CSD grateful of community support
Cypress School District (District) was recently identified in an Orange County Grand Jury report titled: School Bonds – The Untold Story of Assessed Values.
CSD grateful of community support
Cypress School District (District) was recently identified in an Orange County Grand Jury report titled: School Bonds – The Untold Story of Assessed Values.
Our District is extremely grateful to the voters in our community for their support of the bond measure that funded our recent school modernization projects. The District takes its responsibility to the community very seriously. This means we not only serve our community as educators of students, but also as stewards of local bond dollars.
In November 2008, the Cypress School District community passed a General Obligation Bond measure (Measure M), which authorized the District to issue and sell bonds of up to $53,600,000 in aggregate principal amount to provide financing for specific facilities improvements, which included the modernization of our six elementary schools.
Our schools were approximately 50 years old and in deplorable condition before the modernization projects. Our community met this need straight on with a 69.2 percent voter approval of the bond measure.
Because of our community’s support, five of our six schools have been successfully modernized today. This was done in spite of very little financial support by our state government.
State law sets several conditions that limit how school districts may issue general obligation debt. Statutory authority for how school districts are authorized to issue their own General Obligation Bonds is established by Education Code Sections 15100 and following and California Government Code section 53506 and following. Cypress School District has fully complied with these conditions and has a current (2014) annual tax rate being levied upon taxable property of $24.83 per year per $100,000 of assessed value, which is less than the projected taxing threshold of $30 per year per $100,000 of assessed value.
Cypress School District is committed to ensuring the fiscal health of the District and providing public accountability. As stated, State law sets the conditions under which any school district can issue general obligation debt. This includes direct oversight by the Orange County Department of Education (OCDE). The District has met with OCDE several times and continues to regularly communicate with members of their staff. Furthermore, the District utilizes its own District and Bond counsel to ensure that all State laws are met. Lastly, as required by law, the District has established a Citizens Oversight Committee to ensure that all bond proceeds are utilized only for the specific projects listed in the Measure M Bond Measure and that no funds are used for teacher or administrator salaries (or other school operating expenses).
Cypress School District again thanks our community for their support of the modernization of our school facilities. We are making a positive difference each and every day for our students and generations to come.
For additional information, please contact: Tim McLellan, Ed.D., Assistant Superintendent, Business Services at tmclellan@cypsd.k12.ca.us.
Beverly M. Hempstead
Superintendent, Cypress School District
Grand Jury critical of Cypress School District
On June 25, the Orange County Grand Jury issued two reports: 1) School Bonds – The Untold Story of Assessed Values and 2) Orange County School Districts: Dire Financial Futures. In the School Bonds report, the Grand Jury is critical of the financing used to renovate our schools. For the $41 million in bonds borrowed to date, the district has estimated it will cost taxpayers $201 million over the life of the bonds. This $41 million was used to only renovate 5 of the 9 schools listed in the 2008 Bond Measure approved by voters.
Three schools were closed and a sixth school, Morris, was renovated by leasing the school to a corporation that renovated it and is now leasing it back to the District. This means the true debt exceeds $41 million without renovating 3 of the 9 schools on the list. The District reports that taxpayers are only paying $24.83 per $100,000 of assessed value annually, which is less the $30 allowed by law. They neglect to inform residents that the Grand Jury report projects that taxpayers will be paying $56 per $100,000 of assessed value annually as this debt comes due, well above the amount allowed by law.
In the Dire Financial Futures report, the Grand Jury found that there are only three non-unified high school districts in Orange County. These districts each contain four smaller elementary districts with Cypress School District being the 3rd smallest District in Orange County. The Grand Jury found that these smaller districts should consider merging to free up funds spent on administration that can then be used to enhance classroom teaching.
Instead of considering merging to reduce costs, the School District will be asking voters in November to release them from the restrictions of Measure D which limits how certain properties in the city can be developed. The District wants the Measure D restrictions lifted so they can exchange the Mackay School and District Office sites for revenue-generating property and a new District Office.
As we get closer to the election, the District will focus on the benefits of new homes being built on existing school properties and new revenues generated. Virtually nothing will be said of the seriousness of the Grand Jury reports or why the taxpayers have to pay $201 million for borrowing $41 million. While the District will tout the benefits of a new office complex, they will be ignoring the Grand Jury’s recommendation to consider merging which could mean a District Office isn’t even needed in Cypress. The District will tell you about how great the new developments will be for the community but they won’t talk about the impacts on the residents around Swain School who will have the maintenance yard moved to their neighborhood.
Wouldn’t it be nice if everyone was told all the facts? Are you comfortable with the School District’s transition from a focus on public school oversight to a greater focus on revenue-generating property management? Do you think the same group that has structured financing that will cost taxpayers $201 million for borrowing $41 million will be prudent managers of revenue-generating property? Wouldn’t it make more sense to you for the District to sell the properties rather than exchanging them so the proceeds could be used to pay off the bonds faster reducing the tax burden on our community?
The proposed developer of one of the properties is already funding telephone surveys to give their spin on the upcoming ballot measures. The District is spending thousands of taxpayer dollars to hire consultants and send out mailers with only one side of this story. Please know that there is more to this than they will tell you.
As the November election draws near, please make sure you have all the facts. Citizens for Responsible Development is a community group that is working hard to make sure residents have the full story. To receive emails or ask questions about the school district property or other matters critical to our residents, send an email to cfrdgroup@gmail.com and you will receive regular updates.
George Pardon
Cypress resident
