Workout Plan Not To Sustainability

City General Fund is $10 Million Overdrawn, Yet Plans to Spend $16 Million on Portrero in FYE 2016.

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Beaumont’s Workout Plan to Sustainability

Beaumont City Council June 21, 2016, Agenda Item 3.a: http://www.ci.beaumont.ca.us/DocumentCenter/View/27721

From by Richard Warne with assistance from Michael Bush and Bob Deis.

Fiscal Impact: None.

Fire pg. 22/25
“There have been discussions revolving around building a station just inside Callimesa that would serve both cities and the County….Calimesa has recently communicated that they are not interest in the proposed arrangement with the County and CalFire.”
“We estimate the City does have Mitigation Funds of $2.8 Million.”

Planning pg 23/67
“We Believe that you Planning Department could benefit from adding a Planner position and customer service representative..”

Revenue Increases pg 27/67

Sale Surplus Real Property Assets
500 Grace Street $590,000
450 4th Street $219,000
Vacant Lots 4th $250,000
738 Magnolia $43,000
TOTAL $1,102,000

Voter Approved Options
“General Tax”
“Special Tax”

Local Sales Tax

2. Utility Users Tax

3. Community Facility Districts (Public Services)
“CFD special taxes remain a vital tool in most public agency’s toolbox.”
“Voter approval requirements can be easily addressed if only 1 or 2 developers own the new development.”

Incorrect and the basis of the problem.

The CFD is a separate entity; their money belongs to their Agency. The City’s $10 Million Deficit in the General Fund is because the City continues to spend money from other Funds.

CFD Funds May Plan a Role in Service Solvency Options

Pages 53-66 Show How City Plans to Increase CFD Taxes In Next 5 Years

But the big WTF is page 67/67 “5-Year Capital Improvement Plan”

Portrero Interchange Phase I $27 Million in FYE 2017
$11 Million paid with ‘Grant’
$16 Million paid from City

The is Insolvent and the General Fund is $10 Million Overdrawn. Yet the City plans to funnel another $16 Million out of the City under the guise of ‘Portrero’. Citizens have already spent $13 Million and have nothing more than glossy flyers.

Portrero Interchange Phase II (ramps) is $50 Million , but there is no funding for the ramps, so what’s the point of wasting $16 Million at this time?