EXCERPT: HELENDALE * Two years ago, the Helendale School District took on $5.2 million in extra debt to finance a new school campus - despite stern warnings from the San Bernardino County Superintendent of Schools that its repayment plan was too risky and would burden taxpayers with an "unreasonably high cost."

     Now, as the district turns to teacher layoffs amid dire financial straits, a group of parents is pushing to recall board members they accuse of sitting idly through irresponsible moves that could push the district into insolvency.

     The 2010 construction of a $12 million school has led to an estimated $48 million in taxpayer-funded debt, and district officials are scrambling to secure a way to repay the $5.2 million payment owed in August 2014. ... 

     ...Despite not having permanent financing in place, officials pressed forward with the construction of a $12 million campus to house Riverview Middle School and the new Academy of Careers and Explorations charter school. Amid sinking property values and a relatively small tax base in the rural community, the HSD could only issue $4 million of the $20 million G.O. bond measure in 2009. ...    

    ...But an April 2010 letter from County Schools cautioned the district against issuing the BAN debt. County Schools Business Advisory Services Director Teri Kelly asserted that there was not enough evidence to show the district would have the ability to repay the BANs, the district was relying on unusual bond structures that might not be available and the action could wind up impacting the district's general fund.

     "Additionally, the total combined cost to the Helendale taxpayers for the completion of this project comes at an unreasonably high cost that should be disclosed to the public," Kelly stated.

     Under the district's plan, issuing bonds in 2009 and 2014 to raise $8 million for the $12 million school would end up saddling the district with $41.7 million in total debt obligation, according Kelly. That didn't include another $6.35 million owed from the capital lease loan used to finance the school while the district waited on the state grant. ... ... HSD officials are hoping that enrollment continues to grow to help offset the cuts, with margins tighter for the small district that has only three schools. At about 760 students, the district's entire enrollment is less than a third the size of the Victor Valley's comprehensive high schools.