001Do we have a mo- Do we have a motion that the governing board adopt the meeting agenda? >> I move that we adopt the meeting agenda. >> Thank you, Ms. Appleby. Do we have a second? >> I second. >> Thank you, Ms. Gloria. All in favor, say aye. >> Aye. >> Thank you. Motion adopted. Going to be discussion. Now we're on our B1 resolution to discuss the resolution {slash} the letter to Maricopa Unified School superintendent. So, I believe we all received uh hard copies of both the email and the letter that was drafted and reviewed by uh both Steve and Jim. And so, if we'll start with discussion or >> The reason I'm asking this is because this is a discussion, so Um comments and questions, so If not, get right to signing the letter.
002>> I would like >> How do you build the tax rate? >> The voice of those >> Sorry, yes, yeah, I You both have a couple of you. >> I got like two minutes Thank you for giving me an interview opportunity today. >> So, just if you can remind us of the process and once this letter is signed, um what happens next? Uh uh I know we have that 224 meeting with the county superintendent Sorry, the county supervisor's office. So, if you could just share with the audience what this pathway looks for this letter. >> Yeah, we're we're just trying to follow the steps uh the process set forth in the statute. So, um you know, fortunately, there is a process if there's ever going to change so the number 11 and other districts will
003follow this is very unusual in the statute now is highly unusual, but here we are. So, we're just we're we're making our best effort at following the process as we understand it being a statute and as the county understands it because you know, the statute said what it says in terms of uh us presenting it to the uh the school superintendent's office and then she presents it to the county board of supervisors. Uh but um that's pretty much all it says. So, you know, they can have their own internal processings layered on top of the statute. And so, that's what we're trying to follow. The deadlines you mentioned are their deadlines. Um basically, by the third Monday in August, the county board of supervisors is going to set a tax rate. And the question is,
004is this special tax levy going to be part of that? So, if we want it to be part of it, um here's here's our effort at presenting um in presenting to the county board uh the county school uh superintendent uh an explanation for why this necessary, Um some of the background. Of course, there can be lots more detail. We're trying not to overwhelm the county board, the county school district superintendent, because we understand that she is not the county assessor, nor is she the county treasurer. So, we're trying to take a softer approach with with with the detail and again not to overwhelm her. That's why the letter is only a page and a half and not, you know, 10 pages. Uh so that she can then emphasize her discretion in presenting it to the
005county board, the county supervisors. So, that's that's kind of it in a nutshell. We can always kind of question how we got here and perhaps that's a fair question and perhaps we can spend time on that uh going forward, but to me, uh that question of how we got here uh is not as important as making the district whole with a special tax levy. If the district You can spend months trying to unravel what happened with the county, but in the end, they're the experts. They're the ones who are on the front line of of levying the tax, assessing the property values. That's on them. We can only kind of see We can only ask them questions. We weren't in their seats. We don't know exactly what their process was. What we're just What we're
006reporting to you is what they've told us. So, we haven't gone around them. We really have no way of doing so. Um so, we're trying to be constructive about it and get the process started to agree on something. So, Can I have On that note, So, you know, things like any of these personal property tax at some point. Um so, on behalf of the parcels listed on assessor's website, please that only represents a portion of the the parcels that are currently the county university. Um so, from I guess you could be called a little bit of a future human, you know of those parcels, which ones come already in like you to host them up which one is the most and if there is what are some of the tools that might be out there?
007>> What does that mean? What does that mean? >> The next tax year, what does that mean for the city? TCU? >> Now that we have this information, that's probably a good >> And then the question location So, the area they have contiguous property. They haven't been probably the process for that building. It's going to be a long time. I think it's probably going to be a long time. So, what is the assessment of the value of the property? >> Well, yeah, I'm not sure that you can ever know what what their internal plans are, but um you can certainly we can certainly figure out what your what the district's exposure is, if you will. Um how much property remains to potentially be converted to exempt property and not so good with taxation. So, yeah,
008um I think we'd be working with the county to try to give you that answer. Uh but again, I I don't think that I hope that doesn't slow this letter down because that is separate. Just like just like how we got here is a separate issue. Um what the potential uh damages, if you will, could be in the future is a separate issue. So, we focus on the letter and putting that process aside. There won't be any forgiveness on the county side if we don't meet their deadlines. I mean, they they they have expressed their deadlines pretty clearly. We need to give them time. I I prefer not to present them this letter to them on their South County deadline. It's June 6th, I think. Um I think it was So, um but I'd like
009to I mean, it makes more sense to get it in sooner rather than later and not take every day. Cuz I don't know anything that we're going to learn over the next week or two, especially given the holiday, um that is going to change this letter dramatically or change the request. For me, the the big question to the board is do you want Do you want to uh levy the tax? And do you need that money that that you didn't collect, you know, unfairly as it was, but do you need that? And if you need it, you probably can You probably do, and this is this is how you do it. But, I understand that's a good point. What's the potential exposure down the road? But, you're you're going to 3 or 5 years. And
010there is a We put something in the letter about wanting to work with the county to better understand their process. And so, hopefully that can start happening. And I want to hear from them. Cuz we really don't know, I still don't know sitting here today, if they're really at fault for that. I don't know if there was negligence. I don't know how to assess that. Or if it was just just this kind of a one-off, and uh they dealt with it appropriate from a statutory basis and from their internal procedure basis, perhaps. And there is there Maybe there's no negligence, but that probably isn't very satisfying for you to know that you still got this exposure. So, I think we all need to get a better understanding of that. And it's going to take the
011county um talking to us and I don't know if emails were shared with you. There was a very good faith effort made by the district administration to work with the county uh going back to February and the county sitting on the request for weeks on end of time. So, that's why we're talking in May and not in March. They just weren't responsive. I mean, they they have lots of stuff to do. I'm not blaming them, but they're the ones Yeah, exactly. But, they're the ones who hold the information, so we're kind of at their mercy. So, you know, to some extent this this letter is also going to be um I mean, we're not just presenting I don't think we're just presenting and saying, "Here it is and do what you will." There needs to
012be, hopefully, a little bit of a political process as well that accompanies this letter. Uh at both levels, both the I mean, school superintendent and the Warwick superintendent. I understand you've probably got a sympathetic ear on the board of supervisors. Maybe only one. But, I think once it gets to the the board, uh they'll be um it's more of a procedural matter for them. I mean, the real hump is getting past the the school superintendent. I said more than you were asking me to ask me about, but that's That's still helpful. >> Um I just have a question around the ARS 50-905.101. I know there was a question around the truth in taxation notice. Does that apply here? Um does it apply to the county executive office? It was something that was noted Yeah, on
013the response side. >> You want to pick that? You want >> I I mean >> I I don't have expertise in that area. Do you? >> You know, uh Yes, I'll take that. Sorry. I'm Randi Stein, I'm with SEIU. Jacklyn Brissette is my colleague. Um and uh somewhat familiar with the truth in taxation statute because, as you're aware, there are several instances when school districts um in fact have to post a truth in taxation notice each year um and hold a hearing. This is not one of those items. Um most commonly you've probably seen it for adjacent the adjacent ways lighting is probably the most common that you've seen it in this district. There are a few other pieces, uh but this is not one of them. >> And you have many of them why
014why they wouldn't be? You just I have a just a more clear understanding of why they wouldn't be. >> Why how the truth and taxation uh notice works? >> Yeah, maybe look at that might be it. >> Do you have the statute? You know, can you call that from there? Okay. There's items that are specifically called out. They they identify um they identify base spending for the district and it was actually a a little bit of a distorted definition, but anything above that base of the items that they call out requires the truth and taxation. So, it doesn't relate to the qualifying tax rate that's set by the state every year and is, you know, one of the big pieces of funding for the school district um primary property for the school district maintenance and
015operation. It does not apply to the debt service levy for bonds that are outstanding. It does not apply to the override levies. Um there's about three items that always require the truth and taxation. And uh desegregation is part of the base, dropout prevention, um which I think is only a high school supply to only the high schools, career and technical um education, probably right there with elementary and high schools, small school adjustment, which you have never seen, you would never be qualifying for that, and then it also uh it also calls out um the adjacent way. >> And we don't have these same funds. So, clearly then the only is adjacent funds. >> And I'm trying to, you know, scan quickly make sure I haven't missed anything. Or excuse me, the one other item, which
016is probably what we're getting to, is the liabilities and excess. Liabilities and excess, which is reference to a different statute, I believe has two prongs to it. One is some sort of excess legal expense. The other one is related to the school facilities board, actually. They do have requested a repair for some sort of emergency, and they have actually denied you and said, "We don't have money to fund that emergency." That actually would give you access to the liabilities and excess measure. Um but this is none of those. >> You said it does not relate to the qualifying tax. >> It does not relate to the qualifying tax rate. That is the the It's about a dollar 50 right now for an elementary school district that is set statewide every year. That is the first
017That is the first funding source for school districts and the vote funding. Not the only funding source for Jefferson County schools. Thank you. I'm sorry. I would >> Do you have a ballpark figure of how many districts in the state have had funding similar situations? I know it's not significant. I mean, which was different than >> We are talking about one. >> Yeah. Yeah. >> And that was pretty much every every district in the county with the property tax levy, but your district was barely impacted. Yeah, at one point we had a spreadsheet where we saw that you were you you were following it. It was tiny. >> Tiny, yeah. Yeah, so that that that's not an issue here. >> But I think property tax levy actually is a big distinct um because property tax
018levy required refunds to those taxpayers. And so the levies that school districts had um associated with those refunds or associated with those refunds. Yes, the property tax roll was adjusted. And that would be similar here. Um but really the big piece on property tax levy was actually getting refunds to those taxpayers. This is not a refund situation. This is a um cash deficit situation. >> Given So, I know there were concerns about just you know, us not knowing sooner that it would lead us to this point of asking for a property tax levy. And I know that and part of my thinking is because I understand that as a district we tend to operate at a cash deficit. And so, can you elaborate a little bit more on that? >> Sure. >> As it relates
019to South Harrison >> Yeah. Yeah. I think process-wise, I think the only way you could have avoided being in a situation of requesting uh the levy from the county literally is if you would have known in before February of 24 before that February abstract was was printed. And I and I say you, but I really mean the county so that the abstract could have been printed properly, prepared properly, printed. Sorry, I'm old. Um because the statute tells tells the system, the whole government process to set the tax rates based on the February abstract. So the February abstract would have had to be right. And it wasn't. >> It's 2024. >> And And the And the February abstract, yes, the February abstract in 2024 is for the fiscal 25 year. Yes. Yes. You know, even even
020knowing, you know, that the August abstract was different was not going to help. Because again, they point the process to setting the tax rates on the February abstract numbers. And you know the tax roll, the property tax roll is live. It is changing as we figure. Minor things most of the time. But it's going up and down all the time. And then, you know, they take a snapshot sometime in August, they use those tax rates that were calculated in February, and they send out property tax bills. We get them in September. >> I have a concern about I'm concerned about this happening with this account. Do we need to start Okay, we need to start getting them started. sort of going with a small district and we get together with our association starting the lobbying.
021Something has to change here because this is going to happen. I It's not but it could happen to us but because we have other other districts that are why this is not a problem. The organization of boundaries. >> And with And And to your point, um, you know, the value of the nonprofit as a percent of your capital property value is obviously quite large. You know, quite honestly, the same thing happened in Houston in Phoenix Union. But Phoenix Union is massive. This This doesn't impact that. You know, the exact same thing, but it's not an impact because the percentage is so small. So, to your question, I guess a couple things. Um, well, what the what you started talking about, um, at the very beginning of the meeting is trying to get an understanding of
022well, what else does GCU own right now that isn't getting the exemption? To understand that, now, of course that doesn't mean that tomorrow they won't buy something else and it, you know, could ultimately get that exempt. Um, but I think that is that would be a good piece of information because you might find that everything they own right now is qualified for the exemption. It's I I think the email from the county said it's not a legal requirement. It would stay exempt. So, that won't So, if that was the case and the world stayed static, it wouldn't Um, I also have gotten the impression from the county that their whatever new system means implementation is more mature, farther along, and they have better checks. I think as Jim suggested, conversation with the county as to
023what do those checks mean? What reports are you running in, you know, January of each year so that if there was this big deviation, uh that there would be some sort of red flag, a live person could get eyes on it so that the roll could be set properly in January. You know, there's nothing you can do about any uh any entity qualifying for an exemption getting it and reducing your property values. There is nothing you can do about that. The important thing though is to know it so that the property tax rate is set correctly. >> Which I guess brings me to the question that I'm asking for. We live in a community that is mostly non-profit. And if I find out that they're it doesn't stop. So, when I have a guy I
024mean, a guy in a strip center, does that automatically become non-profit? I'm going to guess it is. I'm having a hard time understanding now when you buy a strip center and they still have tenants that have non-profit businesses, does that become a non-profit property? >> Yeah, well, that's a good question. I I think in general the answer is yes. Um I think the county I mean I don't think the county does a whole lot of due diligence. I don't think that's really real. Well, no, but well, I mean, I don't think it's true. We're a big county, right? We're the the biggest county in the country, I think. So, I I I don't know. And then the new system doesn't help matters either. But, I think the county basically looks to see who the owners
025are. I think that's really what the the statute requires them to do. If if they were getting large amounts of private payments, private revenue from from renting their property out, then that calls into question potentially their exempt status in the 501(c)(3). So, that's that would be difficult for for this board to challenge or question. Um they're they're always allowed a little bit of that, but the question is how much? I mean, as you're sure you know, they've gone back and forth between exempt and not, right? Based on the administration, based on whose favor they can call and >> Nationally based on >> Right. >> That's not the >> Right. >> That's not the Maricopa >> That's the IRS. >> Yeah, I'm just checking that. >> Yeah, the US Department of Treasury. So, um it's that
026that's that's a huge question, and and I don't know that the US has an idea. I mean, to me, GCU has always been a little bit serious because even though they are a nonprofit 501(c)(3) entity, they still have a for-profit operating So, I'm not a tax lawyer. I don't know exactly how that works. So, maybe a lot of that is attributed to the for-profit operating arm. I don't know. But, what we do know with fair amount of certainty is that that property will be exempt despite virtual effect of them owning it. >> Which I think I think that's the issue. It's difficult to sound it. I hear what you're saying. It's so hard to accept just because it's so much bigger than us, but um because I know even with the information we got from
027the county most recently, they gave an address of a home. And when you look at the home, it has house it has cars. It's it's a someone's home, you know? And so, but it's a part of this parcel. >> What we found when we looked at it was that Google's GPS marker is on the wrong side of the street, but the parcel that I was speaking with to when you look it up by the parcel number, the parcel is actually the piece that has the ball field, the the ball field is still the first because it has it on the side of the situs. That's a Google error. So, when I looked at it by the parcel, it is actually GGU. It's where the ball field is, where the parking garage is, there's a dorm.
028So, then the campus sits on the GGU property. >> Okay, so the address on the GIS is correct. It's Google that has the marker in the wrong place. Google needs Someone needs to tell Google to fix >> I know where that address is on the map. >> Yeah, the address is correct. It's that Google has the marker in the wrong place. >> It's on the wrong side of the street. >> Yeah. Yeah, but the address and the parcel number both match, and in the county's website when you go to that where the lines are on the county's website, it is GGU, but it's on the wrong side of the street. It's Google that's incorrect. >> I have a question regarding the estimate. The estimated revenue dollars per parcel, um is there any insight you can
029share of how that formula is created or or even just any reminders of that? That that what we're going to be asking the taxpayers >> So, that is my estimate. Um and how I came to that number. There's actually five different tax rates um that had impact from this fiscal 25 year. One of them is the qualifying tax rate, which we've talked about is that state-wide set rate. That is the first funding source for school district revenue across the state. What happens there when the property value is incorrect is that actually the state gives you not enough equalization assistance. So, there's a mechanism for applying to the state the state does that we didn't get enough equalization assistance the property value was wrong and the state to correct that. Um, that's about $850,000. I'm going
030to jump down to the bottom of if you're looking at the page there's also the debt service piece. The debt service tax rate in fiscal uh '24-'25 was set at uh .6447 approximately 64 and 1/2 cents. That's applied per $100 of assessed value and because um the tax rate was set a little bit too uh the property value was too high when they were setting the tax rate, the tax rate was actually set too low and should have been a little bit higher. Interestingly, the process this this only applies with the debt service tax levy. That levy every single year looks at how much cash is in the account. And so, it's self-corrective. It actually self-corrected in fiscal '26. Um, approximately $344,000 didn't come in because of this discrepancy as to what the rate was
031set at versus what it should have been set at. And so, that self-corrected in uh '20-'26 offset between interest that was earned um in that debt service fund or other taxpayer um other taxpayer reconciliations from previous years. This moves all the time. But, the process is how much cash do you have, how much cash do they how much cash will they need to make the debt service payment next year, and we'll we'll set the tax rate for fiscal 26 to accommodate that. So, that one self-corrects. The other three that did not is the portion of the primary property tax that's not the qualifying tax rate, the M&O override, and the DAOL So, I summed up those three amounts based on the discrepant the tax rates that were actually levied, and the discrepancy in the property
032value, and that came to approximately $1.9 million. My math is then to determine based on the property value of the district for fiscal 27, when the when the recoup levy would happen, what tax rate do I need to recoup $1.9 million? My math on that is approximately 45 cents. I then looked at the average home value in the district for tax purposes. That's approximately $83,000. The 45 cents against the $83,000 is what got me to $38. Let me talk for a minute, because this is my soapbox for the year, about value for tax purposes. That is not the Zillow value of a property. Okay, everybody's nodding, everybody's understood. It's good. We happen to be in a quite unusual place in the real estate market, where the market value of a house in almost the entire
033state is substantially higher than what the assessor values it at. The assessor's not being nice to you. The assessor has a constitutional restriction on how the value of a house that is unchanged can grow every year. And so, that is 5%. Well, in a lot of the state, market value over the last really 10 years has has exceeded that 5% level every year, and it accumulates. So, there's now a pretty big gap between market value and the value for tax purposes. That will not always be the case. I would not have said that to you in 2014. For sure, they were on top of each other, and I'm sure they will be again, but right now there's a very big discrepancy. >> And to your point earlier, so the voters did pass the override. >>
034Absolutely. >> And and so, yeah, and so this is money that they've already approved and agreed to give to the school district. And we didn't collect what they had already approved to give us. >> Absolutely. The amount of revenue that uh was calculated that you should have collected that year, there's no issue with that. There is no discrepancy on that. The override is a formula. Uh and that there's no question as to what that amount was. It was just the tax rate to support >> Just kind of clarification on my first one, my definition. Well, 38, that's per month per year, is that >> It is for a single year. It is the full year. Uh the property tax uh most taxpayers I think, well, if you have a mortgage, um you are paying it
035through the mortgage company. If you're paying your taxes directly, I think most people pay twice a year, although there is an option to have the whole thing paid by December. But you don't have to some. >> One trust had asked questions specifically about ARS 15-907. And if there was a document triggered by this levy of Justin Wilson. >> Is that a levy of length in itself? >> Exactly to the word. >> You're looking at a witness. >> Well, you can too, yeah. We have the 907 and the 905. >> So, yes. I was curious about his questions related to 907. >> So, Jim handling the magic here. Uh excess and unexpected legal expenses. That is not this. Or for an emergency for which the school district did not receive funding pursuant to 41 yada yada,
036which is the school facilities board. So, um because there were insufficient monies in the school facilities board emergency direct uh discrep- uh deficiencies fund. Um and then there is a process for that. You know, for what it's worth, any of these um additional levies for school districts, there is always some sort of process required. You clearly understand when it's an override, you have to go to the voters. Um if it's some school districts um have access to the desegregation levy. Well, that is set in statute as to a certain date as to how much that was. Uh the adjacent ways, you have to do the truth in taxation notice. You also have to submit paperwork through the school facilities oversight board. Nothing comes without some sort of pay attached to it. And even this, when
037we're talking about the school facilities board and the emergency deficiencies, um you know, there this one I've seen before. They're pretty specific. You need an actual vote from the school facilities board that says we don't have the money and you now can attempt your process through life will be some access through the 1507. >> What is the requirement of a situation? >> And yes, I'm just curious, you know, I think about the expertise that both of you have and in general, you know, you mentioned that you're you're not the expert in assessing property values and the tax all that type of stuff and so the county has So I think about a lot of the questions that uh you know, Mr. Pacheco is asking and wanting to support you provide him or just respond to
038the request like as a even beside the superintendent as district leaders, who do we go where do we get that kind of help and ask them to get the information that he's requesting? Does that make sense? >> Well, there are there are experts. So like what lots of folks appeal there free tax exempt and our system. That's what So those those folks who are expert in our tax system and understand, you know, what works to that level would be uh in terms of investigating how the parcel affects would be subject to um transition from non-profit I'm sorry, from for-profit to to non-profit. Uh it's just sort of like the county process. I mean I don't know who they are, but there are folks out there I think who will do it this stuff on a
039daily basis. We kind of deal with it at the macro level. Uh you know, what what's the what's the value this year and then how how much information on bonds. You know what I mean? We're not looking at parcel by parcel. That's what the county does, but if the challenge the county in terms of what they've come up with, that would be someone else, but we can probably figure out who that would be. I mean, I just we just don't work in that area. I mean, it's >> Yeah. Well, and again, I mean you know, I think about you know, our mission as a school district and the right way is quality education for kids who need to be talked about stuff. This meeting with our priorities of the year trying to ensure that teachers
040understand how I teach. It's really in those sorts of things. And so as I'm thinking about in in a Is there a way that we're going to ask them to look at providing workshops and things like that? You know, where where do we you know, where do we begin with the whole thing? Just even gaining a lot of this. I'm still taking notes myself trying to understand a lot of this. So. >> And I think the at least one person at the county was pretty quickly responsive. Um >> And it just took a while to get to that person. Is that part of it? >> Uh No, actually the county the person in the county assessor's office uh we never had any issue with responsiveness. That was the person that had initially said, "Oh, wow,
041looks like this happened with GCU that you know, there was splits, there was consolidation, it's picked up differently between February and August. And look at the difference between the February roll and the August roll is almost exactly what that difference is in the GCU exemption." Um so no, those people were have always been uh responsive. The back and forth was really with the county school superintendent's office. But I I mean I think that was an um and there's a couple people at the assessor's office would be happy to sit down with you, talk to you about the process, um and give you ideas of who else might be experts for you. >> Have you Have you seen that happen? I mean I'm not down in there, but have you seen it? Uh do you think
042the the county assessor be willing to meet with, you know, all the other superintendents? I mean I I've never seen it happen because I've never seen it happen because I'm never seen it happen and just think it back to like all of them are but then we were primarily dealing with the treasurer and that was a different situation. Yeah, but but this is something we can we're trying to avoid a train wreck going forward. So how do we do that? But but yeah, just reading the emails I never had any interaction but Steve Evans seemed pretty hopeful. So perhaps you would sit down with staff and then eventually meet with the board if you wanted to understand that. He's the expert. >> I guess that is This is what it is. We have to We
043have to do this and this forward. I just might concern is 5.1 and this happened in the middle of the I mean we have neighboring you know general submitted I'm just saying that I'm saying the donations and the one minus That's different but it's supposed to >> Right. Has has an effort been made maybe to see the appropriate way to follow the question. Has an effort been made to work with GCU on any of this? Um I posed that to one of my partners in my office and they were like well, it's likely that they give personal things and other than uh programs and systems and that's why resources but not >> I think of the the times that we talked and the times and how they minimized the impact on the community numbers and
044and showed other ways like even when they were displacing the people in the trailer and then they kept saying and I will we have these this warehouse where they can give them things, you know, and they don't need a blender. You know, they they're not even going to have a in, you know, and so this makes sense. You know, we didn't have a warehouse, so just things that Costco had discontinued originally. And the bread oven is It's just not helpful and that's for them, that's what they kept bringing. This is horrible. So this is not like this. This is just not But we But we have 20 again, we're still We have one contact that we have tried to work with and we're when we were at our having a workplace where people leases were
045renewed and renewed. And so So we connected with someone who really wasn't helpful in the beginning. He tried to send me on a trip. I think I think it's not >> And And that was the last use, is that the situation, right? So I wonder if that I mean it's on track and being moved back, you know. So I mean it's So then this year, in August or September, right? We're going to discover that or likely know that in about in this current >> Because I think something on the other side of this interest. So I guess it's worth that complex listening. Yeah, to see that if that's taken to I don't know about personal numbers actually. It's still considered non-profit. But like I said, I'm just trying to figure out where the these are
046the questions that are being presented to us. And I'm just trying to figure out where do we go to get the information so that we can better project because again, as you know, I'm trying to be forward, you know, how we can >> And that I I think you know, you really hit it. The right when the meeting started, the exposure issue. What what is left out there that is still being um uh transition to the non-profit status and how we're seeing that is that on our property tax base and are you going to capture it before the February rolls so that we don't have the same problem with the tax roll sitting? >> Because we don't even know who owns it. >> Right. >> We'll see who was actually on the books at the
047time outside of >> Right. What's obvious, what they have a sign on. Yes. >> There's rumors all over the neighborhood that they don't even stay on campus. >> Yeah, I mean the good news is it's all public record. So it's a matter of someone going through on a partial by partial basis and review to see where the ownership is. I mean potentially they could be hiding it, if you will, in some LLC or some entity that doesn't have the ACC name on it, but that's hard to know, but but something could be done to look at, you know, within a 1-mile by 1-mile area, you know, or whatever however you want to find the ACC campus. Uh you know, on a partial by partial basis to see who's Obviously the the risk is on the
048property whatever that because we already know the main campus is there. So I think that could be done and a way to do that would be actually to start the relationship with with C. And then, you know, even monthly check-ins with him wouldn't be a bad idea, especially as we get closer to, you know, February, uh next February. Just to see what you know, so and then I just don't know who the person is who would be looking at each parcel. But I can talk to my my real estate partner and see who she would recommend I'm doing that. I don't know if you want to pay a real estate lawyer, you can do that, but I mean it could just be even like a title company maybe. They could be some ongoing relationship because
049they're they're expert in this. Um so yeah, just just I'm just throwing that out, but I'll I'll talk to my real estate partner and and give you some ideas of what she said. >> I understand that. Because this is not even turning over. So when they have that my house. Graduation 2027. >> Yeah. >> I would like the district. No. G C U is on How do we know what happened to the resident? I know it's 2026 was accurate. We don't. >> Yeah, I don't think any of us can say that we know that it is accurate. >> Because the same thing could have happened between 2021 between November and 2026. August G C U could have bought something and then decided to put something in. That's my biggest fear is >> Right. >> the
050ending of >> Right. >> The general classes are still in here. >> We do know that the numbers we got in February of 26 are very similar to what we saw in August of 25. Which does not alleviate something new having been transitioned, uh but it also does not point to any error. >> And again, the concern when I said preliminary is we got to provide the body a solid education experience for our students which includes taking care of our families' finances as well. And we are being We are being abused. We are being seriously hurt with candid camera. >> Right. >> But the business child solutions and why why I think or I guess the state tries to do? We try to get this level of achievement. And now, this is just an additional
051that I'm talking about and I don't know if I'm wrong. I'm just a speech. >> Well, I think to your earlier comment about being frustrated with that February to August disconnect, I don't know how other states do it. I don't know if there's a better method to this. Um I I mean, we have 49 others to compare it against, but I just don't know. Um it seems to me when I first started with the school finance 25 years ago, I thought it was It really dawned on me that it could be that way and that it would potentially be a disconnect. Um and the only thing we know for sure is the February number is never going to be forward to the August number. I mean, that's a certainty of the whole system. It's just
052It seems like a strange way to do it. And uh there's So, there's got to be a better way, but obviously that's going to run through the legislature. That's a tough road. Um they're never looking to you know, you'd have much better luck if you were trying to impose some bill that or pass a bill uh to benefit charter schools. Obviously, the education and I know you want to know about your friend. I know you want to know this. So, I I just don't know how that works. I'm not I'm not committed to that. Nor do I know even what how we would rewrite the statute to make it work better uh for everyone, not just for this district. Um There could be surely a greater mind out there who would who have a handle
053on that. What could be offered, but then it's, you know, the minority party trying to carry a bill. But this minority district knows. Um I don't want to make it a law or whatever. At least try and get it considered. Not that we have to end it, just I think for whatever reason. I don't know the question. Just for the August 2 years. It's not a legal requirement that we do this level of adjustment, right? It's just It's the district's ability to meet to find that already We're already sitting on both legs. Is that how >> Right. Right. You don't have to do any of this. Um just like the county doesn't have to advance it if you if you submit it. But the only way we may all of you will is by starting
054this process. >> And so my follow-up question might just be and then I'll let you all jump in What does it mean to create a hole? Just for a reminder, what does it mean to create a make ourselves whole as in what the program would be? potentially not getting or if that's not counting the 800 that we're the state would like to give us, but like whatever that remainder is, that's what we would not be whole in. What does that mean for our initiative with the district then? >> Yes, so for your letter, it's uh 1.9 million dollars. And yeah, I don't know how you guys got that or >> It's a lot of agencies. Um you know, your financial documents will show that you have a cash deficit. Um it will not be uh
055received favorably by rating agencies at the next time you're interested in issuing bonds. Um the Department of Education does a Do you remember what it's what it's called? Some sort of assessment of districts and they've got all kinds of categories that they sort of do an overall grade on. This is not going to This is not going to reflect favorably for your financial grade. >> In terms of a district at risk, is that kind of the way you would put it at risk? >> Thank you. Yes, they have an at risk category. So this will not reflect favorably on that. Um >> So if we were to if we were to >> do this, are we If you were to not If you were to try and live with your 1.9 million dollar hole, you
056also may at some point be in a position that you have to do some sort of financing because you wind you're more likely to wind up with a cash flow problem. Um if if you know, this whole is not built. It does not I mean I I will tell you it does not alter your budget capacity. You just don't have the funds to meet your budget authority. It doesn't change the population of what you are eligible to spend on you know, any of the various you know, components that you operate for clients. >> So, there's no advantage to not doing that. >> So, if the top question is for the two We obviously have a board member that's not going to sign this. >> Is that going to Is that going to affect the signing?
057>> No, I don't know if I'm going to sign this or if I'm going to sign this or not. >> I I I don't see that. I mean they're looking for I know there was language in the emails about being signed by the entire board. My way of thinking board action is is a majority of the board. I mean we we called We just called the other day on nearly half a billion dollar bond election with a three two board vote. So, you wonder well, how does that look in a community if two board members are supposed to it? Well, maybe that it will cause the bond election to fail, but it's still a valid bond election with no question about the legality of it. And if the voters supported the bond election bonds. But,
058it's always nice to have a unanimous board. Looks better, but it doesn't affect the legality. And I don't think the county school people are going to make any differently if we don't have unanimity from the board. I think it's it's still an action of the board. I think it's all pretty valid. >> So, explain the process to me again of the decision. >> The Board of Supervisors. And they I guess they preliminarily look at it in June. I forget the day, I'm sorry. >> Uh June 24th. >> And then by the third Monday in August, they have to certify a tax rate that hopefully includes this. So that's Again, that's This none of this will be on autopilot. There will be discussions. And that's why we're And if you feel free you have edits, but
059we have recommended that we include um uh Supervisor Baiardo's um chief chief of staff um on there just so it the more attention to this the better. By our way of thinking, cuz it is somewhat of a political process. So that's why we recommend that the baby brought in who, you know, probably with this. And then discussions um perhaps discussions are had with them so that they understand and um how important this is. I mean, the dollar obviously speaks for itself, um we all want to be able to say the same thing. >> This does not happen every year. You buy any stretch. I'm not sure I I know of one that's happened in the last 5 or 6 months. >> The request for the cuz >> Yes. I Yeah, I mean, I I think
060there was a decent amount of discretion built into the statute and uh even if your board decides to move forward, it does require a recommendation from the county school superintendent. And that value applies discretion to them. I think the validation component of it is a lot more um objective, but there's a recommendation. >> Regarding what approach or strategy or something that we might want to as we move forward with the D A A. Now, we know that we're separate, but we are going to the app. We're going to be asking voters for this again. Do we want to communicate how how much do we want to communicate some of this story at all? Or what ways do you think it could be talked about? >> Well, so you're allowed the district is allowed to communicate
061factual information. So, this would this would all qualify. I mean, assuming that it was presented as such. I mean, here's the reality. We had an under levy and here's what we're doing as your stewards. Uh Uh moving this forward and to the county to let let them let let it work through the county's process. And that's what we can do under the statute. So, you're doing what you can do. So, just like when schools sell land that you could sell land in the past. You're trying to show that you're good stewards of of the school district resources. Period. I mean, I understand the negative in the community that hey, how was this missed? And I mean, it's a complicated issue you can tell. So, and it's nothing this board did or anyone in the district
062did. You You inherited this problem from the county. Uh So, um we're not I think we're not necessarily trying to explain every step in the process to the to the community just that Here's Here's the problem and here's how we're going to solve it. Um under the statute. So, um I wouldn't lead with that. Um I mean, obviously it's it's I'm going to say this. I'm going to say necessity, but we we like to avoid You know, we describe the D A A the override. You know, we don't say here's why it's needed. It's here's why the board chose to ask the voters to consider it in November. Well, where do It's not it's not we have to do this. It's it's here's what we fund, here are the programs, you the voter make your
063decision on whether you want to fund these programs or not. If you don't fund the VIA, if you don't agree with it, here's what's not going to happen. Well, that's all fair. So, that's that's the big story, I think. Um this is in the background, I think. Um I would So, I wouldn't I wouldn't lead with it because it's hard for folks to understand. But when it comes up, then it's simple and that's what I should have done better. And then we'll know more, you know, in the next month or so on how much support we get. And then and then maybe Well, before the election, I mean, August isn't that is is well before the election. So, hopefully we'll have it fixed before we're even asking the voters to vote on this. And in
064my experience, most voters don't get real interested in your election until they get the voter information pamphlet, you know, 35 days before the election. A lot of folks don't even know when an election is happening. So, um by then, it should be fully resolved one way or the other. Yeah, I think Well, a coordinated effort would be best. I mean, to decide how you want to approach them. Uh but yeah, uh to the extent you have contacts, um I've offered up that number. My office has contacts with the county school super. I'm sure you do as well. Um so, there could be a coordinated approach to that, for sure. But I think yeah, this this doesn't just get submitted and I we just trust the process. We we can't. >> How can we trust the
065process >> I mean, we can't. Right, exactly. So, so we submit it and then we have we have we have discussions, you know, sidebars, offline discussions, what what whatever. And then and then even showing up to the meeting I don't think makes sense. It was super obvious. Any questions, thoughts? concerns? Several break times given. Any last parting thoughts or things expressed there? Right. Um then we actually go to C or uh meeting closing. See one adjournment. Do I have a motion to adjourn? >> I'll second. >> You can start it out second. >> I'll second. >> All in favor say aye. >> Aye. >> Meeting adjourned.