Letter to CUSD Trustees
How will debt obligation be paid?

Dear Board President Darnold, Vice President Bryson and Trustees Addonizio, Benecke, Christensen, Draper and Stiff:

The CUSD community has been repeatedly assured by several Trustees and CUSD staff members that funding of a stadium and pool at San Juan Hills High School (SJHHS) would not impact the General Fund. 

However, as I pointed out at the January board meeting during Oral Communications, CFO Sherry Hahn has stated that should the funds from Ladera Ranch Mello-Roos CFD 98-2 no longer be available, the General Fund may be tapped as a potential source of revenue to pay the debt obligation on the administration building. According to the CFO, the COP (loan) on the administration building has been paid out of the Ladera Ranch Mello-Roos CFD fund 98-2, as well as from the Talega CFD. Based on the CFO's financial presentations, the Talega Mello-Roos funds are earmarked for improvements to San Clemente schools and are no longer available. As a result, the Ladera Mello-Roos fund (CFD 98-2) appears to be the only other source (besides the General Fund) from which to pay the debt obligation. 

As the board and CUSD staff members have publicly stated that the funding of these ancillary facilities at SJHHS would in no way impact the General Fund, I asked the board from where, then, would the money come to pay the debt obligation on the administration building, if the Ladera Mello-Roos money was spent instead on SJHHS. To date, I have not received an answer. 

In light of the district's $28-million budget deficit and the resulting cuts that will directly impact the classroom, this is an issue of particular concern.

I presume that the board has identified another source of revenue to pay the debt obligation; therefore, I would appreciate the board's answer to the following questions:

• From what revenue source will the administration building debt obligation (COP) be paid?
• How will improvements at other schools in Ladera Ranch, as identified in the Needs Assessment survey, be funded if the balance of CFD 98-2 is spent instead at SJHHS? The schools with identified needs in Ladera Ranch based on the district's survey are: Oso Grande, Chapparral, Ladera Ranch MS and Ladera Ranch ES. In addition, some Ladera Ranch students are boundaried to Capo Valley High School, which, if I read the Mello-Roos definition correctly, would mean that CVHS would also be entitled to some of the Ladera Mello-Roos money.

If you review the needs at those schools, you will note that some have very basic safety and overcrowding issues that must be addressed. 

I appreciate your review of this situation and look forward to your response. 

Kim Lefner
CUSD parent