In May 2008 the WJUSD entered into a “Lease Agreement With Option To Purchase” for the building that houses the WJUSD District Office at 435 6^th Street. The annual lease payments are contracted to increase from a rate of $472,101 for 2010-11 to over a million dollars a year by the end of the lease. WJUSD had planned to purchase the building and avoid the higher rent. Tragically, the economy took a dive and it was not possible to purchase the building. Faced with the harsh reality of significant budget cuts impacting students, programs, and staff, the District has been searching for means to restore dollars to the general fund. The escalating lease payments further tax the general fund. The District received some relief from one time federal stimulus dollars, but even with added, one time federal dollars, huge cuts to programs were required to balance the budget. The District must operate within its means. The plan must be to reduce spending and identify ways to add dollars to the District’s general fund. Many avenues to accomplish this have been, and continue to be, explored.

With regards to the escalating lease payments for the District Office, the question was simply how to reduce spending for District office space? Would it be cheaper in the long run to break the lease and convert the warehouse for the Transportation Department so it also houses the District Office? Would it be cheaper to relocate the District Office to the closed Willow Spring school site and add portables for space needed? Would it be cheaper to find low financing, if it is available, and purchase the building? If low financing was available, could the District qualify? All of this was studied.

The starting position was to break the lease and move the District Office to some property already owned by the District. Ultimately it was learned the most cost effective solution was to buy the building before the escalation in lease payments using low financing available for non-profit organizations. This recommendation has been made by staff and the District Budget Advisory Council to the WJUSD Board of Trustees. The Board of Trustees are expected to take action on the recommendation in August.

This recommendation to buy the District Office now using low interest rates for non-profits is expected to restore approximately $9 million dollars over the length of the lease to the general fund. The $9 million dollar projection of savings applies if Trustees accept the recommendation and the financing proposed.

District staff and the District Budget Advisory Council understand that for some in our community reopening the sensitive topic of purchasing the building currently leased for the District Office is unthinkable. These are difficult financial times when everything must be explored, even the unthinkable. It is with much respect for all members of the community, regardless of their stance on this topic that we move forward in the interest of our students to save dollars. We ask for the community’s support, and welcome the opportunity to speak with you and provide more detailed information. Two informational meetings are planned. The community is invited to attend.

1.   Wednesday, July 28, 2010, 6:00 – 7:00 p.m.

District Office Board Room (435 6^th Street)

2.   Tuesday, August 3, 2010, 6:00 – 7:00 p.m.

District Office Board Room (435 6^th Street)

If you would like to go on a tour of the District Office building, please report to the Superintendent’s Office at 435 Sixth St. at 5:30 p.m., just before the Informational Meeting on either night, July 28 or August 3. Debra LaVoi, Superintendent, would love to show you around.