Bonds Were to be Transferred to Wilmington Trust in June. What Happened?
On June 21, 2016 the Beaumont City Council Approved changing Bond Trustee from Union Bank to Wilmington Trust: http://www.ci.beaumont.ca.us/D…
The ‘story’ was that although seven (7) Request for Proposals were sent to seven different banks, only Wilmington Trust responded.
Wilmington Trust also took Union Bank’s place in Lake Elsinore where Mello Roos Bonds are being used to fund Developments.
The City was to Transfer Beaumont’s $350 Million Mello Roos Bonds from Union Bank to Wilmington Trust.
Regardless of the bank accounts’ purpose, the procedure remains the same; the money is WITHDRAWN from one bank, the accounts are closed, and the money is DEPOSITED into the new bank.
The City of Beaumont pays their Mello Roos Bond Premium and Interest Payments in August. The August, 2016 Citibank Account shows that the City wired $10 Million to Union Bank on August 8, 2016, to pay the Mello Roos Bonds that should have been transferred to Wilmington Trust in June.
Why didn’t Union Bank release the Bonds?
Union Bank didn’t Finance the Bonds, they’re only the Trustee, right?
You can’t get an honest answer from any Elected or Appointed Official in Beaumont. Like the 2015 Audit, the Beaumont Council, the City Treasurer, and the Finance and Audit Committee just pretend that the Bond Trustee never existed.
Who Owns Beaumont’s Mello Roos Bonds?
The City claims that the ‘Authority’ is the owner of the bonds, but the City never had the money to ‘buy’ the Securities to ‘sell’ to the Community Facility District, so who is the money backer behind the bonds?
In November, 2011 the City of Beaumont Overdrew their Bank Account TWICE; once November 4, 2011, and again on November 18th.
In December, 2011 the City acquired a $12 Million bond.
Union Bank’s Involvement in Beaumont’s Bonds is more than just being the ‘Trustee’.