Secret Bond Debt is All Around You, Coronado Taxpayers, and It’s YOUR Tax Burden
It’s not “only” the approximately $300 million of remaining secret Redevelopment Bond debt that your City and CUSD officials incurred for YOU as YOUR burden, Coronado taxpayers.
Yes, the ability to take out secret bond debt WITHOUT VOTER APPROVAL was one of the major attractions of Redevelopment for the Coronado officials who are responsible for declaring our city “blighted” and then trashing our City and School finances.
No, we’re not kidding. That’s the truth.
But, wait. There’s more.
Additional secret debt is pulling down Coronado taxpayers, too.
The bond debt instruments CUSD used for the School Pool fiasco are called Certificates of Participation, or COPs.
COPs don’t require voter or taxpayer approval, and yet taxpayers are responsible for paying off CUSD’s COP debt!
Does that sound right to you?
We didn’t think so.
And yet it’s true.
This Video is Worth Watching
If you have 7.5 minutes, watch the Full Disclosure Network video Secret School Bonds Create Billions of Dollars of Debt by clicking here.
If you only have less than 1.5 minutes, slide the cursor under the video screen to 3:25 and watch for about 1 minute and 22 seconds.
What you see and hear will knock you off your seat!
Kathleen Connell, Past California State Controller, Explains It All for You
Here are the transcript of former California State Controller Kathleen Connell as she explains COPs to you. On the video, she begins speaking at minute 3:26, and speaks for less than 1.5 minutes, in the above YouTube video.
Many people think that THEY get to vote on every issuance of bond in California and I need to educate them that that’s simply not true. There’s a large proportion of [public] debt sold in California known as either “lease bonds” or “lease revenue bonds” or . . . ah . . .Certificates of Participation. For those of us in financial circles, those are known as COPs and those are increasingly common. They came into play after we passed Proposition 13 in California. And as your listeners probably know, Proposition 13 limited the tax on assessed valuation to 1%, that assessed valuation, and it imposed an important restriction, that every bond that was sold had to have a 2/3s vote of the people. Well, in order to AVOID going to the people constantly for every little additional . . . ah . . . financing that a City, a County, a Special [School] District, [and] the State of California wanted to do, they devised . . . ah . . . the lawyers they devised . . . ah . . . a mechanism by which . . . ah . . . the State, the City, or any Municipal Borrower could say that they would issue a Certificate of Participation. What that does is without any vote of the [State] Legislature, the County Board of . . . ah . . . without any vote of the people, it goes to the vote of the governing body and it says “We’re gonna use debt financing, borrowing money to build a library downtown, for example.”
Did you like her tone? We didn’t. We think she is patronizing toward taxpayers at some times and confused about how COPs work at other times during her monologue.
We wouldn’t ever have accused Ms. Connell of being a taxpayer advocate. Would you?
Why is that interesting? Because the lawyers were only doing what they were hired to do . . . by the School Districts, Municipal Governments, Special Agencies, and State . . . every public agency . . .and their lobbyists . . . who wanted to GET AROUND, or OVERTURN, the fair and equal protection of Prop 13 for all property owners against unreasonable property tax burdens.
In other words, the lawyers were hired by all of the government officials who refuse to LIVE WITHIN THEIR MEANS.
Proposition 13 Protects Us All Because It’s Fair & Equal in Its Application
It’s important for you to know that Prop 13 protects ALL property owners from the burden unreasonable property taxes. It’s fair and equal in its application.
No, Prop 13 doesn’t only protect “old” homes in Coronado.
Yes, Prop 13 protects ALL homes in Coronado . . . old homes AND new homes. It doesn’t matter in what year your house was built.
Every single property owner in Coronado is protected from the burden of unreasonable property taxes by Prop 13.
Yes, through its taxpayer protection, Prop 13 is a restriction on how much property taxes are collected in Coronado — 1% on assessed value of property.
No, like the City, CUSD can’t legitimately cry poor mouth because of Prop 13.
Yes, like the City, CUSD has an OVERSPENDING problem.
No, CUSD has no “tax revenue” problem.
No, it’s not the State’s fault that CUSD refuses to live within its means.
Shame on all elected and appointed officials in Coronado City and CUSD who want to GET AROUND, or OVERTURN, Prop 13 with the Prop E property tax hike on June 3!
Proposition 39 School Bonds are Bad for Taxpayers & Good for Spendthrift School Districts
Not content with “lease bonds,” “lease revenue bonds” and COPs, California School districts paid for lobbyists with OUR tax dollars to finagle another way to OVERTURN Prop 13!
In 2000, they brought about the passage in Sacramento of Prop 39 so that school districts, including CUSD, can now issue General Obligation Bond debt (GOBs) with LESS THAN 2/3s vote of the people!
Only 55% of the vote is necessary under Prop 39 to sink taxpayers further into public bond debt. This is a very, very bad thing.
That’s what is meant by “Prop 39 bonds.” They are harmful to taxpayers and beneficial to the spendthrift school district of CUSD.
The Prop E bonds that CUSD seeks on June 3 are Prop 39 bonds because they only require 55% of the vote of Coronado. In this way, with such a lower voter approval requirement, the deck is stacked against Coronado taxpayers, homeowners and renters who will have to bear the additional, onerous property tax burden if Prop E passes.
No Real Protection for Taxpayer with Prop 39 Bonds
In order to give Sacramento politicians political cover for their heinous reduction from 2/3s to 55% of the vote to get public approval for their public financing schemes, California school districts tricked the public into believing they are “protected” from abuse by school district officials.
As a result, all Prop 39 bonds have phony requirements for things like:
- Oversight board. . . usually made up of School District cronies who provide no real oversight because they are merely rubber-stampers, and
- Project lists . . . usually made up of lots of fluff with the true intent buried in looong project lists in order to hide the true purpose of the Prop 39 bonds from the voters who must approve them.
There’s nothing special or unique about CUSD’s proposed Prop 39 school bonds that they seek on June 3 with Prop E. The things they disclosed are legal requirements. CUSD is required by law to provide a project list, and an oversight board if Prop E passes.
Don’t be hoodwinked by CUSD’s false claims that their proposed Prop E school bonds contain anything more than the basic legal requirements . . . the phony “protections” . . . that the law mandates CUSD provide.
Prop E is merely another way CUSD is trying to trick Coronado voters to REMOVE, or OVERTURN, the Prop 13 protections that ALL Coronado property owners are guaranteed and to approve unreasonable property tax hikes on THEMSELVES AND their NEIGHBORS.
As such, Prop E places an UNREASONABLE property tax burden on YOU and your NEIGHBORS.
Call Your Friends & Vote NO on Prop E on June 3
If you want to see the list of your neighbors, acquaintances and friends who have signed up with CUSD to raise YOUR property taxes by endorsing additional school bond debt with Prop E, we’re certain you’ll see a juvenile advertisement in the weekly town paper before June 3 with a list of those names.
Meanwhile, you have the opportunity to view that list of people who want to raise YOUR property taxes through Prop E because they endorse CUSD’s pro-bond campaign. You’ll find the list on CUSD’s campaign website.
We recommend you telephone, meet with AND email everyone you know on CUSD’s pro-tax hike list and tell them to stop their endorsement of a property tax hike on YOU! Instead, invite your neighbors, acquaintances and friends to make THEIR voluntary, annual donation to CUSD by mailing their personal check to CUSD. Be sure to mark their check to be used FOR STUDENTS ONLY.
Also, we recommend you keep calm and vote NO on Prop E on June 3.