LCO Bombshell (repost): will McK schools really pay $56M to borrow $4M?
The Lost Coast Outpost has what ought to be a bombshell. McKinleyville Union School District appears to have put its future self [correction: or McKinleyville’s future taxpayers] on the hook to pay upwards of $56 million to pay back principal and interest on $4 million of bonds.
Click the link above and read the report. Then, if you’re curious, you can always ask the McKinleyville Union School District trustees. Click on the links below if you’d like to send email, or call 839-1549:
Brian Mitchell – President of the Board (he’s the VP for Accounting at Security National)
Tim Hooven – Clerk of the Board (he’s the Hooven from Hooven Construction)
Justin Zabel– Board Member (he’s from Mercer Fraser Construction)
Sara Alto – Board Representative (of Bella Vista Realty)
Jack Durham of the McKinleyville Press conducted an interview with then Superintendent Dena McCullough and then Business Manager Maureen Hester back in 2008, about why the district needed the bonds:
The vote (the bonds passed by 14 votes) was challenged by McKinleyville residents David and Penny Elsebusch: http://tomonkgoe.blogspot.com/2008/08/corporations-that-funded-mckinleyville.html
Understand what these bonds, as issued, do: they cause the people of McKinleyville to pay Wall Street one hundred dollars in debt service for every eight dollars received by the school district from the bond issue. But the cost has been shifted as far as 40 years down the road, when these directors will be retired or dead.
(Note: this is a repost of an earlier post. Older comments can still be found at the earlier post, two back.)