By: Libi Uremovic| Original Article at Patch.com
Overview
What is Beaumont’s CFD?
Part of Beaumont’s Comprehensive Public Infrastructure Development Program
Area Benefit District and Mitigation Fees
Redevelopment Areas, Grants, and Loans
Cooperative Agreements with other Public Agencies
If the City is asking a question, the answer is NO, those are not examples of what a Beaumont CFD ‘is’. They are examples of what a Beaumont CFD ‘is not’.
Bond debt was not ‘part’ of a comprehensive public infrastructure development program, it was used instead of charging Mitigation Fees to Developers. The $42 Million WRCOG Judgement is because the City made an agreement with Developers to pay the Developers’ TUMF with Bond Funds. The agreement is written in the bonds, but City Staff and Council stole the bond money instead of paying the TUMF.
Yes, Beaumont had ‘cooperative agreements’ with WRCOG, RCTC, RTA, and BCVWD, but the City broke all of the agreements which has cost the citizens of Beaumont and Riverside County millions in unnecessary legal fees.
The CFD is used by the City Council to manage growth and mitigate public infrastructure impacts in accordance with the General Plan.
Bond Debt is acquired by placing liens on private property. Council authorized debt on ‘future property owners’, but never held themselves or their Staff accountable for the money.
The CFD uses a Special Tax to fund public infrastructure and services needed to support growth and development
Every bond list fire stations, wastewater treatment plant, recycled water system, and roadways, but the infrastructure was never built.
The CFD is ‘citywide’ and prevents ‘infrastructure lag’ associated with typical fee programs
That’s a wonderful theory, but after 20 years and $322 Million in Bond Debt there is not infrastructure in place to support 30,000 people.
How did Beaumont CFD Start?
In 1993 Beaumont had severe public infrastructure deficiencies, while expecting rapid growth
And to the right states:
Sewer Moratorium
Raw Sewage in the Streets
In 1993 Beaumont City Council established the ‘Beaumont Financing Authority’ to acquire a $8,500,000 Bond for the Sewer Enterprise Project. In 2015 raw sewage spills continue, California River Watch is filing an EPA Lawsuit to force the City to repair their sewer system, and the City can not fulfill the Water Quality Control Board requirements.
CFD Financed Facilities Since 1993:
$251 Million in Facilities Financed – Incorrect
The City of Beaumont has acquired $321,775,000 in Bond Debt
24 Bond Series – Incorrect
30 Bonds total 3 Sewer Bonds and 27 Bond Liens on Developments
$9.2 Million Remaining Funds – Incorrect
The Bond Reserves are $7 Million short of the required 10%. The money funneled from the Reserve Accounts needs to be replenished.
What was built 1993 to Now
Sewer Facilities
Water Facilities
Transportation Facilities
Parks and Civic Facilities
Unfortunately; there are no results to justify $1/2 Billion in Bond Debt and Mitigation Fees
Sewer Facilities: The City lists their many Lift Stations as ‘accomplishments’. The sewer map clearly shows that instead of installing a city-wide sewer system the City simply rigged up the developments in the cheapest and most incompetent way possible.
Water Facilities: City lists random items including ‘Recycled Water Mains’. City neglects to mention they never built the Recycled Water Facility, the Purple Pipes belong to the Water District, and the Beaumont Basin has been in Overdraft for 10 years.
Transportation Facilities: City lists ‘$50.9 Million Funded’ and ‘$250 Million Future Funding’. Beaumont needs $250 Million Now to accommodate a population of 40,000.
Parks and Civic Facilities: City lists all the parks and trails in the City, but neglects to mention that they never completed the parks.
What was NOT Built:
Recycled Water Facility
Four (4) Fire Stations
Regional Park
Adequate Roadways
For 20 years the City collected bond funds and mitigation fees to build the infrastructure, but Staff and Council stole the money and never built the infrastructure. Now the City wants $300 Million more bond debt to build the same infrastructure they were suppose to build with the last $300 Million.
And who will pay for infrastructure needed today?
Property Owners of the future of course!