Beaumont SF-04059 CFD Prepayments

A $24,609.64 CFD Prepayment was receive from a Property Owner in Four Seasons Area 7B, but only $5,000 was submitted to the Bond Trustee.

Around 2013 when Beaumont Property Owners started to question/complain about their Mello Roos CFD Taxes former City Manager Alan Kapanicas invented the perfect response: Prepayment.

Beaumont Council and Staff began telling CFD Property Owners that they could save money and end their CFD ‘Debt Service’ Taxes by Prepaying their CFD Taxes instead of paying the debt over a 30-year period. The CFD ‘Services’ Tax is an additional tax Beaumont charges for 50 years and can not be paid off in advance.

Many Property Owners have prepaid their CFD Taxes, but instead of the City sending the money to the Bond Trustee to pay on the Principal of the Bond the money disappeared.

After the Raids Albert A. Webb & Associates took the place of Kapanicas and Urban Logic’s place in the City. Beaumont City Council gifted the title of ‘Special Tax Consultant’ to Webb & Associates. ‘Special Tax Consultant’ was a title Kapanicas made up for himself to funnel money from the bonds.

Preparing the CFD Taxes is a basic accounting function that should take about 20 hours. The last Contract the City Council gifted to Webb for the CFD Taxes was $185,450 on January 16, 2018:…

Webb is also involved in calculating Beaumont’s CFD Tax Prepayments and preparing the Bonds’ Continuing Disclosure Reports. Every Bond Disclosure Report lists the number of Prepayments received by the City of Beaumont along with the disclaimer: “The City has not been able to locate reliable records that identify the principal amount of the prepayments of the special tax at this time.”

On May 17, 2018 Beaumont City Clerks Donna Pfeiffer and Nichole Wheelwright verified that a $24,609.64 CFD Prepayment was receive from a Property Owner in Four Seasons Area 7B, but only $5,000 was submitted to the Bond Trustee to pay on the Bonds’ Principal. The 2012 C Bond Continuing Disclosures state that 45 Property Owners have fully paid their CFD Taxes and 11 have partially paid their Taxes, but the City stole the money instead submitting the money to the Bond Trustee.

Beaumont Continuing Disclosures state the following CFD Taxes have been prepaid:

Area 7A: 50 full prepayments, 11 partial payments

Area 7B: 45 full prepayments, 11 partial payments

Area 7C: 69 full prepayments

Area 8C: 2 prepayments

Area 16: 1 prepayment

Area 17A: 2 prepayments

Area 17B: 2 prepayments

Area 18: 1 prepayment

Area 19A: 3 prepayments

To this day the Beaumont City Council refuse to hire honest staff or to properly staff a finance department.