By: Libi Uremovic, January 19, 2014 | Original Article at Patch.com
California State Law dictates that government agencies can not charge higher Utility Fees than the actual cost of providing the service because in a Democracy charging more would in effect be the taxpayer making a profit off themselves.
At the December 7, 2013 Beaumont City Council Meeting the City did a Presentation explaining how sewer fees were broken down and showing the increases and changes from the old bills to the new bills. Sewer rates rose from $21.25 to $29.68.
Regulatory Fees:
Dr. Ball has repeatedly requested the City account for the Salt Mitigation Fees collected from Resolution No. 2006-73. At the November 19th Council Meeting the City stated that the Salt Mitigation Fees was the $1.27 charge listed on the sewer bill.
Page two of the presentation shows the old bill with total Regulatory Fees charged to each household at $1.27 broken down to $1.21 for State Regulation and $.06 for Well Monitoring.
Page three of the presentation lists the new Regulatory Fees at $6.65 with $4.71 for Salt Mitigation, $2.36 for State Regulations, and $.18 for Well Monitoring.
There are no State Regulations for Sewer Fees on any other sewer bills in California. This additional fee is nothing more than the City padding the Citizens’ sewer bill and blaming the additional cost on the State.
Salt Mitigation Fees have been added to the bill and are triple what the City had originally stated without any warning, vote, or reasoning except to seek revenge on Dr. Ball.
Debt Service:
The City has also added $1.03 to the new bills for Debt Service. This is to pay the $7.5 Million Bond acquired in 1996. The City can not charge the Taxpayer for this bond because the Taxpayer never approved the debt.
Page 2 (EMMA 8/164) Security & Sources of Repayment states that the bond is: “…secured under the Indenture of Trust…” which means the BNY Western Trust Company ‘trusted’ the City to have the ability to repay the loan without the need of additional funds from the Taxpayer. The Union Bank Bonds are secured with property liens, but there is nothing securing this debt. The Sewer Bond is almost 20 years old, but only interest has been paid. There is a balloon payment of over $7 Million due September 2025 at 6.75% interest.
BNY Western Trust Company trusted the wrong people. Too bad for them. They can try to collect from the Profiteers, but they can not collect this debt from the Taxpayer.
Accounting For Sewer Fees:
The City of Beaumont Budget list Fund 10 as the Sewer Fund. This is where all of the basic sewer fees should be accrued, but all of the money is deposited into General Fund 1200 Account – which is the City Manager’s Department. As Dr. Ball has stated many times in Council; the City never established a separate Salt Mitigation Fund to account for the fees collected.
Sewer Bond – http://emma.msrb.org/MS122722-MS98030-MD190609.pdf
Dr. Ball can be heard on the Beaumont City Council Public Speaker’s Comments at the following locations:
September 3, 2013 at the 44:00 minute mark
October 1, 2013 at the 16:25 minute mark
October 15, 2013 at the 19:40 minute mark
December 17, 2013 at the 25:16 minute mark
January 7, 2013 at the 16:00 minute mark
The Beaumont City Council statements on the Sewer Rates can be heard at the following locations:
November 19, 2013 at the 96:45 minute mark
The January 7th Presentation can be heard at the 29:00 mark