Beaumont Failed to Abide by WRCOG TUMF Settlement
By October 1, 2017, City was Required to Pay $4.1 Million to WRCOG & Put $3 Million in Separate Bank Account for Pennsylvania Avenue.
WRCOG TUMF SETTLEMENT
The City of Beaumont Audited Financial Statements for Fiscal Year ending June 30, 2016 included a reduction of the WRCOG TUMF Settlement from $62 Million to $4.1 Million.
As of June 30, 2016, the City of Beaumont was still awaiting Appeal of the Judgement, which the City lost in October, 2016. The Settlement should be disclosed in Subsequent Events and the Settlement listed in the 2016 Audit is not even close to the actual TUMF Settlement.
The Restated WRCOG TUMF Settlement was last presented as Agenda 3 at the May16, 2017 Beaumont City Council Meeting: https://beaumont.civicweb.net/…
The Settlement expires upon completion of all obligations or June 30, 2039, whichever comes first. There are obligations for the City to construct the roadways they lied about constructing 10 years ago, transfers of Mitigation Fees to the WRCOG, and monetary payouts of which the City must keep accurate records for the next 22 years.
The City of Beaumont has no separate bank account for TUMF and Measure A Mitigation Fees collected. The TUMF and Measure A Fees are being deposited the into the General Ledger instead of a separate bank account.
Beaumont’s Obligations in the Settlement Include:
Settlement Agreement 1.2.3. City directs RCTC to give $9.4 Million Measure A Funds directly to WRCOG in increasing percentages of Funds Collected up to 75%. Settlement Agreement 1.2.4 limits the percentage of Measure A Funds to 60% if the WRCOG can collect at least $8 Million from Third-Party Claims by 2022. The City of Beaumont must account for the ownership and release of Measure A Taxes to the WRCOG.
Settlement Agreement 1.2.5. requires the City to pay $2 Million to WRCOG by October 1, 2017, collected from City Transportation Mitigation Fees.
Settlement Agreement 1.3.2. requires the City to pay $2.1 Million to WRCOG by October 1, 2017, for the Design of the I-10/Cherry Valley Blvd Interchange.
Settlement Agreement 1.3.3. requires the City to deposit $3 Million into a separate bank account for Pennsylvania Avenue by October 1, 2017. The City has yet to establish this bank account.
Settlement Agreement 1.3.3. outlines the financial arrangements for collection of 3rd Party Claims. The City has guaranteed $7 Million in recovery to pay for WRCOG legal expenses to pursue 3rd Party Claims.
Settlement Agreement 1.3.6.b. states that if at least $8 Million is not collected from 3rd Party Claims by July 1, 2022, the City must start making payments to WRCOG for their legal expenses.