Beaumont Applies Triple Tax with CFD 2019-1
It’s Illegal, but Violations of State and Federal Laws are what the Beaumont City Council do best.
In 2018 the City of Beaumont acquired $130,830,000 in Bond Debt; an $81 Million Sewer Bond and the remaining $72.375 Million was acquired to reimburse Developer Mitigation Fees.
On January 15, 2019 the Beaumont City Council will unanimously Approve Agenda Item 10: Formation of CFD 2019-1 for Pardee Homes’ Sundance Development Area: https://beaumont.civicweb.net/document/17963/Item%2010.pdf?handle=A7D9036ED11E4F83A5EBAEFAD28C6759
This will be Beaumont’s first CFD Community with a Triple CFD Tax.
The First CFD Tax is the ‘Facilities Tax’, which will pay the Bond Debt acquired in order to reimburse Pardee Homes’ Mitigation Fees.
The Second CFD Tax is ‘Maintenance Service Tax’ to pay for “…the operation and maintenance of items such as drains, catch basins, streetlights, roads, landscaping, neighborhood parks, trails, and graffiti abatement..’
The Third CFD Tax is ‘Public Services Tax’ to pay for “..police protection, fire protection, ambulance, and paramedic services..”
The 3rd tax is specifically prohibited by Mello Roos State Law, but violations of State and Federal Laws are what the Beaumont City Council do best.
California Govt Code 53313: “A community facilities district tax approved by vote of the landowners of the district may only finance the services authorized in this section to the extent that they are in addition to those provided in the territory of the district before the district was created. The additional services shall not supplant services already available within that territory when the district was created.”
(Amended by Stats. 2014, Ch. 71, Sec. 78. Effective January 1, 2015.)