Cajon Valley Union School District and Grossmont Union High School District have filed a complaint against Tracy Drager, the San Diego County Auditor-Controller, alleging failure to make statutory pass-through payments. The complaint was filed in the Superior Court of Sacramento County on December 29, 2017.
The case revolves around "pass-through" agreements established in 1988 between the school districts and the now-dissolved El Cajon Redevelopment Agency (RDA). These agreements entitled the districts to receive a portion of property tax increment revenue generated within the RDA project area until specified caps were reached—$30 million for CVUSD and $9.2 million for GUHSD. Following the dissolution of California's redevelopment agencies in 2012, San Diego County continued making payments according to these agreements until their respective caps were met. GUHSD reached its cap in Fiscal Year 2011-2012, while CVUSD had not yet reached its cap as of April 28, 2021.
In August 2016 and January 2017, respectively, GUHSD and CVUSD requested confirmation from the Auditor-Controller that statutorily defined pass-through payments would continue under Health and Safety Code sections 33607.7(b)(2) and 34183(a)(1) after their agreement caps were reached. The Auditor-Controller denied these requests, prompting the districts to seek a writ of mandate compelling further payments.
The plaintiffs argue that under section 33607.7 they are entitled to statutorily defined pass-through payments once their contractual caps are met. They assert that section 34183 requires such payments to be made from the Redevelopment Property Tax Trust Fund post-cap. However, both the trial court and appellate court sided with the Auditor-Controller’s interpretation that no further payments are required once contractual obligations are fulfilled.
The plaintiffs sought a declaration affirming their right to these additional payments and reallocation of funds they allege were due for fiscal years 2012-2013 through 2016-2017. However, both courts ruled against them based on statutory interpretation principles, emphasizing that section 33607.7 requires only one form of payment—either contractually defined or statutorily defined—not both sequentially.
Representing Cajon Valley Union School District and Grossmont Union High School District is Jeffrey A. Hoskinson from Atkinson, Andelson, Loya, Ruud & Romo law firm. Defendants Tracy Drager and associated entities are represented by Thomas Deak from San Diego County Counsel’s office. Real parties in interest include City of El Cajon and Successor Agency to Former El Cajon Redevelopment Agency represented by Holly O. Whatley and Liliane M. Wyckoff from Colantuono, Highsmith & Whatley.
Judge Stephen P. Acquisto presided over this case under Case ID No: C097429 / Super Ct No: 34-2018-80002921-CU-WM-GDS.