THE BANKRUPTCY -- FIVE YEARS LATER

NEWPORT-MESA UNIFIED SCHOOL DISTRICT

WHAT THEY HAD INVESTED: $82 million, $47 million of which was borrowed

specifically to put in the county’s pool.

WHAT THEY GOT BACK: Just over $80 million, the bulk of which came in June

1995. Still outstanding, along with the remaining $2 million, is about $1

million in property tax revenue that was taken during the bankruptcy.

LONG-TERM EFFECTS: Primarily bad feelings toward the county because of a

failure to negotiate in good faith.

CITY OF NEWPORT BEACH

WHAT THEY HAD INVESTED: $16 million, including $10 million to help pay

for construction of a ground water development project.

WHAT THEY GOT BACK: About 95% of the original amount, which has trickled

in over the years. The water pipeline from Fountain Valley was completed

with other funds.

LONG-TERM EFFECTS: While the actual amount has been largely recovered, an

unknown amount of money was lost in interest in the interim years and “it

would have been nice to have that money all along.”

CITY OF COSTA MESA

WHAT THEY HAD INVESTED: About $3 million, a fraction of the $14 million

originally invested but withdrawn in the six months before the

bankruptcy.

WHAT THEY GOT BACK: About 95%.

LONG-TERM EFFECTS: A decline in the level of cooperation between the

county and the local governments.