SAN JACINTO —— Left with few options to finance $720 million or so in construction projects over the next 20 years, Mt. San Jacinto College trustees are seriously considering asking property owners to help the college expand.
Although trustees said they're still hesitant to ask voters to approve a general obligation bond, they acknowledged it would be difficult to pay for all the projects on their own that a college master plan calls for to accommodate growth.
The board held a study session Thursday to hear from several advisers, including an attorney, a consultant and the managing director of a securities firm.
The college has been building one major project a year using state grants. At that rate, it would take 72 years to build the facilities needed within the next 20 years, officials have said.
The college has two campuses —— one in San Jacinto and one in Menifee —— and enrolls more than 10,800 full-time students this year.
The college is also planning on building two full-service campuses in the high-growth areas of Wildomar and Banning, as well as smaller satellite learning centers.
At the meeting, the presenters advised the board on when a bond could be placed on an upcoming ballot, how much an election would cost, how much they could tax residents and what types of projects they could fund from the bond proceeds. Trustees had questions on how rising interest rates could affect the area's tax base and whether the assessed value of homes is expected to continue climbing.
"You're going to have to find a home somewhere in the next 15 years for 50,000 students," said consultant Michael Maas, of the Maas Companies. "This is going to be a very large district. If we wait for the state to fund $720 million (in projects), we wouldn't get there."
Maas recommended the college put a bond on the June 2006 primary election ballot, rather than the November 2005 ballot, to give officials plenty of time to plan.
If trustees want to get a bond on the June 2006 ballot, they would need to formally approve that plan by next March, he said.
Catherine Bando, managing director of securities firm RBC Dain Rauscher, said the college could issue $600 million in bonds and stay within the legal tax limit of $25 per $100,000 of assessed value.
Trustee Gwen Schlange said she was concerned that if the assessed value of homes doesn't rise as it has the last four years or so, the college district could be left without enough tax revenues to pay back bond issuances.
The entire bond would not be issued all at once; rather, the college would issue only as much as it needs to accommodate growth.
Bando said the community has been growing about 4 percent a year, a figure analysts use to decide how many classrooms and other facilities the college would need to house future students.
"If growth isn't at 4 percent, you won't be issuing bonds for a few years," she said.
Trustee Ann Motte said it's important to show the community the college is using all its available space and is packing in as many classes during available hours before asking residents to help pay for new facilities.
"Before we take on a bond this size, we have to show them we're maximizing our schedule," she said. "It's imperative our voters know that."
Contact staff writer Kelly Brusch at (951) 676-4315 Ext. 2626, or kbrusch@californian.com.
