Staff reported to the Orange County Department of Education Facilities Corporation on Aug. 6 that the Esplanade commercial property finished fiscal year 2024–25 with a stronger-than-expected operating position and that planned capital projects will draw down reserves in 2025–26.
Finance staff said FY24–25 revenues totaled about $2.87 million and expenditures about $2.26 million, producing an operating surplus of $612,072 and an ending fund balance of $5,686,213 as of June 30, 2025. The outstanding loan principal on the property was reported at $5,130,000 with a loan interest rate of 2.84% and a payoff date in June 2029.
For FY25–26 staff proposed a conservative operating plan that assumes an occupancy rate of 85% and forecasts $2,726,918 in operating revenues and $2,353,415 in expenditures. The budget includes one‑time capital work — staff said an elevator installation and replacement of several large HVAC units — that drives a projected deficit of $1,246,457 and an estimated ending fund balance of $4,439,756 on June 30, 2026.
Trustees asked about the elevator cost and staff said that while bids for the elevator itself were one component, the entire construction project is more extensive: staff reported the work would total just over $1.5 million, citing significant demolition and stair removal as part of the installation.
The facilities corporation voted to approve the FY25–26 operating budget (motion passed 5–0). Staff said the remaining fund balance will keep the Esplanade project well positioned going into the following year.