Orange County Grand Jury
• 2014-2015
• Agency Response
Response to:
Brea Olinda Unified School District
Mello-Roos: Perpetual Debt Accumulation and Tax Assessment Obligation*
⚠️ Translation Notice: This content has been automatically translated. The original English text is the official version. Translation may contain errors.
⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings and Recommendations 3 findings
F1
There is a lack of transparency to homeowners relative to how CFD funds are being used. Response to Finding 1: The Brea Olinda Unified School District disagrees completely with this Finding. All of the information related to CFDs is accessible on the school district's website or from the district office. The school district has posted annual reports and a historical and financial summary of the CFD on its website.
Related Recommendations (1)
R1
Each local agency that established the CFD should create an oversight committee and an audit committee to provide for an independent, transparent view of the manner in which CFD funds are being expended.
F2
There does not seem to be appropriate oversight and auditing of CFDs and special tax expenditures within the County of Orange. Response to Finding 2: The Brea Olinda Unified District disagrees completely with this The Brea Olinda Unified School District believes there is sufficient oversight and Finding. auditing of its CFDs.
Related Recommendations (1)
R2
Audit report information, as delineated in California Government Code, 1982 Section 53343.1, should be made available to the CFD taxpapyers on a website after each fiscal year for each CFD number.
F3
While the assumption is that the CFD debt would be repaid in a finite period of time, there is a mechanism available to controlling entities to extend debt obligations and thereby extend the CFD special tax in perpetuity. Civic Center Circle, Level II • P.O. Box 300, Brea, California 92822-0300 • (714) 990-7800 • Fax (714) 529-2137 BOARD MEMBERS: Bill R. Hall, President, Gail Lyons, Vice President, Nicole Colon, Clerk, Carrie Flanders, Kevin Hobby, Joseph Rollino, Rod Todd ADMINISTRATION: Brad Mason, Ed.D., Superintendent, Anne Flesher, Asst. Supt/Human Services, Jean Aldrete, Asst. Supt/Business Services Response to Finding 3: The Brea Olinda Unified School District disagrees completely with this Finding. The Brea Olinda Unified School District has not extended the time for repayment nor do the legal documents establishing the school district's CFD allow unlimited extensions of time for repayment.
No recommendations for this finding
* This report's PDF did not contain easily extractable text and required Optical Character Recognition (OCR) for analysis. There may be minor errors in the extracted findings and recommendations due to OCR limitations with scanned documents.