By: Libi Uremovic | Original Article at patch.com
December 2, 2014 from the California State Controllers’ Office to the City of Beaumont
Finding:
The Beaumont Redevelopment Agency (RDA) made unallowable asset transfers of $9,925,325 to the City of Beaumont (City). The transfers to the City occurred after January 1, 2011, and the asses were not contractually committed to a third party prior to June 28, 2011.
On various dates between January 1, 2011, and January 31, 2012, the RDA transferred $6,517,519 in cash to the City. The transfers were for interest payments on advances and loans pursuant to the Master Loan Agreement between the RDA and the City of Beaumont, dated September 12, 1994.
Pursuant to Health and Safety (H & S) code section 34167.5, the RDA may not transfer assets to a city, county, city and county, or any other public agency after January 1, 2-11. The assets must be turned over to the Successor Agency for disposition in accordance with H&S Code section 341177(d) and (e).
Order of the Controller:
Pursuant to H&S Code section 34167.5 the City of Beaumont is ordered to reverse the transfers totaling $6,517,519 and turn over the assets to the Successor Agency.