By: Libi Uremovic | Original Article at patch.com
For over 20 years Beaumont City Staff used their executive positions to pay themselves exorbitant salaries and funnel money to their private companies. Mello Roos taxes, Mitigation Fees, and other Taxes were collected to build the infrastructure, but most of the money was embezzle and the infrastructure was never built.
Beaumont’s new City Council must now find the money to build a Title 22 Complaint Recycled Water Facility, Brine disposal system, replace/repair the sewer lines throughout the original part of the City, build and maintain three (3) Fire Stations, and pay the TUMF settlement now at $60 Million.
FILE WITH COMPANY’S INSURANCE:
The State and Feds will confiscate everyone’s individual property to recoup indictment and prison costs, but the City can file claims with every company’s Insurance.
Union Bank, ERMAC, Urban Logic Consultants, General Government Management Services, Wildermuth, Aklufi/Wysocki, Rod Gunn, O’Conner & Associates, McFarlin & Anderson, Norton Rose Fulbright, Empire Economics, and the Auditing Firm of Moss, Levy, Hartzheim are all required to carry liability insurance. Because the corruption spans over 20 years the insurance will only pay a fraction of what was stolen, but at least the Citizens of Beaumont can recoup some of their money.
REFUSE TO HONOR THE MELLO ROOS BONDS:
The City of Beaumont illegally acquired $321 Million in Mello Roos Bonds to build infrastructure that was never built. Union Bank was instrumental in defrauding the property owners and funneling money to Urban Logic. Union Bank’s duty as Bond Trustee is to protect and properly allocate the bond money, but Union Bank conspired with Urban Logic to embezzle the money.
Over $4 million has been funneled to Urban Logic through the bond fund accounts including $385,000 in March, 2015. Union Bank has even embezzled $350,000 themselves.
The basis of contract law is that there is no contract without consideration. Because the property owners never voted on the bond debt, never received the infrastructure promised, and are charged more than necessary to cover the cost of the bonds, they are not legally liable to honor the bonds.
Beaumont’s new Council will have no choice but to raise money to build the needed infrastructure through property taxes. By relieving the property owners’ burden of their current Mello Roos taxes the property owners will be able to afford to pay and be willing to vote for a legal property tax increase.
Mello Roos property taxes are attached to homes because the City submits the taxes to the County. If Beaumont stops submitted the additional taxes the County will stop adding the taxes to the property owners’ tax bill. Property owners are currently paying up to $7,200/year in additional taxes.
At the end of May the City of Beaumont will receive an additional $11 Million in property taxes, most of which would be used to pay the September bond Principal and Interest payments. By rejecting the bonds the City of Beaumont can use the taxes for the much needed infrastructure that was never built.
By taking a hard stance the City of Beaumont can avoid bankruptcy and move forward and rebuild their community.