CUSD is hiding public information about public finances. Click here to read our prior article about that.
In other words, CUSD isn’t being open, honest and transparent with their books . . . as required by law.
There is evidence that CUSD is rife with financial mismanagement in plain sight for all to see:
- School pool fiasco is an everlasting monument of CUSD’s financial mismanagement and CUSD’s financial irresponsibility. Click here, here and here to read our prior articles on that.
- 21 problems found by auditor in CUSD’s books. Click here to read our prior article on that.
- 15 Problems found by San Diego County Taxpayers Association (SDCTPA) in CUSD’s Prop E materials and stated that CUSD withheld requested information from the SDCTPA. Click here to read our prior article on that.
$200+ Million is CUSD’s Current Debt
Even though CUSD is hiding information and is rife with financial mismanagement, we’ve done our research. We were been able to find evidence of CUSD’s debt from various reliable sources.
Based on the information we found in the public domain, CUSD’s debt is below.
CUSD’s Public Debt
Coronado Taxpayers Owe All of This Money for Debts that CUSD Ran Up
|Voter Approved?||Years Duration||Type of Debt||Face Amounts||Costs to Coronado taxpayers= Principal + Interest||Total Debt|
|Yes||1998 -2024||Prop KK GOBs*||$ 17 M||$ 34-51 M||$ 34-51 M|
|NO||~2002-2036||Redevelopment Bonds||$ 40 M||~ $120 M||~$154-171M|
|NO||2005-2024||COPs||$ 11 M||$ 22-33 M||~$176-204M|
|NO||Future Generations||CalSTRS Pension Debt||—||($71 Billion State of CA)||~ 204 + M|
Four Main Points About the Chart
The four main points that jump out at you are:
- CUSD already has around $200+ million in debt! Coronado taxpayers are responsible for every single dollar.
- * $12 million General Obligation Refunding Bonds. CUSD isn’t open and honest about its debts and other financial information. Through our own research, we found that CUSD may have issued “refunding” bonds in the face amount of $12 million, perhaps for the Prop KK GOB debts. You may hear people call this “rolling over,” or “re-financing,” existing bond debts. Click here to see a 149-page document that starts with a Preliminary Official Statement dated February 17, 2012. The underwriters are Stone & Youngberg, a Divison of Stifel Nicolaus, who are listed in the document. We understand that Stone & Youngberg has been the underwriter for hundreds of millions of Coronado City, Coronado Redevelopment and CUSD bonds over the years.
- The lion’s share of CUSD’s debt was NOT approved by voters!
- The value of CUSD’s enormous Pension Debt, expressed as a portion of the $71 billion California State Teachers Union (CalSTRS) Pension Debt, isn’t included in the chart. In reality, CUSD’s total debt is much higher than $200 million. That’s why we call it $200+ CUSD debt.
GOBs means General Obligation Bonds. Coronado voters approved Prop KK GOBs for CUSD back in the 1990s. We’re still paying that debt through the Prop KK property tax hike. Your Prop KK property tax hike appears on your property tax bill as a line item under the headings:
VOTER APPROVED BONDS:
UNIFIED SCHOOL [CUSD]
You are going to be paying your Prop KK property tax hike until 2024.
Redevelopment Bonds are debts incurred WITHOUT VOTER APPROVAL. Read our prior article about that by clicking here. The actual debt may be higher than what we found. Redevelopment Bonds aren’t easy to track because CUSD keeps them off-balance-sheet.
Prop E Property Tax Hike Could Add Over $50 Million to CUSD’s Debts
Prop E would ADD onto the $200+ million CUSD debt, which currently burdens Coronado taxpayers, yet another property tax hike which Coronado homeowners must pay. Enough is enough!
Prop E could ADD more than $50 million onto the $200 million of CUSD debt burden that Coronado homeowners and renters will have to pay.
Why more than $50 million? Because as San Diego County Taxpayers Association (SDCTPA) said in their Prop E analysis, and we explained here, CUSD’s numbers don’t add up. Prop E is a scam.
Prop E Property Tax Hike is Too Expensive
The Prop E property tax hike is going to cost more than the $40 million CUSD claims because in the bond market CUSD won’t be able to find cheap and easy financing for the $29 million face value of school bonds they seek. Bond investors are too smart.
What does that mean? The $29 million that CUSD seeks is going to cost Coronado taxpayers MUCH more than CUSD claims in terms of principle and interest on CUSD’s Prop E school bonds. Prop E is too expensive.
Prop E Property Tax Hike is Too Risky
CUSD fully intends to get $29 more of OUR tax dollars through the Prop E property tax hike, but CUSD can’t guarantee how much that will cost US, the Coronado taxpayers, through public debt financing with school bonds. Indeed Prop E is a very bad deal for Coronado taxpayers. Prop E is too risky.
How do we know this? In the Impartial Analysis by the County Counsel you’ll receive in your ballot pamphlet in the mail soon, CUSD’s numbers aren’t realistic. Instead of “less than 1% interest on 3 bond issues” (the worthless campaign promise CUSD made, but isn’t legally obligated to keep) the interest rate on the Prop E school bonds can be up to 12% according to the County Counsel’s Impartial Analysis of Prop E in your Ballot Statement.
Instead of burdening Coronado taxpayers to “pay off all Prop E bond in 10 years or less” (another worthless campaign promise CUSD made, but isn’t legally obligated to keep) the legal duration of the Prop E property tax hike can be up to 40 years according to the County Counsel’s Impartial Analysis of Prop E in your Ballot Pamphlet.
Don’t be hoodwinked into ADDING yet ANOTHER property tax hike and ADDITIONAL debt onto the backs of Coronado taxpayers for CUSD.
Remember, Coronado homeowners are also shouldering enormous debts for CORONADO CITY.
Government spending is OUT OF CONTROL in Coronado . . . and CUSD is no exception.
Vote NO on Prop E on June 3
The only vote on Prop E on June 3 is NO.
NO to yet another property tax hike.
NO to CUSD hiding information from voters while demanding voters approve another tax hike for CUSD.