City of Beaumont formed 8 JPA’s with Itself without any Financial Reserves or Accountability.
Beaumont Joint Power Authorities (JPA)
There is no provision in Federal Laws to form JPA’s in order to acquire federal municipal bonds; California JPAs are the creation of the State. In order to circumvent numerous State and Federal Laws the City of Beaumont formed eight (8) JPAs.
The Bonds lists California Government Code 6500 as the City’s ability to be a JPA. However; California Government Code 6502 states: “…two or more public agencies..”
City of Beaumont formed JPA’s with itself without any financial Reserves or accountability.
Cali Govt. Code 6501 requires approval from the Cali Dept. of General Services.
Cali Govt. Code 6503.5 requires the City to file with the Secretary of State and State Controllers’ Office.
Cali Govt. Code 6505 (a) requires strict accountability of all funds and report of all receipts and disbursements and requires annual audits.
JPA #1
The Beaumont Redevelopment Agency (RDA) was created on September 14, 1992, per Cali Health and Safety Code 33100 with oversight from the California Secretary of State. RDA was dissolved by the State in 2012.
JPA #2
The Beaumont Financing Authority (Authority) was created on April 12, 1993 by the City Council’s Adoption of Resolution No. BRA 93-01. The Beaumont Financing Authority is an JPA between the City and RDA.
The Beaumont Financing Authority was also used to acquire a State Resale License in order to steal Sales Tax from other Cities and declare the sales tax as Revenue on the City of Beaumont’s own Financial Statements. (State Controllers’ Report 11/03/2015 pg. 13)
The Financing Authority is the first Issuer on all of Beaumont’s Bonds. The Bonds state: “Pursuant to the Act, the Authority is authorized to issue revenue bonds to be repaid from the proceeds of public obligations and to provide financing and refinancing for public capital improvement of public entities, including the City and CFD No 93-1 (the “District”)
JPA #3
Community Facilities District 93-1 (District) was formed by the City on June 29, 1993 per Cali Govt. Code 53311 et. seq. The District is the 2nd Issuer on all of Beaumont’s Bonds.
The bonds’ Sources and Uses of Funds pages state: “Proceeds of the sale of the Bonds will be used to provide funds to acquire the District Bonds..”
When Union Bank became Beaumont’s Bond Trustee in 2002 the purchase of the bonds by the Authority and the purchase of the bonds from the Authority by the District were billed as two separate transactions allowing each profiteer to charge twice on every bond.
From State Controllers’ November, 2015, Report page 8:
“The Authority issued $313.09 million in local agency revenue bonds for use mainly in acquiring District bonds and for a sewer enterprise project between 1993 and 2014;..”
“The District issued $303.12 million in special tax bonds for use in the various improvement areas within the District between 1994 through 2014; and..”
“The Utility issued $9.79 million in revenue bonds for a wastewater enterprise project in 2001.”
JPA #4
Beaumont Utility Authority was created on May 1, 2001 by a JPA between the City and the RDA.
The Beaumont Utility Authority files separate Financial Statements and claims the City’s Sewer Plant on the Utility Authority’s Financial Statements.
JPA #5
ERMAC Self Insurance.
CSAC Excess Insurance Authority JPA created by State in 1979 per Cali Constitution Article 16, Section 6, Cali Govt. Code 6500, and Cali Govt. Code 990.
Principal James Gregg, former Beaumont Risk Manager and Principal of GGMS; Moss Levy Hartzhiem Auditing Firm. Forged City’s Financial Statements and lied about ‘Reserves’ to illegally qualify City of Beaumont for ‘self-insurance’.
JPA #6
Beaumont Transit Authority
Start of Transit Authority unknown. First Audit separate from the City’s Financial Statements was FYE 2014.
JPA #7
Beaumont Conservation Authority
Formed on June 1, 2010 by JPA between City and RDA.
JPA #8
Beaumont Charitable Authority
Formation date unknown. Was removed from the City Council Agenda after December, 2014.