COSTA MESA / NEWPORT BEACH

City Loan to Schools Dropped After Water District Offers Help

Costa Mesa has scrapped plans to extend an emergency loan to the Newport-Mesa Unified School District.

School district trustees on Tuesday accepted a $11.3-million loan from the Irvine Ranch Water District, eliminating the need for a bridge loan from the cities of Costa Mesa and Newport Beach.

Costa Mesa City Manager Allan L. Roeder said officials from both Costa Mesa and Newport Beach met with district Supt. Mac Bernd last week to discuss the school district’s immediate need for cash.

The district must make a $47-million payment to its bondholders June 13 and also has other financial obligations.

Roeder said there was not enough time to arrange a deal, nor was there a compelling reason to do so, given that the school district already had an agreeable offer from the water district.

“We would have had to develop a whole new agreement and review the terms and conditions, and we didn’t think we could do that in a short time,” he said.

Costa Mesa and Newport Beach will continue to monitor the school district’s finances, Roeder said, and both remain poised to step in if there is a need and if the cities have the available funds.

“There may be a role for the cities somewhere down the road,” Roeder said.