Fact Check: The Arnold Cypress Park Loan
The claim: This City Council gave away $6 million of taxpayer funds by forgiving interest payments from the Recreation & Parks District to the City of Cypress.
The truth: Forgiving the interest payments did not cost taxpayers a single dollar.
What actually happened
To rebuild Arnold Cypress Park, the City loaned $33 million from its infrastructure reserve fund to the Cypress Recreation & Parks District — two accounts the City Council controls. The City also charged the District interest on that loan.
Recent financial projections from city staff showed that the District would have a negative fund balance for many years due to the loan payments. David voted to waive the approximately $6 million in remaining interest payments, so the money stays with the District instead of moving back into the City’s infrastructure reserve fund.
David’s opponent and others have mischaracterized forgiving the interest as a give away of taxpayer funds.
At the August 25, 2026 public workshop, David asked Stephanie Sikkema, the City’s Director of Finance & Administrative Services, to confirm what this decision actually meant for residents. Her answers were direct:
Asked directly if it was correct to say that forgiving or delaying the interest payments would not cost Cypress residents money, Director Sikkema stated: “I would say that’s correct. It’s not affecting the city’s general fund. It’s just whether or not the interest stays with the District or it goes into the infrastructure reserve fund.”
Director Sikkema also added: “Either way, if the District goes negative, the city’s general fund is ultimately responsible for that negative balance.”
In other words, waiving the interest didn’t cost residents anything — it left more money with the parks district, making it less likely the general fund would ever have to step in to cover a shortfall.
The Bottom Line: Forgiving the interest payments did not cost taxpayers any funds. It simply kept money in the District that will be used to pay for maintenance and improvements for our parks, Senior Center, and Community Center.
Source: Cypress City Council public workshop, August 25, 2026.