Beaumont Plans a CFD Workshop This Tuesday

The agenda is out for next week's council meeting and it doesn't appear the council and city manager is ready to respond to our specific requests. However, there is an item on the agenda listed as a workshop under the City Manager's report. I am optimistic but realistic. In the past I have been prevented from commenting on items in the City Manager's report but, since it is listed as a workshop, I am hopeful there will be an opportunity for a frank interchange between the public and the council. 

I started our petition with the hope we would have a sit down meeting with the city and the Beaumont Finance Authority. A meeting that would facilitate our viewing the financial status of our Mello-Roos bonds. I am hopeful that the city is finally addressing my multiple requests for a public workshop. I fear the format of the City Council will not enable us to get the answers we need to make the necessary changes in the package of powers our developer granted the city on our behalf.

I am hoping Mr. Kapanicas will stay true to his word that the BFA is only the middleman and that the power to make the rules remain in the hands of the property owner. I fear the Council will consider this workshop as a sufficient response to the actions of the Stetson home owners and not grant our request for the council to adopt a Resolution of Consideration and to sit down with the Stetson representatives.

My father lost his 18 month battle with cancer last week and on Monday and Tuesday my family will be attending memorial and burial ceremonies. Unfortunately, I won't be able to attend this meeting. I hope someone on the council will show the honor and courage to schedule a future meeting with me and my neighbors. It will be very disappointing if this is the final word on our efforts by our public servants. 

If you are able to attend and if there is an opportunity to ask questions, here are some ideas:

How much is in the CFD 93-1 Area 18 reserve fund?

Public records on the State Controller's office shows the amount of taxes paid each year have exceeded the amount necessary for debt service and the BFA is required to maintain a reserve account.

Why does the City plan to use CFD funds for $300 million city wide projects the City Manager is planning? Isn't more appropriate to ask for voter approval to issue debt that all the tax payers in Beaumont should share?

Mello-Roos laws were established to finance infrastructure and improvement projects for the community district areas. The intention was not to finance all of the City's future growth on the back of the CFD areas. We accept our responsibility to provide funds for the city wide public safety services such as Police and Fire but the bill for major transportation and public works projects should be shared by all.

Does the Beaumont Finance Authority buy the CFD issued bonds at a discount funded by separately issued bonds? If so, what is the interest rate spread and where are any gains being used.

The BFA was established to manage the debt instruments for the citizens living in the district's areas. I don't believe people understand why the BFA would act as an underwriter. I think this would create a conflict of interest.

I know there are many other valid questions but due to the next few days' activities for me and my family, I have run out of time. I will listen to the podcast and share my opinion next week in a newsletter.