Treasurer gives Measure F grade of B

Tax collector takes issue with district’s endowment pledge and its reliance on corporate donations.Orange County’s treasurer and tax collector gave the Measure F school bond a mostly positive review Wednesday, praising the Newport-Mesa Unified School District for prudent spending and community involvement while raising concerns in other areas.

A five-page report by John Moorlach, issued to the district, evaluated both Measure F and the previous $110-million school bond, Measure A, which voters approved in 2000. At the end, Moorlach gave the first bond an overall grade of A, while Measure F received a B.

Beginning in September, the treasurer began interviewing Newport-Mesa administrators, looking over documents and checking campaign finance reports for the school bond. While his report was less stellar than the one he wrote on Measure A five years ago, district administrators saw Moorlach’s comments as mostly fair.

“We’re generally pleased with it,” said Supt. Robert Barbot. “It’s a good assessment of where we’re going.”

The analysis breaks Measure F down into five categories, offering a letter grade on each one. The measure earned an A on the first three items, which dealt with setting aside district general funds for maintenance, spending responsibly on construction work, and forming an oversight committee to mediate the project.

Moorlach set aside special praise for the Citizens’ Oversight Committee, which he called “a full partner in the process and ... one to be copied and envied throughout the county.”

Moorlach gave Measure F a grade of B on the last two categories, the first concerning Newport-Mesa’s pledge to create an endowment for future capital campaigns, the second regarding the district’s use of proceeds.

When the district initiated Measure A five years ago, it pledged to create an endowment that would accumulate funds over the next 28 years. The object of the endowment fund was to have money in store for future renovation projects -- ironically, projects such as Measure F. According to Moorlach’s report, the district only had $559,460 in the reserve fund by the end of the last fiscal year, and was behind schedule.

Several Newport-Mesa administrators were puzzled, however, by the treasurer’s claim that Newport-Mesa had set a goal of $110 million -- the amount of Measure A bonds -- for the endowment fund. Barbot, Deputy Supt. Paul Reed and Measure F campaign chairman Mark Buchanan all said they had heard of no specific amount planned.

“It was never designed to have a target,” Buchanan said. “It was just designed for a general cash flow. He keeps saying we’re behind reaching this $110-million target, but there never was a $110-million target.”

Moorlach admitted that he had not heard of the district setting a monetary goal five years ago, but said that it is protocol for all districts to create an endowment to match their bond total.

“I’m surprised that they’re surprised, because this is one of the criteria we use for every district,” Moorlach said.

In the final category, Moorlach downgraded the Measure F campaign team for relying too heavily on corporate donations -- especially from companies who have benefited from Measure A. He noted that Measure A had more support from the general community, while most of the current campaign’s sponsors have been either district employees or building firms.

However, Moorlach added that the district had been honest in the bidding process for Measure A, not favoring companies that had donated campaign funds. He expected Newport-Mesa to follow suit with Measure F.

“The track record of Measure A shows that [donating campaign funds] was not anywhere near a guarantee,” he said. “Even if you did give money, you didn’t always get the work.”

Reed, who often oversees Newport-Mesa maintenance issues, said he mostly agreed with Moorlach’s analysis. His main complaint was a scholastic one.

“I’m curious how John averages three A’s and two Bs into a B, but we’re pleased with the report,” he said.

QUESTION

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