$400 mil missing - $350 mil embezzled From CFD Bonds -

In the December 29th letters to the Editor section of the Record Gazette, Elizabeth (Libi) Uremovic claimed that  "four hundred million is missing from the city of Beaumont, $350 million of which was embezzled from the Mello-Roos community facilities district bonds".

Here are the facts:

City Council received a report on June 7, 2016 from Urban Futures, Inc. regarding the reconciliation of Mello-Roos bond funds.

  • 34 bond issuances from 1993 to 2015 Face value = $367,240,000

  • $109,320,000 was issued as refunding bonds

  • $257,920,000 was issued as new money bonds

  • Bond expenditures in the amount of $258,099,800 were reported (Excludes bond proceeds used to refund bonds)

  • Reported that approximately $41 million of the proceeds were directed to the businesses of the criminals

 

       As described above, the funds have been reconciled and $350 million has been accounted for. Reconciliation of these funds show that capital projects were completed.

  • Construction Funds

    • Design, Planning, Engineering and Management = $50.6 million

    • Payments to 3rd party public agencies = $41.0 million

    • Payments to 3rd parties = $36.6 million

    • Reimbursements to developers = $24.6 million

    • Transfers to city = $53.1 million

  • Funds held by trustee = $29.7 million

  • Cost of issuance = $12.0 million

  • Administrative costs = $3.6 million

  • BFA bond expense = $6.9 million

  • Infrastructure needed to serve development is installed and functional

    • Streets

    • Drainage

    • Parks

    • Wastewater