$7.5 Million Mello Roos Overcharges on 2017 Budget

The City of Beaumont is ‘Budgeting’ to Charge Mello Roos Property Owners $7.5 Million MORE than Needed to Pay Bond Premium and Interest Payments

2015-07-15r

Page 31/32 from the City of Beaumont 2016/2017 Budget is the CFD Fund: http://www.ci.beaumont.ca.us/documentcenter/view/27686

CFD REVENUE:
2014 Actuals: $6,293,103.95 = Represents the ‘Profit’ from Mello Roos Taxes
2015,16, & 17 Actuals and Projected: Represents total amount of Mello Roos Taxes Collected.

CFD EXPENSE:
Debt Service Payments: Proposed 2017 = $17,104,509.00
This represents the Amount of Mello Roos Bond Premium and Interest Payments

2017 Revenue: $24,671,992
2017 Expense: $17,104,509

2017 PROFIT: $7,567,483

Divided by 15,000 houses = $504/house

Aside from the whole ‘stole all the money and never built the facilities’ thing; it is illegal for the City of Beaumont to charge Mello Roos Property Taxes beyond the amount needed to pay the Interest and Premium Payments plus REASONABLE Administrative Fees.

And no, massive payouts to Lawyers and Consultants in not ‘reasonable’.

Source:

Libi Uremovic – patch.com

Relevant Issues

A Clear Conflict of Interest
The City of Beaumont's contract with Urban Logic presents a significant conflict of interest and therefore must be terminated.
Favoritism and Cronyism
The City of Beaumont, under Urban Logic and City Manager Alan Kapanicas, has consistently demonstrated favoritism and cronyism in the awarding of pubic contracts.
Cost to Taxpayers
Urban Logic's contract with The City of Beaumont which allows it to profit from each approved development, along with their on-going practice of awarding high-dollar public contracts to a small group of friends and associates instead of to the lowest bidder, have cost Beaumont taxpayers millions.
Impact on Existing Businesses
The policies of Urban Logic and City Manager Alan Kapanicas ignore the needs of existing businesses in favor of new development and big box stores.
Quality of Life
Urban Logic and City Manager Alan Kapanicas have damaged our quality of life by failing to uphold high development standards, depleting local resources, making local government less accessible to residents, and by destroying the small town feel of the City of Beaumont.
Tactics
Urban Logic protects its ability to extract money from the City of Beaumont at all costs, resorting to intimidation and threats when necessary.