Beaumont council approves 2025B bond issuance and steps to form Fairway Canyon CFDs for infrastructure and services
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Summary
Council approved the issuance of 2025B bonds to fund improvement areas in CFD 2023‑1 (Fairway Canyon) and adopted resolutions of intention to form three coordinated CFDs (facilities, public safety services, maintenance) for Fairway Canyon 4C; proposed bond sizing is approximately $2M (Improvement Area 1) and $7M (Area 2).
Beaumont — The City Council on Nov. 4 approved a financing structure to issue Local Agency Reserve (2025B) bonds for Improvement Areas 1 and 2 of Community Facilities District (CFD) 2023‑1 (Fairway Canyon) and adopted resolutions of intention to form three coordinated CFDs to finance facilities, public-safety services, and maintenance services for the Fairway Canyon 4C project.
Municipal adviser and bond counsel described a pooled issuance through the Beaumont Public Improvement Authority that will acquire each improvement area’s local obligation. Presenters said the approach reduces issuance costs (estimated total issuance cost just over $400,000) by combining issues; proposed par amounts for the new-money issuance were roughly $2,000,000 for Improvement Area 1 and $7,000,000 for Improvement Area 2, below previously authorized not‑to‑exceed amounts ($3.5M and $11M respectively).
Consultants also walked council through planned annexable CFDs: 2025‑1 (facilities) to finance roads, sewer and park improvements (approx. $2.6M of project cost referenced); 2025‑S (public safety services) to provide a dedicated mechanism for safety funding (initial sample rates cited, with a 5% escalator beginning in later years); and 2025‑M (maintenance) to fund ongoing maintenance and provide a contingent special-tax backstop if a property owners association fails to deliver services. Staff said CFD taxes are structured as level (non‑escalating) special taxes for the bond life where indicated and that the bonds will be secured with special taxes sized to provide at least 110% coverage of annual debt service.
Council voted to approve the financing steps, the preliminary documents and the resolutions of intention. Staff noted further public hearings and elections will be scheduled (Dec. 16 public hearings and an Jan. 2026 second reading/ordering of special taxes), and that specific bond pricing and final documents will return to council as required by law.