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Community Facilities Districts Frequently Asked Questions Is it true that public improvements like streets, parks and reservoirs would be delayed, done piecemeal, or may never be done without the CFD program? Yes, needed public facilities are built upfront under the CFD program by selling municipal bonds rather than waiting until all the homes are built. Is it true that homeowners always pay for the cost of public improvements and amenities? Yes, as the old saying goes, "There is no free lunch." If developers pay for public improvements, homeowners pay more for their homes. If the CFD program sells bonds, homeowners pay special taxes for those improvements. Is it true that the CFD program is a good investment for my home and community? Yes, these improvements and new facilities add value and keep property values up in Beaumont. By maintaining facilities like parks and landscaped areas along public streets, the CFD program promotes long-term property values in our community. Is it true that the CFD program's on-going maintenance of public facilities benefits my property values? Yes, the CFD program promotes long-term property values in our community. Homeowners pay for keeping their neighborhood parks and medians green as well as their fair share for city-wide improvements that benefit everyone. Is it true that my tax rate cannot be raised or lowered without a vote of the entire affected area? Yes, in order to raise or lower the amount of a CFD the entire affected region must vote on the measure. For instance, if the possibility of refinancing is available the entire area would need to vote to lower the rate. No new CFD rates can be assessed on any property without the vote of the people. "The Birth of Mello Roos" and "Mello Roos Explained" credit - By Chris Sorensen, Founder, USA Help, Inc. A CA Non-Profit Corporation Graphic depicts the difference between paying a fixed rate versus paying a 2 percent increase each year. BEAUMONT NOW | AUGUST 2013 9

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