ANAHEIM : College District OKs Investment Crisis Plan

North Orange County Community College District trustees have adopted a plan to solve the district’s critical cash-flow problems caused by the collapse of Orange County’s investment fund.

The plan, which also addresses how the district can recover from a loss of about $10.6 million from its general fund when the county pool failed, was approved Tuesday.

It includes issuing up to $14 million in tax revenue anticipation notes to meet expenses in fiscal 1995-96. Without those notes, officials estimate, the district would be more than $1.8 million in the red by July and be facing an $8.4-million deficit by November.

Also included in the plan is a $6-million loan from Bank of America to cover a cash shortage that will hit the district in mid-June. That money would have to be repaid by the end of July.

The most controversial portion of the plan is the possible sale of 44 acres of district land in Yorba Linda to offset investment pool losses.

Chancellor Tom K. Harris Jr. said he does not want sell the property and that he continues to press for a complete refund of the district’s pool investments.

But, he cautioned, there are “a lot of ifs” surrounding the county bankruptcy--especially if a proposed sales tax hike is rejected by voters next month.

“We have to be prepared,” he said, “and we have to have a workout plan.”

The six trustees at the meeting all supported the district’s borrowing plans. But trustee Barbara G. Hammerman cast the lone vote against declaring the Yorba Linda property as surplus. Hammerman wants the district to explore leasing the property rather than selling it.

The only trustee absent Tuesday was Chris Loumakis, who voted against the bankruptcy workout plan at a special meeting last week. Because three trustees were absent from that meeting, the “no” vote by Loumakis temporarily derailed the plan.

Loumakis said he wanted the district to confront the financial crisis by tapping reserves and making budget cuts rather than borrowing additional funds.