The following Public Comment was submitted by e-mail to the DJUSD School Board with copy to DJUSD CFO Amari Watkins. The Public Comment was read into the record by Superintendent John Bowes. As noted in the text of the Public Comment, I have been dialoguing with Amari Watkins over the past three weeks. What came out of the due diligence homework leading up to that dialogue was a complete surprise.
Members of the DJUSD School Board, over the past three weeks I have been in e-mail communication with your CFO Amari Watkins regarding the current and future status of DJUSD’s Community Facilities District No. 1 (CFD #1). Amari has provided the 1989 Resolution documents that created and govern CFD #1, which I have reconciled with the numbers from the four most recent DAVIS JOINT UNIFIED SCHOOL DISTRICT MELLO‐ROOS COMMUNITY FACILITIES DISTRICT NO. 1 SPECIAL TAX REPORTs (“the reports”) prepared by DJUSD’s tax administration consultant, SCI Consulting Group.
Bottom-line … subject to Amari’s (DJUSD’s) provision of any additional legal and/or election documents … the numbers from “the reports” say that CFD#1 will have reached the point where the language from the Rate and Method Resolution, “The special tax shall be levied and collected only so long as it is needed to pay the principal and interest on debt incurred …” will reach both its logical and fiscal conclusion during or before DJUSD’s Fiscal Year 2021-2022 … possibly as early as during or before Fiscal Year 2020-21. Said another way it appears to be clear that CFD #1 will be fully paid off at the end of Fiscal Year 2020-21, or at the latest Fiscal Year 2021-22.
The implications of CFD #1 ending for the DJUSD annual revenue stream are significant.