Parent Barbara Casserly Makes An Impassioned Plea To CUSD Board

" ... A generation of students in Mission Viejo had to endure horrible facilities because 87-1 funds were used for other purposes."  "We have been lied to by this District... and our Mello Roos funds have been misused."

At the heart of Mrs. Casserly's complaint is the issue of tax fairness. 

Mello Roos is a special tax (in addition to property tax) imposed on property owners in a Community Facilities District. The purpose of forming a Mello Roos District is to provide public financing for improvements and services in that District as defined by the formation documents. Mello Roos funds are special taxes for a defined purpose. Mello Roos funds are not intended to become a long term income stream for CUSD general fund purposes.  
 
87-1 money should have been used to benefit students in Mission Viejo. The funds should not have been used by CUSD to pay for the construction of schools in Aliso Viejo. Nor should 87-1 funds have been used for the construction of CUSD's new administrative building. Nor should the profits from 87-1 funds have been used for general fund expenses such as paying for employee compensation.  

The taxes that are collected, are used to make the payments of principal and interest on the bonds. However, since the inception of 87-1, the tax has increased at a rate of 2% per year resulting in a a revenue stream for the District that greatly exceeds what the District needs to pay in principal and interest on the bonds. That revenue stream, generated by a very small group of property owners in Mission Viejo, is now being used by the District for general fund purposes and is placing an unfair tax burden on a handful of property owners in 87-1.  

To add insult to injury- this particular tax has no specified end date. CUSD could theoretically continue to increase this tax by 2% per year into perpetuity. Unless the Board agrees to make a change to 87-1 it is estimated that CUSD will collect in excess of $28 million in Mello Roos taxes between 2012 and 2020.

The Board has agreed to continue this matter.

Mrs. Casserly's 3 minute statement can be heard at the following audio recording of the Wednesday December 11, 2013 Board Meeting.

http://cusd.capousd.org/cusdweb/boardaudio/12-11-13/12-11-13RegularBdMtg.mp3 at 2 hours 6 minutes 51 seconds 

The 87-1 Formation Documents can be found at: 
https://docs.google.com/file/d/0B2w-EI-a3jg3c0hqQ3g5WXg0dUE/edit?pli=1

In addition to the discussion of Mello Roos 87-1 listen to public comment at:

http://cusd.capousd.org/cusdweb/boardaudio/12-11-13/12-11-13RegularBdMtg.mp3 at 50 minutes 30 seconds

http://cusd.capousd.org/cusdweb/boardaudio/12-11-13/12-11-13RegularBdMtg.mp3 at 2 hours 11 minutes