The City of Beaumont should also have a manditory amount of reserves exclusively for bond debt. Older bonds list the reserve amount at 10% of bond amount, but recent bond purchases by the City list slightly less.
Page 27 of Bond 2009 SERIES B (IMPROVEMENT 8D & 17B) list the reserve fund requirement at $264,000 or 10% of the $2,640,000 bond. However, the last few bond reserves amounts are slightly less than 10%.
2012 SERIES C (IMPROVEMENT NO. 7B & 7C) Bond is $3,655,000 with a reserve requirement of $333,279.09 or 9.1 %.
2013 SERIES A (IMPROVEMENT NO. 19C) Bond is $8,810,000 with reserve requirement of $708,883.76 or 8%.
2013 SERIES B (IMPROVEMENT 17A) Bond is $10,875,000 with a reserve requirement of $854,500 or 7.8%.
The City of Beaumont should have a Mandatory Reserve Fund Balance of at least $25 Million, so where is it?
I have repeatedly requested statements from all financial institutions and we have had a very public discussion on the meaning of 'all financial institutions'. The City has only produced one (1) reserve fund – the California LAIF Account which has a total of $1.8 Million.
Page 36, Cash and Investments Note 4 in the 2011 GAAP Audit lists the City of Beaumont investments of $25,492,158 with 'Blackrock Institutional Funds'. I have not received any documentation for this company. This notation also has $207,985,805 in Bond Debt listed as an investment.
On May 16, 2013 Mayor Berg publicly announced the City had $11 Million in Reserves. $11 Million does not fulfill the Reserve Fund requirement nor does it explain why the $25 Million invested in Blackrock has disappeared.