Foothills Sentry Page 2 APRIL 2025 714 282 0828 | jadtec.com aco 4202 Protecting your home and business from burglary, fire and medical emergencies. ater, or facility for indoor recreation. Any of those amenities could be built and operated by OUSD, a private party or be subject to a joint use agreement. Whether the Board decides to sell the property outright or lease it for up to 99 years, it will be able to determine, in advance, the end result. Under the RFP process, the board can specify terms and conditions, end uses and time frames. It can also include community input, defining what is considered to be “for the public good.” Proceed with caution Peralta neighbors who offered public comments at the hearing supported the waiver and were happy that the district was moving forward. “It could be a win for the district, the neighborhood and the city,” one resident said. Former trustee Kathy Moffat reminded the board that buildable property in OUSD is valuable because “there isn’t much of it.” Because it is centrally located, it has immense potential for OUSD students. “The board,” she said, “has responsibility for safekeeping the property now and for the infinite possibilities of the future. This asset must be preserved to meet the needs of students. Don’t foreclose on students by disposing of this property.” Student board member Alex Tran, speaking as an individual, stressed that he didn’t want private interests taking anything away from OUSD. Referring specifically to Orange Lutheran, he noted that it is “competition” for OUSD, as it takes students away from the district. By rewarding our competition, he said, OUSD students will be left behind. It’s a start Trustee Andrea Yamasaki stressed that Peralta is a valuable piece of property and her preference is to explore what OUSD could do with it rather than leave its future up to a third party. She said she did not want to sell it, and feared that the resolution seeking a waiver from the state would just bring the board one step closer to making that decision. For that reason, she said, she could not support the resolution. Board President Kris Erickson advised that the waiver did nothing more than give the board “options to benefit the district.” “This property is not benefitting the district now,” she said. “The waiver opens up the possibilities of what we can do with the property. I’m in favor of getting the process started.” The vote to request the waiver was 6-1, with Yamasaki voting no. Regardless of the immediate or long-term outcome for the property, OUSD constituents welcome the board’s transparency on the issue. Peralta neighbors remember the handling of a lease agreement with a developer in 2012. At that time, several board members made a deal with a builder who planned to build three-story residential units on the property under a 99-year lease. Neighbors and other district stakeholders knew nothing about the proposal until it was announced as a nearly done deal at a board meeting. The wrong way Word got out. The community was furious and began a several month blitz to fill the board room with angry neighbors challenging the development. Approval of the lease agreement required a super majority, or five votes. The final vote, was 4-3. The development was quashed. Ten years later, the board majority negotiated a deal to lease the property to a charter school, largely behind closed doors. The transaction was presented to the public as a done deal, despite the objections of three minority trustees. This time it was a done deal. Two of the charter school partisans had been on the board when the 2012 lease agreement failed. They learned from that experience. To avoid the five-vote threshold required to approve the "Peralta" continued from page 1 sale or lease of district property, they called this deal a “license agreement.” A license agreement required a simple majority, or four votes. The vote was 4-3 in favor. In the rush to acquire the property, however, the charter apparently failed to discuss its plans with the City of Orange before signing the agreement. Orange planners identified a large number of flaws that needed to be corrected to get city approval. Revising the plans to meet city standards would have been costly. The charter school withdrew is application from the city and terminated its lease/license agreement with OUSD. OUSD in a strong financial position to navigate uncertain times The Second Interim Financial Report, a mid-fiscal year update for the Orange Unified School District, was presented to the board on March 12. The report compares the district's actual income and expenditures with the adopted budget, as well as projections for the remainder of the year and the following two years. The board unanimously adopted the recommendation to issue a Positive Certification, the highest approval possible for a school district. Several board members alluded to frustration over what they described as false claims by private individuals that the financial health of the district was in question. The report and certification highlighted a strong financial position with a balanced budget projected for the 25-26 and 26-27 school years, with projected surpluses of $1.6 million and $2 million respectively. OUSD is currently projected to enjoy an ending fund balance of $200.9 million of money held in reserves, roughly 35% of the annual budget, exceeding the state-required minimum of 3%. Reserves are held to insulate districts from unexpected or rapid changes in funding or expenditures. As the federal Department of Education, and its funding, approximately 6-9% for OUSD, faces an uncertain future Orange Unified students will not face sudden losses of programs if funding is rescinded. Additionally, with market uncertainty and worries of excessive inflation Orange Unified could use reserve funds to offset higher costs in expenditures such as gasoline, electricity or food. While this would lead to interim deficit spending, OUSD’s ample reserves would allow for shortterm spending to mitigate such changes. Many local districts do not carry the ample reserves of OUSD and may find themselves laying off staff or cancelling programs in order to meet budgetary constraints The OUSD Board of Trustees will explore options enabling the district's surplus Peralta property to be used for public benefit.
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