Posted on 08/22/2012 6:16:21 PM PDT by smokingfrog
Poway residents want to know how a financing plan for school construction could end up costing almost nine times what was borrowed.
Poway Unified School District board members listened Monday night as residents voiced their concerns about the $105 million loan that could take taxpayers close to a billion dollars to repay.
The loan is part of Proposition C, a bond measure passed by voters in 2008 to complete renovations and repairs to 24 aging school that began in 2002 under Proposition U.
The district promised the property tax rate would not go up again but with property values in decline, the district issued a bond in 2011 with financing over 40 years, no payment due for 20, and interest compounding.
Several weeks after NBC 7 reported the details of the loan with help from our media partner voiceofsandiego.org, the district held a public hearing to answer questions about their decision.
It was a packed house Monday night as residents complained to board members that they felt left in the dark about how the district planned to pay for a bond.
Poway resident Joyce Haas, whose three children attended school in Poway, said she was appalled by the board's judgment.
“Where do you think this money is going to come from? It’s not going to come from me. I'm going to be dead and buried,” Haas said.
(Excerpt) Read more at nbcsandiego.com ...
I’m from the government and am here to help you sign here.
Man I’d love to get a mortgage like that, especially since I’m 64 yrs old, LOL.
What’s the problem? It was” for the children”. They get to pay for it when they are all grown up...
I don’t understand the problem. They give you twenty years notice to get out.
It’s not an expense! It’s an INVESTMENT!
I know that if I lived there I would SCRAM well before that 20 year mark.
I don’t understand the problem. They give you twenty years notice to get out.
***
but they still need to sell to avoid a total loss. Looks like property taxes will take a big jump then.
CAn’t they just return the money?
It’s difficult to understand how the citizens at the meeting remained non-violent.
I, being a cro-mangon type, think it is the old math, theft. But then, I also believe that 2+2=4, silly me.
As for leaving California, remember this is the state that has tried either three or four times to collect state income taxes from military retirees who were stationed in California at one time in their career but didn't retire there. Do you think that the politicians are going to let you leave of your own free will and accord? Give up all of that future income tax revenue?
A course that should be added to the school curriculum might be titled “The Evils of Indentured Servitude and Fiscal Slavery”, but then, there would probably be no teacher qualified to teach it!
And of course in 20 years the schools will once again be in need of repair...
To me this just shows the “tea party” is just starting to steep.
See Wiemar Germany.
I’ve made a bet that way, pulling as much cash as I could out of my house, re-fi at 3.75 fixed for 30 yrs. Hope to pay it back with Baraqqi/Bernanke/Geithner minibucks.
I did that at 4.25% and am even based on the rise in local valuations.
The cash invested is growing at 10% this year puts me ahead.
I think a lot of people and gov’t entities are looking at the situation and saying “well, it’s gonna crash anyway, might as well live it up now!”
Actually, its time to get out tar and feathers. And maybe some good rope. But we’re too “civilized” for that.
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