Bob Perkins, chairman of Hartnell bond's citizen oversight committee, is urging members of the public to attend a special meeting where the bond repayment schedule will be discussed.
Since voters approved Measure H in November 2002, Hartnell College has raised $131 million for capital improvements through a series of bond increments. The projects are listed here.
Since the recession took hold, Hartnell College and other school districts around California have resorted to Capital Appreciation Bonds to raise money for capital improvements. Government treasurers have been raising alarms about the long-term costs of paying back this debt, which can total as much as ten times the amount borrowed.
Hartnell College’s Capital Appreciation Bonds allowed the college to delay payments for several years. However, once payments begin, they escalate quickly. If tax revenue projections are wrong thirty years from now, Hartnell College could face problems meeting its debt payments.
It looks like a new conversation will begin at Hartnell College about what future options the college might pursue, Perkins writes in an email. "We need to know what restrictions are attached to capital appreciation bonds," he said.
The meeting will take place at 4 p.m. Thursday, May 10, at the
Learning Resource Center, Room 105
411 Central Avenue, Salinas