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District experts outline options to pay for $46M in facility needs; bond modeling presented
Summary
Financial advisors told the Cypress board the Facilities Master Plan identifies about $46 million in needs (including at least $20 million for Landell modernization) and presented funding options — developer fees, CFDs, asset management, redevelopment proceeds, Proposition 39 GO bonds and COPs — including an illustrative bond model that could generate up to about $94 million authorization under a $30 per $100,000 tax-rate cap.
Rachel Changquay of Fieldman Rolapp & Associates presented a menu of options for Cypress School District to fund identified facility needs during the Oct. 9 board meeting, telling trustees the Facilities Master Plan and deferred-maintenance list point to substantial projects across the district.
Changquay and district staff listed approximately $46 million in identified facility needs and said Landell modernization alone could require at least $20 million. They outlined funding sources commonly used in California K–12 finance: developer fees (statutorily set per-square-foot charges shared with the high school district), negotiated developer mitigation or community facilities districts (CFDs), state matching funds for Proposition 39 GO bonds, use of asset-management income (rental properties), and redevelopment or tax-increment proceeds where available.
The advisor explained developer fees are adjusted by the state biannually and typically fund about half of a project’s impact; the district currently holds roughly $2.75 million in the developer-fee fund (Fund 25). On bonds, she said Proposition 39 general-obligation (GO) bonds require a minimum 55% approval and introduced a modeling scenario for a potential 2028 bond that — under conservative assumptions about assessed valuation and historical interest rates — could authorize roughly $94 million at the $30 per $100,000 AV cap, with projected issuance spread across multiple series.
Trustees asked about asset cash flow (Cypress Park) and the feasibility of selling or rezoning underutilized district property, the distinction between facility funds and general fund budgets, and whether negotiated mitigation premiums would be split with the Anaheim Union High School District. Staff said special-tax CFDs require developer agreement and are voluntary, asset sales depend on zoning and voter approvals, and the existing developer-fee split with the high school district is historically 50/50 but technically negotiable.
No bond measure was authorized; presenters recommended further community engagement, additional asset analysis and continued refinement of financial modeling before the board takes any next steps.
