by Matt Williams
The following Public Comment was submitted by e-mail to the DJUSD School Board with copy to DJUSD CFO Amari Watkins. The Public Comment was read into the record by Superintendent John Bowes. As noted in the text of the Public Comment, I have been dialoguing with Amari Watkins over the past three weeks. The original question about the math in the Yes on Measure B Ballot Statement originated from a non-partisan group in Davis that asked for my help with the numbers. What came out of that due diligence homework was a complete surprise to me.
Members of the DJUSD School Board, over the past three weeks I have been in e-mail communication with your CFO Amari Watkins regarding the current and future status of DJUSD’s Community Facilities District No. 1 (CFD #1). Amari has provided the 1989 Resolution documents that created and govern CFD #1, which I have reconciled with the numbers from the four most recent DAVIS JOINT UNIFIED SCHOOL DISTRICT MELLO‐ROOS COMMUNITY FACILITIES DISTRICT NO. 1 SPECIAL TAX REPORTs (“the reports”) prepared by DJUSD’s tax administration consultant, SCI Consulting Group.
Bottom-line … subject to Amari’s (DJUSD’s) provision of any additional legal and/or election documents … the numbers from “the reports” say that CFD#1 will have reached the point where the language from the Rate and Method Resolution, “The special tax shall be levied and collected only so long as it is needed to pay the principal and interest on debt incurred …” will reach both its logical and fiscal conclusion during or before DJUSD’s Fiscal Year 2021-2022 … possibly as early as during or before Fiscal Year 2020-21. Said another way it appears to be clear that CFD #1 will be fully paid off at the end of Fiscal Year 2020-21, or at the latest Fiscal Year 2021-22.
- There will only be one year of DJUSD revenues projected in the EPS Economic Analysis for CFD #1 rather than 25 years. As a result the total CFD #1 revenues are reduced from $4,256,000 to $68,000. The full buildout CFD #1 annual revenues are reduced from $252,000 to $0.
- There will only be four years of DJUSD revenues for Measure H rather than 25 years. As a result the total Parcel Tax revenues are reduced from $4,795,000 to $1,335,734. The full buildout Parcel Tax annual revenues are reduced from $260,000 to $59,194.
- There will only be 21 years of DJUSD Bond Debt revenues for Measure M rather than 25 years. As a result the total Bond Debt revenues are reduced from $13,005,000 to $9,737,000. The full buildout Bond Debt annual revenues are reduced from $817,000 to $0.
- DJUSD total revenues are reduced from $22,056,000 to $11,140,734, and the full buildout DJUSD annual revenues are reduced from $1,329,000 to $59,194.
That begs the question, did DJUSD “put its thumb on the scales” in support of Measure B by overstating the revenues that DJUSD will get from the project?
====== Underlying E-mail communication attached to Public Comment
[…] I have reviewed the two documents [DJUSD has] provided me and have attached an annotated version of each in which I highlighted what I believe to be relevant provisions in:
- The actual Measure A Ballot language on Page 2 of the 12/7/1989 Resolution document
- The Section VIII Collection of Special Tax language on Page 5 of the cfd1 rate and method document
“… by (1) issuing bonds in the maximum principal amount of $33,300,000 in accordance with Board Resolution 4-90, (2) levying a special tax with a maximum rate and method of apportionment as provided in Board Resolution 3-90 to pay the principal and interest on such bonds and to finance the above facilities.”
“The special tax shall be levied and collected only so long as it is needed to pay the principal and interest on debt incurred in order to acquire and/or construct the facilities of the CFD, or so long as it is needed to pay the costs and incidental expenses of the construction of the facilities authorized.”
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