riverisde Medical Center

8. Stater Brothers

9. University of California, Riverside

10. Eisenhower Medical Center
Employees
25,345
14,317
8,398
7,523
6,562
6,306
5,817
5,145
5,137
4,971
Type of Business
County Government
Online Retail
Government
Retail Store
School District
School District
Medical Center
Supermarket
University
Medical Center
Source: County of Riverside, California Annual Comprehensive Financial Report Fiscal Year Ended June 30, 2025.

C-2

Employment and Industry
Employment data by industry is not separately reported on an annual basis for the City but is compiled for the Riverside -San Bernardino -Ontario Metropolitan Statistical Area (the "MSA"), which includes all of Riverside and San Bernardino Counties. In addition to varied manufacturing employment, the MSA has large and growing commercial and service sector employment, as reflected in the table below.

The following table represents the Annual Average Labor Force and Industry Employment for the Riverside -San Bernardino -Ontario MSA for years 2021 through 2025.

RIVERSIDE -SAN BERNARDINO-ONTARIO MSA

INDUSTRY EMPLOYMENT & LABOR FORCE - BY ANNUAL AVERAGE
2021 2022 2023 2024 2025
Civilian Labor Force
Civilian Employment
Civilian Unemployment
Civilian Unemployment Rate
2,108,400 2,140,500 2,180,300 2,209,100 N/A
1,951,600 2,049,900 2,078,100 2,093,800 N/A
156,700 90,700 102,300 115,300 N/A

7.4% 4.2% 4.7% 5.2% N/A
Total Farm 13,700 13,800 13,200 13,400 13,100
TotalNonfarm 1,575,100 1,660,200 1,680,000 1,699,600 1,717,300 Total Private 1,333,100 1,410,200 1,420,700 1,437,400 1,452,200 Goods Producing 207,700 216,300 215,300 213,600 206,800 Mining and Logging 1,400 1,500 1,500 1,600 1,600
Construction 110,100 114,700 115,400 115,900 110,000
Manufacturing 96,100 100,000 98,500 96,100 95,200
Service Providing 1,367,400 1,443,900 1,464,700 1,486,000 1,510,500 Trade, Transportation and Utilities 443,200 464,900 457,900 455,700 453,800 Wholesale Trade 67,400 69,500 68,900 68,400 67,300
Retail Trade 177,000 181,000 183,000 182,300 181,400
Transportation, Warehousing and Utilities 198,800 214,400 206,000 205,000 205,200 Information 12,500 13,000 13,300 12,800 12,100
Financial Activities 45,200 46,000 44,900 44,100 43,400 Professional and Business Services 166,600 173,900 164,400 161,300 157,400 Private Education and Health Services 254,300 267,900 287,800 312,500 341,000 Leisure and Hospitality 160,200 180,900 187,600 186,400 186,700 Other Services 43,600 47,400 49,400 51,000 51,000
Government 242,000 250,000 259,300 262,200 265,100
Total, All Industries 1,588,800 1,674,000 1,693,200 1,713,000 1,730,400 Note: Does not include proprietors, self-employed, unpaid volunteers or family workers, domestic workers in households and persons involved in labor-management trade disputes. Employment reported by place ofwork. Items may not add to total due to independent rounding. The "Total, All Industries" data is not directly comparable to the employment data found in this Appendix C.

Source: State of California, Employment Development Department, Industry Employment — Official Estimates. March 2025 Benchmark.

C-3

The following table summarizes the labor force, employment and unemployment figures for years 2020 through 2024 for the City, the County, the State and the nation as a whole.

CITY OF BEAUMONT,

COUNTY OF RIVERSIDE,

STATE OF CALIFORNIA AND UNI I'ED STATES
Average Annual Civilian Labor Force, Employment and Unemployment Year and Area
Labor Force Employmentu) Unemployment(2)
2020
City of Beaumont 23,900 21,800 2,100
County of Riverside 1,118,900 1,006,200 112,700
State of California 18,958,600 17,037,000 1,921,600
United States 160,742,000 147,795,000 12,947,000
2021
City of Beaumont 24,200 22,700 1,500
County of Riverside 1,130,500 1,047,700 82,800
State of California 18,956,600 17,568,700 1,387,800
United States 161,204,000 152,581,000 8,623,000
2022
City of Beaumont 24,600 23,700 800
County of Riverside 1,145,700 1,097,200 48,500
State of California 19,169,300 18,348,900 820,400
United States 164,287,000 158,291,000 5,996,000
2023
City of Beaumont 24,900 23,900 1,000
County of Riverside 1,157,900 1,102,300 55,600
State of California 19,308,300 18,388,300 920,000
United States 167,116,000 161,037,000 6,080,000
Unemployment
Rate (%) (3)

8.7%

10.1 10.1

8.1 6.3%

7.3 7.3

5.3 3.4%

4.2 4.3

3.6 4.0%

4.8 4.8

3.6 2024
City of Beaumont N/A N/A N/A N/A
County of Riverside 1,181,300 1,118,600 62,700 5.3
State of California 19,644,100 18,600,900 1,043,100 5.3 United States 168,106,000 161,346,000 6,761,000 4.0
Note: Data is not seasonally adjusted.
(1) Annual averages, unless otherwise specified.
(2) Includes persons involved in labor-management trade disputes. (3) The unemployment rate is computed from unrounded data; therefore, it may differ from rates computed from rounded figures in this table.

Source: U.S. Department of Labor — Bureau of Labor Statistics, California Employment Development Department. March 2024 Benchmark.

Personal Income
Personal income consists of the income that persons receive in return for their provision of labor, land, and capital used in current production as well as other income, such as personal current transfer receipts. In the state and local personal income accounts the personal income of an area represents the income received by or on behalf of the persons residing in that area. It is calculated as the sum of wages and salaries, supplements C-4

to wages and salaries, proprietors' income with inventory valuation (IVA) and capital consumption adjustments (CCAdj), rental income of persons with capital consumption adjustment (CCAdj), personal dividend income, personal interest income, and personal current transfer receipts, less contributions for government social insurance plus the adjustment for residence.

Total personal income in Riverside County increased by 23.63% between 2020 and 2024. The following tables summarize personal income for Riverside County for 2020 through 2024.

PERSONAL INCOME
Riverside County
2020-2024
(Dollars in Thousands)
Annual
Year Riverside County Percent Change
2020 115,415,017
2021 126,651,219 9.7
2022 127,575,613 0.7
2023 133,563,233 4.6
2024 142,697,421 6.8
Note. A11 dollar estimates are in thousands of current dollars (not adjusted for inflation).

Source: U.S. Bureau of Economic Analysis.

The following table summarizes per capita personal income for Riverside County, California and the United States for years 2020 through 2024. This measure of income is calculated as the total personal income divided by total midyear population.

PER CAPITA PERSONAL INCOME
Riverside County, State of California and the United States 2020-2024
Year Riverside County California United States
2020
2021
2022
2023
2024
Source: U.S. Bureau of Economic Analysis.
47,600
51,584
51,449
53,350
56,404
70,100
77,134
77,196
81,196
86,232
59,151
64,692
66,298
70,002
73,204
C-5

Taxable Sales
The table below presents taxable sales for the years 2021 through 2025 for the City.

TAXABLE SALES
City of Beaumont
2020-2024
(Dollars in Thousands)
Year
Permits Taxable Transactions
2021 5,737 $1,229,150
2022 5,772 2,472,075
2023 6,233 2,321,599
2024 6,764 2,313,404
2025 7,132 2,489,644
Source: California Department of Tax and Fee Administration, Taxable Sales — Cities by Type of Business (Taxable Table 4).

The table below presents taxable sales for the years 2021 through 2025 for the County.

Year

TAXABLE SALES
County of Riverside
2021-2025
(Dollars in Thousands)
Permits Taxable Transactions
2021 264,439 $55,535,196
2022 265,660 62,117,153
2023 270,392 61,331,274
2024 280,169 60,826,953
2025 284,599 60,788,218
Source: California Department of Tax and Fee Administration, Taxable Sales — By County (Taxable Table 2).

C-6

APPENDIX D

RATES AND METHODS OF APPORTIONMENT

OF SPECIAL TAXFS FOR

THE TAXING JURISDICTIONS

RATE AND METHOD OF APPORTIONMENT FOR
IMPROVEMENT AREA NO. 8D OF
COMMUNITY FACILITIES DISTRICT NO. 93-1

OF 'IIW CITY OF BEAUMONT
A Special Tax as hereinafter defined shall be levied on and collected in Improvement Area No. 8D ("IA No. 8D") of Community Facilities District No. 93-1 of the City of Beaumont ("CFD No. 93-1") each Fiscal Year, in an amount determined by the City Council of the City of Beaumont through the application of the appropriate Special Tax for "Developed Property," "Final Map Property," and "Undeveloped Property," as described below. All of the real property in IA No. 8D of CFD No. 93-1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided.

SECTION A

DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County parcel map. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560.
"Act" means the Mello -Roos Communities Facilities Act of 1982 as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means any ordinary and necessary expense incurred by the City to carry out the administration of IA No. 8D of CFD No. 93-1 related to the determination of the amount of the levy of Special Taxes, the collection of Special Taxes including the expenses of collecting delinquencies, the administration of Bonds, the payment of salaries and benefits of any City employee whose duties are directly related to the administration of IA No. 8D, and costs otherwise incurred in order to carry out the authorized purposes of IA No. 8D.
"Assessor's Parcel" means a lot or parcel of land designated on an Assessor's Parcel Map with an assigned Assessor's Parcel Number within the boundaries of CFD No. 93-1. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel Number.
"Assessor's Parcel Number" means that number assigned to an Assessor's Parcel by the County for purposes of identification.
"Assigned Special Tax for Facilities" means the Special Tax of that name described in Section D below. "Backup Special Tax for Facilities" means the Special Tax of that name described in Section E below. "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, notes, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other D-1

financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which Special Taxes for Facilities have been pledged.
"Building Permit" means a permit for new construction for a residential dwelling, or non-residential structure.

For purposes of this definition, "Building Permit" shall not include permits for construction or installation of retaining walls, utility improvements, or other such improvements not intended for human habitation. "Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the building permit application for such Assessor's Parcel.
"Calendar Year" means the period commencing January 1 of any year and ending the following December 31.
"CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD No. 93-1" means Community Facilities District No. 93-1 established by the City under the Act. "City" means the City of Beaumont.
"City Council" means the City Council of the City, acting as the Legislative Body of CFD No. 93-1, or its designee.
"Consumer Price Index" means the index published monthly by the U.S. Department of Labor, Bureau of Labor Statistics for all urban consumers in the Los Angeles -Riverside -Orange County area. "County" means the County of Riverside.
"Developed Property" means all Assessor's Parcels that: (i) were issued Building Permits on or before June 1St preceding the Fiscal Year in which the Special Tax is being levied, and (ii) were created on or before the January Pt preceding the Fiscal Year in which the Special Tax is being levied, and that each such Assessor's Parcel is associated with a Lot, as reasonably determined by the City. "Exempt Property" means all Assessor's Parcels designated as being exempt from Special Tax as determined in Section J.
"Final Map" means a subdivision of property evidenced by the recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or the recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which Building Permits may be issued without further subdivision. "Final Map Property" means all Assessor's Parcels: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) for which a Building Permit was not issued prior to the June 1st preceding the Fiscal Year in which the Special Tax is being levied.
"Fiscal Year" means the period commencing on July 1 of any year and ending the following June 30. "Improvement Area No. 8D" or "IA No. 8D" means Improvement Area No. 8D as depicted on the boundary map of CFD No. 93-1.

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"Lot" means an individual legal lot created by a Final Map, identified by an Assessor's Parcel Number for which a Building Permit could be issued.
"Maximum Special Tax" means the Maximum Special Tax for Facilities and Maximum Special Tax for Services.
"Maximum Special Tax for Facilities" means the maximum Special Tax, determined in accordance with Section C that can be levied by CFD No. 93-1 in any Fiscal Year on any Assessor's Parcel. "Maximum Special Tax for Services" means the maximum Special Tax, determined in accordance with Section C that can be levied by CFD No. 93-1 in any Fiscal Year on any Assessor's Parcel. "Non -Residential Property" means all Assessor's Parcels of Developed Property for which a Building Permit was issued for any type of non-residential use.
"Operating Fund" means a fund that shall be maintained for IA No. 8D of CFD No. 93-1 for any Fiscal Year to pay for the actual costs of maintenance, repair, and replacement of the Service Area, and the Administrative Expenses.
"Operating Fund Balance" means the amount of funds in the Operating Fund at the end of the preceding Fiscal Year.
"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax for Facilities obligation for an Assessor's Parcel, as described in Section H. "Prepayment Amount" means the amount required to prepay the Special Tax for Facilities obligation in full for an Assessor's Parcel, as described in Section G.
"Proportionately" means that (i) the ratio of the actual Special Tax for Facilities levy to the applicable Assigned Special Tax for Facilities is equal for all applicable Assessor's Parcels and (ii) the ratio of the actual Special Tax for Services levy to the applicable Maximum Special Tax for Services is equal for all applicable Assessor's Parcels. In case of Developed Property subject to the apportionment of the Special Tax for Facilities under step four of Section F, "Proportionately" in step four means that the quotient of (a) the actual Special Tax for Facilities levy less the Assigned Special Tax for Facilities divided by (b) the Backup Special Tax for Facilities less the Assigned Special Tax for Facilities, is equal for all applicable Assessor's Parcels. "Residential Property" means all Assessor's Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more residential dwelling units. "Service Area" means the landscape parkways, neighborhood park, easements and green belts within the boundaries of IA No. 8D and the City of Beaumont, and IA No. 8D's fair share of storm drain and flood control facilities.
"Special Tax" means Special Tax for Facilities and Special Tax for Services. "Special Tax for Facilities" means any of the special taxes authorized to be levied by CFD No. 93-1 pursuant to the Act to fund the Special Tax Requirement for Facilities. "Special Tax for Services" means any of the special taxes authorized to be levied by CFD No. 93-1 pursuant to the Act to fund the Special Tax Requirement for Services. "Special Tax Requirement" means Special Tax Requirement for Facilities and Special Tax Requirement for Services.

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"Special Tax Requirement for Facilities" means the amount required in any Fiscal Year for IA No. 8D to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to establish or replenish any reserve funds established in association with the Bonds, (v) the collection or accumulation of funds for the acquisition or construction of facilities authorized by IA No. 8D provided that the inclusion of such amount does not cause an increase in the levy of Special Tax for Facilities on Final Map Property or Undeveloped Property, and (vi) an allowance for delinquencies as determined by the Special Tax Administrator, less (vii) any amount available to pay debt service or other periodic costs on the Bonds pursuant to any applicable bond indenture, fiscal agent agreement, or trust agreement.
"Special Tax Requirement for Services" means the amount determined in any Fiscal Year for IA No. 8D equal to (i) the budgeted costs of the maintenance, repair and replacement of the Service Area which have been accepted and maintained or are reasonably expected to be accepted and maintained during the current Fiscal Year, (ii) Administrative Expenses, and (iii) anticipated delinquent Special Taxes for Services based on the delinquency rate in EA No. 8D for the previous Fiscal Year, less (iv) the Operating Fund Balance. "Taxable Property" means all Assessor's Parcels within CFD No. 93-1 which are not Exempt Property. "Undeveloped Property" means all Assessor's Parcels of Taxable Property which are not Developed Property or Final Map Property.

SECTION B

CLASSIFICATION OF ASSESSOR'S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2006-2007, each Assessor's Parcel within IA No. 8D shall be classified as Taxable Property or Exempt Property. In addition, each Assessor's Parcel of Taxable Property shall be further classified as Developed Property, Final Map Property or Undeveloped Property. Lastly, each Assessor's Parcel of Developed Property shall further be classified as Residential Property or Non Residential Property.

SECTION C

MAXIMUM SPECIAL TAXES

1. Developed Property
a. The Maximum Special Tax for Facilities for each Assessor's Parcel of Residential Property that is classified as Developed Property in any Fiscal Year, shall be the amount determined by the greater of (i) the application of the Assigned Special Tax for Facilities in Table 1 or (ii) the application of the Backup Special Tax for Facilities. The Maximum Special Tax for Facilities for each Assessor's Parcel of Non -Residential Property that is classified as Developed Property in any Fiscal Year shall be the Assigned Special Tax for Facilities in Table 1 of Section D.
b. Prior to the issuance of Bonds, the Assigned Special Tax for Facilities on Developed Property set forth in Table 1 and the Assigned Special Tax for Facilities on Final Map Property and Undeveloped Property set forth in Section D.2 may be reduced in accordance with, and subject to the conditions set forth in this paragraph. If it is reasonably determined by the CFD Administrator that the overlapping debt burden (as defined in the Statement of Goals and Policies for the Use of the Mello -Roos Community Facilities Act of 1982 adopted by the City Council, the "Goals and Policies") calculated pursuant to the Goals and Policies exceeds the City's maximum level objective set forth in such document, the Maximum Special Tax for Facilities on Developed Property may be reduced (by modifying Table 1) to the amount D-4

necessary to satisfy the City's objective with respect to the maximum overlapping debt burden level with the written consent of the CFD Administrator. In order to reduce the Maximum Special Tax for Facilities on Developed Property it may be necessary to reduce the Maximum Special Tax for Facilities for Final Map Property and Undeveloped Property. The reductions permitted pursuant to this paragraph shall be reflected in an amended Notice of Special Tax Lien which the City shall cause to be recorded by executing a certificate in substantially the form attached hereto as Attachment No. 1. c. The Maximum Special Tax for Services for each Assessor's Parcel of Residential Property that is classified as Developed Property for Fiscal Year 2006-2007 shall be $265.90 per dwelling unit. The Maximum Special Tax for Services for each Assessor's Parcel of Non - Residential Property that is classified as Developed Property for Fiscal Year 2006-2007 shall be $1,649 per Acre. On each July 1, commencing July 1, 2007, the Maximum Special Tax for Services for the prior Fiscal Year shall be adjusted by an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December of the prior Fiscal Year.

2. Final Map Property
a. The Maximum Special Tax for Facilities for each Assessor's Parcel classified as Final Map Property shall be the Assigned Special Tax for Facilities in Section D. b. The Maximum Special Tax for Services for each Assessor's Parcel classified as Final Map Property in Fiscal Year 2006-2007 shall be $1,649 per Acre. On each July 1, commencing July 1, 2007, the Maximum Special Tax for Services for the prior Fiscal Year shall be adjusted by an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December of the prior Fiscal Year.

3. Undeveloped Property
The Maximum Special Tax for Facilities for each Assessor's Parcel classified as Undeveloped Property shall be the Assigned Special Tax for Facilities in Section D.

SECTION D

ASSIGNED SPECIAL TAX FOR FACILITIES

1. Developed Property
Each Fiscal Year, each Assessor's Parcel of Developed Property shall be subject to an Assigned Special Tax for Facilities. The Assigned Special Tax for Facilities applicable to an Assessor's Parcel of Developed Property for any Fiscal Year shall be determined pursuant to Table 1 below.

TABLE 1

ASSIGNED SPECIAL TAX RATES FOR FACILITIES FOR DEVELOPED PROPERTY Land Use Type
Residential Property
Residential Property
Residential Property
Non -Residential
Assigned Special Tax for Facilities
Building Square Footage for Fiscal Year 2006-2007
Less than 1,400
1,400 - 1,700
Greater than 1,700
N/A
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$1,214 per dwelling unit
$1,246 per dwelling unit
$1,404 per dwelling unit
$59,667 per acre

2. Final Map Property and Undeveloped Property
Each Fiscal Year, each Assessor's Parcel of Final Map Property and Undeveloped Property shall be subject to an Assigned Special Tax for Facilities. The Assigned Special Tax for Facilities for an Assessor's Parcel classified as Final Map Property or Undeveloped Property for Fiscal Year 2006- 2007 shall be $59,667 per acre.

3. Increase in the Assigned Special Tax for Facilities
On each July 1, commencing on July 1, 2007, the Assigned Special Tax for Facilities for each Assessor's Parcel of Developed Property, Final Map Property, and Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

SECTION E

BACKUP SPECIAL TAXES FOR FACILITIFS
Each Fiscal Year, each Assessor's Parcel of Developed Property classified as Residential Property shall be subject to a Backup Special Tax for Facilities. In each Fiscal Year, the Backup Special Tax for Facilities rate for Developed Property classified as Residential Property within a Final Map shall be the rate per Lot calculated according to the following formula:

RxA
B
L
The terms above have the following meanings:

B = Backup Special Tax for Facilities per Lot in each Fiscal Year R = Maximum Special Tax for Facilities rate per Acre for Undeveloped Property for the applicable Fiscal Year
A = Acreage of Developed Property classified or to be classified as Residential Property in such Final Map.

L = Lots in the Final Map which are classified or to be classified as Residential Property.

Each July 1 commencing, on July 1, 2007, the Backup Special Tax for each Assessor's Parcel shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

Notwithstanding the foregoing, if all or any portion of the Final Map(s) described in the preceding paragraph is subsequently changed or modified, then the Backup Special Tax for Facilities for each Assessor's Parcel of Developed Property classified or to be classified as Residential Property in such Final Map area that is changed or modified shall be a rate per square foot of Acreage calculated as follows:

1. Determine the total Backup Special Tax for Facilities anticipated to apply to the changed or modified Final Map area prior to the change or modification.

2. The result of paragraph 1 above shall be divided by the Acreage of Developed Property classified or to be classified as Residential Property which is ultimately expected to exist in such changed or modified Final Map area, as reasonably determined by the City.

3. The result of paragraph 2 above shalt be divided by 43,560. The result is the Backup Special Tax for Facilities per square foot of Acreage which shall be applicable to Assessor's Parcels D-6

of Developed Property classified as Residential Property in such changed or modified Final Map area for all remaining Fiscal Years in which the Special Tax for Facilities may be levied.

SECTION F

METHOD OF APPORTIONMENT OF THE SPECIAL TAX FOR FACILITIES AND

THE SPECIAL TAX FOR SERVICFS

1. Commencing Fiscal Year 2006-2007 and for each subsequent Fiscal Year, the City Council shall levy a Special Tax for Facilities on all Taxable Property within IA No. 8D until the amount of Special Tax for Facilities equals the Special Tax Requirement for Facilities in accordance with the following steps:

Step One:

Step Two:

Step Three:

Step Four:

Step Five:

The Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax for Facilities rates in Table 1 as needed to satisfy the Special Tax Requirement for Facilities.

If additional moneys are needed to satisfy the Special Tax Requirement for Facilities after the first step has been completed, the Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Final Map Property, at up to 100% of the Assigned Special Tax for Facilities applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement for Facilities.

If additional moneys are needed to satisfy the Special Tax Requirement for Facilities after the first two steps have been completed, the Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property, excluding any Undeveloped Property pursuant to Section J, at up to 100% of the Assigned Special Tax for Facilities applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement for Facilities.

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

If additional moneys are needed to satisfy the Special Tax Requirement for Facilities after the first four steps have been completed, the Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property classified as Undeveloped Property pursuant to Section J at up to 100% of the Assigned Special Tax for Facilities applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement for Facilities.

2. Commencing Fiscal Year 2006-2007 and for each subsequent Fiscal Year, the City Council shall levy a Special Tax for Services on all Taxable Property within IA No. 8D until the amount of Special Tax for Services equals the Special Tax Requirement for Services in accordance with the following steps:

Step One:

The Maximum Special Tax for Services shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Maximum Special Tax for Services as needed to satisfy the Special Tax Requirement for Services.

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Step Two:

If additional moneys are needed to satisfy the Special Tax Requirement for Services after the first step has been completed, the Maximum Special Tax for Services shall be levied Proportionately on each Assessor's Parcel of Final Map Property, at up to 100% of the Maximum Special Tax for Services applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement for Services.

Under no circumstances will the Special Tax for Facilities or the Special Tax for Services levied against any Assessor's Parcel used as a private residence be increased as a consequence of delinquency or default by the owner of any other Assessor's Parcel or Parcels within CFD No. 93-1 by more than ten (10) percent of the Special Tax that would be levied in that Fiscal Year, if there were no delinquencies, pursuant to California Government Code Section 53321(d), as in effect on the date of formation of CFD No. 93-1.

SECTION G

PREPAYMENT OF SPECIAL TAX FOR FACILITIES
The following definitions apply to this Section G:
"CFD Public Facilities" means $5,000,000 expressed in 2007 dollars, which shall increase by the Construction Inflation Index on January 1, 2008, and on each January 1 thereafter, or such lower number as (i) shall be determined by the City as sufficient to provide the public facilities under the authorized bonding program for CFD No. 93-1, or (ii) shall be determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Taxes levied under this Rate and Method of Apportionment.
"Construction Fund" means an account specifically identified in the Indenture or functionally equivalent to hold funds which are currently available for expenditure to acquire or construct public facilities eligible under CFD No. 93-1.
"Construction Inflation Index" means the annual percentage change in the Engineering News -Record Building Cost Index for the City of Los Angeles, measured as of the Calendar Year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News -Record Building Cost Index for the City of Los Angeles.
"Future Facilities Costs" means the CFD Public Facilities minus public facility costs available to be Raided through existing construction or escrow accounts or funded by the Outstanding Bonds, and minus public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepay meat.
"Outstanding Bonds" means all previously issued bonds issued and secured by the levy of Special Tax for Facilities which will remain outstanding after the first interest and -or principal payment date following the current Fiscal Year, excluding bonds to be redeemed at a later date with the proceeds of prior prepayments of the Maximum Special Tax for Facilities.

The Special Tax for Facilities obligation of an Assessor's Parcel of Developed Property, an Assessor's Parcel of Final Map Property or Undeveloped Property for which a Building Permit has been issued or an Assessor's Parcel of Undeveloped Property that is classified as Undeveloped Property pursuant to Section J may be prepaid in full, provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding with respect to such Assessor's Parcel at the time the Special Tax for Facilities obligation would be prepaid.

The Prepayment Amount for an Assessor's Parcel eligible for prepayment shall be determined as described below.

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An owner of an Assessor's Parcel intending to prepay the Special Tax for Facilities obligation shall provide the City with written notice of intent to prepay, and within 5 days of receipt of such notice, the City shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by CFD No. 93-1 in calculating the proper amount of a prepayment. Within 15 days of receipt of such non- refundable deposit, the City shall notify such owner of the prepayment amount of such Assessor's Parcel.

The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to the following formula (capitalized terms defined below):

Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance
plus Administrative Fee
less Reserve Fund Credit
equals Prepayment Amount
As of the date of prepayment, the Prepayment Amount shall be calculated as follows:

1. For Assessor's Parcels of Developed Property, compute the Assigned Special Taxes for Facilities and the Backup Special Taxes for Facilities applicable to the Assessor's ParceL For Assessor's Parcels of Final Map Property or Undeveloped Property, excluding any Undeveloped Property pursuant to Section J, compute the Assigned Special Tax for Facilities and the Backup Special Tax for Facilities applicable to the Assessor's Parcel as though it was already designated as Developed Property based upon the Building Permit issued or to be issued for that Assessor's Parcel. For Assessor's Parcels classified as Undeveloped Property pursuant to Section J, compute the Assigned Special Tax for Facilities.

2. For each Assessor's Parcel of Developed Property, Final Map Property, Undeveloped Property, or Undeveloped Property pursuant to Section J to be prepaid, (a) divide the Assigned Special Tax for Facilities computed pursuant to paragraph 1 for such Assessor's Parcel by the sum of the estimated Assigned Special Tax for Facilities applicable to all Assessor's Parcels of Taxable Property at buildout, as reasonably determined by the City, and (b) divide the Backup Special Tax for Facilities computed pursuant to paragraph 1 for such Assessor's Parcel by the sum of the estimated Backup Special Tax for Facilities applicable to all Assessor's Parcels of Taxable Property at buildout, as reasonably determined by the City.

3. Multiply the larger quotient computed pursuant to paragraph 2(a) or 2(b) by Outstanding Bonds. The product shall be the "Bond Redemption Amount."

4. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed with the proceeds of the Bond Redemption Amount. This product is the "Redemption Premium."

5. Compute the Future Facilities Cost.

6. Multiply the larger quotient computed pursuant to paragraph 2 (a) or 2 (b) by the amount determined pursuant to paragraph 5 to determine the Future Facilities Cost to be prepaid (the "Future Facilities Amount").

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7. Compute the amount needed to pay interest on the Bond Redemption Amount to be redeemed with the proceeds of the Prepayment Amount until the earliest call date for the Outstanding Bonds.

8. Estimate the amount of interest earnings to be derived from the reinvestment of the Bond Redemption Amount plus the Redemption Premium until the earliest call date for the Outstanding Bonds.

9. Subtract the amount computed pursuant to paragraph 8 from the amount computed pursuant to paragraph 7. This difference is the "Defeasance."

10. Estimate the administrative fees and expenses associated with the prepayment, including the costs of computation of the Prepayment Amount, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption. This amount is the "Administrative Fee."

11. Calculate the "Reserve Fund Credit" as the lesser of: (a) the expected reduction in the applicable reserve requirements, if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirements in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the applicable reserve hinds on the prepayment date. Notwithstanding the foregoing, if the reserve fund requirement is satisfied by a surety bond or other instrument at the time of the prepayment, then no Reserve Fund Credit shall be given. Notwithstanding the foregoing, the Reserve Fund Credit shall in no event be less than 0.

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

With respect to the Special Tax for Facilities obligation that is prepaid pursuant to this Section G, the City Council shall indicate in the records of CFD No. 93-1 that there has been a prepayment of the Special Tax for Facilities obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such prepayment to indicate the prepayment of the Special Tax for Facilities obligation and the release of the Special Tax for Facilities lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay such Special Taxes for Facilities shall cease.

Notwithstanding the foregoing, no prepayment will be allowed unless the amount of Special Tax for Facilities that may be levied on Taxable Property, net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in each future Fiscal Year.

SECTION H

PARTIAL PREPAYMENT OF SPECIAL TAX FOR FACILITIES
The Special Tax for Facilities obligation of an Assessor's Parcel of Developed Property or an Assessor's Parcel of Undeveloped Property for which a Building Permit has been issued and will be classified as Developed Property in the next Fiscal Year, as calculated in this Section H below, may be partially prepaid, provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding with respect to such Assessor's Parcel at the time the Special Tax for Facilities obligation would be prepaid.

D - I0

The Partial Prepayment Amount shall be calculated according to the following formula:

PP = ((PG — A) x F) + A
The terms above have the following meanings:

PP = the Partial Prepayment Amount.

PG = the Prepayment Amount calculated according to Section G.

F = the percent by which the owner of the Assessor's Parcel is partially prepaying the Special Tax for Facilities obligation.

A = the Administrative Fee calculated according to Section G.10.

With respect to any Assessor's Parcel that is partially prepaid, the City Council shall indicate in the records of CFD No. 93-1 that there has been a partial prepayment of the Special Tax for Facilities obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such partial prepayment of the Special Tax for Facilities obligation, to indicate the partial prepayment of the Special Tax for Facilities obligation and the partial release of the Special Tax for Facilities lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay such prepaid portion of the Special Tax for Facilities for shall cease.

Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount of Special Tax for Facilities that may be levied on Taxable Property after such partial prepayment, net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in each future Fiscal Year.

SECTION I

TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax for Facilities shall be levied on all Assessors' Parcels subject to the Special Tax for Facilities. If any delinquent Special Tax for Facilities remain uncollected prior to or after all Bonds are retired, the Special Tax for Facilities may be levied to the extent necessary to reimburse CFD No. 93-1 for uncollected Special Tax for Facilities associated with the levy of such Special Taxes for Facilities, but not later than the 2050-2051 Fiscal Year. The Special Tax for Services shall be levied as long as it is needed to meet the Special Tax Requirement for Services, as determined at the sole discretion of the City Council.

SECTION J

EXEMPTIONS
The City shall classify as Exempt Property (i) Assessor's Parcels owned by the State of California, Federal or other local governments, (ii) Assessor's Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor's Parcels used exclusively by a homeowner's association, or (iv) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, provided that no such classification would reduce the sum of all Taxable Property to less than 6.19 Acres. Notwithstanding the above, the City Council shall not classify an Assessor's Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than 6.19 Acres. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than

6.19 Acres will continue to be classified as Undeveloped Property, and will continue to be subject to Special Taxes accordingly.

D - II

SECTION K

APPEALS
Any property owner claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the City Council not later than twelve months after having paid the first installment of the Special Tax that is disputed. A representative(s) of CFD No. 93-1 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative's decision requires that the Special Tax for an Assessor's Parcel be modified or changed in favor of the property owner, a cash refund shall not be made (except for the last year of levy), but an adjustment shall be made to the Special Tax on that Assessor's Parcel in the subsequent Fiscal Year(s).

The City Council may interpret this IA No. 8D and the levy of Special Taxes for purposes of clarifying any ambiguity and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals. Any decision of the City Council shall be binding as to all persons.

SECTION L

MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 93-1 may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.

D -I2