By: Libi Uremovic | Original Article at patch.com
Reserves from the Old Bonds were Removed to Fund the New Bonds, but the Money Can’t be Traced.
2015 Bond Series A, B, C, and D
The City of Beaumont/Union Bank do not have Bond Fund Accounts established for the four (4) Bonds acquired in the last three months.
2015 Series A Bond
Acquired 03/31/2015
$11,110,000
Area 7A1
Original Bond: 2005 Series B
2015 Series B Bond
Acquired 04/23/2015
$20,095,000
Area 19A
Original Bond: 2004 Series D
2015 Series C Bond
Acquired 06/03/2015
$5,335,000
Area 18
Original Bond: 2004 Series A
2015 Series D
Acquired 06/18/2015
$7,820,000
Area 16
Original Bond: 2004 Series B
Union Bank should have 2015 Series A Bond Accounts established in March; 2015 Series B Bond Accounts established in April; 2015 Series C and D Bond Accounts established in June.
June Bond Fund Accounts are provided, but there are no 2015 Series: http://publicdocs.beaumontcares.com/weblink8/0/doc/108745/Page1.aspx
The City/Union Bank has released all of the 2015 Series available: http://publicdocs.beaumontcares.com/weblink8/0/doc/108515/Page1.aspx
All the City/Union Bank has is templates for the 2015 Series D Bonds.
Catch 22: Before the new Bonds can be purchased at a higher price the old Bonds must be paid off in their entirety. However; the City/Union Bank used the old Bonds’ Reserve to fund the new Bonds.
The City of Beaumont’s 2005 Series B Bond has not had any Funds in its Reserve Account since March, which is a violation of State and Federal laws. The June Bond Fund Accounts show that all four of the old Bonds’ Reserves have been drained, but the City/Union Bank can not show where the money was transferred.
Attached is a a copy of the April General Ledger showing that the profiteers were paid for the 2015 Series A Bond in April. The City/Union Bank does not have/refuses to release any documentation showing how much was paid out and to whom. As Bond Trustee; Union Bank distributed money out of the Bond’s Accounts without first establishing the Bond Fund Accounts.
Page 17 and 18 lists ‘Administrative Fees’: http://emma.msrb.org/ER869481-ER665684-ER1081146.pdf
The City of Beaumont April General Ledger page 85/111
284239 04/02/2015 01-1200-9910-0000 Bond Admin Fee $25,000
284240 04/02/2015 01-1200-9910-0000 Bond Admin Fee $50,000
2004 Series D’s April Bond Fund Reserve Account #6711742205 states: “$1,647,429.88 to 4509 transfer to other Account per direction 04/30/2015.
May Bond Fund Accounts state that the 2005 Series B only has $9.00 remaining in the Reserve Fund #6711762005
JUNE BOND FUND ACCOUNT TRANSACTIONS TO NOTE:
1993 Series A Bond
Acct #6711673600 Cash Receipt of Payment of Fees $52,066.26;
UB Fee Collected $52,066.26
Pages 1-3
2004 Series A Bond
Acct #671127305 Reserve Fund
$343,422.21 Cash Disbursement to Account # xxxxx409 Transfer Funds to Other Acct Per Sec 3.02 Thirteenth Supp IND & DIR DTD 06/03/15
Reserve Fund Balance $12.32
Program Fund #6711727306 still contain Securities $4,010,000
Pages 68-70
2004 Series B
Acct # 6711736504 Residual Account
$53.56 to xxxx809
Balance Remaining $0.00
Pages 92-93
2004 Series B
Acct 6711736505 Reserve Fund
$456,601.07 to Acct # xxx8809
Reserve Balance: $4.03
Pages 94-97
2004 Series B
Acct 6711736601
$.24 to xxxx8809
Pages 101-102
2004 Series D
6711742201 Revenue Fund
$20,514,418.44 from xxx606
$20,514,418.44 to xxxx203
Pages 111-113
2004 Series D
6711742203 Principal Acct
$20,514,418.44 from xxx201
$20,514,418.44 to xxxx91-5
Pages 115-116