December 14, 2013
By: Libi Uremovic , December 14, 2013 | Original Article at Patch.com
Agenda Item 6.a.7 on the December 17th Beaumont City Council lists: AGREEMENT FOR SERVICES: URBAN LOGIC CONSULTANTS, INC. Congratulations to the City for attempting their 1st contract in 20 years, but this is not a legal contract in the State of California.
California Public Contact Code 100 clearly states that all public agency contact work must be offered to the Public through the bidding process: ( c ) To provide all qualified bidders with a fair opportunity to enter the bidding process, thereby stimulating competition in a manner conducive to sound fiscal practices and (d) To eliminate favoritism, fraud, and corruption in awarding of public contracts.
The City …
December 13, 2013
By: Libi Uremovic , December 13, 2013 | Original Article at Patch.com
Municipal Bonds have a basic life cycle: the local agency has a one-time financial need. The agency appeals to the voters for a property or sales tax increase to pay for the bonds. After voter approval the bonds are issued and sold to investors.
The bond issues are divided into Securities of varying monetary values and due dates. The Underwriter sells the bond securities to investors. The money paid for each security is placed in the care of the Bond Trustee less 5% Underwriters’ Fee.
The investor purchases the bond securities with the expectation of receiving interest …
City of Beaumont – Internal Controls Reports 2010, 2011, 1012 Show Misappropriation of Funds and Significant Deficiencies
December 1, 2013
By: Libi Uremovic , December 01, 2013 | Original Article at Patch.com
On October 15, 2013 a Public Records Request was submitted to the City of Beaumont for copies of the 2010, 2011, and 2012 Internal Controls Reports prepared by GAAP Auditing Firm Moss, Levy, Harzheim. The City required $50 advance payment which would pay for 200 pages of documentation.
The records were released on November 25, 2013. The City took 40 days to fill the request at a cost of $8.75. The City had to issue a refund $41.25.
The 2010 Internal Controls Report consists of copies of pages 82 & 83 from the 2010 GAAP Audit. Apparently the Auditing Firm of Moss, Levy, Hartzheim did not produce a …
November 28, 2013
By: Libi Uremovic , November 28, 2013 | Original Article at Patch.com
Beaumont Audit XXXXIII – Financial Transactions Report Comparison of Taxes
The Financial Transactions & Compensation Report is a yearly requirement of the State Controller’s Office. It is a basic recording of all the City’s Revenue and Expenses for the fiscal year. Below is a comparison of the City of Beaumont’s Financial Transaction Reports for the years ending 2011, 2012, & 2013. This audit collected data from the Schedule of General & Functional Revenues ‘Taxes’ page.
The Reports are three consecutive years, but all three Reports were prepared in within an 8-month period in 2013. The 2012 Report was the 1st one submitted on 02/14/13, then 2011 Report was …
November 21, 2013
By: Libi Uremovic , November 21, 2013 | Original Article at Patch.com
The Financial Transactions & Compensation Report is a yearly requirement of the State Controller’s Office. It is a basic recording of all the City’s Revenue and Expenses for the fiscal year. Below is a comparison of the City of Beaumont’s Financial Transaction Reports for the years ending 2011, 2012, & 2013 for the Sewer Fund.
In the last three years the population of the City of Beaumont has grown and sewer fees have increased, yet the Reports show that revenue has declined in the past three years: 2011 = $4,181,310; 2012 = $4,151,811; and 2013 = $4,036,740.
Sewer Connection fees increased from $74,124 in 2011 to $433,096 in …
November 19, 2013
By: Libi Uremovic , November 19, 2013 | Original Article at Patch.com
The November 19, 2013 Beaumont City Council Agenda Item 6.c is a Resolution approving a $6,750,000 Bond for which Union Bank is once again listed as ‘Trustee’. The documents provided by the City to the Citizenry are incomplete, missing, or blank. View the information provided to the Public here: http://www.ci.beaumont.ca.us/DocumentCenter/View/17691
In 1994 the City of Beaumont began a housing development project with 12 improvement areas containing 2,012 parcels. The City has continued to acquire additional
improvement areas and bond debt without voter approval and without considering the effects of market saturation or the increasing debt. Some of the original developments are still unfinished or in the case of …
November 17, 2013
Attention All Taxpayers!
On the November 19th Agenda Item 6.c Beaumont City Council is Once Again Obtaining $6.7 Million Bond Debt Without Voter Approval. The Bond Papers are Blank or Missing. The Use of the Bond Funds has been Removed. Read Agenda 6.c on City Website: http://www.ci.beaumont.ca.us/DocumentCenter/View/17691
The City Refuses to Release the Auditors’ Internal Controls Reports for the Years 2010, 2011, and 2012
The City Refuses to Release the October Bank Statements
$135,000 Employee CalPERS Payment Due November 1st Was Not Paid
Beaumont is Over $300 Million In Debt and Has ZERO Reserves!
Council Can Not Continue to Ignore Beaumont’s Financial Crisis!
Let Your Voices Be Heard!
Attend the Beaumont City Council Meeting on Tuesday, November 19th, 2013 at …
November 16, 2013
By: Libi Uremovic , November 16, 2013 | Original Article at Patch.com
The four columns represent the last four City of Beaumont Check Warrants. The Pink on the bottom of each column represents CalPERS payments. The City is required to make $135,000 CalPERS payments with each payroll, but the City did not pay for the October 31st CalPERS.
The shrinking yellow payments is the mystery Mutual of Omaha.
The City generates about $3/4 million per month tax revenue and Payroll alone is $1/2 million every two weeks. If the City does not get another Mello Roos Bond it will not be able to make payroll for the rest of the year, but the City can not legally use Mello Roos …
By: Libi Uremovic , November 16, 2013 | Original Article at Patch.com
Beaumont City Council Agenda 6.b seeks approval to transfer $225,000 from the CDBG Fund to pay for Public Pool renovations. In the Staff Report Ms. Deming states: “I have spoken with EDA and we are able to use CDBG Funding for this needed renovation.”
CDBG is funding from HUD for improvements low/moderate parts of the city, so legally – yes, CDBG funds can be used to repair the public pool, but there are no CDBG
Page 21/44 on the 2013/2014 Budget lists the CDBG Fund empty and no revenue budgeted for the year:
Congrats on listing the $1/4 Million Expenditure in the Newspaper, but the funding …
November 3, 2013
By: Libi Uremovic , November 03, 2013 | Original Article at Patch.com
Craig Hartzheim of the Auditing Firm of Moss Levy Hartzheim attended the October 15, 2013 City of Beaumont Council Meeting to discuss the 2012 GAAP Audit that is dated
September 25, 2013. The 2012 GAAP Audit is on the City website here:
47:50 Mr. Hartzheim starts speaking about the Auditor’s Report.
CAPITAL ASSETS & DEPRECIATION
48:22 Hartzheim: “First of all; let me start with pages 1-3 of your audit. It’s our Independent Auditor’s Opinion Letter/Report….”
48:45 Hartzheim: “…The one anomaly in this Audit is that it’s …
October 24, 2013
By: CRAIG SHULTZ – Press Enterprise October 17, 2013| Original Article at PE.com
Beaumont City Manager Alan Kapanicas said he does not know why the city was sent a letter from the state controller saying that it had failed to file financial and accounting reports required under state law.
“We are trying to get to the bottom of this. We thought we were alright before and this is the first we heard of it,” Kapanicas wrote in an email on Wednesday, Oct. 16.
Earlier that day, state Controller John Chiang had sent letters to 126 local government agencies that have failed to file the required reports, a news release from his office states.
Beaumont was one of nine cities …
State Controller: City of Beaumont has Failed to File Financial Transactions Report Due in October 2011
October 16, 2013
By: Guy McCarthy – October 16, 2013 | Original Article at Patch.com
The City of Beaumont has failed to file a financial transactions report that was due in October 2011, a filing that is required under state law, California Controller John Chiang’s staff said Wednesday, one day after the city council voted 5-0 to accept the city’s most recent audit.
A letter to the City of Beaumont dated Oct. 16, 2013, states in part:
City Fiscal Officer
City of Beaumont
550 East 6th Street Beaumont, CA 92223
Re: Delinquent Report(s) of Financial Transactions
Dear City Fiscal Officer:
A review of our records indicate we have not received your report(s) of financial transactions listed below:
Year Report Not Received
2010-11 Cities …
October 15, 2013
By: Libi Uremovic , October 15, 2013 | Original Article at Patch.com
On July 18 a Public Records Request was submitted to the City of Beaumont for ALL of the Bond Fund Accounts held by Union Bank Trustee Stephen Boughton for the last six (6) Bonds issued to the City.
Upon examination of the Bond Fund Accounts presented by the City it has been revealed that there are additional Bond Fund Accounts that are hidden. These accounts – known as the ’07 Accounts’ are being used to funnel millions of dollars in and out of the Bond Fund Accounts.
It is speculated that the City is hiding the 07 Bond Fund Accounts because they will show illegal transactions. The legality …
October 7, 2013
By: Libi Uremovic , October 07, 2013 | Original Article at Patch.com
Cali Gov Code 54953.5 Recording Meetings:
a) Any person attending an open and public meeting of a legislative body of a local agency shall have the right to record the proceedings with an audio or video tape recorder or a still or motion picture camera in the absence of a reasonable finding by the legislative body of the local agency that the recording cannot continue without noise, illumination, or obstruction of view that constitutes, or would constitute, a persistent disruption of the proceedings.
b) Any tape or film record of an open and public meeting made for whatever purpose by or at the direction of the local agency …
September 29, 2013
By: Libi Uremovic , September 29, 2013 | Original Article at Patch.com
The City of Beaumont claims that it’s ‘too expensive’ to have any independent or outside Auditors look at the City books. The following is a breakdown of the City of Beaumont Check Warrant located on the October 1st, 2013. The City lists total expenditures at $3,780,915.28 broken down into the following categories:
Big Payouts: Beaumont Unified School District – $228,181.00 for RDA Claims
Riverside County – $89,235.00 for RDA Claims
Coventry Health & Life Insurance – $126,028.32
Riverside County – $419,750.02 – Unknown Expense
Urban Logic – $173.041.75
Legal Services totaled $201,891.74 in the last month. The City used 12 different legal services in the past month with …
From Sacramento – Continuing to monitor the General Ledger and Bank Statements of the City of Beaumont until indictments are served
September 27, 2013
By: Libi Uremovic , September 27, 2013 | Original Article at Patch.com
I’ve relocated to Sacramento to work with our State Prosecutors and Regulatory Agencies to lock down the local agencies. I’ll continue to monitor the General Ledger and Bank Statements of the City of Beaumont until indictments are served, but for the most part Beaumont is done. The audits have provided Prosecution with more than enough evidence and the State has taken control of the City’s finances.
The State has already done a lot to stop the pillaging; they’ve close down RDA and AB1248 will force every Local Government Agency to sit down with the State Auditor/Controller. GASB 68 will force local agencies to report their unfunded pensions as …
September 13, 2013
By: Libi Uremovic , September 13, 2013 | Original Article at Patch.com
On September 4, 2013 a Public Records Request was submitted to the Beaumont City Clerk for copies of specific Bond Fund Accounts. On September 11th a Letter signed by City Manager Alan Kapanicas states the costs for the Public Records Request at $500.00.
This is Incorrect.
The Bond Fund Account Monthly Reports submitted by Bond Trustee Union Bank are 2 pages long. The City charges $.25/page for copies. The Following is the correct charges for each Bond:
2011 Series A & B Area 17B – Seven (7) Accounts in question for 20 Months = $70.00.
2012 Series A Area 8C – Four (4) Accounts in question for 17 …
September 10, 2013
By: Libi Uremovic , September 10, 2013 | Original Article at Patch.com
The Beaumont City Council has been collecting tax revenue specifically to have the council meetings on webcam, but the City has always refused the request of the People.
Apparently since the State has stepped in the City has ‘seen the light’ – …http://www.ci.beaumont.ca.us/index.aspx?NID=212…
September 1, 2013
By: Libi Uremovic , September 01, 2013 | Original Article at Patch.com
Beaumont Agenda – September 3rd, 2013
Agenda 5.b.1 – Financial Update – City lists total Revenues for July, 2013 at $874,143 and total Expenses at $2,505,747. Spending three times more than the City receives is not a good way to start the fiscal year.
Agenda 5.b.2 – Sales Tax Update – This is a report from a marketing company predicting state-wide trends in California. The report predicts the population will continue to decline by .7% per year in the coming years.
Agenda 6.a.11 – City has $104,000 to pay AECOM, Inc. for a ‘Climate Action Plan’, but the company wants $257,900.
Agenda Item 6.a.5 – 31468-4 Notice of …
July 27, 2013
By: Libi Uremovic , July 27, 2013 | Original Article at Patch.com
Transaction # 234640 lists the remaining $21,474.39 of Beaumont Chief of Police Coe’s personal loan paid off on 05/03/13 through a payroll deduction.
Chief of Police Coe makes so much money the city was able to deduct $21,000 from a two-week paycheck? …
July 16, 2013
A heartfelt thank you to the residents of Beaumont who took the time to attend the City Council meeting on July 2nd! Your willingness to stand up and fight for the future of our community made all the difference!
go to article
Citizen involvement in government decisions helps make stronger communities. Beaumont residents took the time and trouble to make clear their opposition to a warehouse project. That effort paid off when the City Council this month rejected the unpopular plan to build more warehouses on the city’s west side.
Developers had proposed building 5 million square feet of warehouse space on property previously slated for homes and smaller commercial/industrial projects. But residents objected, voicing concerns …
June 28, 2013
City officials used an outdated environmental study when analyzing the proposed Heartland project, which could bring 5 million square feet of new industrial warehouses to Beaumont.
A representative of our Air Quality Management District has expressed significant concern about the impact such a project could have. How much traffic and pollution would this project actually bring? What are the potential health consequences for local residents?
The City Council will be holding a workshop to consider these issues on Tuesday, July 2nd at 6:00 p.m. Please come and express your concerns.
Beaumont City Hall
550 E. 6th Street
Beaumont, CA 92223
Follow the conversation at Patch.com:
June 17, 2013
On Tuesday, June 18th, the Beaumont City Council will be voting on two big tax increases:
- The first is a Special Tax that will increase Mello Roos fees charged to homeowners.
- The second is an annual Sewer Standby Charge.
In addition, the Council will be voting on resolutions which would give it the authority to place a lien on someone’s property for being late paying bills owed to the City.
Please attend the meeting tomorrow night and express your opposition to these hefty new taxes!
The meeting starts at 6:00 p.m. Arrive early to get a seat.
Beaumont City Hall
550 E. 6th Street
Beaumont, CA 92223
View the Council Agenda
Learn More at Patch.com…
June 10, 2013
Audit Reveals Forged Check Warrants, Personal Use of Government Funds By City Officials, Personal Loans to City Officials, Payments of Over $1 Million with No Explanation, and Various Other Irregularities
Index of articles:
Chronological order – latest to oldest
- October 02, 2013 – Missing Bond Fund Accounts
- August 11, 2013 – Sewer Fund Hides $1/4 Million Urban Logic Fees
- August 06, 2013 – City Cashes In Deferred Compensation
- July 19, 2013 – Holding Union Bank Accountable
- July 15, 2013 – Bond Debt Fact Check
- July 4, 2013 – Beaumont City Council
- June 29, 2013 – Heartland Pays $.25 on the $1.00 for Bond Debt
- June 2, 2013 – What & Where Are The ‘Reserves’
- May 18, 2013 – Gas Tax
March 19, 2013
Over 200 Residents Have Submitted Letters Through An Online Petition Website Urging District Attorney Paul Zellerbach to Take Action
For Immediate Release
March 19th, 2013
(Beaumont, CA) Following the results of an audit of the City of Beaumont’s finances which revealed numerous and specific instances of forged check warrants, personal use of government funds by City officials, personal loans to City officials, payments of over $1 million with no explanation, and various other irregularities, residents are calling upon District Attorney Paul Zellerbach to open an investigation.
Utilizing the website www.CleanUpBeaumont.org, over 200 residents thus far have submitted petition letters. The site, which went live on February 28th, has generated a significant amount of interest in a short …
January 24, 2013
Audit Reveals Forged Check Warrants, Personal Use of Government Funds by City Officials, Personal Loans to City Officials, Payments of Over $1 Million with No Explanation, and Various Other Irregularities
For Immediate Release – January 24th, 2013
(Beaumont, CA) In a letter sent last week to the Riverside County Grand Jury by independent auditor Libi Uremovic, the financial practices of the City of Beaumont have been called into question.
The letter, which summarizes results of an audit of the City’s books covering the period of May through October, 2012, requests immediate action on the part of the Grand Jury as these issues involve “Tax Payer Funds, Insurance Fraud, and Employee Benefits.”
One example cited in the letter is that “The …
November 12, 2012
The Website the City Tried to Take Down
(Riverside) A California Appellate Court last week dismissed once and for all the appeal of City of Beaumont consulting firm Urban Logic Consultants (ULC) in favor of a citizens group, finally putting an end to the lawsuit originally filed by Urban Logic Consultants against Beaumont Citizens for Responsible Growth (BCRG).
Members of the Board of Directors of the non-profit group Beaumont Citizens for Responsible Growth were served on Thanksgiving Day 2010 with the lawsuit brought against them by Urban Logic Consultants, a private company that provides Planning, Public Works and Economic Development services to the City of Beaumont.
At issue was a website sponsored by BCRG in which the group …
August 16, 2012
Beaumont City Councilman Brian De Forge has paid a $1,000 fine to the Fair Political Practices Commission (FPPC) for not reporting income earned by his construction business for work done with the Beaumont-Cherry Valley Water District.
The fine stems from a complaint that was filed in April 2011 by Beaumont resident Judy Bingham on behalf of the Beaumont Citizens for Responsible Growth, to which she is a member. According to documents, De Forge’s contruction company worked with the water district in 2007 to build its new office at 560 Magnolia Ave.
De Forge’s company – Brian E. De Forge Construction – was paid $174,100 for 16 weeks worth of work on the project. He employed 10 workers and was the …
October 31, 2011
As reported by the Press Enterprise, the Superior Court awarded Beaumont Citizens for Responsible Growth (BCRG) nearly $50,000.00 in attorney fees and court costs for successfully defending a 3 million dollar lawsuit brought against the group by Urban Logic Consultants Inc. principals, Dave Dillon, Ernie Egger and Deepak Moorjani, which violated Beaumont citizens’ First Amendment Rights. In order to protect their right to collect on the judgment, BCRG was forced to place liens on property owned by Urban Logic and its principals. Still, Urban Logic has refused to meet their obligations to make BCRG whole.
This appears to be just another example of the arrogant attitude displayed by Beaumont city officials…an attitude that makes them believe they are above the …
October 30, 2011
(Riverside) A Riverside County Superior Court commissioner ruled on Tuesday in favor of a citizens group in a lawsuit filed against them by managers for the City of Beaumont.
Members of the Board of Directors of the non-profit group Beaumont Citizens for Responsible Growth (BCRG) were served on Thanksgiving Day with the lawsuit brought against them by Urban Logic Consultants (ULC), a private company that provides Planning, Public Works and Economic Development services to the City of Beaumont.
At issue is a website sponsored by BCRG in which the group voices its concerns about the contracting practices of the City. On its site, www.BeaumontGate.org, the group accuses the City of a long history of favoritism in the awarding of public …
June 23, 2011
The California Fair Political Practices Commission is investigating allegations that Beaumont Mayor Brian De Forge violated conflict-of-interest rules by not reporting income he made working for the Beaumont-Cherry Valley Water District.
Roman Porter from the commission confirmed a probe has been opened and said in an email that it has not yet been determined if a violation of the Political Reform Act took place.
The allegations were made by Judy Bingham for Beaumont Citizens for Responsible Growth, a group of citizens frequently at odds with Beaumont City Hall.
Her complaint states, “From October 2000 to November 2007 …
May 18, 2011
The Santa Ana Regional Water Quality Control Board has notified the city of Beaumont of alleged state Water Code violations and assessed $66,000 in mandatory minimum penalties.
The maximum administrative civil liability for the alleged violations, if imposed upon the city of Beaumont, would exceed $3.6 million, according to the Santa Ana Regional Board.
Between June 2006 and January 2011, the city of Beaumont violated its waste discharge requirements 30 times, and was in violation for a total of 366 days, according to a May 10 certified letter from Santa Ana Region Division Chief Robert Holub to Beaumont City Manager Alan Kapanicas.
The alleged violations occurred at the City of Beaumont Wastewater Treatment Plant, 715 W. 4th St., south of …