What are the Funding Sources for CUSD Facilities? 

CUSD has $72 million in funds available to fix and maintain facilities ... why is the money not being spent?

CUSD has collected millions of dollars in special taxes for facilities. So why is the money not being spent to fix and maintain facilities for CUSD students? Where is all this money going? 

The District's new Financial Transparency Portal allows taxpayers to have more oversight as to how their Mello Roos tax dollars are spent. Money that should be spent to fix and maintain facilities, and increase capacity at overcrowded schools, appears to be accumulating in accounts and is not being spent despite overwhelming facilities needs within the District.

CUSD is already starting the work to ask voters to approve a new school facilities bond. This comes after voters rejected CUSD's $889 million dollar Measure M campaign. Any new school facilities bond will be on top of the $264,384,491 Mello Roos tax debt that CUSD already has. 

The following chart shows what funding CUSD currently has for facilities and gives Mello Roos taxpayers resources for monitoring their tax collection and how their money is being spent.

The POINT: CUSD has the money to fix EVERY failing HVAC system in the district, but is "choosing" NOT to fix and maintain facilities. 

The following represents at least $72,3000,233 that are available for facilities that are not being spent. Demand that CUSD provide students with facilities that are adequately maintained.

   2013

June 30, 2014

 June 30, 2015

 June 30, 2016

Deferred Maint  $2,376,674

Nov 6, 2013 BOT Meeting page 213

   

Ending Balance June 30, 2017 $1,700,000

Revenues: $3,012,000

LCFF $3,000,000

Interest $12,000

Expenses: $3,319,568

Books and Supplies $50,000

Rentals, Leases, Repairs and non-capitalized improvements $600,000

Professional Consulting Services and Operating Expenditures $50,000

Buildings and Improvement of Buildings $1,319,568

Equipment $1,300,000

Note: Why are "Deferred Maintenance Funds" being used for books and supplies?

June , 2017 CUSD BOT Meeting Agenda Item #40 BUDGET ADOPTION page 56

The State under Local Control allows Deferred Maintenance funds to be used for any purpose- Tier III Flexibility

SFID GO Bond Series C

Allowable Funding Source for:
Bergeson ES
RH Dana ES
Crown Valley ES
Hidden Hills ES
Laguna Niguel ES
Malcom ES
Moulton ES
Palisades ES
George White ES
Niguel Hills MS
Dana Hills HS

There is no information regarding this GO Bond except the Nov 6, 2013 BOT Meeting reference 

 $4,903,932

Nov 6, 2013 BOT Meeting page 213

   

Where did this money go?  

What is the current account balance?

Developer Fees

Every School

 $6,172,349

Nov 6, 2013 BOT Meeting page 213

 

$16,870,573.92

Annual and 5-year Report 11-21-16

Income: $8,308,551.25

Expenses: $4,894,114.53

Include Classroom Additions:

SC High

SJH High

Tesoro High

 

$20,284,980.64 

 

SSFF 1A OPSC

State Fiscal Stabilization Funds

Project Specific

One time Federal Money under the American Recovery and Reinvestment  Act

Resource CDE

  $1,120,782

Nov 6, 2013 BOT Meeting page 213

   

Where did this money go? 

What is the current account balance?

SSFF 47 OPSC  

State Fiscal Stabilization Funds

Project Specific

One time Federal Money under the American Recovery and Reinvestment  Act

Resource CDE

$1,030,499

Nov 6, 2013 BOT Meeting page 213

 
   

Where did this money go? 

What is the current account balance?

RDA SJC

Allowable Funding Source for:
Ambuehl ES
Del Obispo ES
Kinoshita ES
San Juan ES
Marco Forster MS
Dana Hills HS

The State has dissolved RDA as of 2015

 $1,614,759

Nov 6, 2013 BOT Meeting page 213

   

Where did this money go?

What is the current account balance?  

RDA SC

Allowable Funding Source for:
Benedict ES
Concordia ES
Las Palmas ES
Lobo ES
Marblehead ES
Vista Del Mar ES
Bernice Ayer MS
Shorecliffs MS
Vista Del Mar MS
San Clemente HS

The State has dissolved RDA as of 2015

$344,589

Nov 6, 2013 BOT Meeting page 213

 
     

Where did this money go? 

What is the current account balance? 

RDA MV

Allowable Funding Source for:
Barcelona Hills ES
Bathgate ES
Castille ES
Reily ES
Viejo ES
Hankey MS
Newhart MS
Capo Valley HS

The State has dissolved RDA as of 2015

$7,900,200

Nov 6, 2013 BOT Meeting page 213

 
   

Where did this money go? 

$10,484,548 in Redevelopment Pass Through Funds will be spent for a new STEM classroom building at Newhart Middle School. 

See: September 13, 2017 CUSD BOT Meeting Agenda Item #33 page 646

Board Audio at 86:25

NOTE: It is unclear how much money remains in the RDA MV account.

87-1 MV/AV

Assessment Ends 2020

California Mello-Roos Community Facilities Districts Yearly Fiscal Status Reports page A- 205

Allowable Funding Source for:
Barcelona Hills ES
Bathgate ES
Canyon Vista ES
Castille ES
Oak Grove ES
Reily ES
Viejo ES
Wood Canyon ES
Aliso Viejo MS
Don Juan Avilia K8
Newhart MS
Aliso Niguel HS
Capo Valley HS

Expenditures show that CUSD was collecting substantially more taxes then it was spending on facilities for students.

$10,197,218

Nov 6, 2013 BOT Meeting page 213

$29,703,169 

Aug 3, 2015 

page 12

9,883,666 Special Tax Fund
1 Interest
4 Principal
523,609 Special Reserve Fund
3,576,000 Reserve account
521,006 Admin
533,916 Project Procurement
14,664,968 Bond Call Procurement

Ending Balance as of June 30, 2016 $37,680,870  

Concluded Report Aug 8, 2016 

Ending Balance on Concluding Report shows $33,462,576

2015-16 Income $3,693,405

2015-16 Expenses $26,658,675

Closing Balance $10,497,306

10,065,133 Special Tax Fund
96,189 Interest
5 Principal
2,106,533 Special Reserve Fund
3,576,000 Reserve account
124,755 Admin
408,933 Project Procurement
21,290,910 Bond Call Procurement

$10,497,306 

 Where did this money go? 

This CFD has been terminated - the over collection of taxes should have been returned to taxpayers; but CUSD and the Cities of Aliso Viejo and Mission Viejo have agreed to spend  $10,971,106 for a new STEM classroom building at Aliso Niguel HS.

See: September 13, 2017 CUSD BOT Meeting Agenda Item #33 page 646

Board Audio at 86:25

 

88-1 RSM

Assessment Ends 2014

California Mello-Roos Community Facilities Districts Yearly Fiscal Status Reports page A- 206

Allowable Funding Source for:
Arroyo Vista ES
Tiejeras Creek ES
Arroyo Vista MS
Las Flores MS
Tesoro HS

Expenditures show that CUSD was collecting substantially more taxes then it was spending on facilities for students.

 $885,824

Nov 6, 2013 BOT Meeting page 213

$708,064

Concluded Report Aug 4, 2014   

The final balance was transferred to CUSD to be used for any purpose  page 3

  

Where did this money go? 

What is the current account balance?

90-1 Coto de Caza

Assessment Levied when building permits are issued.

Allowable Funding Source for:
Tijeras Creek ES
Wagon Wheel ES
Los Flores MS
Tesoro HS

$2,015,892

Nov 6, 2013 BOT Meeting page 213

 
     

Where did this money go? 

What is the current account balance?

90-2 IA Talega

Bonds mature 2033. Tax Term 2044-45

Allowable Funding Source for:
Vista Del Mar ES
Vista Del Mar MS
San Clemente HS
San Juan Hills HS

Expenditures show that CUSD was collecting substantially more taxes then it was spending on facilities for students.

$1,082,518

Nov 6, 2013 BOT Meeting page 213

$4,377,609 

Aug 3, 2015 

page 12

2,369,799 Special Tax Fund
281,346 Admin
1,726,463 Surplus School Facilities Fund

$4,705,524

Aug 8, 2016 

page 12

2,554,593 Special Tax Fund
233,282 Admin
1,917,648 Surplus School Facilities Fund

$4,629,273

Aug 9, 2017 

page 12

2,581,632 Special Tax Fund
203,897 Admin
1,843,740 Surplus School Facilities Fund
4 Interest

90-2 Talega

Bonds mature 2032. Tax Term 2041-42 

California Mello-Roos Community Facilities Districts Yearly Fiscal Status Reports page A- 207 and 208

Allowable Funding Source for:
Vista Del Mar ES
Vista Del Mar MS
San Clemente HS
San Juan Hills HS

Expenditures show that CUSD was collecting substantially more taxes then it was spending on facilities for students.

 

 

$5,090,802

Nov 6, 2013 BOT Meeting page 213

$13,579,947

Aug 3, 2015  

page 11

2,149,002 Special Tax Fund
11 Other Investment earnings
7,322,422 Special Reserve Fund
1,970,249 Reserve Account
761,306 Admin
1,376,388 Redemption Account
7,121,322 Surplus School Facilities Fund

$13,259,677

Aug 8, 2016 

page 12

2,129,274 Special Tax Fund
52,120 Interest
1 Principal
-0- Other Investment earnings
6,965,124 Special Reserve Fund
1,970,249 Reserve Account
766,458 Admin
1,376,451 Redemption Account
 -0- Surplus School Facilities Fund

$7,035,585

Aug 9, 2017 

page 11

2,581,632 Special Tax Fund
-0- Interest
-0- Principal
-0- Other Investment earnings
-0- Special Reserve Fund
1,970,249 Reserve Account
441,651 Admin
6 Redemption Account
 -0- Surplus School Facilities Fund
10 Bond Fund
4,524,025 Surplus Fund

Talega CFD Study Area 1500 can enroll in San Juan Hills or San Clemente.

The following is a Statement from Laura Ferguson Talega Residents for Fair Taxation:

Talega students have the legal right to attend either San Clemente High School or San Juan Hills High School.

They cannot be denied a seat at either school.

Per CA Govt. Code Sect. 53312.7 taxpayers who funded facilities with Mello-Roos cannot be turned away. CUSD changed the boundary a decade or so ago for Talega from SJHHS to SCHS. Due to the large amounts ($20M at each high school) of Talega special taxes (Mello Roos) that CUSD spent on SJHHS and SCHS --this includes $10M in surplus Talega special taxes (the amount overcollected that was never "refunded" back to the taxpayers (despite CUSD declaring years ago that Talega taxpayers had already met their funding obligations for facilities per the Mitigation and Formation Agreements) being used now for the new two-story, 24 classroom buildings being built each at SJHHS and SCHS, Talega students have choice. A couple years ago when members of our Talega Residents for Fair Taxation citizens advoacy group met with Supe Vital, she shared how she believed once the road opened that about half of Talega kids would want probably choose SJHHS and the other half SCHS. Both great schools to choose from; however, if you choose SJHHS you have to go through School of Choice and there is no way around it at this time.

My above comment pertains to the $20M Talega Mello Roos spent on SJHHS for construction as well as another $20M Talega Mello Roos spent on SCHS.

CUSD does not want Talega kids going to SJHHS, it’s been obvious for years. RMV was not required to build a high school. Those kids will attend SJHHS and Tessoro without paying any special taxes to mitigate their impact on CUSD schools.  Ladera kids received correspondence from the district for their kids to have choice to attend SJHHS or Tessoro. Talega was not afforded the same courtesy.

San Clemente families with no notice from CUSD will not have a choice in schools UNLESS they apply through School of Choice – as last priority if the Board Policy Changes on January 25, 2017.

San Clemente families appear to have 2 choices:

  1. Apply via school of choice window. Get in the school. They cannot be denied.  Talega generates only 600 kids and by law can attend either high school in which their mello roos was used to fund the school facilities. Plus they also pay the ad valorem tax every homeowner pays, so pay twice as much.
  2. If they miss the window (which it appears many will because CUSD is not properly informing parents, nor are many parents aware of the law), sue the district to gain access

Make sure every SC Family knows their legal rights and Like Ladera, can have a choice in Schools.

Spread the Word- School of Choice opens February 1, 2018

92-1 Las Flores

Assessment Ends 2023

California Mello-Roos Community Facilities Districts Yearly Fiscal Status Reports page A- 209

Allowable Funding Source for:
Los Flores ES
Los Flores MS
Tesoro HS

Expenditures show that CUSD was collecting substantially more taxes then it was spending on facilities for students.

$6,417,529

Nov 6, 2013 BOT Meeting page 213 

$9,913,729

Aug 3, 2015 

page 12 

2,406,038 Special Tax Fund
386,369 Admin
7,121,322 Surplus School Facilities Fund

$10,001,575 

Aug 8, 2016 

page 12

2,435,141 Special Tax Fund
376,271 Admin
7,190,161 Surplus School Facilities Fund

$10,182,904

Aug 9, 2017 

page 12

1,965,637 Special Tax Fund
360,194 Admin
7,857,072 Surplus School Facilities Fund

Tesoro High School Building D  Paul C Miller Contract: April 19, 2017 CUSD BOT Meeting Agenda Item #6 page 158 $9,410,000 Paid for: Capital Facilities - Special Reserve Capital Outlay- CFD 92-1 and CFD 98-2

92-1 Mello Roos Taxpayers should be entitled to attend Tesoro HS since their tax money built these facilities- however- students in the new Ranch Developments of Sendero and Esencia are being given priority over Ladera Ranch taxpayers who are being forced to go to San Juan Hills HS instead.

94-1 RSM II

Assessment Ends 2014

Allowable Funding Source for:
Arroyo Vista ES
Tiejeras Creek ES
Arroyo Vista MS
Las Flores MS
Tesoro HS

 

 $1,825,563

Nov 6, 2013 BOT Meeting page 213

Memorandum Aug 4, 4014 Termination of Special Tax 94-1

Any remaining funds may be retained by CUSD for administrative expenses and authorized school facilities  

 

Where did this money go? 

What is the current account balance?

 

98-1A Pacifica San Juan 

No Bonds Issued. Tax Term Ends 2044-45

Allowable Funding Source for:
Ambuhel ES
Marco Forster MS
San Juan Hills HS

Expenditures show that CUSD was collecting substantially more taxes then it was spending on facilities for students.

 $1,721,241

Nov 6, 2013 BOT Meeting page 213

Does not give ending year balance collected $477,566

Aug 3, 2015 

page 4

$4,705,524

Aug 8, 2016 

page 12

2 Special Tax Fund
11 Other Investment Earnings
-0- Interest
-0- Principal
(4,950) Public Facilities
(5,670) Professional Services

$2,327,310

Aug 9, 2017 

page 12

226,596 Special Tax Fund
13 Bond Fund
-0- Other Investment Earnings
1 Interest
-0- Principal
-0- Public Facilities
-0- Professional Services
438,718 Reserve Account
101,123 Admin
1,560,860 School Facilities Account
98-2 Pacifica San Juan   

 

 

  To follow 

98-2 Ladera

Bonds mature in 2033. Tax Term ends 2040 

California Mello-Roos Community Facilities Districts Yearly Fiscal Status Reports page A-

Allowable Funding Source for:
Chaparral ES
Ladera Ranch ES
Oso Grande ES
Ladera Ranch MS
San Juan Hills HS
Tesoro HS

Expenditures show that CUSD was collecting substantially more taxes then it was spending on facilities for students.

 

 $1,969,656

Nov 6, 2013 BOT Meeting page 213

$16,203,948

Aug 3, 2015 

page 13

7,699,481 Special Tax Fund
2 Interest
2 Principal
2,601,427 Reserve
787,363 Admin
5,115,674 Special Reserve Fund

$17,448,966

Aug 8, 2016 

page 13

18 2006 Special Tax Fund
7,698,298 2015 Special Tax Fund
-0- Interest
-0- Principal
2,601,427 Reserve
523,776 2006 Admin
125,426 2015 Admin
4,299,933 Special Reserve Fund
2,199,951 Surplus School Facilities Account

$16,065,733

Aug 9, 2017 

page 13

18 2006 Special Tax Fund
6,449,280 2015 Special Tax Fund
-0- Interest
-0- Principal
8 Debt Service Account
2,604,780 Reserve
374,828 2006 Admin
131,414 2015 Admin
2,570,800 Special Reserve Fund
3,934,605 Surplus School Facilities Account

Tesoro High School Building D  Paul C Miller Contract: April 19, 2017 CUSD BOT Meeting Agenda Item #6 page 158 $9,410,000 Paid for: Capital Facilities - Special Reserve Capital Outlay- CFD 92-1 and CFD 98-2 

98-2 Mello Roos Taxpayers should be entitled to attend Tesoro HS since their tax money built these facilities- however- students in the new Ranch Developments of Sendero and Esencia are being given priority over Ladera Ranch taxpayers who are being forced to go to San Juan Hills HS instead.

2004-1 Rancho Madrina 

Bonds mature in 2034. Tax Term ends 2043-44 

California Mello-Roos Community Facilities Districts Yearly Fiscal Status Reports page A-203

Allowable Funding Source for:
Ambuehl ES
Marco Forster HS
San Juan Hills HS

Expenditures show that CUSD was collecting substantially more taxes then it was spending on facilities for students.

 

 $31,060

Nov 6, 2013 BOT Meeting page 213

 $2,836,857

Aug 8, 2016 

page 10

499,341 Special Tax Fund
657,826 Reserve
279,990 Admin
24,762 School Facilities Sub Account
1,374,939 Surplus Fund 

 

$2,532,299

Aug 8, 2016 

page 10

 505,531 Special Tax Fund
 -0- Reserve
 295,238 Admin
 -0- School Facilities Sub Account
 1,731,530 Surplus Fund 

$2,199,492

Aug 9, 2017 

page 10

363,204  Special Tax Fund
 -0- Reserve
319,808  Admin
 -0- School Facilities Sub Account
 1,516,419 Surplus Fund 

 

2005-1 Whispering Hills 

Tax term ends2043-2044

California Mello-Roos Community Facilities Districts Yearly Fiscal Status Reports page A- 204

Allowable Funding Source for:
Ambuehl ES
Marco Forster HS
San Juan Hills HS

Expenditures show that CUSD was collecting substantially more taxes then it was spending on facilities for students.

FIRST BONDS ISSUED 2013

$1,566,033

Aug 3, 2015

page 12 

388,924 Special Tax Fund
741,262 Reserve
42,825 Admin
17,796 Surplus School Facilities Fund
342,247 City Facilities Account
32,978 Incremental Payment Fund

 

$2,021,703

Aug 8, 2016 

page 12

685,543 Special Tax Fund
747,983 Reserve
66,178 Admin
146,795 Surplus School Facilities Fund
342,268 City Facilities Account
32,978 Incremental Payment Fund

 

$8,310,415

Aug 9, 2017 

page 12

668,042 Special Tax Fund
1,656,777 Reserve
81,788 Admin
521,321 Surplus School Facilities Fund
81 City Facilities Account
-0- Incremental Payment Fund
5,480,414 School Facility Project Subaccount

 

 

2015 Orange County Grand Jury Report that found that CUSD was engaged in the "over-collection" of Mello Roos taxes, and that their was very little oversight as to how the money was being spent. 

CUSD Mello Roos debt $264,384,491

 

FUND EXPENDITURES July 1, 2017 to present 

Deferred Maintenance Fund

November 8, 2017 CUSD BOT Meeting Agenda page 42

Deferred Maintenance Fund

October 11, 2017 CUSD BOT Meeting Agenda page 54

Deferred Maintenance Fund

September 13, 2017 CUSD BOT Meeting Agenda page 36

Deferred Maintenance Fund

August 23, 2017 CUSD BOT Meeting Agenda page 18

 

Developer Fees 

Fund Balance as of June 30, 2016 $20,284,980.64

Annual and 5-year Report 11-21-16

Income: $8,308,551.25

Expenses: $4,894,114.53

 

Capital Facilities Fund

November 8, 2017 CUSD BOT Meeting Agenda page 43

Capital Facilities Fund

October 11, 2017 CUSD BOT Meeting Agenda page 45

Capital Facilities Fund

September 13, 2017 CUSD BOT Meeting Agenda page 37

Capital Facilities Fund

August 23, 2017 CUSD BOT Meeting Agenda page 18

Capital Facilities Fund

July, 2017 CUSD BOT Meeting Agenda page 15

SFID GO Bond Series C

October 11, 2017 CUSD BOT Meeting Agenda page 55

SFID GO Bond Series C

September 13, 2017 CUSD BOT Meeting Agenda page 38

SSFF1A OPSC

July, 2017 CUSD BOT Meeting Agenda page 16

Special Reserves Fund

November 8, 2017 CUSD BOT Meeting Agenda page 44

Special Reserves Fund

October 11, 2017 CUSD BOT Meeting Agenda page 59

Special Reserve Funds

September 13, 2017 CUSD BOT Meeting Agenda page 38

Special Reserve Funds

July, 2017 CUSD BOT Meeting Agenda page 17

90-2 Talega

November 8, 2017 CUSD BOT Meeting Agenda page 46

90-2 Talega

October 11, 2017 CUSD BOT Meeting Agenda page 64

90-2 Talega

September 13, 2017 CUSD BOT Meeting Agenda page 42

90-2 Talega

August 23, 2017 CUSD BOT Meeting Agenda page 23

90-2 Talega

July, 2017 CUSD BOT Meeting Agenda page 18

 

92-1 Las Flores 

November 8, 2017 CUSD BOT Meeting Agenda page 47

92-1 Las Flores

October 11, 2017 CUSD BOT Meeting Agenda page 65

92-1 Las Flores

September 13, 2017 CUSD BOT Meeting Agenda page 43

2004-1 Ranch Madrina 

November 8, 2017 CUSD BOT Meeting Agenda page 48

2004-1 Ranch Madrina

October 11, 2017 CUSD BOT Meeting Agenda page 66

2004-1 Ranch Madrina

July, 2017 CUSD BOT Meeting Agenda page 19

98-1A Pacifica San Juan  

November 8, 2017 CUSD BOT Meeting Agenda page 49

98-1A Pacifica San Juan

October 11, 2017 CUSD BOT Meeting Agenda page 67

98-2 Pacifica San Juan  

November 8, 2017 CUSD BOT Meeting Agenda page 50

 

98-2 Pacifica San Juan  

September 13, 2017 CUSD BOT Meeting Agenda page 44

98-2 Pacifica San Juan  

July, 2017 CUSD BOT Meeting Agenda page 20

2005-1 Whispering Hills 

October 11, 2017 CUSD BOT Meeting Agenda page 68

 

CURRENT BUILDING PROJECTS

San Juan Hills HS Building J Paul C Miller Contract: September 29, 2016 $8,988,888.00 

San Clemente High School Building 800 Paul C Miller Contract: September 28, 2016 CUSD BOT Meeting Agenda Item #17 page 169  $9,410,000 Paid for: Capital Facilities - Special Reserve Capital Outlay- CFD 90-2

Tesoro High School Building D  Paul C Miller Contract: April 19, 2017 CUSD BOT Meeting Agenda Item #6 page 158 $9,410,000 Paid for: Capital Facilities - Special Reserve Capital Outlay- CFD 92-1 and CFD 98-2

Esencia K-8 Land Purchase: March 22, 2017 CUSD BOT Meeting Agenda Item #22 page 225 Straub Construction: March 22, 2017 page 42 $27,569,000 Paid for: Developer Fees, state funding, and County of Orange CFD's

November 6, 2013 CUSD BOT Meeting Agenda Item #2 Facilities Funding page 212(a) Funding Sources for Facilities. This chart shows all District Facilities funds, the beginning balance, and estimated yearly deposits.

November 6, 2013 CUSD BOT Meeting Agenda Item #2 Facilities Funding page 212(b) This spreadsheet shows the sites that are eligible in each fund.

CUSDWatch Research

 

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