The Oceanside Unified School District met with an oversight group Thursday to discuss a contentious bond financing plan, our media partners the North County Times reported.
The district borrowed roughly $70 million using Capital Appreciation Bonds, a controversial method of financing brought to light after an investigation into Poway Unified School District’s $105 million loan.
Poway will end up paying nearly $1 billion to pay off the loan after voters approved a 2008 bond measure authorizing the loan. The loan cannot be refinanced, district officials told angry residents in a meeting last week.
Now Oceanside residents are concerned that their loan will impose a similar financial burden on future taxpayers, the NC Times reported.
Oceanside can refinance most of the debt or pay the loan off early. Many of the members at the OUSD Bond Oversight Committee approve of the way the loan is financed.
Yet several voiced their disapproval, saying the Capital Appreciation Bond may mean financial trouble.
Read the North County Times’ article on their website.