By: Libi Uremovic| Original Article at Patch.com
Beaumont’s Mello Roos Bonds can be divided into two sections: the Sewer/Wastewater Bonds and the Liens on Private Property Bonds. All bonds have a ‘Sources and Uses’ page. The Sources list the Bond Amount, the Underwriter’s Fee, and any Discounts or Funds added. The Uses page list how the money is to be disbursed.
The Sewer and Wastewater Bonds use only the ‘Sources and Uses’ page, but the Bonds that have Liens on Private Property have another step: the ‘Proceeds Page’. This allows Union Bank to further Discount the Bond and allows City Staff to charge Administration Fees twice.
The total amount Fees and Expense charges total over $22 Million. $110 Million was put in ‘Escrow’ Funds, but no land was ever purchased. We know that the $8 Million in the 2001 Wastewater Bond Escrow Account was embezzled through Urban Logic.
A Summary of the City of Beaumont Bond Debt:
Number of Bonds: 3 Sewer and 27 Bonds w/Liens on Private Property
Total Bond Debt: $321,775,000 Including 2001Wastewater Bond
Added Funds: $11,995,500
Underwriter Fee: $6,155,390
Discounted: $64,026,117.69
Total Distributed: $263,588,992.44
Cost of Issuance: $6,059,728.19
Administration Expense: $8,866,285.46
Rate Stabilization: $489,215.63
Cash Flow Management: $475,548.76
Special Tax $195,109
Construction $158,842,473.26
Bond Repayment: $49,253,380.13
Interest: $6,381,413.54
Escrow Fund: $110,350,015.55
Reserve Fund: $23,698,264.28