Brea lends school district $1 million for quake repairs
|By Louis Casiano Jr., The Orange County Register|
|McClatchy-Tribune Information Services|
City leaders asked the district if it needed assistance in raising funds. The district plans to fully fund the repairs, but asked for short-term "backstop" funding as a precaution.
"This is just a way of providing some initial insurance ... to get the schools open and ready for business in the fall," said
The district plans to fund the repairs with help from the
But a court hearing is scheduled Tuesday in a lawsuit by a developer that claims the school district broke the law by skipping a public auction to sell district property, instead agreeing to sell the property for
Roland said the district would use the city money as a last resort.
"You never want to borrow money if you don't have to," he said.
"It's a symbol of the way that the district and the city work together," Roland said, "but ideally speaking, I should be doing what I can do to make sure that we can pay our bills from our money and not have to borrow it."
The district is not obligated to take any part of the money offered by the city. "I'm not asking for the money until I need it," Roland said.
Under the agreement, if the school district decides to take the city up on its offer, it would repay the loan at an interest rate of 0.23 percent by the end of the 2014-15 fiscal year.
"That is the current money market rate that we're getting when we invest our money short-term," Gallardo said.
Fanning's main building has been closed because of asbestos found in dust and debris caused by falling ceiling tiles and light fixtures in a magnitude 5.1 earthquake
Students from second through sixth grades were relocated to
Contact the writer: 714-704-3794 or [email protected]
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