Board hears $110M deferred‑maintenance estimate and multi‑source plan to modernize schools; staff propose leveraging RDA and state matching funds

Finance and facilities staff told the Orange Unified School District board on May 9 that the district faces a multi‑year deferred‑maintenance need and offered a financing strategy that mixes state matching funds, Redevelopment Agency (RDA) revenues, developer fees and external grants.

Chief business/facilities staff presented the SMART (School Modernization and Renovation Tomorrow) framework and said district worksheets list roughly $110,000,000 in deferred‑maintenance and modernization needs over a five‑year horizon. The presentation said the district has filed for and holds $38,850,000 in state matching funds (Fund 35), with about $17.4 million committed and the remainder uncommitted.

Mr. Rivera (district finance/facilities lead) outlined multiple funding levers: RDA tax‑increment receipts (projected $8,913,663 for 2024–25 with increases in later years), developer fee balances (recently authorized for portable replacement), energy grants (CalSHAPE; presenters cited about $2.9M already awarded) and possible certificates of participation (COP) to borrow against future RDA revenues. Rivera said COPs would use projected revenues as collateral so the district can finance larger projects now rather than waiting for cash flow to accumulate.

Trustees pressed staff on prioritization criteria and how the facilities master plan (board‑approved in 2021) would be updated to reflect current enrollment trends and eligibility for state matching funds. Rivera said staff will return with a prioritized project list referencing roofing, HVAC replacement and safety‑related work; DSA (Division of the State Architect) requirements will lengthen timelines for projects that change building footprints or access and must be considered in planning.

Trustees emphasized three priorities during discussion: (1) protect existing investments and address roofs and HVACs that jeopardize interiors and operations, (2) prioritize projects at campuses that remain eligible for state matching funds to maximize reimbursements, and (3) include some projects from the long‑term facilities master plan so modernization advances longer‑range goals as well as urgent repairs.

Rivera recommended a planning runway of four to five months to structure any COP issuance and complete design and DSA submittals so projects could begin the following summer. He said the district has used similar strategies in the past, and the board will be asked to adopt a prioritized project list and any borrowing plan in a future meeting.

Board members did not take immediate binding action on borrowing; trustees directed staff to return with a prioritized list, updated cost estimates accounting for escalation, and proposals that align with state matching eligibility.