Thirty years ago the City of Fullerton put up $7 million in bond funds to build athletic fields at Cal State Fullerton. The city was supposed to be paid back through income from a hotel built on campus. But it hasn’t and it’s now owed $14 million, including principal and interest. Now Fullerton Mayor Jesus Silva says Cal State should tap into a newly revealed $1.5 billion surplus to repay the city so it can take care of urgent needs.
Cal State Fullerton Chief Financial Officer Danny Kim says the reserves should stay in the bank until desperately needed.