Response to Neighbor E-mails (Jan 8, 2014)

I received the following comment and question from one of my neighbors.

What were your thoughts on the meeting last night? We were there and heard the city manager state the CFD’s couldn’t be extended or changed. Do you feel that was accurate or is it still is concern?,

This is one of many emails I’ve received today. I’d like to share with all of you my response:

Dear Neighbor,

I agree with Mr. Kapanicas’ assessment that our payments can’t be extended but he didn’t say they wouldn’t increase our debt. I still have many concerns that can’t be answered in the City Council format where I am only allowed 3 minutes and they don’t have to respond. The process we have started should bring the city manager and attorneys to the table where we should be able to have a more detailed discussion.

The Mello-Roos taxes and related bond issues are very complicated. I’ve been asking questions of the city manager and council for more than six months now and there is still much for me to learn. I have asked the council to provide a detailed workshop for the public where we are free to ask questions but they have denied my requests. The petition signed by so many of us makes it harder for them to dismiss us.

The city is using our Mello-Roos for more than just satisfying our bond debt. Our payments are based on the full amount they were originally authorized to issue and I have watched them issue more debt on the other areas over the last year. Their own documentation shows the issuance of debt beyond the homeowners scheduled maturity date. The Beaumont Finance Authority’s only source of income is our CFD payments. They will have to find away to continue satisfying the new debt.

I still want to prevent them from issuing additional debt on our homes because there are no projects planned for Stetson. Since we are making payments based on additional debt the city hasn’t yet issued, I am  hopeful we will be able retire some of our debt early. This is what is happening in Yucaipa and other cities. Our city needs to find a better way to finance future projects in which all the citizens share in the costs, not just those of us in the CFD areas.

Keep following the StetsonCFD.org website. I will be holding some workshops and community meetings with anyone interested in learning more or and who want to work with me on our negotiations with the city. There is still much we can do. I will be posting your questions and my response on the website because so many are interested and want to know more about what is happening. I expected the city manager to try and dismiss our efforts last night but I’m not satisfied, there is so much more we can do.

Thank you for your support and continued interest.

Respectfully,

Lloyd