There Are Many Issues with This Bond
By Jim McMahon
There is no long-term data or quantitative Matrix to support rise of Education over a long-term. Bond shelf life is an unknown perpetuity factor, which has no data on the embellishing of the students.
Bonds are also subject to risks: prepayment risk, credit risk, reinvestment risk, liquidity risk, event risk, exchange rate risk, volatility risk, inflation risk, sovereign risk, and yield curve risk.
All property owners in a district will be affected. Not all eligible to vote in this election. If renters are registered voters in the district, they are eligible to vote. There is no monetary guarantee for the renters, by the property owners, for future unknown increase in monthly/ long rents pricing. This District does not have rent control.
Cerritos has approximately 35% non-owner occupied rental-income properties. If these tenants in these properties are registered to vote, they can vote, and also can the property owner, so some of these properties could have the possibility of double dipping voting.
Approximately 28% of the students in the district are from outside the district, is it fair to the registered property owners in the district?
This is a Mello-Roos Bond, this said school bond, can be purchased and paid in full by any property owners in the district. Also, some underwriting, said bond are not permitted to be recorded on to title, so the bond will have to be paid in full by the property owner; or obtain new financing.
This is a facilities bond, improving the compounds, and not for teachers wages Etc. Trustee’s have done nothing to sell off property, a lot of this excess property should be Sold off, and the money used for improving the existing campuses.
Said Bond money has state capability of being matched by state Grant funds, no guarantee that the grant funds will be available if this passes. Grant funds are available today, but can be amended anytime by the future governors.
District has a declining enrollment, yet alone they still operate five ( 5) high school campuses, this needs to be amended and at least two campuses closed: Whitney and Tracy. That would leave 3 high school campuses which is more than enough per District this size. Sell off or create long term leasing of properties ( 100 Yr Leaseholds)
SIDEBAR: Cerritos is not one of the more expensive real estate markets in the area: North Downey, La Mirada Heights, La Habra Hills, Rossmoore, Lakewood Village, Seal Beach, Los Alamitos, Cypress, all have significant higher resale prices.
Remember the district has many property owners and property renters who are on fixed incomes: Social Security, welfare, food stamps, Obamacare Affordable Housing Mortgages, disability, homeless and other low-income subsidies.
Last 1990's Mello Roos School bond, played havoc during the sales of Foreclosed property, during recession. Paperwork to support the improvements of the bond, were lost, because the district had employment layoffs, so warranties were lost.
Jim McMahon, 45 Yr resident from Cerritos Island